Vontier (VNT) investor relations material

Executive summary

• Q2 2026 results exceeded expectations, with adjusted diluted EPS up 13% year-over-year and adjusted operating margin expanding by 190 basis points, driven by strong demand in convenience retail and Environmental & Fueling Solutions, as well as cost and simplification actions.

• Core sales were flat year-over-year, outperforming guidance despite a tough comparison to prior year; total sales were $756.7 million, down 2.2% year-over-year due to shipment timing.

• Announced and completed key portfolio moves, including the sale of Teletrac Navman and acquisition of EKOS, aligning with the Connected Mobility strategy and enhancing recurring revenue.

• Share repurchases totaled $130 million in Q2 and $200 million year-to-date, with authorization increased to $1 billion.

• Net earnings for the quarter were $27.4 million, impacted by an $86.2 million loss on the Teletrac Navman sale.

Financial highlights

• Q2 2026 sales were $756.7 million; core sales were flat year-over-year.

• Adjusted operating profit margin reached 23.0%, up 190 basis points year-over-year, with a $9 million benefit from tariff refunds.

• Adjusted diluted EPS was $0.89; GAAP diluted EPS was $0.20.

• Adjusted free cash flow was $98 million, converting at ~80% of adjusted net income and 13% of sales.

• Ended the quarter with $265.8 million in cash and net leverage at 2.3x.

Outlook and guidance

• Q3 2026 sales expected at $720–$735 million, with core sales growth of ~5% and adjusted EPS of $0.82–$0.86.

• Full-year 2026 sales guidance raised to $3,000–$3,050 million, with core growth of ~3% and adjusted EPS guidance increased to $3.45–$3.55.

• Full-year adjusted operating margin expected to expand by ~100 basis points to over 22%; adjusted free cash flow conversion expected at ~95%.