Fortive (FTV) 19th Annual Global Transportation & Industrials Conference summary

Strategic progress and growth pillars

• Achieved sequential acceleration in core growth every quarter since the spin-off, driven by innovation, commercial agility, and recurring customer value initiatives.

• Disciplined capital allocation with $1.8 billion in share repurchases since the spin, focusing on organic growth, bolt-on M&A, and a modest growing dividend.

• Delivered results above expectations for three consecutive quarters, building confidence in meeting 2026–2027 financial targets.

• Growth initiatives target specific markets such as data centers, ambulatory surgical centers, and emerging regions like India and Latin America.

• Resource allocation shifted from corporate cost centers to support growth vectors across all brands.

Financial performance and outlook

• Achieved 5.3% organic growth in Q1, with broad-based performance across segments, aided by extra selling days.

• Confident in maintaining 3–4% core growth framework through 2026–2027, with expectations set to build investor trust.

• April trends aligned with guidance, and no significant negative impact from geopolitical events; Middle East exposure is minimal and currently strong.

• Margin expansion targeted at 50–100 basis points annually, with cost reductions and redeployment toward strategic initiatives.

• Corporate expenses sustainably reduced to around $110 million annually, with ongoing optimization.

Segment and market insights

• Healthcare segment (AHS, ASP) showed strong Q1 performance, with innovation, commercial execution, and recurring value driving growth.

• Investments in local capacity and add-on products support global expansion and customer engagement.

• Easing hospital spending pressures and pent-up demand, along with demographic trends, support a positive outlook for healthcare.

• Fluke and other industrial brands benefit from short-cycle demand, innovation, and targeted market expansion.