Vontier (VNT) Barclays 43rd Annual Industrial Select Conference summary

Software and AI strategy

• Software represents 10–12% of sales, focused on industrial applications tightly integrated with hardware, forming a mission-critical layer for customers such as convenience stores and fleet operators.

• Software platforms enable secure payments, data aggregation, and are AI-enabled for functions like uptime management and preventive maintenance.

• Open system architecture allows third-party AI applications via API fees, supporting innovation without risk of AI disintermediation.

• AI is embedded in products like NoPileups for car washes and the Hub for underground equipment, enhancing customer experience and operational efficiency.

• Over 1,200 software engineers use AI in R&D, increasing development velocity and reducing costs, contributing to $15 million in-year savings.

Financial outlook and growth drivers

• Revenue and EBITDA margin guidance is back-end loaded due to seasonality and timing of large projects, with most cost savings realized in the second half of the year.

• End markets in convenience retail and fleets are constructive, with innovation driving above-market growth and share gains.

• Large fleet projects are phased, with new wins starting delivery in the back half of the year; repair segment expected to remain flat.

• Invenco saw over 20% growth in 2024–2025, expected to normalize to high single digits by 2026 as innovation and customer pain points drive adoption.

• Telematics has recovered from technology transitions, now profitable with reduced churn; Driivz is the number two global player in EV charging management, with strong growth in Europe and steady U.S. progress.

Organizational and operational initiatives

• Recent reorganization aligns sales, product, and technology leadership by end market (convenience retail, fleets) to drive synergy and share of wallet.

• Service network and two-step distribution model provide a competitive advantage in supporting mission-critical rollouts.

• Share of wallet per gas station and fleet operator is being expanded through integrated offerings, with significant long-term uplift potential, especially in developing markets.

• Regulatory drivers around sustainability and payment security support long-term business model resilience and margin opportunities.