Vontier (VNT) Q2 2026 earnings summary

Executive summary

• Q2 2026 results exceeded expectations with adjusted diluted EPS up 13% year-over-year and adjusted operating profit 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 11% core growth in Q2 2025, while reported sales declined 2.2% due to shipment timing headwinds.

• Net earnings for the quarter were $27.4 million, significantly lower than the prior year due to an $86.2 million loss on the sale of the Teletrac Navman business.

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

• Raised full-year adjusted EPS guidance, reflecting confidence in second-half growth, operational execution, and ongoing innovation.

Financial highlights

• Q2 2026 sales were $757 million, down 2.2% year-over-year; core sales were flat, led by Environmental & Fueling Solutions.

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

• Adjusted diluted EPS was $0.89, up 13% year-over-year; GAAP diluted EPS was $0.20.

• Adjusted free cash flow was $98 million, with ~80% conversion; cash and cash equivalents at quarter-end were $265.8 million.

• Year-to-date share repurchases totaled 6.2 million shares for $200 million; Q2 repurchases were $130 million.

Outlook and guidance

• Q3 2026 sales expected at $720–$735 million, with ~5% core sales growth at midpoint; adjusted EPS guidance $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 profit margin expected to expand ~100 basis points to over 22%; adjusted free cash flow conversion outlook at 95%.

• $250 million in share buybacks assumed for the year.

• Outlook remains subject to risks from tariffs, supply chain disruptions, and global economic and geopolitical conditions.