Fortive : First Quarter 2026 Earnings Call Presentation

Published: 2026-04-30 07:49:24 ET FTV

Published on 04/30/2026 at 07:49 am EDT

EARNINGS PRESENTATION

April 30, 2026

Key Messages

Strong Ǫ1 performance reflects continued solid execution at new Fortive, with core growth of just over 5% and adjusted EPS growth of ~25%

Ǫ1 growth benefited from ~150 basis point tailwind from additional year-over-year selling days

~$500M of share repurchases in Ǫ1 demonstrates continued commitment to disciplined capital allocation approach

Solid progress on our Fortive Accelerated strategy, driving continued confidence in medium-term financial framework and value creation opportunity

Reaffirming our FY 2026 Adjusted EPS guidance range of

$2.G0 to $3.00; currently trending toward the upper half of the range

Faster Profitable Organic Growth

Innovation Acceleration

Commercial Acceleration

Recurring Customer Value

Disciplined Capital Allocation

Invest in organic growth

Smaller bolt-on MCA

Share repurchases

Modest growing dividend

Build and Maintain Investor Trust

Clear expectations and consistent delivery

Simplified guidance and disclosure

Do what we say we will do

Promising early indicators: accelerating new product introduction velocity, refocused commercial strategies driving acceleration, recurring revenue growth outpacing consolidated growth

Deployed ~$1.8B to share repurchases since spin off, representing ~35M shares or

~10% of diluted shares outstanding as of Ǫ2 2025

Bolt-on M&A engine in place, continuously evaluating opportunities against our rigorous strategic and financial criteria

Revamped internal financial processes for better forecast accuracy

Redesigned investor messaging and guidance framework

Delivered solid performance in every quarter since the July 2025 launch of New Fortive

Demonstrated progress

Ambition: 3-5 Year Total Shareholder Return > the S&P 500 Index1

1. Represents management's goal and not a forecast. 4

$953.7M

+102.3%

Trailing Twelve Month (TTM) Free Cash Flow

TTM FCF Conversion on Adj. Net Income

$0.70

+25.4%

Adj. EPS

Adj. EPS Growth (YoY)

$313.7M

2S.3%

13.2%

Adj. EBITDA

Adj. EBITDA Margin

Adj. EBITDA Growth (YoY)

$676.3M

C3.2%

+5.8%

Adj. Gross Profit

Adj. Gross Margin

Adj. Gross Profit Growth (YoY)

$1,069.4M

+7.7%

+5.3%

Revenue

Reported Growth Core Growth

Ǫ1 2026

Ǫ1 2026 COMMENTARY

Core growth of ~5% driven by price and volume growth at both segments

Ǫ1 growth benefited from ~150 bps tailwind from additional year-over-year selling days

Adjusted Gross Margin of ~63%, with year-over-year change impacted by net effect of tariffs that were introduced last year

Adj. EBITDA grew ~13% year-over-year and margin expanded ~140 bps to ~2G%, reflecting operating leverage, structural cost savings, and favorable FX, partially offset by growth investments

Adj. EPS grew ~25% year-over-year, driven by Adj. EBITDA growth and favorable impact of share repurchases

TTM Free Cash Flow Conversion on Adj. Net Income >100%, with Ǫ1 FCF conversion in line with normal seasonality

Ǫ1 2026

Revenue

Reported Growth Core Growth

$743.2M

+7.C%

+5.2%

Adj. Gross Profit

Adj. Gross Margin

Adj. Gross Profit Growth (YoY)

$484.5M

C5.2%

+5.1%

Adj. EBITDA

Adj. EBITDA Margin

Adj. EBITDA Growth (YoY)

$255.1M

34.3%

+8.0%

COMMENTARY

Core revenue growth of ~5%, solid performance in professional instrumentation, Facilities and Asset Lifecycle solutions and gas detection

Ǫ1 IOS growth benefited from ~100 bps tailwind from additional year-over-year selling days

Adj. Gross Margin of ~65%, with year-over-year performance impacted by product mix and the net impact of tariffs

Adj. EBITDA grew 8%, driven by operating leverage, structural cost savings, and favorable FX, partially offset by growth investments

Ǫ1 2026

$83.8M 25.7%

+17.7%

Adj. EBITDA

Adj. EBITDA Margin

Adj. EBITDA Growth (YoY)

$191.8M 58.8%

+7.7%

Adj. Gross Profit

Adj. Gross Margin

Adj. Gross Profit Growth (YoY)

$326.2M

+7.S%

+5.8%

Revenue

Reported Growth Core Growth

Ǫ1 2026

COMMENTARY

Core revenue growth of ~6%, driven by solid demand for healthcare consumables, services and software Ǫ1 AHS growth benefited from ~300 bps tailwind from additional year-over-year selling days

Adj. Gross Margin of ~5G% was ~flat year-over-year, reflecting operating leverage, offset by the net impact of tariffs

Adj. EBITDA growth of ~18% driven by operating leverage, structural cost savings, and favorable FX, partially offset by growth investments

Ǫ1 2026

Balance Sheet

As of April 3, 2026

Cash and equivalents

$0.36B

Gross Debt, principal amounts

$3.50B

Net Debt

$3.14B

Leverage

Ǫ1 2026 TTM Adj. EBITDA

$1.27B

Gross Debt / Adj. EBITDA

~2.8X

Net Debt / Adj. EBITDA

~2.5X

Cash Flow

TTM as of Ǫ1 2026

TTM Operating Cash Flow

$1,064.3M

TTM Capital Expenditures

($110.6M)

TTM Free Cash Flow

$953.7M

TTM Free Cash Conversion on Adj. Net Income

102.3%

COMMENTARY

Deployed ~$500M towards share repurchase in Ǫ1, representing ~GM shares (~3% of diluted shares outstanding) at an average price of

$56.21

Ample capacity and flexibility to execute our capital deployment priorities, always with a disciplined focus on allocating capital to optimize shareholder returns over the medium to long term

Adj. EPS | FY 2026

Guidance as of date of Ǫ2 2026 earnings call: April 30, 2026. 9

Fortive Accelerated

Innovating essential technologies to keep our world safe and productive

CORE REVENUE GROWTH

Three Months Ended April 3, 2026

Operating Solutions

Healthcare

Total Fortive

Total revenue growth (GAAP)

7.6 %

7.G %

7.7 %

Excluding impact of:

Acquisitions and divestitures

0.1 %

- %

Currency exchange rates

(2.5)%

(2.1)%

(2.4)%

Core revenue growth (Non-GAAP)

5.2 %

5.8 %

5.3 %

Intelligent

Advanced Solutions

ADJUSTED GROSS PROFIT AND ADJUSTED GROSS PROFIT MARGIN

: in millions

Intelligent Operating Solutions

Advanced Healthcare Solutions

Total Fortive

Intelligent Operating Solutions

Advanced Healthcare

Total Fortive

Revenue (GAAP)

$ 743.2

$ 326.2

$ 1,06G.4

$ 6G0.G

$ 302.2

$ GG3.1

Gross Profit (GAAP)

$ 483.8

$ 1G1.7

$ 675.5

$ 45G.4

$ 178.1

$ 637.5

Discrete Restructuring Charges

0.7

0.1

0.8

1.8

Adjusted Gross Profit (Non-GAAP)

$ 484.5

$ 1G1.8

$ 676.3

$ 461.2

$ 178.1

$ 63G.3

Gross Profit Margin (GAAP)

65.1 %

58.8 %

63.2 %

66.5 %

58.G %

64.2 %

Adjusted Gross Profit Margin (Non-GAAP)

65.2 %

58.8 %

63.2 %

66.8 %

58.G %

64.4 %

Three Months Ended April 3, 2026 Three Months Ended March 28, 2025

Solutions

ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN FROM CONTINUING OPERATIONS

Three Months Ended

: in millions

April 3, 2026

December 31, 2025

September 26, 2025

June 27, 2025

March 28, 2025

Revenue (GAAP)

$ 1,06G.4

$ 1,122.5

$ 1,027.2

$ 1,016.4

$ GG3.1

Net Earnings from Continuing Operations (GAAP)

$ 136.4

$ 1G1.5

$ 117.0

$ 111.6

$ 112.6

Interest expense, net

31.6

31.0

25.4

32.1

32.0

Income taxes

27.2

2.4

18.0

28.0

21.1

Depreciation

20.4

18.1

17.6

16.8

Amortization

93.2

91.5

91.6

91.2

EBITDA (Non-GAAP)

308.8

336.2

26G.5

280.G

273.7

Pretax acquisition, divestiture, and Separation related items (a)

1.9

2.1

38.3

1.6

Pretax discrete restructuring charges

6.3

18.5

2.1

8.0

3.4

Pretax foreign currency transaction (gains) and losses related to Euro-denominated debt

(3.3)

1.2

(0.5)

Pretax gain from divestiture

(0.1)

(2.1)

Adjusted EBITDA (Non-GAAP)

$ 313.7

$ 357.G

$ 30G.4

$ 288.4

$ 277.1

Trailing Twelve Months Adjusted EBITDA (Non-GAAP) as of April 3, 2026

$ 1,26G.4

Net Earnings Margin from Continuing Operations (GAAP)

12.8 %

17.1 %

11.4 %

11.0 %

11.3 %

Adjusted EBITDA Margin (Non-GAAP)

2G.3 %

31.G %

30.1 %

28.4 %

27.G %

(a) Includes pretax transaction costs, integration costs, corresponding restructuring charges related to acquisitions, and certain Separation-related costs recorded in Net earnings from continuing operations. The sum of the components of adjusted EBITDA may not equal due to rounding.

FORTIVE CONTINUING OPERATIONS: OPERATING PROFIT C OPERATING PROFIT MARGIN TO ADJUSTED EBITDA AND ADJUSTED MARGIN BRIDGE

Three Months Ended

: in millions April 3, 2026 March 28, 2025

Revenue (GAAP)

1,06G.4

GG3.1

Operating Profit (GAAP)

1G1.7

165.3

Amortization of acquisition-related intangible assets

93.2

91.2

Acquisition, divestiture, and Separation related items (a)

1.9

Discrete restructuring charges

6.3

3.4

Adjusted Operating Profit (Non-GAAP)

293.1

259.9

Depreciation

20.4

16.8

Other

0.2

0.4

Adjusted EBITDA (Non-GAAP)

313.7

277.1

Operating Profit Margin (GAAP) 17.G % 16.6 %

Adjusted Operating Profit Margin (Non-GAAP) 27.4 % 26.2 %

Adjusted EBITDA Margin (Non-GAAP) 2G.3 % 27.G %

(a) Includes pretax transaction costs, integration costs, corresponding restructuring charges related to acquisitions, and certain Separation-related costs recorded in Operating profit.

SEGMENT ADJUSTED EBITDA AND SEGMENT ADJUSTED EBITDA MARGIN

Three Months Ended April 3, 2026 Three Months Ended March 28, 2025

: in millions Intelligent

Operating Solutions

Advanced Healthcare Solutions

Corporate Total Fortive

Intelligent Operating Solutions

Advanced Healthcare Solutions

Corporate Total Fortive

Revenue (GAAP)

$ 743.2

$ 326.2

$ -

$ 1,06G.4

$ 6G0.G

$ 302.2

$ -

$ GG3.1

Operating Profit (GAAP)

$ 186.2

$ 32.7

$ (27.2) $

1G1.7

$ 174.6

$ 21.7

$ (31.0) $

165.3

Amortization of acquisition-related intangible assets

47.7

45.5

93.2

46.6

44.6

91.2

Acquisition, divestiture, and Separation related items (a)

0.5

1.4

1.9

Discrete restructuring charges

6.0

0.3

6.3

3.4

Adjusted Operating Profit (Non-GAAP)

$ 240.4

$ 78.5

$ (25.8) $

293.1

$ 224.6

$ 66.3

$ (31.0) $

259.9

Depreciation

14.7

5.3

$ 11.6

$ 4.9

Adjusted EBITDA (Non-GAAP)

Operating Profit Margin (GAAP)

$ 255.1

25.1 %

$ 83.8

10.0 %

17.G %

$ 236.2

25.3 %

$ 71.2

7.2 %

16.6 %

Adjusted Operating Profit Margin (Non-GAAP)

32.3 %

24.1 %

27.4 %

32.5 %

21.G %

26.2 %

Adjusted EBITDA Margin (Non-GAAP)

34.3 %

25.7 %

34.2 %

23.6 %

(a) Includes pretax transaction costs, integration costs, corresponding restructuring charges related to acquisitions, and certain Separation-related costs recorded in Operating profit.

ADJUSTED NET EARNINGS AND ADJUSTED DILUTED NET EPS FROM CONTINUING OPERATIONS

Three Months Ended

: in millions, except per share amounts

April 3, 2026

March 28, 2025

Per share value

Net Earnings and Net Earnings Per Share from Continuing Operations (GAAP)

$ 136.4 $ 0.44

$ 112.6 $ 0.33

Interest on the Convertible Notes to apply if-converted method (a)

- -

Tax effect of the Convertible Notes to apply if-converted method

- -

Diluted Net Earnings and Diluted Net Earnings Per Share (GAAP)

136.4

0.44

112.6

0.33

Pretax amortization of acquisition related intangible assets

93.2

0.30

91.2

0.26

Pretax acquisition, divestiture, and Separation related items (a)

1.9

0.01

Pretax discrete restructuring charges

6.3

0.02

3.4

0.01

Pretax foreign currency transaction (gains) and losses related to Euro-denominated debt

(3.3)

(0.01)

Tax effect of the adjustments reflected above

(17.0)

(0.06)

(16.1)

(0.05)

Adjusted Net Earnings and Adjusted Net Earnings Per Share from Continuing Operations (Non-GAAP)

$ 217.5 $

0.70

$ 1G1.1 $

0.55

Average Common Diluted Stock Outstanding (shares in millions)

312.8

344.6

(a) Includes pretax transaction costs, integration costs, corresponding restructuring charges related to acquisitions, and certain Separation-related costs recorded in Net earnings from continuing operations. Percentages presented elsewhere may not recalculate based on the amounts shown due to rounding.

Net debt (Non-GAAP)

$ 3,141.3

TTM Adjusted EBITDA

$ 1,26G.4

Gross Leverage

2.8X

Net Leverage

2.5X

DEBT PRINCIPAL, NET DEBT, AND LEVERAGE

: in millions

April 3, 2026

Current portion of long-term debt, carrying value

$ 899.8

Long-term debt, carrying value

2,589.3

Debt, net carrying value (GAAP)

3,48G.1

Plus: Aggregate unamortized debt discounts, premiums, and issuance costs

8.3

Debt, principal amounts

3,4G7.4

Less: Cash and equivalents

356.1

FREE CASH FLOW FROM CONTINUING OPERATIONS

Three Months Ended Trailing Twelve

Operating Cash Flows from Continuing Operations (GAAP)

$ 220.4

344.2

2G4.7

205.0

$ 1,064.3

Less: Purchases of property, plant C equipment (capital expenditures) (GAAP)

(26.6)

(30.4)

(28.6)

(25.0)

(110.6)

: in millions April 3, 2026 December 31, 2025 September 26, 2025 June 27, 2025

Months

Free Cash Flow (Non-GAAP)

$ 1G3.8

$ 313.8

$ 266.1

$ 180.0

$ G53.7

Adjusted Net Earnings from Continuing Operations (Non-GAAP)

$ 217.5

$ 288.G

$ 228.3

$ 1G7.8

$ G32.5

Free Cash Flow Conversion on Adjusted Net Earnings from Continuing Operations

8G.1 %

108.6 %

116.6 %

G1.0 %

102.3 %

Three Months Ended Trailing Twelve

Operating Cash Flows from Continuing Operations (GAAP)

$ 1G1.8

327.7

304.7

217.5

$ 1,041.7

Less: Purchases of property, plant C equipment (capital expenditures) (GAAP)

(21.1)

(22.6)

(21.6)

(19.6)

(84.9)

March 28, 2025 December 31, 2024 September 27, 2024 June 28, 2024

Months

Free Cash Flow (Non-GAAP)

$ 170.7

$ 305.1

$ 283.1

$ 1G7.G

$ G56.8

Adjusted Net Earnings from Continuing Operations (Non-GAAP)

$ 1G1.1

$ 27G.8

$ 207.4

$ 1G8.6

$ 876.G

Free Cash Flow Conversion on Adjusted Net Earnings from Continuing Operations

8G.3 %

10G.0 %

136.5 %

GG.6 %

10G.1 %

Disclaimer

Fortive Corporation published this content on April 30, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2026 at 11:48 UTC.