Fortive Reports Fourth Quarter and Full Year 2025 Results

• Delivered Full Year 2025 GAAP diluted net EPS of $1.59 and adjusted diluted net EPS of $2.71, exceeding the high end of guidance range
• Q4 reported revenue growth of 4.6% and Q4 core revenue growth of 3.3%
• Executed an incremental $265 million of share repurchases in Q4, bringing total second half repurchases to ~$1.3 billion, representing ~26 million shares or ~8% of diluted shares outstanding
• Fortive Accelerated strategy in execution mode, medium-term financial framework solidly intact
• Initiating FY 2026 Adjusted EPS guidance of $2.90 to $3.00

EVERETT, Wash.–(BUSINESS WIRE)–Fortive Corporation (“Fortive”) (NYSE: FTV) today announced financial results for the fourth quarter and full year 2025.

“Q4 represented another quarter of solid execution by our new Fortive team. With the first two quarters of performance now behind us, and our 2026 strategic and financial plans firmly in place, our strong conviction in the road ahead continues to build. In Q4, our team delivered results ahead of our expectations with ~3% core revenue growth, ~8% Adjusted EBITDA growth, and ~13% Adjusted EPS growth. This strong performance enabled us to exceed the high end of our full year Adjusted EPS guidance range. We also continued to execute our disciplined, returns-focused capital allocation strategy, completing an additional $265 million of share repurchases in the quarter and bringing total second-half buybacks to ~$1.3 billion,” said Olumide Soroye, President and CEO.

“Looking ahead, we are initiating our full year 2026 Adjusted EPS guidance of $2.90 to $3.00. We remain laser-focused on executing the three elements of our Fortive Accelerated strategy: profitable organic growth acceleration powered by FBS Amplified, disciplined capital allocation, and a commitment to building investor trust. While we are still early in our journey, the progress we are seeing reinforces our confidence in delivering on our medium-term financial framework and realizing the significant value creation opportunity ahead,” Mr. Soroye concluded.

Financial Highlights for Fourth Quarter 2025, Continuing Operations

• Revenue of $1.12 billion, up 4.6% year-over-year; core revenue up 3.3%
• GAAP net income of $192 million, down 0.9% year-over-year, GAAP net income margin of 17.1%; adjusted EBITDA of $358 million, up 7.8% year-over-year, adjusted EBITDA margin of 31.9%
• GAAP diluted net EPS of $0.60, up 7.1% year-over-year; adjusted diluted net EPS of $0.90, up 12.5% year-over-year
• GAAP operating cash flow of $344 million; Free Cash Flow of $314 million
• Deployed $265 million towards share repurchases in the fourth quarter

Financial Highlights for Full Year 2025, Continuing Operations

• Revenue of $4.16 billion, up 1.9% year-over-year; core revenue up 1.7%
• GAAP net income of $533 million, up 10% year-over-year, GAAP net income margin of 12.8%; adjusted EBITDA of $1,233 million, up 6.1% year-over-year, adjusted EBITDA margin of 29.6%
• GAAP diluted net EPS of $1.59, up 16.1% year-over-year; adjusted diluted net EPS of $2.71, up 12% year-over-year
• GAAP operating cash flow of $1.0 billion; Free Cash Flow of $931 million
• Deployed $1.6 billion towards share repurchases in FY 2025

Initiating Full Year 2026 Guidance

For the full year 2026, Fortive anticipates adjusted diluted net earnings per share of $2.90 to $3.00.

Fourth Quarter 2025 Summary Financial Results, Continuing Operations

Fourth Quarter 2025 Summary Financial Results by Segment, Continuing Operations

Full Year 2025 Summary Financial Results, Continuing Operations

Full Year 2025 Summary Segment Financial Results, Continuing Operations

PRECISION TECHNOLOGIES SEPARATION

On June 28, 2025 (the “Distribution Date”), the Company completed the separation (the “Separation” or the “PT Separation”) of its former Precision Technologies segment by distributing to Fortive shareholders on a pro rata basis all of the issued and outstanding common stock of Ralliant Corporation (“Ralliant”), the entity incorporated to hold the PT businesses. The requirements for reporting the Ralliant business as discontinued operations were met upon completion of the PT Separation. Unless otherwise indicated, all amounts herein refer to continuing operations.

CONFERENCE CALL DETAILS

Fortive will discuss results and outlook during its quarterly investor conference call today starting at 12:00 p.m. ET. The call and an accompanying slide presentation will be webcast on the “Investors” section of Fortive’s website, www.fortive.com, under “News & Events.” A replay of the webcast will be available at the same location shortly after the conclusion of the presentation.

The conference call can be accessed by dialing 877-407-3110 within the U.S. or by dialing 215-268-9915 outside the U.S. a few minutes before 12:00 p.m. ET and notifying the operator that you are dialing in for Fortive’s earnings conference call. You can access a replay of the conference call on the “Investors” section of Fortive’s website, www.fortive.com, under “News & Events”.

ABOUT FORTIVE

Fortive innovates essential technologies to keep our world safe and productive. Fortive’s strategic segments – Intelligent Operating Solutions and Advanced Healthcare Solutions – include iconic inventor brands with leading positions in their markets. The company’s businesses design, develop, manufacture, and market products, software, and services, building on leading brand names, innovative technologies, and strong market positions. Fortive is headquartered in Everett, Washington and employs a team of more than 10,000 research and development, manufacturing, sales, distribution, service, and administrative team members in approximately 50 countries around the world. With a culture rooted in continuous improvement, the core of our company’s operating model is the Fortive Business System. For more information please visit: www.fortive.com.

NON-GAAP FINANCIAL MEASURES

In addition to the financial measures prepared in accordance with United States generally accepted accounting principles (GAAP), this earnings release also references “adjusted net earnings,” “adjusted diluted net earnings per share,” “adjusted EBITDA”, “adjusted EBITDA margin”, “free cash flow,” and “core revenue growth,” which are non-GAAP financial measures. The reasons why we believe these measures, when used in conjunction with the GAAP financial measures, provide useful information to investors, how management uses such non-GAAP financial measures, a reconciliation of these measures to the most directly comparable GAAP measures and other information relating to these measures are included in the supplemental reconciliation schedule attached. The non-GAAP financial measures should not be considered in isolation or as a substitute for the GAAP financial measures, but should instead be read in conjunction with the GAAP financial measures. The non-GAAP financial measures used by Fortive in this release may be different from similarly-titled non-GAAP measures used by other companies. With respect to forward-looking non-GAAP measures, we have not reconciled with, or presented, corresponding forward-looking GAAP measures since doing so would require us to make assumptions with precision about acquisitions, currency translations, capital and other expenses and other similar adjustments during the future periods.

FORWARD-LOOKING STATEMENTS

Statements in this presentation that are not strictly historical, including statements regarding anticipated financial results, global and regional economic conditions, industry trends, geopolitical events, future acquisitions, impact of trade and spending policies, the ability to execute the planned strategies, interest rate and current exchange rate impact, future prospects, shareholder value, and any other statements identified by their use of words like “anticipate,” “expect,” “believe,” “outlook,” “guidance,” “target”, or “will” or other words of similar meaning, are “forward-looking statements” within the meaning of the United States federal securities laws. Factors that could cause actual results to differ materially from those in the forward-looking statements include, among other things: deterioration of or instability in the economy, the markets we serve, international trade policies and deteriorating trade relations with other countries, including imposition of tariffs and retaliatory tariffs between United States and China and other countries, responsive economic nationalism, trade restrictions, and enhanced regulation, impact of any prolonged government shutdown, the financial markets, geopolitical conditions and conflicts, security breaches, data exfiltration, or other disruptions of our information technology systems, supply chain constraints, our ability to adjust purchases and manufacturing capacity to reflect market conditions, reliance on sole sources of supply, contractions or lower growth rates and cyclicality of markets we serve, competition, changes in industry standards and governmental regulations, our ability to manage leadership transitions and recruit and retain key employees, our ability to successfully identify, consummate, integrate and realize the anticipated value of appropriate acquisitions or otherwise effectively deploy our capital, our ability to develop and successfully market new products, software, and services and expand into new markets, the potential for improper conduct by our employees, agents or business partners, contingent liabilities relating to acquisitions and divestitures, impact of changes to tax laws, our compliance with applicable laws and regulations and changes in applicable laws and regulations, risks relating to international economic, geopolitical, including war and sanctions, legal, compliance and business factors, risks relating to potential impairment of goodwill and other intangible assets, currency exchange rates, tax audits and changes in our tax rate and income tax liabilities, the impact of our debt obligations on our operations, litigation and other contingent liabilities including intellectual property and environmental, health and safety matters, our ability to adequately protect our intellectual property rights, risks relating to product, service or software defects, product liability and recalls, risks relating to product manufacturing, our relationships with and the performance of our channel partners, commodity costs and surcharges, adverse effects of restructuring activities, our separation into two independent, publicly-traded companies, risk related to tax treatment of our prior separations, impact of our indemnification obligation to Ralliant and Vontier, impact of changes to U.S. GAAP, labor matters, and disruptions relating to man-made and natural disasters and climate change. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our Annual Report on Form 10-K for the year ended December 31, 2024 and Quarterly Reports on Form 10-Q for the subsequent quarters. These forward-looking statements speak only as of the date of this presentation, and Fortive does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise.

This information is presented for reference only. Final audited statements will include footnotes, which should be referenced when available, to more fully understand the contents of this information.

This information is presented for reference only. Final audited statements will include footnotes, which should be referenced when available, to more fully understand the contents of this information.

This information is presented for reference only. Final audited statements will include footnotes, which should be referenced when available, to more fully understand the contents of this information.

This information is presented for reference only. Final audited statements will include footnotes, which should be referenced when available, to more fully understand the contents of this information.

FORTIVE CORPORATION AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

AND OTHER INFORMATION

Management believes that each of the non-GAAP financial measures described below provide useful information to investors by reflecting additional ways of viewing aspects of our operations that, when reconciled to the corresponding GAAP measure, help our investors to understand the long-term profitability trends of our business, and facilitate comparisons of our operational performance and profitability to prior and future periods and to our peers.

The information presented below reflect GAAP to non-GAAP reconciliations for the non-GAAP measures of Fortive on a continuing operations basis.

These non-GAAP measures should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measures, and may not be comparable to similarly titled measures reported by other companies.

Adjusted Net Earnings, Adjusted Diluted Net Earnings per Share, Adjusted EBITDA, and Adjusted EBITDA Margin

We disclose the consolidated non-GAAP measures of historical adjusted net earnings, historical adjusted diluted net earnings per share, and the non-GAAP measures of historical adjusted earnings before income taxes, interest, depreciation, and amortization (“adjusted EBITDA”), and adjusted EBITDA margin, which to the extent applicable, make the following adjustments to GAAP net earnings, and GAAP diluted net earnings per share:

• Excluding on a pretax basis amortization of acquisition related intangible assets;
• Excluding on a pretax basis acquisition, divestiture, and Separation related items;
• Excluding on a pretax basis the costs incurred pursuant to discrete restructuring plans that are fundamen

Contacts

INVESTOR CONTACT

Christina Jones

Vice President, Investor Relations

Fortive Corporation

6920 Seaway Boulevard

Everett, WA 98203

Telephone: (425) 446-5000

Email: [email protected]

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