Fortive to Outline Value Creation Strategy and Financial Framework

Simpler, Focused Company with a Clear Path for Acceleration

EVERETT, Wash.--(BUSINESS WIRE)-- Fortive Corporation ("Fortive") (NYSE: FTV) today is hosting its 2025 Investor Day with members of the Fortive leadership team detailing plans for driving sustainable growth and delivering shareholder value following the pending separation of Ralliant Corporation on June 28, 2025.

Olumide Soroye, incoming President and CEO of Fortive, said, “We begin an exciting new chapter at Fortive as a focused company with high-quality operating brands and a demonstrated track record of strong financial performance. With approximately 50% recurring revenue, sustainable competitive advantages, and a strategic focus on attractive markets aligned to strong favorable secular trends, we are well positioned to accelerate profitable growth. The Fortive Business System remains the engine of our success, and we’re amplifying its impact by integrating new capabilities, including AI and emerging technologies, to drive faster profitable growth and innovation. Further, our legacy of robust free cash flow generation continues, enhanced by a renewed commitment to disciplined financial stewardship and balanced capital allocation aimed at maximizing shareholder returns. Together, with our extraordinary teams and culture, this all adds up to a powerful framework for unlocking accelerated and sustained value creation in the years ahead.”

New Fortive: A Simpler Company with Clear Strategy to Accelerate Value Creation

Following completion of the spin-off, Fortive will emerge as a premier company, with leading positions in industrial and healthcare operations, poised to accelerate profitable growth and drive value creation through:

• Simplification. Fortive’s ten iconic market-leading brands all delivering safety and productivity solutions to customers with a focus on differentiated products, customer experience and recurring revenues resulting in premier gross margins, profit margins and FCF profile as demonstrated over the last 5 years.
• Poised for acceleration. Fortive’s strategically advantaged businesses – with high recurring revenues and diverse end market and attractive geographic exposures – will benefit from alignment to favorable secular tailwinds and strong operating leverage, enhancing its more durable growth and profitability profile.
• Fortive Business System – amplified to unlock faster profitable growth. Leveraging the power of FBS, infused with AI and emerging technologies, Fortive will increase its innovation velocity, expand in high growth markets and regions, and increase recurring customer value to accelerate organic growth.
• Disciplined capital allocation: Fortive is committed to a capital allocation strategy focused on amplifying shareholder returns over the medium-term by balancing share repurchases, M&A with a bias for bolt-on acquisitions, and a regular, growing dividend.
• Purpose-built team for accelerated performance. The Fortive leadership team and organization is confident and energized, with a clear strategy and strong culture of continuous improvement and dedication to FBS, poised to deliver accelerated shareholder returns.

James Lico, President and Chief Executive Officer, stated, “I’m incredibly proud of what we’ve built at Fortive, including our strong culture of FBS and solid foundation for the future. As Fortive and Ralliant begin their journeys as independent, focused companies, I’m excited about what lies ahead. Today’s investor day presentations highlight each company’s strategic vision and investment potential. I have full confidence in Olumide’s leadership of Fortive and the experienced team driving its next chapter of enduring value creation.”

2025 Fortive Investor Day Presenters

The investor day will feature presentations from the following members of Fortive’s leadership team:

• Olumide Soroye, incoming President and Chief Executive Officer
• Mark Okerstrom, Chief Financial Officer
• Chad Rohrer, Group President
• Parker Burke, Group President
• Arul Elumalai, Group President

Fortive Reaffirms Q2 2025 Guidance

For the second quarter 2025, despite ongoing fluctuations in tariff rates and corresponding countermeasures, Fortive continues to anticipate diluted net earnings per share of $0.44 to $0.49 and adjusted diluted net earnings per share of $0.85 to $0.90, in each case, on a consolidated basis including its Precision Technologies segment.

Fortive will provide an updated full year 2025 outlook on its second quarter 2025 earnings conference call, with such outlook presented on a continuing operations basis after accounting for its Precision Technologies segment as discontinued operations.

Webcast and Supplemental Material

A live webcast will begin at 1:30 p.m. ET and conclude at approximately 4:00 p.m. ET. The webcast and accompanying slide presentation will be available on the “Investors” section of Fortive’s website, www.fortive.com, under “Events/Presentations.” A replay of the webcast will be available following the presentation.

About Fortive

Fortive is a provider of essential technologies for connected workflow solutions across a range of attractive end-markets. Fortive’s strategic segments - Intelligent Operating Solutions, Advanced Healthcare Solutions, and Precision Technologies - include well-known brands with leading positions in their markets. The company’s businesses design, develop, service, manufacture, and market professional and engineered products, software, and services, building upon leading brand names, innovative technologies, and significant market positions. Fortive is headquartered in Everett, Washington and employs a team of more than 18,000 research and development, manufacturing, sales, distribution, service and administrative employees in more than 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 generally accepted accounting principles (GAAP), this release also references “adjusted diluted net earnings per share,” which is a non-GAAP financial measure. Fortive has not reconciled forward-looking targets or outlook regarding non-GAAP measures because the reconciliations to the corresponding GAAP measures would require Fortive to make estimates or assumptions with precision about acquisitions, capital and other expenditures and similar adjustments during the relevant period. 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.

Forward-Looking Statements

Statements in this release that are not strictly historical, including statements regarding anticipated financial results, industry trends, our plans to separate into two independent, publicly-traded companies, including the timing and cost related to the planned separation, future prospects, shareholder value, future acquisitions, future dividend payments, future share repurchases, the ability to execute the planned strategies, secular trends, 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, geopolitical conditions and conflicts, international trade policies and the financial markets, security breaches 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, changes in trade relations with other countries, contractions or lower growth rates and cyclicality of markets we serve, competition, changes in industry standards and governmental regulations, our ability to recruit and retain key employees, our ability to successfully identify, consummate, integrate and realize the anticipated value of appropriate acquisitions and successfully complete divestitures and other dispositions, 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, risk related to tax treatment of our prior or pending separation, impact of our indemnification obligation to 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 the Quarterly Report on Form 10-Q for the quarter ended March 28, 2025. These forward-looking statements speak only as of the date of this release, 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250610680490/en/

Elena Rosman / Christina Jones

Vice President, Investor Relations

Fortive Corporation

6920 Seaway Boulevard

Everett, WA 98203

Telephone: (425) 446-5000

Source: Fortive Corporation