• Delivered robust margin expansion and record cash flow in 2024
• Strong execution and FBS-driven innovation enabled better-than-expected Q4 operating performance, including record margins and cash flow
• Q4 GAAP diluted EPS of $0.60, adjusted diluted EPS of $1.17, up 19% year-over-year
• Q4 reported operating cash flow of $502 million and free cash flow of $465 million, up 13% year-over-year
• Introducing 2025 outlook; GAAP diluted EPS of $2.38 to $2.50, year-over-year increase of 1% to 6%; adjusted diluted EPS of $4.00 to $4.12, year-over-year increase of 3% to 6%
• Separation of PT segment progressing well, expect to close early Q3’25

EVERETT, Wash.: Fortive Corporation (“Fortive”) (NYSE: FTV) today announced financial results for the fourth quarter and full year 2024.

For the fourth quarter, net earnings were $209 million. For the same period, adjusted net earnings were $406 million. Diluted net earnings per share for the fourth quarter were $0.60. For the same period, adjusted diluted net earnings per share were $1.17.

For the fourth quarter, revenues increased 2% year-over-year to $1.62 billion, which included 2% core revenue growth.

For the full year, net earnings were $833 million. For the same period, adjusted net earnings were $1.37 billion. Diluted net earnings per share for the full year were $2.36. For the same period, adjusted diluted net earnings per share were $3.89.

For the full year, revenues increased 3% year-over-year to $6.23 billion, which included 1% core revenue growth.

James A. Lico, President and Chief Executive Officer, stated, “Our fourth quarter results once again demonstrated strong execution despite the mixed macro environment, leading to better-than-expected core growth, earnings, and free cash flow. Continued growth in our Intelligent Operating Solutions (IOS) and Advanced Healthcare Solutions (AHS) segments was driven by steady demand for our safety and productivity solutions and increased contributions from FBS-driven product innovations. We saw strong order growth across all of our segments, including the second consecutive quarter of double-digit orders growth for our Precision Technologies (PT) segment. This momentum drove sequential improvement in PT core growth and supports our view of a gradual recovery as we move through 2025. As we look ahead, Fortive is poised for improving core sales growth and continued strong operating performance again in 2025.”

For the first quarter of 2025, Fortive anticipates revenue of $1.48 billion to $1.51 billion, diluted net earnings per share of $0.39 to $0.42, and adjusted diluted net earnings per share of $0.83 to $0.86.

For the full year 2025, Fortive anticipates revenue of approximately $6.23 billion to $6.35 billion, diluted net earnings per share of $2.38 to $2.50, and adjusted diluted net earnings per share of $4.00 to $4.12. The foregoing guidance for the full year 2025 does not give effect to the pending separation of the Precision Technologies segment.

Mr. Lico continued, “We have a proven track record of evolving Fortive to ensure sustained performance. Our enhanced portfolio of leading brands and dedication to the Fortive Business System have enabled us to deliver consistent, compounding results over the past five years. As we move through the separation, we are well-prepared to continue this success in 2025 and beyond. I am incredibly excited for the future. Both companies are strategically positioned to build on our performance history and thrive with focused growth and capital allocation strategies that reflect our unwavering commitment to creating sustained value for all stakeholders.”

Update on Pending Separation Into Two Independent, Publicly Traded Companies

On September 4, 2024, Fortive announced its intention to separate its Precision Technologies business into an independent publicly traded company, which will be named Ralliant. The Separation will create (i) a technology solutions company, retaining the Fortive name, with a portfolio of the brands currently operating under Fortive’s Intelligent Operating Solutions and Advanced Healthcare Solutions business segments, focused on resilient, high-quality recurring growth by delivering productivity and safety to customers, and (ii) a global technology company consisting of the brands currently operating under the Precision Technologies segment with a focus on precision instruments and highly engineered products essential for breakthrough innovation and aligned to powerful secular trends. The Separation is intended to qualify as a tax-free spin-off to Fortive shareholders for U.S. federal income tax purposes. Fortive is currently targeting completion of the Separation early in the third quarter of 2025, subject to the satisfaction of certain conditions, including, among others, final approval of Fortive’s Board of Directors, satisfactory completion of financing, receipt of a favorable opinion of legal counsel and/or a private letter ruling from the U.S. Internal Revenue Service with respect to the tax treatment of the transaction for U.S. federal income tax purposes, the effectiveness of a Form 10 registration statement filed with the SEC, and other regulatory approvals.

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 “Events/Presentations.” 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. A digital recording of the conference call will be available two hours after the completion of the call until Friday, February 21, 2025. You can access the conference call replay on the “Investors” section of Fortive’s website, www.fortive.com, under “Events/Presentations,” or by dialing 877-660-6853 within the U.S. or 201-612-7415 outside the U.S (Access ID: 13750805).

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, Precision Technologies, and Advanced Healthcare Solutions – 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 earnings release also references “adjusted net earnings,” “adjusted diluted net earnings per share,” “adjusted operating profit 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.

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, our plans to separate into two independent, publicly-traded companies, including the timing and cost related to the planned separation, 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, 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, our plans to separate into two independent, publicly-traded companies, 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, 2023 and Quarterly Report on Form 10-Q for the quarter ended September 27, 2024. 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.

FORTIVE CORPORATION AND SUBSIDIARIES SEGMENT INFORMATION ($ in millions)
	Three Months Ended								Year Ended
	December 31, 2024				December 31, 2023				December 31, 2024				December 31, 2023
	(unaudited)				(unaudited)				(unaudited)
Sales:
Intelligent Operating Solutions	$	710.8			$	682.7			$	2,714.7			$	2,612.2
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