Fortive (FTV) Q2 2025 Earnings Call Transcript
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Fortive Corp. (NYSE:FTV) concluded its last quarter as a consolidated company with the completion of the Ralliant spin-off, transforming into a more focused entity centered on Intelligent Operating Solutions and Advanced Healthcare Solutions. Management reported a year-over-year revenue decline and a late-quarter demand shortfall, attributing this to tariff uncertainty, government spending delays, and healthcare policy changes, but noted early July order trends were stabilizing and backlog is expected to convert in future periods. tariff-related cost headwinds impaired segment adjusted gross margins and contributed to conservative full-year adjusted EPS guidance of $2.50 to $2.60 per share, which assumes a continuation of the market dynamics experienced in Q2 and does not forecast any material improvement in macro conditions. The company executed major capital actions, retiring foreign currency debt and prioritizing share repurchases with proceeds from the spin dividend, reducing leverage to its targeted range. Fortive’s guidance methodology shifts to annual adjusted EPS with limited quarterly granularity, while leadership emphasized confidence in long-term targets and ongoing acceleration initiatives despite current macro-driven revenue volatility.
Source Fool.com
