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Mar 28
Fortive Q1 2025 Earnings Report
Fortive reported mixed results with resilient segment growth offset by macro-driven softness in Precision Technologies.
Key Takeaways
Fortive posted $1.47B in revenue and $0.85 in adjusted EPS, with strong performance in Intelligent Operating Solutions and Advanced Healthcare Solutions, while Precision Technologies faced investment delays.
Net income was $172M, while adjusted EPS reached $0.85.
Revenue declined 3% YoY to $1.47B, driven by softness in Precision Technologies.
Adjusted operating margin expanded to 25.3%, led by Intelligent Operating Solutions.
Free cash flow exceeded expectations with strong execution and cash generation.
Fortive
Fortive
Fortive Revenue by Segment
Forward Guidance
Fortive maintained adjusted EPS guidance for Q2 2025 and updated FY25 to reflect moderated demand and tariff impact.
Positive Outlook
- Q2 2025 adjusted EPS guided between $0.85–$0.90.
- Full-year 2025 adjusted EPS guided between $3.80–$4.00.
- Cash flow performance remains strong and above expectations.
- Separation of Precision Technologies expected to unlock strategic focus.
- Solid demand in utility monitoring and defense & space verticals.
Challenges Ahead
- GAAP EPS guidance lowered due to macro headwinds.
- Precision Technologies facing delayed investment recovery.
- Tariff impacts weighing on forecasted performance.
- Uncertainty remains due to global geopolitical instability.
- Spin-off-related restructuring adds transitional complexity.
Revenue & Expenses
Visualization of income flow from segment revenue to net income