Fortive (FTV) investor relations material

Strategic direction and financial profile

• Post-spin, the company operates as a simplified, focused entity with strong brands in attractive markets, generating over $4.1B in revenue, 65% gross margins, and nearly $1B in annual free cash flow.

• Recurring revenues make up approximately 50% of total, supporting consistent organic growth and high net income to free cash flow conversion above 100%.

• The company completed the separation of the Precision Technologies segment, with Ralliant Corporation now independent as of June 28, 2025.

• Focused on safety, productivity, and two main segments: Intelligent Operating Solutions and Advanced Healthcare Solutions.

• Ambition to deliver 3-5 year total shareholder returns exceeding the S&P 500 Index, driven by the Fortive Business System.

Financial performance and operational highlights

• Adjusted EBITDA margin at ~30% for the TTM ending Q3 2025, with core revenue growth averaging 4% CAGR from 2019 to 2024.

• Free cash flow for the TTM was $0.9B, with conversion exceeding 100% of adjusted net income.

• Q3 2025 saw $1B deployed to share repurchases, reducing fully diluted shares outstanding by 6%.

• Adjusted gross profit margin remained stable at approximately 64% throughout the year.

• Both segments maintained strong adjusted operating and EBITDA margins, with IOS at 34.8% and AHS at 26.6% for the TTM.

Fortive Accelerated strategy pillars

• Focused on faster, profitable organic growth through innovation, targeted sales expansion, and enhanced recurring customer value.

• Disciplined capital allocation prioritizes organic growth, selective small bolt-on M&A, share repurchases, and a modest growing dividend.

• Emphasis on building investor trust through clear communication, meeting expectations, and transparent guidance.

• Ongoing focus on innovation, commercial acceleration, and recurring customer value to drive future growth.

• Raised FY 2025 guidance after exceeding expectations in Q3 2025.