Vontier (VNT) Baird 2024 Global Industrials Conference summary

Business trends and market outlook

• Book-to-bill ratio remains above 1.0, with solid overall bookings and demand across most segments as 2024 ends.

• Convenience retail and fueling show strong investment, driven by new site buildouts and consolidation, with connected hardware and software solutions addressing rising complexity and labor challenges.

• Invenco business posts double-digit growth in orders and sales, fueled by unified payment and enterprise productivity solutions, with momentum expected to continue into 2025.

• Car wash and repair solutions segments are expected to be flattish in 2025, together representing about 30% of the portfolio, while the remaining 70% is positioned for growth.

• Fleets business benefits from decarbonization trends, with leading positions across all fuel types and continued strength anticipated.

Product innovation and technology adoption

• FlexPay 6, a cloud-connected payment solution, and NFX, a modular microservices architecture, are driving significant customer wins and efficiency gains.

• Major customers like Shell, Chevron, and Costco Canada are adopting integrated solutions, with a full country deployment of the vehicle identification system underway.

• Invenco is expected to deliver high single-digit growth long-term, leveraging digitalization and automation for mobility technologies.

• Patheon, a cloud-based car wash solution, is ramping up with both new and existing customers upgrading, offering greater flexibility and real-time pricing capabilities.

Regulatory, geopolitical, and economic factors

• Exposure to China tariffs is limited, with contingency plans to shift supply chain if needed; 75-80% of China imports are in repair solutions.

• Pricing power and discipline have enabled consistent price-cost positivity, with ability to offset tariff or inflationary pressures.

• Well-positioned across all fuel types, with regulatory and decarbonization trends supporting growth regardless of political administration.