Vontier (VNT) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales were $741.1 million, down 1.9% year-over-year, with core sales down 0.7% due to divestitures and timing shifts in Repair Solutions, partially offset by strong demand in Mobility Technologies and Environmental & Fueling Solutions.

• Adjusted EPS rose 4% year-over-year to $0.77, exceeding guidance; GAAP EPS was $0.59.

• Adjusted free cash flow was $95.6 million, up over 20% year-over-year, with 83% conversion to adjusted net income.

• Board replenished $500 million share repurchase authorization, with $55 million in buybacks and $50 million in debt repaid during Q1.

• The business demonstrated resilience and competitive advantage, advancing strategic priorities and maintaining full-year guidance amid macroeconomic and geopolitical uncertainties.

Financial highlights

• Q1 2025 revenue was $741.1 million, down 1.9% year-over-year; core sales declined 0.7%.

• Adjusted operating profit margin was 21.7%, down 40 basis points year-over-year; GAAP operating margin was 17.6%.

• Adjusted diluted EPS was $0.77; GAAP EPS was $0.59.

• Adjusted free cash flow conversion was 83% for Q1 2025.

• Net leverage ratio was 2.6x; gross debt reduced to $2.1 billion.

Outlook and guidance

• Full-year 2025 sales guidance is $2.97–$3.05 billion, with core sales midpoint +2% and adjusted EPS of $3.00–$3.15.

• Q2 2025 sales guidance is $725–$745 million, with adjusted EPS of $0.70–$0.75 and margin expansion of 30–80 basis points.

• Adjusted free cash flow conversion for 2025 expected at 90%+.

• Guidance includes ~$200 million in share repurchases for 2025.

• Company is monitoring risks from tariffs, supply chain, and geopolitical events.