Vontier (VNT) Q1 2026 earnings summary

Executive summary

• Sales increased 1.3% year-over-year to $750.6 million, with core sales up 1.7% led by Environmental & Fueling Solutions, while Mobility Technologies and Repair Solutions saw slight declines.

• Achieved solid topline momentum in the Convenience Retail end market, supported by strong demand for fueling equipment and retail solutions.

• Announced the sale of the Teletrac Navman business for $220 million, retaining a 30% equity stake, with the transaction expected to close in early June.

• Continued execution of Connected Mobility strategy, portfolio simplification, and organizational streamlining to drive growth and efficiency.

• Repurchased 1.8 million shares for $70 million in Q1 and paid $0.025 per share in dividends.

Financial highlights

• Q1 2026 sales reached $750.6 million, up 1.3% year-over-year; core sales growth was 1.7%.

• Adjusted operating margin declined 70 basis points to 21.0% due to mix and R&D timing; operating profit rose 3.6% to $134.8 million.

• Adjusted EPS was $0.80, up 4% year-over-year; GAAP diluted EPS was $0.66.

• Adjusted free cash flow was $28 million, with conversion at 25%, impacted by timing of bond interest and payroll.

• Net earnings were $94.3 million; adjusted net earnings were $113.6 million.

Outlook and guidance

• Full-year 2026 sales guidance updated to $2,990–$3,040 million, reflecting the Teletrac divestiture.

• Core sales growth expected at ~3% year-over-year; adjusted operating profit margin to expand by ~130 basis points.

• Full-year adjusted EPS guidance remains $3.35–$3.50; Q2 adjusted EPS guidance is $0.78–$0.81.

• Adjusted free cash flow conversion for FY 2026 expected at ~95%.

• Approximately 70% of remaining performance obligations expected to be fulfilled within two years.