Vontier (VNT) Q3 2024 earnings summary

Executive summary

• Q3 2024 sales were $750 million, down 2% year-over-year due to divestitures, but core sales rose 2.8–3% on strong demand in Environmental & Fueling and Mobility Technologies segments.

• Operating margins and EPS were at or above the high end of guidance, supported by disciplined cost actions and the Vontier Business System.

• Net earnings for Q3 2024 were $91.8 million, with GAAP diluted EPS of $0.60 and adjusted EPS of $0.73.

• Major contract wins, new product launches, and stabilization in Repair Solutions and Car Wash markets contributed to performance.

• Book-to-bill ratio remained above 1.0x for the third consecutive quarter, indicating healthy order flow.

Financial highlights

• Q3 2024 sales were $750 million (down 2% year-over-year); core sales up 2.8–3%.

• Adjusted operating profit margin was 21.3%, down 80 basis points year-over-year, but at the better end of guidance.

• Adjusted EPS was $0.73, ahead of expectations and flat year-over-year.

• Adjusted free cash flow was $109 million in Q3, with 98% conversion.

• Year-to-date sales were $2,202.2 million, down 4.5% from the same period in 2023.

Outlook and guidance

• Full-year 2024 sales expected at $2,955–$2,985 million, with core growth of 0.7%–1.7%.

• Adjusted operating profit margin expected to be flat to down 20 basis points year-over-year; adjusted EPS guidance narrowed to $2.86–$2.92.

• Q4 2024 sales guidance at ~$770 million, with core growth of ~1.5% and adjusted EPS of ~$0.79.

• Early 2025 outlook expects healthy demand in most end markets, with margin expansion and flattish trends in Repair Solutions and car wash.

• Adjusted free cash flow conversion expected at 90% for the full year.