Q2 2024 Fortive Corp Earnings Call Transcript
Key Points
- Fortive Corp (FTV) delivered earnings and free cash flow at the high end of their guidance, with 90 basis points of adjusted operating margin expansion.
- The company showcased strong performance in Advanced Healthcare Solutions and Intelligent Operating Solutions, reflecting leadership in durable growth markets.
- Recurring revenue now constitutes 42% of Fortive Corp (FTV)'s portfolio, growing at low double digits year-to-date.
- Fortive Corp (FTV) repurchased 2 million shares in the second quarter and plans to continue this pace for the remainder of the year.
- The company expects double-digit adjusted EPS and free cash flow growth in 2024, maintaining a strong outlook despite a challenging environment.
- Revenue came in at the low end of guidance due to government spending delays, particularly affecting Techtronics and Gordian.
- Precision Technologies segment saw a core decline of 6.6%, with adjusted operating margins down slightly year-over-year.
- Orders for Precision Technologies were down in the quarter, with a slower-than-expected recovery in certain end markets.
- The company faced headwinds in short-cycle industrial markets, with customer caution and macro uncertainty impacting demand.
- China's recovery was slower than anticipated, affecting the overall performance and leading to a more cautious outlook for the region.
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Greetings and welcome to the Fortive Corporation's second quarter 2024 earnings call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Elena Rosman, Vice President, Investor Relations. Thank you may begin.
Thank you, Diego, and thank you, everyone, for joining us on today's call. With us today are Jim Lico, our President and Chief Executive Officer, and Chuck McLaughlin, our Senior Vice President and Chief Financial Officer, will present certain non-GAAP financial measures. On today's call. Information request by Regulation G is available on the investor section of our website at Fortive.com.
Our statements on period-to-period increases or
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