Reports Fortive Q4 and 2024 Results, Updates 2025 Outlook
Fortive Corporation (NYSE: FTV) has announced its financial results for the fourth quarter and full year of 2024, highlighting strong growth across several segments and a positive outlook for 2025. The company’s fourth-quarter performance demonstrated solid execution amidst a mixed macroeconomic environment, and it continues to position itself for sustained performance with strategic plans for the upcoming year, including a significant corporate separation.
Q4 2024 Financial Highlights
Fortive’s fourth-quarter net earnings were $209 million, with adjusted net earnings reaching $406 million. Diluted net earnings per share (EPS) stood at $0.60, while adjusted diluted EPS came in at $1.17. The company posted a 2% year-over-year increase in revenues, totaling $1.62 billion, driven by a 2% core revenue growth.
James A. Lico, Fortive’s President and CEO, emphasized the company’s strong execution and better-than-expected results in the quarter. Despite the varying economic conditions, Fortive saw continued demand for its products and services, particularly in its Intelligent Operating Solutions (IOS) and Advanced Healthcare Solutions (AHS) segments. The company also benefited from ongoing product innovations driven by its Fortive Business System (FBS), contributing to growth across its portfolio.
“Strong order growth across all our segments, including a second consecutive quarter of double-digit orders growth for our Precision Technologies (PT) segment, demonstrates our ability to perform well despite market uncertainty,” Lico remarked. “We anticipate this momentum will continue as we progress through 2025.”
Full Year 2024 Performance
For the full year 2024, Fortive reported net earnings of $833 million, with adjusted net earnings amounting to $1.37 billion. Diluted net EPS for the year stood at $2.36, and adjusted diluted EPS was $3.89. The company’s total revenue for the year reached $6.23 billion, reflecting a 3% year-over-year increase, which included 1% core revenue growth.
Fortive’s strong financial performance was fueled by its diverse portfolio, including leading brands in its IOS, AHS, and PT segments. The company’s strategic focus on recurring revenue streams and its commitment to innovation played a key role in driving growth despite external challenges.
Outlook for 2025
Looking ahead to the first quarter of 2025, Fortive expects revenues to range between $1.48 billion and $1.51 billion. The company forecasts diluted net EPS of $0.39 to $0.42, with adjusted diluted EPS expected to be between $0.83 and $0.86.
For the full year 2025, Fortive anticipates revenue of approximately $6.23 billion to $6.35 billion. Diluted net EPS for the year is expected to be in the range of $2.38 to $2.50, with adjusted diluted EPS projected between $4.00 and $4.12. The guidance for 2025 does not account for the potential effects of the planned separation of the Precision Technologies segment.
Lico expressed confidence in the company’s outlook for 2025 and beyond. “Our proven track record and commitment to the Fortive Business System have been key to our consistent results over the past five years. As we move through the separation process, we are well-positioned to continue delivering strong growth and value creation for all our stakeholders,” he stated.
Pending Separation and Corporate Restructuring
In September 2024, Fortive announced plans to separate its Precision Technologies business into an independent publicly traded company, which will be named Ralliant. This strategic move aims to create two focused and high-performing companies:
- Fortive will retain its name and focus on technology solutions within the Intelligent Operating Solutions and Advanced Healthcare Solutions segments. This company will continue delivering resilient, high-quality growth, with an emphasis on safety and productivity for its customers.
- Ralliant, the new entity formed from the Precision Technologies segment, will focus on precision instruments and highly engineered products that support breakthrough innovation and align with powerful secular trends in various industries.
The separation is expected to qualify as a tax-free spin-off for Fortive shareholders for U.S. federal income tax purposes. The targeted completion date for the separation is early in the third quarter of 2025, pending final approvals from Fortive’s Board of Directors, satisfactory completion of financing, and other necessary regulatory approvals.
About Fortive
Fortive is a leading provider of connected workflow solutions across multiple end-markets. The company operates through three primary segments: Intelligent Operating Solutions, Precision Technologies, and Advanced Healthcare Solutions. With a portfolio of well-known brands, Fortive delivers essential technologies and services that support the growth of its customers worldwide. Headquartered in Everett, Washington, Fortive employs over 18,000 people in more than 50 countries.
Fortive’s commitment to continuous improvement and innovation is at the core of its operating model, the Fortive Business System, which has been integral to the company’s success in delivering sustained, compounding results over time.
As Fortive moves forward with its separation into two independent companies, it remains poised to build on its strong foundation and capitalize on emerging growth opportunities in the years to come.
