Vontier Corporation

Vontier Corporation supplies industrial technology for fuel retailing, convenience stores, commercial fleets and vehicle repair. Its three divisions are Environmental & Fueling Solutions, Mobility Technologies and Repair Solutions. The shares trade on the New York Stock Exchange under VNT.

Quarterly results

Total sales fell 2.1%, while core sales rose 5.7%. Core growth excludes acquisitions, certain divestitures, currency movements and other specified items. The June Teletrac Navman sale accounts for much of the reported revenue decline.

Adjusted operating profit excludes acquisition-related amortization, restructuring and divestiture adjustments, transaction costs and specified other items. Adjusted net earnings also remove specified investment, business-sale and tax effects. Reported net earnings fell as the effective tax rate increased to 30.8% from 24.4%, while fewer diluted shares helped reported earnings per share rise.

Three different operating trends

Environmental & Fueling Solutions generated $388.9 million of sales, up 8.7%, with 13.1% core growth. Segment operating profit rose to $122.8 million and margin reached 31.6%, up 2.4 percentage points, supported by dispenser and environmental-equipment demand, favorable mix and savings.

Mobility Technologies sales fell 13.7% to $233.6 million after Teletrac's sale, while core growth was 2.2%. Segment profit rose to $60.4 million and margin reached 25.9%, up 7.4 percentage points. The divestiture supplied about 2.5 points of that margin improvement; simplification and research-and-development productivity also helped.

Repair Solutions sales declined 0.9% to $140.3 million and segment profit fell to $26.8 million. Margin was 19.1%, down 1.8 percentage points. Lower financing interest income and product mix affected the quarter, while sales at existing stores rose by a low-single-digit percentage. The $12 million tariff refund included in the first nine months was a second-quarter benefit.

Earlier targets and the latest outlook

August's third-quarter targets were sales of $720 million to $735 million, adjusted earnings of $0.82 to $0.86 a share and roughly 1.1 percentage points of adjusted margin improvement. Actual results exceeded those targets.

The November full-year adjusted earnings range is $3.60 to $3.64 a share, up from $3.45 to $3.55 in August. Expected adjusted operating-margin improvement rose to about 1.8 percentage points from one point. Expected sales are about $3.03 billion, inside August's $3 billion to $3.05 billion range, and the annual core-sales-growth midpoint remains about 3%.

The initial fourth-quarter outlook is roughly $785 million of sales, about 3% core growth, adjusted margin improvement of around 2.8 percentage points and adjusted earnings of $0.99 to $1.03 a share. Full-year adjusted free cash flow conversion remains about 95%, measured against adjusted net earnings.

Cash, buybacks and debt

Third-quarter operating cash flow of $142.8 million less $20.8 million of capital spending produced $122 million of free cash flow. Adjusted free cash flow was $133.1 million after the company's restructuring, transaction and property-sale adjustments. Its adjusted cash conversion was 107.1%.

For the first nine months, operating cash flow was $305.6 million versus $320.9 million a year earlier. Capital spending rose to $63.9 million from $54.6 million, leaving free cash flow of $241.7 million versus $266.3 million. Program share repurchases used $280 million; another $40 million was spent in October. The full-year outlook assumes approximately $320 million of repurchases and roughly 138 million diluted shares.

At October 2, cash and cash equivalents were $258.4 million, down from $492.2 million at year-end. Short-term borrowings were $305.5 million and long-term debt had a $1.596 billion carrying value. The company reported $1.647 billion of net debt and 2.3 times net leverage. Its undrawn revolver had $750 million of borrowing capacity.

A $300 million loan taken out March 31, 2026, matures March 30, 2027. Together with $200 million of cash, it funded repayment of $500 million of notes in April. The remaining major maturities include $500 million of term loans in February 2028, $500 million of notes in April 2028 and $600 million of notes in April 2031.

Completed portfolio changes

Teletrac Navman's sale closed June 30, 2026. The $208.2 million estimated fair-value consideration consisted of $85 million in cash, seller notes valued at $99.8 million and a retained minority stake valued at $23.4 million. Vontier recognized an $86.1 million preliminary loss. The notes have $109 million combined face value, with maturities in 2027 and 2030.

Vontier acquired EKOS on July 31, 2026, adding cloud-connected fleet, fuel and electric-vehicle management software to Mobility Technologies. The estimated $63.4 million purchase consideration, net of cash acquired, comprised $43.1 million of cash and $20.3 million of contingent consideration at fair value. The contingent payment can reach $36 million if recurring-revenue targets are met.