Vontier Reports First Quarter 2024 Results and Maintains Full Year Outlook

RALEIGH, N.C. , May 02 /Businesswire/ - Vontier Corporation (NYSE: VNT), a leading global provider of critical technologies and solutions to connect, manage and scale the mobility ecosystem, today announced results for the first quarter ended March 29, 2024.

Reported sales in the first quarter declined 3% year-over-year to $755.8 million, reflecting the absence of sales from divested businesses. Core sales increased 4% on strong demand for retail fueling, enterprise productivity and alternative energy solutions. Operating profit of $142.1 million increased 6% from the prior year, and operating profit margin increased 160 basis points, to 18.8%. Adjusted operating profit of $166.7 million increased 3% from the prior year and adjusted operating profit margin increased approximately 130 basis points, to 22.1%. Net earnings were $136.8 million, and adjusted net earnings were $115.7 million, resulting in GAAP diluted net earnings per share of $0.88 and adjusted diluted net earnings per share of $0.74.

“We delivered solid first quarter results, exceeding our profit guidance for the quarter, with continued momentum across the majority of our end markets,” said Mark Morelli, President and Chief Executive Officer. “Our customers across key growth verticals continue to invest in our innovative solutions that optimize their revenues and lower operating costs through reducing complexity and managing their assets more effectively.”

Morelli continued, “Meeting these customer needs increasingly requires smarter, more connected solutions. Vontier’s large installed base, coupled with the depth and breadth of our portfolio and our Connected Mobility strategy, uniquely positions us to deliver industry-leading, integrated solutions that drive enhanced productivity, automation and profitability to our customers. I remain confident in our ability to create value for all our stakeholders and deliver on our financial commitments.”

Environmental & Fueling Solutions reported sales grew 6% year-over-year. Core sales increased 10%, driven by strong growth in North America dispenser equipment, aftermarket parts, and environmental solutions. Segment operating profit increased 21% versus the prior year. Segment operating profit margin expanded 370 basis points resulting from favorable product and geographic mix, ongoing cost savings and positive price/cost.

Mobility Technologies reported sales declined 1% versus the prior year. Core sales increased slightly year-over-year, as continued strong demand for C-store enterprise productivity and alternative energy solutions was offset by softer demand for car wash technologies. Segment operating profit was down slightly versus the prior year. Segment operating profit margin increased 10 basis points year-over-year despite higher R&D and other growth investments.

Repair Solutions reported sales grew 1% over the prior year. Core sales growth of approximately 1% was driven by continued demand within the tool storage and diagnostic tools categories, partially offset by moderation in hardline products. Segment operating profit declined 5% (or just over $2 million) versus the prior year. Segment operating profit margin declined 160 basis points, the result of higher operating costs.

Other Items

• Repurchased ~$22 million, or ~0.6 million shares during the quarter

• Repaid $50 million in debt during the quarter

• Net leverage ratio ended Q1 at 2.6X

2024 Outlook

• Total sales $3,040 to $3,100 million; Core sales growth +4 to 6%

• Adjusted operating profit margin expansion of 80 to 110 basis points year-over-year

• Adjusted diluted net earnings per share in the range of $3.00 to $3.15

• Adjusted free cash flow conversion of ~90 to 100%

Q2 2024 Outlook

• Total sales $735 to $750 million; Core sales growth +2 to 4%

• Adjusted operating profit margin expansion of 20 to 60 basis points year-over-year

• Adjusted diluted net earnings per share in the range of $0.67 to $0.71

Conference Call Details

Vontier will discuss results and outlook during its quarterly investor conference call today starting at 8:30 a.m. ET. The call and an accompanying slide presentation will be webcast on the “Investors” section of Vontier’s website, www.vontier.com, under “Events & Presentations.” A replay of the webcast will be available at the same location shortly after the conclusion of the presentation.

The call can be accessed via webcast or by dialing +1 800-549-8228, along with the conference ID: 38690. A replay of the webcast will be available at the same location shortly after the conclusion of the presentation, or by dialing +1 888-660-6264, conference ID: 38690 and passcode 38690 or under the “Investors” section of the Vontier website under “Events & Presentations.”

ABOUT VONTIER

Vontier (NYSE: VNT) is a global industrial technology company uniting productivity, automation and multi-energy technologies to meet the needs of a rapidly evolving, more connected mobility ecosystem. Leveraging leading market positions, decades of domain expertise and unparalleled portfolio breadth, Vontier enables the way the world moves – delivering smart, safe and sustainable solutions to our customers and the planet. Vontier has a culture of continuous improvement and innovation built upon the foundation of the Vontier Business System and embraced by colleagues worldwide. Additional information about Vontier is available on the Company’s website at www.vontier.com.

NON-GAAP FINANCIAL MEASURES

In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release also references “core sales growth,” “adjusted operating profit,” “adjusted operating profit margin,” “segment operating profit,” “segment operating profit margin,” “adjusted net earnings,” “adjusted diluted net earnings per share,” “free cash flow,” “adjusted free cash flow,” “adjusted free cash flow conversion,” “EBITDA,” “adjusted EBITDA” and “net leverage ratio” which are non-GAAP financial measures. The reasons why we believe these measures, when used in conjunction with the GAAP financial measures, provide useful information to investors, how management uses such non-GAAP financial measures, a reconciliation of these measures to the most directly comparable GAAP measures and other information relating to these measures are included in the supplemental reconciliation schedule attached. The non-GAAP financial measures should not be considered in isolation or as a substitute for the GAAP financial measures, but should instead be read in conjunction with the GAAP financial measures. The non-GAAP financial measures used by Vontier in this release may be different from similarly-titled non-GAAP measures used by other companies.

FORWARD-LOOKING STATEMENTS

This release contains forward-looking statements within the meaning of the federal securities laws. These statements include, but are not limited to statements regarding Vontier Corporation’s (the “Company’s”) business and acquisition opportunities and anticipated earnings, and any other statements identified by their use of words like “anticipate,” “expect,” “believe,” “outlook,” “guidance,” or “will” or other words of similar meaning. There are a number of important risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those suggested or indicated by such forward-looking statements and you should not place undue reliance on any such forward-looking statements. These risks and uncertainties include, among other things, deterioration of or instability in the economy, the markets we serve, international trade policies and the financial markets, contractions or lower growth rates and cyclicality of markets we serve, competition, changes in industry standards and governmental regulations that may adversely impact demand for our products or our costs, our ability to successfully identify, consummate, integrate and realize the anticipated value of appropriate acquisitions and successfully complete divestitures and other dispositions, our ability to develop and successfully market new products, software, and services and expand into new markets, the potential for improper conduct by our employees, agents or business partners, impact of divestitures, contingent liabilities relating to acquisitions and divestitures, impact of changes to tax laws, our compliance with applicable laws and regulations and changes in applicable laws and regulations, risks relating to international economic, political, war or hostility, legal, compliance and business factors, risks relating to potential impairment of goodwill and other intangible assets, currency exchange rates, tax audits and changes in our tax rate and income tax liabilities, the impact of our debt obligations on our operations, litigation and other contingent liabilities including intellectual property and environmental, health and safety matters, our ability to adequately protect our intellectual property rights, risks relating to product, service or software defects, product liability and recalls, risks relating to product manufacturing, our relationships with and the performance of our channel partners, commodity costs and surcharges, our ability to adjust purchases and manufacturing capacity to reflect market conditions, reliance on sole sources of supply, security breaches or other disruptions of our information technology systems, adverse effects of restructuring activities, impact of changes to U.S. GAAP, labor matters, and disruptions relating to man-made and natural disasters. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our Form 10-K for the year ended December 31, 2023. These forward-looking statements represent Vontier’s beliefs and assumptions only as of the date of this release and Vontier does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise.

VONTIER CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (in millions, except per share amounts) (unaudited)
	Three Months Ended
	March 29, 2024				March 31, 2023
Sales	$	755.8			$	776.4
Operating costs and expenses:
Cost of sales, excluding amortization of acquisition-related intangible assets		(383.8	)			(423.4	)
Selling, general and administrative expenses		(165.4	)			(157.5	)
Research and development expenses		(44.5	)			(41.0	)
Amortization of acquisition-related intangible assets		(20.0	)			(20.7	)
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