Fortive Corporation Reports Decline in Revenue and Profitability for Q2 2025

Fortive Corporation reported its financial results for the second quarter and first half of 2025, revealing a decline in both revenue and profitability compared to the previous fiscal period. For the three months ended June 27, 2025, total sales amounted to $1.52 billion, a decrease of 2.2% from $1.55 billion in the same period last year. The company's net earnings for the quarter were $166.6 million, down from $195.1 million, resulting in diluted earnings per share of $0.49, compared to $0.55 in the prior year. For the six-month period, total sales were $2.99 billion, down 2.7% from $3.08 billion, with net earnings of $338.5 million compared to $402.5 million in 2024.

The decline in revenue was attributed to a 2.5% decrease in core revenue, which was impacted by a 5.4% drop in sales volume, despite a favorable pricing increase of 2.9%. The company also noted a slight positive contribution from foreign currency exchange rates. Geographically, the decline was primarily driven by market conditions in Western Europe, particularly within the Precision Technologies segment, while North America and China also experienced softness.

Strategically, Fortive completed the separation of its Precision Technologies segment on June 28, 2025, distributing shares of Ralliant Corporation to its shareholders. This separation is expected to allow both companies to focus on their respective markets more effectively. The company incurred $64 million in separation-related costs during the second quarter, primarily for professional services and redundant administrative expenses. Additionally, Fortive has been actively repurchasing shares, having bought back 1.9 million shares at an average price of $71.15 during the quarter.

Operationally, Fortive's workforce remains robust, with over 18,000 employees across more than 50 countries. The company continues to invest in research and development, with R&D expenses increasing to $109.2 million in the second quarter, up from $101.1 million in the prior year. The company also reported a gross profit margin of 59.0% for the quarter, slightly down from 59.8% in the previous year, reflecting the impact of volume declines and increased operational costs.

Looking ahead, Fortive anticipates ongoing challenges due to global trade dynamics, including tariffs and foreign exchange volatility, which may continue to affect its financial performance. The company is focused on leveraging its Fortive Business System to enhance operational efficiency and manage costs effectively. Fortive's management remains cautious but optimistic about navigating these challenges while pursuing growth opportunities in its core markets.