Fortive Corporation Reports Q1 2025 Revenue Decline to $1.474 Billion

Fortive Corporation reported its financial results for the first quarter of 2025, revealing a total revenue of $1.474 billion, a decrease of 3.3% compared to $1.525 billion in the same period last year. The decline was attributed to a 1.7% drop in core revenue, alongside a 1.2% negative impact from unfavorable foreign currency exchange rates. The company's net earnings for the quarter were $171.9 million, or $0.50 per diluted share, down from $207.4 million, or $0.58 per diluted share, in the prior year.

The company's performance was affected by significant changes in its business segments. The Intelligent Operating Solutions (IOS) segment saw a slight increase in sales to $671.4 million from $665.7 million, while the Precision Technologies (PT) segment experienced a notable decline, with sales falling to $500.6 million from $559.0 million. The Advanced Healthcare Solutions (AHS) segment reported a modest increase in sales to $302.2 million from $299.8 million. The overall operating profit margin decreased to 15.8%, down from 19.8% in the previous year, primarily due to a gain on the sale of property recorded in the first quarter of 2024.

Strategically, Fortive is in the process of separating its Precision Technologies segment into an independent publicly traded company, named Ralliant Corporation, with the separation expected to be completed by the end of the second quarter of 2025. This move aims to create two distinct entities: one focused on technology solutions under the Fortive name and the other on precision instruments and engineered products. The company also completed the acquisition of EA Elektro-Automatik Holding GmbH in January 2024 for approximately $1.72 billion, enhancing its portfolio in high-power electronic test solutions.

Operationally, Fortive's workforce remains robust, with over 18,000 employees across more than 50 countries. The company reported a cash balance of $892.1 million as of March 28, 2025, an increase from $813.3 million at the end of 2024. The company continues to manage its liquidity effectively, with net cash provided by operating activities totaling $241.7 million for the quarter. Looking ahead, Fortive anticipates challenges from ongoing geopolitical developments, trade policies, and foreign exchange volatility, which may impact its financial results. The company remains focused on leveraging its Fortive Business System to navigate these challenges and drive future growth.