On August 1, 2024, Vontier Corp (VNT, Financial) released its 8-K filing for the second quarter of 2024. Vontier, spun off from Fortive in 2020, is an industrial technology company with a portfolio of transportation and mobility solutions. The company offers a wide array of products and services, including fueling equipment, sensors, point-of-sale and payment systems, telematics, and equipment used by vehicle mechanics and technicians. Vontier generated approximately $3.1 billion in sales in 2023.
Performance Overview
Vontier Corp (VNT, Financial) reported sales of $696 million for Q2 2024, a 9% decline compared to the same period last year. Core sales declined by 3%, primarily due to order and shipment delays within the Environmental and Fueling segment and Alternative Energy business, as well as ongoing macroeconomic pressures affecting the Repair Solutions segment. Despite these challenges, the company achieved a GAAP diluted net EPS of $0.45 and an adjusted diluted net EPS of $0.63, surpassing the analyst estimate of $0.60.
Financial Achievements and Challenges
Operating profit for the quarter was $114.1 million, a 5% decrease from the prior year, while the operating profit margin increased by approximately 60 basis points to 16.4%. Adjusted operating profit stood at $141.6 million, down 12% year-over-year, with an adjusted operating profit margin of 20.3%, a decrease of 60 basis points.
Net earnings were $70.1 million, and adjusted net earnings were $97.6 million. The company also reported an operating cash flow of $46 million and an adjusted free cash flow of $26 million, representing a 27% adjusted free cash flow conversion.
Segment Performance
| Segment | Sales ($M) | Operating Profit ($M) | Operating Profit % |
|---|---|---|---|
| Environmental & Fueling Solutions | $311.2 | $89.3 | 28.7% |
| Mobility Technologies | $237.6 | $41.2 | 17.3% |
| Repair Solutions | $150.8 | $32.1 | 21.3% |
| Total Vontier | $696.4 | $162.6 | 23.3% |
Income Statement Highlights
For the three months ended June 28, 2024, Vontier Corp (VNT, Financial) reported:
- Sales: $696.4 million
- Operating profit: $114.1 million
- Net earnings: $70.1 million
- GAAP diluted net earnings per share: $0.45
- Adjusted diluted net earnings per share: $0.63
Balance Sheet and Cash Flow
As of June 28, 2024, Vontier Corp (VNT, Financial) reported total assets of $4,235.9 million, with cash and cash equivalents amounting to $331.3 million. The company repaid $50 million in debt during the quarter and retired its 2024 loan maturity. The net leverage ratio ended Q2 at 2.7x.
Outlook and Strategic Initiatives
Vontier Corp (VNT, Financial) has lowered its full-year 2024 outlook, anticipating total sales between $2,900 million and $3,000 million, with core sales growth ranging from -1% to +3%. The company expects an adjusted operating profit margin to be flat to up 50 basis points year-over-year and adjusted diluted net earnings per share in the range of $2.80 to $3.00. For Q3 2024, Vontier projects total sales between $715 million and $740 million, with core sales growth ranging from -2% to +2%.
Vontier also announced its intent to execute an Accelerated Share Repurchase Plan, reflecting its commitment to returning value to shareholders.
“Second quarter results were below our expectations,” said Mark Morelli, President and Chief Executive Officer. “Delayed customer project timing and reduced discretionary spending impacted sales at the tail-end of the quarter. Our teams responded well, recovering a large part of the revenue shortfall in the month of July.”
Despite the short-term headwinds, Vontier remains confident in its strategic positioning and its ability to deliver differentiated value propositions, drive long-term customer success, and unlock shareholder value.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Vontier Corp for further details.
