Fortive Corporation designs, develops, manufactures, markets, and services professional and engineered products, software, and services worldwide. Its Intelligent Operating Solutions segment offers connected reliability tools; environment, health, safety, and quality enterprise software products; facility and asset lifecycle software; pre-construction planning and construction procurement solutions; ruggedized professional test tools; electric, pressure, and temperature calibration tools; and portable gas detection tools for a range of vertical end markets including manufacturing, process industries, healthcare, utilities and power, communications and electronics, and others. It markets its products and services under the ACCRUENT, FLUKE, GORDIAN, INDUSTRIAL SCIENTIFIC, INTELEX, PRUFTECHNIK, and SERVICECHANNEL brands. The company's Precision Technologies segment provides electrical test and measurement instruments and services; energetic material devices; and sensor and control system solutions for power and energy, medical equipment, food and beverage, aerospace and defense, off-highway vehicles, electronics, semiconductors, and other general industrial markets. This segment markets its products under the ANDERSON-NEGELE, GEMS, SETRA, HENGSTLER-DYNAPAR, QUALITROL, PACIFIC SCIENTIFIC, KEITHLEY, and TEKTRONIX brands. Its Advanced Healthcare Solutions segment offers hardware and software products and services, including instrument and device reprocessing, instrument tracking, biomedical test tools, radiation safety monitoring, and asset management services; subscription-based surgical inventory management systems to facilitate inventory management and regulatory compliance, as well as technical, analytical, and compliance services to determine radiation exposure services under the ASP, CENSIS, CENSITRAC, EVOTECH, FLUKE BIOMEDICAL, INVETECH, LANDAUER, RAYSAFE, and STERRAD brands. Fortive Corporation was incorporated in 2015 and is headquartered in Everett, Washington.
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Think of it as a more focused Honeywell, specializing in essential industrial and healthcare technologies like sensing, measurement, and automation.
It's essentially Danaher's industrial technology sibling, sharing a similar operating philosophy but with a pure-play focus on industrial and health-related solutions.
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Test and Measurement Equipment: Provides precision electrical, electronic, and industrial test tools, including oscilloscopes, multimeters, and thermal imagers for engineers and technicians.
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Industrial Safety Products: Offers advanced gas detection instruments and connected safety solutions designed to protect workers in hazardous environments.
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Healthcare Sterilization Solutions: Delivers products and services for sterilizing medical devices and maintaining sterile environments in healthcare facilities to prevent infections.
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Sensing and Flow Technologies: Supplies a wide array of sensors, flow meters, and control systems used in industrial automation, process control, and various embedded applications.
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Product Realization Services: Provides comprehensive engineering and manufacturing services for the development and production of complex medical devices, life science instruments, and industrial products.
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Fortive (FTV) sells primarily to other companies (B2B). Due to its highly diversified customer base, no single customer accounts for more than 10% of its consolidated net sales, as disclosed in its public filings. Therefore, rather than identifying specific major customer companies by name, Fortive's major customers can be described by the following categories of businesses and organizations it serves:
- Manufacturing & Industrial Companies: Fortive provides essential technologies, including precision test and measurement equipment, intelligent operating solutions, sensors, and automation tools, to a wide array of manufacturing and industrial enterprises. These customers operate in sectors such as discrete manufacturing, process industries (e.g., food & beverage, pharmaceuticals), automotive, and electronics, using Fortive's solutions for production, quality control, and operational efficiency.
- Utilities & Critical Infrastructure Operators: The company serves electric power utilities, telecommunications providers, and other critical infrastructure operators with solutions for monitoring, control, and asset management. These technologies help ensure the reliability, safety, and efficiency of essential services and infrastructure.
- Research, Development & Engineering Organizations: Fortive's advanced instrumentation and testing equipment are vital for research and development departments, engineering firms, and academic institutions across various sectors, including aerospace & defense, electronics design, and general engineering. These customers rely on Fortive's tools for product innovation, testing, and scientific investigation.
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James Lico
President and Chief Executive Officer
James Lico became President and Chief Executive Officer of Fortive in 2016 when it spun off from Danaher Corporation. Prior to Fortive, he served in various leadership roles at Danaher, including Executive Vice President with responsibility for Dental, Product Identification, and Water Quality platforms. He also served as President of Videojet, a Danaher company. He currently serves on the Board of Directors of 3M Company.
James L. Kelly
Senior Vice President and Chief Financial Officer
James L. Kelly has served as Senior Vice President and Chief Financial Officer of Fortive since January 2020. Before joining Fortive, Mr. Kelly served as Executive Vice President and Chief Financial Officer of GrafTech International Ltd. from 2015 to 2019. Prior to that, he held various leadership positions at Ferro Corporation, including Vice President, Corporate Development and Treasurer, and Interim Chief Financial Officer. He began his career at PricewaterhouseCoopers LLP.
Peter D. Underwood
Senior Vice President, General Counsel and Secretary
Peter D. Underwood has been Senior Vice President, General Counsel and Secretary of Fortive since February 2018. Before joining Fortive, he served as Vice President, General Counsel and Secretary of Convergys Corporation from 2013 to 2018. Prior to that, he was Vice President and Associate General Counsel at NCR Corporation.
Stacey Walker
Senior Vice President and Chief Human Resources Officer
Stacey Walker has served as Senior Vice President and Chief Human Resources Officer of Fortive since February 2020. Prior to Fortive, Ms. Walker held several human resources leadership roles at Danaher Corporation, including Vice President, Human Resources for the Diagnostics platform. She also worked in human resources at PepsiCo.
Mark D. Morelli
Senior Vice President and President, Advanced Sterilization Products
Mark D. Morelli has served as Senior Vice President and President, Advanced Sterilization Products at Fortive since October 2022. Prior to joining Fortive, Mr. Morelli served as President and Chief Executive Officer of Vontier Corporation from 2020 to 2022. He also previously served as President and Chief Executive Officer of CEC Entertainment, Inc., and before that, President and Chief Executive Officer of Electrolux Professional.
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- Digital Transformation in Industrial Automation and Test & Measurement: The accelerating shift towards AI-driven, software-centric platforms, Industrial Internet of Things (IIoT), and digital twins poses a clear emerging threat. As industries adopt more integrated, data-driven solutions for predictive maintenance, process optimization, and smart manufacturing, there is an increasing emphasis on software ecosystems and analytics over standalone, proprietary hardware. While Fortive is investing in its digital capabilities, competitors, including large tech companies and agile software startups, are developing comprehensive platforms that could potentially commoditize Fortive's specialized hardware (sensors, controls, test equipment) within its IntelliSense Automation and Precision Technologies segments, or offer superior integrated solutions that reduce the reliance on Fortive's traditional offerings.
- Accelerated Electric Vehicle (EV) Transition Impacting Gilbarco Veeder-Root: The rapid global adoption of electric vehicles represents a significant emerging threat to Fortive's legacy Gilbarco Veeder-Root business (part of its Precision Technologies segment), which has historically focused on infrastructure for fossil fuel dispensing. While Fortive is actively expanding its EV charging solutions, the accelerating decline in demand for traditional petrol station equipment creates a secular headwind for a core part of this business. The EV charging market is highly competitive and fragmented, with new entrants, automotive OEMs, and energy companies vying for market share, meaning GVR's established position in the legacy market does not guarantee leadership or substantial market share in the rapidly evolving EV charging ecosystem.
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Here are 3-5 expected drivers of future revenue growth for Fortive (FTV) over the next 2-3 years:
- Innovation Acceleration and New Product Introductions: Fortive is prioritizing and accelerating the introduction of new products, particularly within its Fluke and ServiceChannel units. This renewed focus on customer-centric innovation includes recent launches such as the ServiceChannel SaaS R2 product, which features AI-powered work order insights, and the Fluke GFL 1500 Solar Ground Fault Locator, targeting high-growth areas like solar operations.
- Commercial Acceleration in High-Growth Verticals and Geographies: The company is intensifying its commercial efforts by reorienting strategies towards high-growth opportunities. This includes focused initiatives in expanding sectors such as solar operations and data centers, along with increased commercial presence and efforts in key growth geographies like South Asia.
- Expansion of Recurring Revenue Streams and Enhanced Software Offerings: A significant driver is the continued growth in Fortive's recurring revenue, which already constitutes approximately 50% of its revenue base. This growth is being bolstered by enhanced software offerings and service plans, particularly within Fluke and healthcare software, aiming to provide more predictable revenue streams.
- Strategic Bolt-on Mergers and Acquisitions (M&A): Fortive's capital allocation strategy includes pursuing accretive, smaller bolt-on M&A opportunities. The company has revamped its M&A funnel and process to focus on these types of acquisitions, which are expected to enhance its organic results.
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Share Repurchases
- In 2021, Fortive repurchased $449 million of its common stock.
- Fortive repurchased $250 million of common stock in 2022.
- A new $1.0 billion share repurchase authorization was announced in September 2023.
Outbound Investments
- Fortive spent $284 million on acquisitions in 2021.
- The company's strategy includes a focus on high-quality, bolt-on acquisitions.
Capital Expenditures
- Capital expenditures totaled $77 million in 2021, $94 million in 2022, and $99 million in 2023.
- Expected capital expenditures for 2024 are projected to be between $100 million and $110 million.
- These expenditures primarily relate to investments in facilities, equipment, and information technology infrastructure.
