Fortive Corporation

My name is Brock and I will be your conference facilitator this afternoon. At this time, I would like to welcome everyone to Fordham Corporation's third quarter 2025 earnings results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during that time, simply press star then the number one on your telephone keypad. If you would like to withdraw your question, please press star 2. I would now like to turn the call over to Ms. Christina Jones, Vice President of Investor Relations. Ms. Jones, you may begin your conference.

Thank you, and thank you, everyone, for joining us on today's call. I am joined today by Illumide Charoyer, Board of President and CEO, and Mark Okerstrom, Board of CFO. As a reminder, we successfully completed the separation of our precision technology segment, now operating independently as Rallions, on June 28, 2025. Today's call marks Fortiv's first quarterly results under our new structure. During today's call, we present certain non-GAAP financial measures. Information required by Regulation G is available on the Investors section of our website at fortiv.com. We will also make forward-looking statements, including statements regarding events or developments that we expect or anticipate will or may occur in the future. These forward-looking statements are subject to a number of risks, and actual results might differ materially from any forward-looking statements that we make today. Information regarding these risk factors is available in our FAC filings including our annual report on Form 10-K and the subsequent quarterly reports on Form 10-Q. These forward-looking statements speak only as of the date that they are made, and we do not assume any obligation to update any forward-looking statements. Our statements on period-to-period increases or decreases refer to year-over-year comparisons, unless otherwise specified. Our results and outlook discussed today are on a continuing operations basis, unless otherwise specified. With that, I'll turn the call over to Illuminae.

Thank you, Christina. Let me begin on slide three with a few key messages. Q3 was our first quarter as New 40, following our successful spin off of rallying. We are now a simpler, more focused company with a clear strategy, poised to create meaningful share of the value. Our Q3 results offer a waypoint along our path towards creating exceptional returns for shareholders in the years ahead. Four highlights I would like to call out. First, our teams are executing very well with laser focus on driving profitable organic growth with the power of our 40th business system. This drove solid results ahead of our expectations, including core growth of roughly 2%, adjusted EBITDA growth of 10%, and adjusted EPS growth of 15%. Though we aspire for much better as we continue executing our growth strategy, we're pleased to see acceleration in the business. Second, we are raising our full-year adjusted EPS guidance. We now expect to deliver between $2.63 and $2.67 per share, reflecting our adjusted EPS overperformance in the third quarter, the impact of incremental Q3 buybacks, and our otherwise unchanged view on Q4. Third, we deployed capital in the quarter in accordance with our new approach, anchored in delivering the strongest relative returns for shareholders. During the third quarter, we deployed $1 billion to share repurchases, retiring approximately 21 million shares, or 6% of our fully diluted share count. Finally, the financial framework we outlined at our June investor day remains fully intact. And our 40 accelerated strategy is now in execution mode. We have focused on delivering benchmark-beating shareholder returns by leveraging FBS to accelerate profitable organic growth, allocating capital intelligently to optimize shareholder returns over the medium to long term, and rebuilding investor trust. It is early days, but we couldn't be more excited for the road ahead. Before we dive into our Q3 results, let me highlight some examples of the progress we are making in executing our 40th Accelerator Strategy on slide four. Our strategy to drive fast organic growth is built around three core levers, innovation acceleration, commercial acceleration, and recurring customer value, all powered by our amplified 40 business system and enhanced by our disciplined capital allocation approach. We made meaningful progress in advancing our strategy in Q3, starting with innovation acceleration. Our new product introduction velocity continues to accelerate as a result of our renewed focus on customer-centric innovation. During the quarter, we had several notable product launches, including Service Channel's SaaS R2 release, which introduces AI-powered work order insights and streamlined payment solutions. Additionally, Fluke continued its innovation momentum with the GFL-1500 solar ground fault locator. This marks a further foray into the high-growth solar operations vertical and increases customer productivity by reducing troubleshooting time and decreasing hazard exposures. In the quarter, we also launched a new innovation studio in Nashville, Tennessee, and opened a new customer experience center at ASP's headquarters in Irvine, California. Both purpose-built to foster collaboration, accelerate innovation, and deepen customer relationships. Turning to commercial acceleration, we further intensified our commercial focus on faster-growing end markets and regions. And though it is early, we are starting to see green shoots in several areas. In our iOS segment, for example, we have begun to put in place a series of commercial initiatives in North America to enhance our focus and deploy more resources towards high-growth verticals like solar operations, distributed energy, data centers, and defense. We are seeing the early signs of impact in North America Q3 performance. We also recently stepped up our efforts in South Asia, including India, as that region continues to see exceptional economic growth. We saw significant acceleration in the region across both segments, And we are confident that our enhanced regional presence will drive strong momentum in this high growth region in the years to come. Moving on to recurring customer value, we remain focused on increasing recurring revenues. Here again, we are early in our journey and have meaningful runway ahead of us. In the quarter, Fluke continued to make great progress on increasing its percentage of recurring revenue through enhancements to our maintenance software and further expansion of our service plan offerings. And in general, we saw recurring revenue growth continue to outpace our consolidated growth. Finally, disciplined capital allocation is an integral component of our FortiVa Accelerated Strategy. Our capital deployment priorities for New FortiVa are clear. Invest in organic growth, pursue accretive bolt-on M&A, return capital through share repurchases, and maintain a modest growing dividend, all with a focus on best relative returns and maximizing medium to long-term shareholder value. Consistent with these priorities, we repurchased about 21 million shares in the third quarter, reflecting our belief in the attractive relative return of share buybacks at the valuations we saw in the quarter. We have also revamped our M&A funnel and process to reflect our different M&A strategy going forward, focused on accretive, smaller, bolt-on M&A, which meet our stringent strategic and financial criteria. With that, I'll turn it over to Matt to walk through our financial results for the third quarter. Thanks, Olimide.