Fortive Corporation

My name is Daryl and I will be your conference facilitator this afternoon. At this time, I would like to welcome everyone to Ford of Corporation's third quarter 2026 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, press star, then the number two on your telephone keypad. 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 Olumide Soroye, Fortis President and CEO, and Mark Okerstrom, Fortis CFO. 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 fortis.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 SEC 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, and our results and outlook discussed today are on a continuing operations basis. With that, I'll turn the call over to Olumide.

Thank you, Christina, and thank you all for joining our call today. Let me begin on slide three. Q3 marked our fifth consecutive quarter of strong execution and sequential core growth acceleration as we advanced our four-day accelerated strategy. Four key messages from the quarter. First, our teams delivered strong financial results, including core revenue growth of 7.2%, adjusted EBITDA growth of approximately 10%, and adjusted EPS growth of 13%. These results reflect continued organic growth acceleration driven by healthy customer demand and strong execution enabled by our 40 business system. Second, we maintained our disciplined approach to capital allocation. This quarter, we deployed another $300 million towards share repurchases, bringing total capital return through share repurchases since the launch of New 40 to $2.3 billion, representing 13% of shares outstanding. Third, Our four-deep accelerated strategy is translating into improving business performance. Across the portfolio, our investments in innovation, commercial, and recurring customer value are driving faster profitable growth and reinforcing our confidence in the company's long-term value creation opportunity. Finally, we are raising our full-year 2026 adjusted EPS guidance to $3.10 to $3.14, up 15% year-over-year at the midpoint, reflecting our strong year-to-date performance and continued confidence in the trajectory of the business. Moving to slide four, let me highlight some of the progress we are making in executing the three pillars of our 40th accelerated strategy. Starting with our first pillar, delivering faster, profitable organic growth. We are pleased with the progress we're seeing across innovation, commercial, and recurring customer value. all of which are building the foundation for durable, faster organic growth. This quarter, our innovation engine continue to generate new growth opportunities. At Fluke, we expanded our innovation funnel with several new product introductions, including IC Pro thermal and acoustic imagers, which broaden our reach to early in career technicians with intuitive entry-level diagnostic capabilities. At Industrial Scientific, We launched INET Insights, a completely reimagined platform that helps customers manage sophisticated gas detection programs and large detector fleets while expanding the capabilities and value of our recurring INET subscription offering. In facilities and asset lifecycle solutions, we continue to embed AI more deeply into customer workflows. For example, at Service Channel, our R2 release introduced new capabilities including AI powered asset recognition and intelligent agents that not only help create and route work orders but also identify stalled work orders, recommend next best actions and help drive issues to resolution. On the commercial side, we maintained our focus on faster growing end markets and regions where we've made deliberate targeted investments to capture growth. At Fluke, we continue to build commercial capabilities aligned to our strategic growth priorities, including data centers, defense, and early-in-career technicians. During the quarter, we expanded our specialized data center sales capabilities and capacity, secured initial orders for our new early-in-career product bundle, and strengthened relationships with educational organizations to engage the next generation of skilled technicians. At Industrial Scientific, we continue to build commercial momentum for our recently acquired Aeroqual Environmental Monitoring Business in North America and commence manufacturing these products in our U.S. facilities, improving customer lead times and leveraging our combined footprint and 40 business system capabilities to drive greater operational efficiency. In healthcare, ASP and Provation continue to deepen engagement with ambulatory surgical centers through focused commercial resources, targeted partnerships, and innovative customer adoption pathways that expand our install base and improve customer access to our solutions. On our recurring customer value initiatives, we made further progress on deepening customer lifecycle engagement and improving revenue durability. In Q3, we again saw solid recurring revenue growth across both segments. As an example, at Fluke, recurring revenue growth was supported by continued momentum in our E-Main software platform, including increasing customer adoption of recently launched AI-enabled capabilities. During the quarter, E-Main secured several significant customer wins and continued to advance customer migrations to our next generation platform. We are pleased that our 40th Accelerator growth initiatives are not only building a strong foundation for future sustainable profitable growth, but also increasingly translating to our current results, contributing to sequential core growth acceleration in each of the last five quarters since the launch of the 40th. Moving to our second pillar, discipline capital allocation is an integral component of our 40th Accelerator strategy. Consistent with our priorities, we deployed another $300 million towards share repurchases in the third quarter. We continue to evaluate high-quality Bolton opportunities and recent acquisitions are performing well and contributing to growth. Looking forward, our capital allocation priorities remain clear. Invest in organic growth, pursue Bolton M&A where risk-adjusted returns exceed other uses of capital, return capital through share repurchases, and maintain a modest growing dividend, all with a focus on maximizing medium to long-term shareholder value. Moving to our final pillar, building and maintaining investor trust. We are pleased to deliver another quarter of strong performance ahead of expectations as we continue to build our track record of consistent execution. And we remain fully confident in our medium-term financial framework from Invest Today. With that, I'll turn it over to Mark to walk through our financial results for the third quarter in more detail.