• Delivered significant revenue growth, margin expansion, earnings and cash flow growth in 2022, all above the respective guidance set coming into the year

• Q4 total and core revenue growth of 11% and 14% respectively, all segments positively contributing

• Q4 GAAP EPS of $0.64; Adjusted EPS of $0.88, up 11%; operating cash flow of $464 million, up 62% and free cash flow of $428 million, up 62%, demonstrating robust compounding model

• Expect 2023 GAAP EPS of $2.30-$2.45, Up 10-17%; Adjusted EPS of $3.25-$3.40, Up 3-8%

EVERETT, Wash., February 01, 2023--(BUSINESS WIRE)--Fortive Corporation ("Fortive") (NYSE: FTV) today announced financial results for the fourth quarter and full year 2022.

For the fourth quarter, net earnings from continuing operations were $227 million. For the same period, adjusted net earnings from continuing operations were $313 million. Diluted net earnings per share from continuing operations for the fourth quarter were $0.64. For the same period, adjusted diluted net earnings per share from continuing operations were $0.88.

For the fourth quarter, revenues from continuing operations increased 11% year-over-year to $1.53 billion, which included core revenue growth of 14%.

For the full year, net earnings from continuing operations were $755 million. For the same period, adjusted net earnings from continuing operations were $1.13 billion. Diluted net earnings per share from continuing operations for the full year were $2.10. For the same period, adjusted diluted net earnings per share from continuing operations were $3.15.

For the full year, revenues from continuing operations increased 10.9% year-over-year to $5.83 billion, which included core revenue growth of 10.1%.

James A. Lico, President and Chief Executive Officer, stated, "Fortive delivered outstanding operating performance again in 2022, reflecting our leading positions in critical customer workflows and our more resilient portfolio. In the fourth quarter, we generated 14 percent core revenue growth, 11 percent adjusted earnings per share growth, and robust margin expansion and cash flow generation. The business we have built over the past six years is delivering differentiated results even in a challenging environment, and our ability to execute is a testament to the power and rigorous application of the Fortive Business System, as exemplified by our record core growth, margins and cash flow in 2022."

For the first quarter of 2023, Fortive anticipates revenue of $1.40 billion to $1.44 billion, diluted net earnings per share from continuing operations of $0.47 to $0.50 and adjusted diluted net earnings per share from continuing operations of $0.71 to $0.74.

For the full year 2023, Fortive anticipates revenue of $5.95 billion to $6.10 billion, diluted net earnings per share from continuing operations of $2.30 to $2.45, and adjusted diluted net earnings per share from continuing operations of $3.25 to $3.40.

Mr. Lico continued, "We expect that 2023 will be another year of growth and margin expansion in each of our strategic segments. The strength of our backlog position against normalizing demand gives us confidence in our ability to grow through a decline in hardware products orders in the first half, while our software businesses continue their strong pace of growth. Combined with our FBS-driven execution and productivity initiatives, we are in an excellent position to make a real difference for our customers, employees and shareholders despite the economic uncertainty in the year ahead."

Fortive will discuss results and outlook during its quarterly investor conference call today starting at 12:00 p.m. ET. The call and an accompanying slide presentation will be webcast on the "Investors" section of Fortive’s website, www.fortive.com, under "Events & Presentations." A replay of the webcast will be available at the same location shortly after the conclusion of the presentation.

The conference call can be accessed by dialing 888-440-6928 within the U.S. or by dialing 646-960-0328 outside the U.S. a few minutes before 12:00 p.m. ET and notifying the operator that you are dialing in for Fortive’s earnings conference call (access code 6922572). A replay of the conference call will be available two hours after the completion of the call until Wednesday, February 15, 2023. Once available, you can access the conference call replay by dialing 800-770-2030 within the U.S. or 647-362-9199 outside the U.S. (access code 6922572) or visit the "Investors" section of the website under "Events & Presentations."

ABOUT FORTIVE

Fortive is a provider of essential technologies for connected workflow solutions across a range of attractive end-markets. Fortive’s strategic segments - Intelligent Operating Solutions, Precision Technologies, and Advanced Healthcare Solutions - include well-known brands with leading positions in their markets. The company’s businesses design, develop, service, manufacture, and market professional and engineered products, software, and services, building upon leading brand names, innovative technologies, and significant market positions. Fortive is headquartered in Everett, Washington and employs a team of more than 18,000 research and development, manufacturing, sales, distribution, service and administrative employees in more than 50 countries around the world. With a culture rooted in continuous improvement, the core of our company’s operating model is the Fortive Business System. For more information please visit: www.fortive.com.

VONTIER SEPARATION

On October 9, 2020, Fortive completed the separation of its prior Industrial Technologies segment by distributing 80.1% of the outstanding shares of Vontier Corporation ("Vontier"), the entity incorporated to hold such businesses, to Fortive stockholders (the "Separation") on a pro rata basis.

As the Separation occurred during the fourth fiscal quarter of 2020, Fortive has classified Vontier as a discontinued operation in its financial statements for all periods.

NON-GAAP FINANCIAL MEASURES

In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release also references "adjusted net earnings," "adjusted diluted net earnings per share," "free cash flow," and "core revenue growth," which are non-GAAP financial measures. The reasons why we believe these measures, when used in conjunction with the GAAP financial measures, provide useful information to investors, how management uses such non-GAAP financial measures, a reconciliation of these measures to the most directly comparable GAAP measures and other information relating to these measures are included in the supplemental reconciliation schedule attached. The non-GAAP financial measures should not be considered in isolation or as a substitute for the GAAP financial measures, but should instead be read in conjunction with the GAAP financial measures. The non-GAAP financial measures used by Fortive in this release may be different from similarly-titled non-GAAP measures used by other companies.

FORWARD-LOOKING STATEMENTS

Statements in this release that are not strictly historical, including statements regarding the impact of the COVID-19 pandemic, business and acquisition opportunities, impact of acquisitions and dispositions, leadership succession, anticipated financial results, economic conditions, industry trends, future prospects, shareholder value, and any other statements identified by their use of words like "anticipate," "expect," "believe," "outlook," "guidance," or "will" or other words of similar meaning are "forward-looking" statements within the meaning of the federal securities laws. These factors include, among other things: deterioration of or instability in the economy, the markets we serve, international trade policies and the financial markets, the spread of, and the remedial effort related to COVID-19, our ability to adjust purchases and manufacturing capacity to reflect market conditions, reliance on sole sources of supply, changes in trade relations with China, contractions or lower growth rates and cyclicality of markets we serve, competition, changes in industry standards and governmental regulations, our ability to recruit and retain key employees, our ability to successfully identify, consummate, integrate and realize the anticipated value of appropriate acquisitions and successfully complete divestitures and other dispositions, our ability to develop and successfully market new products, software, and services and expand into new markets, the potential for improper conduct by our employees, agents or business partners, contingent liabilities relating to acquisitions and divestitures, impact of changes to tax laws, our compliance with applicable laws and regulations and changes in applicable laws and regulations, risks relating to international economic, geopolitical, including war and sanctions, legal, compliance and business factors, risks relating to potential impairment of goodwill and other intangible assets, currency exchange rates, tax audits and changes in our tax rate and income tax liabilities, the impact of our debt obligations on our operations, litigation and other contingent liabilities including intellectual property and environmental, health and safety matters, our ability to adequately protect our intellectual property rights, risks relating to product, service or software defects, product liability and recalls, risks relating to product manufacturing, our relationships with and the performance of our channel partners, commodity costs and surcharges, security breaches or other disruptions of our information technology systems, adverse effects of restructuring activities, risk related to tax treatment of the Separation, impact of our indemnification obligation to Vontier, impact of changes to U.S. GAAP, labor matters, and disruptions relating to man-made and natural disasters and climate change. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our Annual Report on Form 10-K for the year ended December 31, 2021. These forward-looking statements speak only as of the date of this release, and Fortive does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise.

This information is presented for reference only. Final audited statements will include footnotes, which should be referenced when available, to more fully understand the contents of this information.

This information is presented for reference only. Final audited statements will include footnotes, which should be referenced when available, to more fully understand the contents of this information.

This information is presented for reference only. Final audited statements will include footnotes, which should be referenced when available, to more fully understand the contents of this information.