Vontier Corporation Reports Fourth Quarter 2024 Results and Initiates Full Year 2025 Guidance
Vontier Corporation, a global provider of critical technologies and solutions for the mobility ecosystem, has released its financial results for the fourth quarter and full year ending December 31, 2024. The company also provided guidance for the first quarter and full year 2025.
Financial Highlights
For the fourth quarter of 2024, Vontier reported sales of $777 million, a decrease of 1.5% compared to the prior year. However, core sales increased by 3.5%. The company achieved a GAAP diluted net earnings per share (EPS) of $0.82 and an adjusted diluted net EPS of $0.80. Operating cash flow for the quarter was $168 million, with an adjusted free cash flow of $155 million, representing a 128% conversion rate.
For the full year 2024, sales were $2,979 million, down 3.8% from the previous year, while core sales increased by 1.8%. The GAAP diluted net EPS was $2.75, and the adjusted diluted net EPS was $2.89. The company completed $225 million in share repurchases and $150 million in debt paydown during the year.
Business and Operational Highlights
Vontier's Environmental & Fueling Solutions segment saw an 8.5% increase in sales for Q4 2024, driven by strong growth in North America and international dispenser equipment and aftermarket parts. However, the segment's operating profit margin declined by 30 basis points due to regional and product mix.
The Mobility Technologies segment reported a 2.0% increase in sales, with core sales up by 2.7%. This growth was driven by demand for convenience retail payment and enterprise productivity solutions, partially offset by lower demand for car wash technologies. The segment's operating profit margin expanded by 10 basis points year-over-year.
Repair Solutions experienced a 2.2% decline in sales, with core sales also down by 2.2%. The segment's operating profit margin decreased by 390 basis points due to lower volumes and unfavorable product mix.
Strategic Initiatives and Corporate Developments
During the fourth quarter, Vontier repurchased approximately 1.7 million shares for around $60 million and repaid $50 million in debt. For the full year, the company repurchased 6.3 million shares for $225 million and repaid $150 million in debt, ending the year with a net leverage ratio of 2.6x.
Management's Perspective
Mark Morelli, President and CEO of Vontier, commented, "Vontier delivered a solid finish to the year, reflecting disciplined operational execution and continued momentum within our Convenience Retail and Fueling end markets. We made significant progress on our strategic initiatives throughout 2024, as evidenced by the traction we are seeing on recent innovations that deliver revenue growth and productivity for our customers."
Morelli added, "As we look ahead to 2025, I am confident in our ability to deliver on our commitments. Although the macroeconomic environment remains uncertain, we remain focused on capitalizing on end market demand and delivering innovative solutions our customers need."
Future Outlook
For Q1 2025, Vontier expects adjusted diluted net EPS to be in the range of $0.71 to $0.74. For the full year 2025, the company anticipates adjusted diluted net EPS to be between $3.00 and $3.15. Total sales for 2025 are projected to be between $2,970 million and $3,050 million, with core sales growth of 1.0% to 3.5%.
SEC Filing: Vontier Corp [ VNT ] - 8-K - Feb. 13, 2025