Fortive Overview: A Comprehensive Look at the Company's Performance

Fortive is a leading industrial technology company that has been making waves in the industry. It was formed in 2016 through the spin-off of the industrial automation and process and specialty solutions businesses from Danaher Corporation.

Fortive's business model is built around a portfolio of 24 brands, including Fluke, Pittway, and Altrip, among others. These brands offer a diverse range of products and services that cater to various industries, such as industrial automation, electrical, and medical.

Fortive's revenue has been steadily increasing over the years, with a compound annual growth rate (CAGR) of 10% from 2016 to 2020. This growth is a testament to the company's ability to innovate and expand its offerings in the market.

Fortive's financial performance has been a mixed bag in recent quarters. Revenue dipped by 2.2% in Q2 2025, with gross profit following suit at -3.5%.

The company's market capitalization has taken a hit, decreasing by 9.8% to $17.72 billion. However, the number of employees remains steady at 18,000. Net income also declined by 14.6% to $166.60 million, while EBITDA dropped by 8.6% to $400.70 million.

Here's a snapshot of Fortive's financial performance in Q2 2025:

FTV's trailing total returns as of 10/23/2025 are -12.09% for the 1-year period, which is a significant drop compared to the S&P 500's 16.9% return.

The company's 5-year total return is +0.84%, but its 5-year annualized return is only +0.17%. This indicates that FTV's performance has been relatively flat over the long term.

Here's a comparison of FTV's performance to the S&P 500's:

FTV's performance has been quite different from the S&P 500's, with the latter experiencing significant growth over the past 5 years.

FTV's return on assets (ROA) is 3.85%, which is a relatively low figure compared to other companies in the industry.

The company's return on equity (ROE) is 7.36%, which is a decent figure but not exceptional.

FTV's revenue is $6.15 billion, and its net income available to common stockholders is $768.9 million.

The company's diluted earnings per share (EPS) is $2.22, which is a reasonable figure considering its revenue and net income.

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FTV's total cash is $1.83 billion, and its total debt to equity ratio is 47.91%, which is a relatively high figure.

The company's levered free cash flow is $1.33 billion, which is a significant amount of cash available to pay off debt or invest in the business.

FTV's return on assets (ROA) was 4.33% in Q2 2025, which is a decent figure but down from the previous year.

The company's return on invested capital (ROIC) was 7.20% in Q2 2025, which is a relatively high figure.

FTV's revenue was $1.52 billion in Q2 2025, which is a significant amount of revenue for a single quarter.

The company's gross profit was $895.70 million in Q2 2025, and its gross margin was 58.97%.

FTV's market capitalization is $17.72 billion, which is a significant amount of market capitalization.

The company's market capitalization to employee ratio is $0.98 million, which is a relatively high figure.

FTV has 18,000 employees, and its net income was $166.60 million in Q2 2025.

The company's EBITDA was $400.70 million in Q2 2025, which is a significant amount of EBITDA.

FTV's free cash flow was $274.50 million in Q2 2025, and its operating free cash flow was $311.20 million.

The company's long-term debt is $2.91 billion, and its short-term debt is $1.91 billion.

FTV's long-term debt decreased by 18.4% in Q2 2025, and its short-term debt increased by 396.4%.

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Fortive has made significant divestitures in recent years, demonstrating a strategic approach to its business.

In October 2018, Fortive spun off its automation businesses to Altra Industrial Motion for an estimated $3 billion.

This move marked a major shift in the company's focus and resources.

In September 2019, Fortive announced plans to split into two separate publicly traded companies, a decision that would have a significant impact on its financial performance.

The spin-off of the transportation and franchises businesses to Vontier was announced in January 2020, with a planned IPO estimated to yield $1 billion.

However, the IPO was postponed in April 2020 due to market uncertainty caused by the COVID pandemic.

Instead, Fortive chose to spin the business off to shareholders in October 2020, a decision that allowed Vontier to join the S&P 500.

In July 2025, Fortive spun off its precision technologies business into Ralliant Corporation, an independent, publicly traded company.

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Fortive's financial health has been on a downward trend, with revenue decreasing by 2.2% in Q2 2025 compared to the same period last year.

The company's gross profit has also taken a hit, dropping by 3.5% year-over-year, while its gross margin has decreased by 0.8% to 58.97%.

Fortive's market capitalization has been impacted, decreasing by 9.8% in Q2 2025, and now stands at $17.72 billion.

Here's a snapshot of Fortive's key financial metrics:

Despite these challenges, Fortive's employee count remains stable, with 18,000 employees on the payroll.

Fortive's valuation metrics paint a picture of a company with increasing earnings and decreasing debt. The price to earnings ratio has been steadily rising, from 31.56 in Q3 2024 to 32.32 in Q2 2025, with a year-over-year change of 8.73%.

The company's debt has also been increasing, with a total debt of $3.86B in Q3 2024 and $4.81B in Q2 2025, representing a 21.94% increase.

Fortive's valuation measures are also worth noting, with a market cap of $16.84B, enterprise value of $19.82B, and a trailing P/E ratio of 22.42.

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As we dive into the world of valuation, it's essential to understand the various metrics that help us gauge a company's worth. The Price to Earnings (P/E) ratio, for instance, has been steadily increasing over the past few quarters, from 31.56 in Q3 2024 to 32.32 in Q2 2025, with a YoY change of 8.73%.

The Price to Book (P/B) ratio, on the other hand, has been declining, from 1.98 in Q3 2024 to 1.73 in Q2 2025, with a YoY change of -7.71%. This indicates that investors are willing to pay a higher premium for the company's earnings, but a lower premium for its book value.

The Price to Sales (P/S) ratio has also been decreasing, from 4.50 in Q3 2024 to 3.98 in Q2 2025, with a YoY change of -6.83%. This suggests that investors are becoming more cautious about the company's sales growth.

Here's a summary of the key valuation metrics:

The company's Enterprise Value to EBITDA ratio has also been fluctuating, from 71.46 in Q3 2024 to 68.51 in Q2 2025, with a YoY change of 1.45%. This indicates that investors are willing to pay a premium for the company's EBITDA, but the premium is not increasing at the same rate as the P/E ratio.

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Funding is a crucial aspect of a startup's valuation journey.

A startup's funding can come from various sources, including venture capital, angel investors, and crowdfunding. Venture capital firms typically invest in startups with high growth potential in exchange for equity.

Angel investors, on the other hand, are high net worth individuals who invest in startups in exchange for equity and mentorship. Crowdfunding platforms allow startups to raise funds from a large number of people, typically in exchange for rewards or equity.

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Fortive is a diversified industrial technology company, formed in 2016 through the separation of Danaher Corporation.

The company is headquartered in Everett, Washington, and operates in over 140 countries worldwide.

Fortive has a portfolio of 20 brands, including Altra Industrial Motion, Brooks Automation, and Garber Industries.

Their products and services cater to various industries, including industrial, healthcare, and aerospace.

Fortive's financial reports reveal a mixed picture. Revenue for Q2 2025 was $1.52B, a 2.2% decrease from the previous year.

The company's gross profit was $895.70M, a 3.5% drop from Q2 2024. Gross margin also decreased, standing at 58.97% in Q2 2025.

Fortive's market capitalization is substantial, at $17.72B, but has declined by 9.8% compared to the previous year. The company's market capitalization per employee is $0.98M, indicating a significant investment in its workforce.

Here are some key financial metrics:

Fortive's balance sheet and cash flow metrics also provide insight into the company's financial health. Total cash stands at $1.83B, while total debt to equity is 47.91%. Levered free cash flow is $1.33B.

Fortive's profitability and income statement metrics show a profit margin of 12.51% and return on assets of 3.85%. The company's return on equity is 7.36%, and revenue is $6.15B. Net income available to common is $768.9M, and diluted EPS is $2.22.

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Fortive has made innovation a key focus, shifting its growth strategy from primarily relying on M&A activity and operational excellence to embracing a culture of experimentation and innovation.

The company has seen notable success with new product introductions, including the Tektronix MS05X "Elemental" and Fluke's T6.

Invetech's Formulate and Fill platform and Anderson-Negele's paperless recorder are also notable examples of innovative products developed by Fortive.

Fluke's ii900 is another product that showcases Fortive's innovative capabilities.

During the COVID pandemic, ASP quickly innovated on existing technology to allow hospitals to clean masks, highlighting the company's ability to respond to pressing needs.

In May 2020, Fortive partnered with Pioneer Square Labs (PSL) to launch tech startups, demonstrating its commitment to innovation and entrepreneurship.

In June 2020, Fortive, in partnership with PSL, launched TeamSense, further expanding its innovative offerings.