Vontier Corporation, a global leader in essential technologies and solutions for the mobility ecosystem, released its third-quarter financial results, reporting sales of $750 million, a 2.0% year-over-year decline due to the absence of contributions from divested businesses. Despite this, core sales increased by 2.8%, driven by robust demand for retail fueling equipment and convenience retail payment solutions, although macroeconomic pressures affected the car wash and auto repair sectors.
Operating profit for the quarter was $131.5 million, a decrease of 7.8% from the previous year, with an operating profit margin of 17.5%, down by 110 basis points. Adjusted operating profit was $159.6 million, a 6% year-over-year decline, with a 21.3% adjusted operating profit margin, down by 80 basis points. Net earnings were $91.8 million, and adjusted net earnings reached $111.1 million, resulting in GAAP diluted EPS of $0.60 and adjusted diluted EPS of $0.73.
Vontier achieved solid third-quarter performance, exceeding expectations as we leverage strong momentum in the Convenience Retail and Fueling sectors with new product rollouts,” stated Mark Morelli, Vontier’s President and CEO. “Most of our markets remain favorable, with early signs of stabilization in sectors impacted by weaker demand.” He added, “We are advancing our Connected Mobility strategy, positioning Vontier to lead in digital transformation solutions.
Segment Performance:
Environmental & Fueling Solutions
- Sales: Increased 5.5% to $349.9 million
- Core Sales: Up 8.5%, driven by growth in North American and international dispenser equipment, aftermarket parts, and environmental equipment
- Operating Profit Margin: Expanded by 50 basis points to 29.4%
Mobility Technologies
- Sales: Increased 3.9% to $257.4 million
- Core Sales: Up 4.2%, with demand for retail payment and enterprise productivity solutions partially offset by lower car wash technology sales
- Operating Profit Margin: Declined by 270 basis points to 18.1% due to an unfavorable mix and increased R&D investments
Repair Solutions
- Sales: Decreased 5.1% to $152.1 million
- Core Sales: Declined due to economic pressures affecting high-ticket discretionary purchases
- Operating Profit Margin: Fell by 560 basis points to 21.4% due to lower volumes, sales mix, and timing of bad debt reserves
Additional Highlights:
- Share Repurchases: ~$105 million, or ~3.1 million shares, during the quarter (~$165 million year-to-date)
- Net Leverage Ratio: Ended Q3 at 2.7x
Outlook for 2024:
- Total Sales: Expected in the range of $2.955 to $2.985 billion; core sales up 0.7% to 1.7%
- Adjusted Operating Profit Margin: Approximately flat year-over-year
- Adjusted Diluted EPS: Between $2.86 and $2.92
- Adjusted Free Cash Flow Conversion: ~90%
Q4 2024 Outlook:
- Total Sales: Approximately $770 million, with core sales up ~1.5%
- Adjusted Operating Profit Margin: Expected to decline by 20 basis points year-over-year
- Adjusted Diluted EPS: Approximately $0.79
Conference Call Information:
Vontier will host an investor conference call at 8:30 a.m. ET, with access available via webcast on the “Investors” section of the Vontier website. Replay options will also be provided via webcast and phone.
