Vontier Corp.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 6 August 2026: press release. Guidance figures: 2 raised, 1 lowered, 4 new, 2 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Sales fell on shipment timing: Reported sales fell 2.2% to $756.7 million. Core sales fell 0.2%: convenience retail demand was offset by a year-over-year shipment-timing headwind. Source
• Adjusted operating profit and margin rose: Adjusted operating profit reached $173.8 million, and the adjusted margin was 23.0%. Adjusted diluted EPS was $0.89, against $0.79 a year earlier. Source
• Tariff refund lifted Environmental margin: Environmental and Fueling margin rose 240 basis points to 31.6%. Management cited a discrete tariff refund benefit, volume leverage and ongoing simplification initiatives. Source
• Operating cash flow and conversion: Operating cash flow was $116.3 million and adjusted free cash flow $97.6 million, 79% of adjusted net earnings. Six-month operating cash flow was $162.8 million. Source
• Teletrac Navman divestiture closed: The Teletrac Navman divestiture closed, bringing $85 million of cash proceeds. The loss on sale of business was $86.2 million, shown in non-operating expense. Source
• Full-year EPS range raised: Full-year adjusted diluted EPS range raised to $3.45 to $3.55 from $3.35 to $3.50. The total sales range moved up $10 million at each end. Source
• Full-year margin expansion now lower: Full-year adjusted operating profit margin expansion at the midpoint is now about 100 basis points, down from about 130 basis points. The prior figure included a 50 basis point divestiture tailwind. Source
• Third-quarter guidance initiated: Third-quarter guidance covers total sales of $720 to $735 million, core sales growth of about 5%, and adjusted diluted EPS of $0.82 to $0.86. Source

“Vontier delivered a solid second quarter, with results ahead of our expectations,”

Mark Morelli, President and Chief Executive Officer

Guidance

What changed from last quarter

• Guidance raised: Full-year total sales range raised by $10 million at each end, to $3,000 to $3,050 million from $2,990 to $3,040 million. Source
• Guidance raised: Full-year adjusted diluted net EPS range raised to $3.45 to $3.55 from $3.35 to $3.50. Source
• Guidance lowered: Full-year adjusted operating profit margin expansion at the midpoint now about 100 basis points, from about 130 basis points previously. Source
• New guidance: Third-quarter 2026 guidance initiated for adjusted diluted net EPS of $0.82 to $0.86. Source
• Guidance kept: Full-year adjusted free cash flow conversion guidance of about 95% was kept. Source
• Ended: The Teletrac Navman divestiture closed, with $85 million of cash proceeds received. Source
• New: Share repurchase authorization increased to $1.0 billion. Source

Results and growth drivers

• Sales fell on shipment timing: Reported sales fell 2.2% to $756.7 million. Core sales fell 0.2%: convenience retail demand was offset by a year-over-year shipment-timing headwind. Source
• Adjusted operating profit and margin rose: Adjusted operating profit reached $173.8 million, and the adjusted margin was 23.0%. Adjusted diluted EPS was $0.89, against $0.79 a year earlier. Source
• GAAP EPS below adjusted EPS: GAAP diluted EPS was $0.20 against adjusted diluted EPS of $0.89. The reconciliation adds back amortization, restructuring costs, asbestos items and a loss on sale of business. Source
• GAAP operating profit increased: GAAP operating profit was $146.7 million, up 7.6%, and the GAAP operating profit margin was 19.4%, up about 180 basis points year over year. Source

Segments and end markets

• Environmental and Fueling core sales rose: Environmental and Fueling Solutions core sales rose 4.6%, led by fuel dispensing equipment and aftermarket parts. Reported sales rose 1.3% to $366.2 million. Source
• Mobility sales fell on vehicle ID: Mobility Technologies sales fell 6.2% to $262.9 million, and core sales fell 4.9%. Convenience retail payment and asset management demand partly offset lower vehicle identification shipments. Source
• Mobility margin rose on savings: Mobility Technologies segment margin rose 190 basis points to 21.0%, while segment operating profit rose 3.4% to $55.3 million. Source

“With solid bookings growth, a building pipeline supported by new product launches, and constructive end markets, we are confident in our growth outlook for the third quarter and balance of the year.”

Mark Morelli, President and Chief Executive Officer

Costs, margins and pricing

• Tariff refund lifted Environmental margin: Environmental and Fueling margin rose 240 basis points to 31.6%. Management cited a discrete tariff refund benefit, volume leverage and ongoing simplification initiatives. Source
• Repair margin fell on price and mix: Repair Solutions margin fell 180 basis points to 19.0%, and segment operating profit fell 9.9% to $28.3 million, on unfavorable price and mix and higher investments. Source
• Simplification savings running ahead: Management described measurable progress on its cost savings program. Simplification also lowered Mobility Technologies R&D expense in the quarter. Source

Demand, bookings and pipeline

• Bookings growth and pipeline building: Management cited solid bookings growth, a building pipeline and constructive end markets. The release gives no bookings figure or backlog amount. Source
• Convenience retail demand healthy: Demand for convenience retail solutions, including fueling, payment and asset management, was described as healthy, with shipment timing offsetting it in core sales. Source
• Repair technicians' spending pressured: Repair Solutions core sales fell 1.3%, reflecting macroeconomic pressure on service technicians' discretionary spending. Source

“We are also making measurable progress on our cost savings program, which is running ahead of plan.”

Mark Morelli, President and Chief Executive Officer

Cash flow and share repurchases

• Operating cash flow and conversion: Operating cash flow was $116.3 million and adjusted free cash flow $97.6 million, 79% of adjusted net earnings. Six-month operating cash flow was $162.8 million. Source
• Quarterly buybacks and larger authorization: Management repurchased 4.4 million shares for $130 million in the quarter and raised the share repurchase authorization to $1.0 billion. Source
• Year-to-date buybacks reached $200 million: Year-to-date repurchases were 6.2 million shares for $200 million, the same amount shown as treasury stock purchases in the six-month cash flow statement. Source

Portfolio, leverage and priorities

• Teletrac Navman divestiture closed: The Teletrac Navman divestiture closed, bringing $85 million of cash proceeds. The loss on sale of business was $86.2 million, shown in non-operating expense. Source
• Net leverage eased to 2.3X: Net leverage ratio ended the quarter at 2.3X, from 2.4X at the first quarter end. Net debt was $1,639.3 million. Source
• Capital allocation tied to EPS guidance: Management tied the raised full-year EPS guidance to disciplined execution and capital allocation, and to long-term shareholder value. Source

Third-quarter and full-year guidance

• Full-year EPS range raised: Full-year adjusted diluted EPS range raised to $3.45 to $3.55 from $3.35 to $3.50. The total sales range moved up $10 million at each end. Source
• Full-year margin expansion now lower: Full-year adjusted operating profit margin expansion at the midpoint is now about 100 basis points, down from about 130 basis points. The prior figure included a 50 basis point divestiture tailwind. Source
• Third-quarter guidance initiated: Third-quarter guidance covers total sales of $720 to $735 million, core sales growth of about 5%, and adjusted diluted EPS of $0.82 to $0.86. Source
• Core growth and cash conversion steady: Full-year core sales growth midpoint of about 3% and adjusted free cash flow conversion of about 95% are unchanged from the prior release. Source

Coming up, as management said on 6 August 2026

• New product launches supporting pipeline: Management pointed to new product launches supporting the pipeline; no launch dates or volumes were given. Source

Risks management discussed

• Operational: Shipment timing was a year-over-year headwind that offset convenience retail demand in core sales. Source
• Demand: Macroeconomic pressure on service technicians' discretionary spending reduced Repair Solutions core sales. Source
• Demand: Lower shipments of vehicle identification solutions reduced Mobility Technologies core sales versus the prior year. Source
• Operational: Repair Solutions segment margin fell on unfavorable price and mix and higher investments. Source

Earlier plans management reported on

• Ahead: Management said measurable progress on the cost savings program is running ahead of plan. Source
• Not stated: The prior release expected the Teletrac divestiture to close in early June; the current release reports it closed and gives no timing comparison.

Other quarters

• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.