Vontier — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported sales for Q3 2026 were $736.9 million, a 2.1% decrease year-over-year, driven by the divestiture of Teletrac Navman; core sales increased 5.7%.
• GAAP diluted net EPS was $0.73; adjusted diluted net EPS was $0.92.
• Operating profit was $158.4 million, up 11.2% year-over-year, with an operating profit margin of 21.5% (an increase of approximately 260 basis points).
• Adjusted operating profit was $179.3 million, up 12.1% year-over-year, with an adjusted operating profit margin of 24.3% (an increase of 300 basis points).
• Net earnings were $99.0 million; adjusted net earnings were $124.3 million.
• Operating cash flow was $142.8 million; adjusted free cash flow was $133.1 million, representing 107% adjusted free cash flow conversion.
• Net leverage ratio ended the quarter at 2.3X.
• For the nine months ended October 2, 2026, total sales were $2,244.2 million (down 1.0% from $2,267.1 million in the prior period), and adjusted diluted net EPS was $2.60.

Guidance and Future Outlook:

• Raised full-year 2026 adjusted diluted net EPS guidance to a range of $3.60 to $3.64.
• Initiated Q4 2026 guidance for adjusted diluted net EPS of $0.99 to $1.03.
• Full-year 2026 outlook includes total sales of approximately $3,030 million and core sales growth with a midpoint of approximately 3%.
• Full-year 2026 outlook includes adjusted operating profit margin expansion of approximately 180 basis points year-over-year at the midpoint.
• Full-year 2026 outlook includes adjusted free cash flow conversion of approximately 95%.
• Q4 2026 outlook includes total sales of approximately $785 million and core sales growth of approximately 3%.
• Q4 2026 outlook includes adjusted operating profit margin expansion of approximately 280 basis points year-over-year at the midpoint.

Business Segments and Product Lines:

• Environmental & Fueling Solutions: Sales increased 8.7% to $388.9 million; core sales increased 13.1%. Segment operating profit margin increased 240 basis points to 31.6%, driven by strong volume leverage and simplification initiatives.
• Mobility Technologies: Sales decreased 13.7% to $233.6 million; core sales increased 2.2%. Segment operating profit margin increased 740 basis points to 25.9%, driven by cost savings from simplification initiatives.
• Repair Solutions: Sales decreased 0.9% to $140.3 million; core sales decreased 1.0%. Segment operating profit margin decreased 180 basis points to 19.1% due to unfavorable mix, macroeconomic pressures on discretionary spending, and lower interest income.

Market and Competitive Landscape:

• Increasing adoption of innovative products and solutions is contributing to above-market growth.
• Convenience retail facing businesses continue to show ongoing strength.
• Macroeconomic pressures are impacting service technicians' discretionary spending in the Repair Solutions segment.

Risks and Challenges:

• The divestiture of Teletrac Navman impacted reported sales figures.
• Macroeconomic pressures and lower interest income are affecting the Repair Solutions segment.
• Unfavorable product mix impacted the Repair Solutions segment operating profit margin.

Management Commentary and Tone:

• Mark Morelli, President and CEO, stated the company delivered a strong third quarter with results exceeding guidance across sales, margin, and EPS.
• Management noted that simplification and 80/20 initiatives are delivering meaningful operating leverage, with savings tracking ahead of original commitments.
• Management expressed confidence in raising the full-year outlook due to strengthening earnings dynamics.

Other Key Points:

• Repurchased 2.6 million shares for $80.0 million during the quarter.
• Year-to-date share repurchases totaled 8.8 million shares for $280.0 million.
• The company operates in the critical technologies and solutions sector for the mobility ecosystem.
• Intersegment sales included in Mobility Technologies were $25.9 million for Q3 2026 and $17.5 million for Q3 2025.