VNT

American Century Investments, an investment management company, released its second-quarter 2026 investor letter for the "American Century Investments Small Cap Value Fund." The letter can be downloaded here. U.S. equities posted strong gains during the second quarter of 2026, with markets remaining resilient despite volatility from geopolitical developments in Iran and uncertainty surrounding artificial intelligence (AI). The Federal Reserve maintained its benchmark interest rate during the quarter, although expectations for future policy changes increased as inflation reached a three-year high and economic data remained stronger than expected. The Fund returned 15.58% (Investor) during the quarter, compared to 17.19% for the Russell 2000 Value Index. The Fund's relative underperformance was driven by both sector allocation decisions and stock selection. An underweight allocation to information technology and an overweight position in energy detracted from results, while security selection within communication services contributed positively to performance. Please review the Fund's top five holdings to gain insights into its key selections for 2026. In its second-quarter 2026 investor letter, American Century Investments Small Cap Value Fund highlighted Vontier Corporation (NYSE:VNT). The fund initiated a position in Vontier Corporation (NYSE:VNT) is a technology company that provides mobility ecosystem solutions, during the quarter. On September 29, 2026, Vontier Corporation (NYSE:VNT) closed at $31.57 per share, with a $4.27 billion market capitalization. The stock posted a ~15.09% YTD pullback, trading within a 52-week range of $27.25 and $48.20. Vontier Corporation (NYSE:VNT) reported $3.07 billion in trailing twelve-month (TTM) revenue. American Century Investments Small Cap Value Fund stated the following regarding Vontier Corporation (NYSE:VNT) in its Q2 2026 investor letter: "Vontier Corporation (NYSE:VNT): The company provides technology and software solutions for the mobility, transportation and vehicle repair industries. We initiated a position as we believe Vontier has reported resilient earnings and positive core sales growth. Management reaffirmed 2026 guidance and has returned capital to investors through ongoing share repurchases." Vontier Corporation (NYSE:VNT) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Vontier Corporation (NYSE:VNT) at the end of the second quarter which was 30 in the previous quarter. While we acknowledge the potential of Vontier Corporation (NYSE:VNT) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Vontier Corporation (NYSE:VNT) and shared The London Company's insight on the company. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years. This article is originally published at Insider Monkey.

Shareholders of Vontier would probably like to forget the past six months even happened. The stock dropped 21.7% and now trades at $32.21. This may have investors wondering how to approach the situation. Is now the time to buy Vontier, or should you be careful about including it in your portfolio? Get the full breakdown from our expert analysts, it’s free. Even though the stock has become cheaper, we’re passing on Vontier for now. Here are three reasons why VNT doesn’t excite us, plus one stock we’d rather own. In addition to reported revenue, organic revenue is a useful data point for analyzing Internet of Things companies. This metric gives visibility into Vontier’s core business because it excludes one-time events such as mergers, acquisitions, and divestitures along with foreign currency fluctuations - non-fundamental factors that can manipulate the income statement. Over the last two years, Vontier’s organic revenue averaged 2.9% year-on-year growth. This performance was underwhelming and suggests it may need to improve its products, pricing, or go-to-market strategy, which can add an extra layer of complexity to its operations. Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite. Over the next 12 months, sell-side analysts expect Vontier’s revenue to drop by 1.6%, a decrease from its flat result for the past five years. This projection is underwhelming and implies its products and services will see some demand headwinds. Analyzing the long-term change in earnings per share (EPS) shows whether a company’s incremental sales were profitable — for example, revenue could be inflated through excessive spending on advertising and promotions. Vontier’s EPS grew at 2.7% compounded annual growth rate over the last five years. On the bright side, this performance was better than its flat revenue and tells us management responded to softer demand by adapting its cost structure. Vontier isn’t a terrible business, but it doesn’t pass our bar. After the recent drawdown, the stock trades at 9× forward P/E (or $32.21 per share). While this valuation is optically cheap, the potential downside is big given its shaky fundamentals. We’re pretty confident there are superior stocks to buy right now. Let us point you toward a top digital advertising platform riding the creator economy. ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the internet of things industry, including Vontier (NYSE:VNT) and its peers. Industrial Internet of Things (IoT) companies are buoyed by the secular trend of a more connected world. They often specialize in nascent areas such as hardware and services for factory automation, fleet tracking, or smart home technologies. Those who play their cards right can generate recurring subscription revenues by providing cloud-based software services, boosting their margins. On the other hand, if the technologies these companies have invested in don’t pan out, they may have to make costly pivots. The 6 internet of things stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was in line. In light of this news, share prices of the companies have held steady as they are up 3.6% on average since the latest earnings results. A spin-off of a spin-off, Vontier (NYSE:VNT) provides electronic products and systems to the transportation, automotive, and manufacturing sectors. Vontier reported revenues of $756.7 million, down 2.2% year on year. This print exceeded analysts’ expectations by 1.3%. Overall, it was a strong quarter for the company with full-year EPS guidance exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates. Vontier delivered the weakest guidance update, slowest revenue growth, and weakest full-year guidance update of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 1.9% since reporting and currently trades at $32.97. Is now the time to buy Vontier? Access our full analysis of the earnings results here, it’s free. Started from its humble beginnings in motor repair, AMETEK (NYSE:AME) manufactures electronic devices used in industries like aerospace, power, and healthcare. AMETEK reported revenues of $2.04 billion, up 15% year on year, outperforming analysts’ expectations by 4.4%. The business had a very strong quarter with full-year EPS guidance slightly topping analysts’ expectations. AMETEK scored the biggest analyst estimate beat and fastest revenue growth among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $243.16. Is now the time to buy AMETEK? Access our full analysis of the earnings results here, it’s free. Founded in 1890, Emerson Electric (NYSE:EMR) is a multinational technology and engineering company providing solutions in the industrial, commercial, and residential markets. Emerson Electric reported revenues of $4.87 billion, up 7% year on year, exceeding analysts’ expectations by 1.5%. Still, it was a mixed quarter as it posted a significant miss of analysts’ EBITDA estimates. The stock is flat since the results and currently trades at $157.72. Read our full analysis of Emerson Electric’s results here. Playing a role in the construction of the Paris Grand, Trimble (NASDAQ:TRMB) offers geospatial devices and technology to the agriculture, construction, transportation, and logistics industries. Trimble reported revenues of $972 million, up 11% year on year. This result topped analysts’ expectations by 2.2%. Overall, it was a strong quarter as it also logged full-year EPS guidance beating analysts’ expectations and a beat of analysts’ EPS estimates. Trimble achieved the highest guidance raise and highest full-year guidance raise in the group. The stock is up 2.3% since reporting and currently trades at $59.34. Read our full, actionable report on Trimble here, it’s free. One of the first companies to address industrial automation, Rockwell Automation (NYSE:ROK) sells products that help customers extract more efficiency from their machinery. Rockwell Automation reported revenues of $2.31 billion, up 7.9% year on year. This number surpassed analysts’ expectations by 2.8%. It was a very strong quarter as it also put up a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ EBITDA estimates. The stock is down 8.7% since reporting and currently trades at $439.35. Read our full, actionable report on Rockwell Automation here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Vontier’s second quarter saw a positive market reaction, as the company delivered results that exceeded Wall Street’s expectations for both revenue and non-GAAP earnings. Management highlighted persistent demand in its Environmental & Fueling Solutions segment and noted successful cost reduction and simplification efforts across the business. CEO Mark Morelli credited the quarter’s performance to robust aftermarket sales, continued investment by convenience retailers in site modernization, and strong traction from recent product launches within payment and asset management. However, margins in the Repair Solutions segment remained an area of concern, with management citing underperformance and announcing leadership changes to address ongoing challenges. Is now the time to buy VNT? Find out in our full research report (it’s free). Revenue: $756.7 million vs analyst estimates of $746.9 million (2.2% year-on-year decline, 1.3% beat) Adjusted EPS: $0.89 vs analyst estimates of $0.80 (10.7% beat) Adjusted EBITDA: $184.5 million vs analyst estimates of $176.3 million (24.4% margin, 4.7% beat) Revenue Guidance for the full year is $3.03 billion at the midpoint, roughly in line with what analysts were expecting Management raised its full-year Adjusted EPS guidance to $3.50 at the midpoint, a 2.2% increase Operating Margin: 19.4%, up from 17.6% in the same quarter last year Organic Revenue was flat year on year (beat) Market Capitalization: $4.52 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Andy Kaplowitz (Citigroup) asked about margin guidance and memory chip inflation. CFO Anshooman Aga explained that margin expansion is concentrated in Environmental & Fueling Solutions, with Repair Solutions facing ongoing headwinds, and noted that price increases are mitigating higher memory chip costs. Andy Kaplowitz (Citigroup) followed up on Environmental & Fueling Solutions durability. CEO Mark Morelli emphasized sustained investment by convenience retailers in modernization and highlighted strong uptake of new payment products and asset management platforms. Jeffrey Sprague (Vertical Research) pressed for details on Repair Solutions improvement steps. Morelli outlined supplier management and SKU reduction initiatives and stated that new leadership is focused on restoring margin stability. David Ridley-Lane (Bank of America) inquired about the EKOS acquisition's rationale and impact. Morelli described EKOS as a strategic addition to enhance fleet energy management capabilities, and Aga provided expectations for recurring revenue and margin contribution. Rob Mason (Baird) probed the pace of Mobility Technologies upgrades. Morelli acknowledged slower than expected customer migration to new platforms but expressed optimism about the long-term opportunity for retrofit projects. In the coming quarters, the StockStory team will be monitoring (1) adoption rates and customer feedback for new payment and asset management products in Environmental & Fueling Solutions, (2) progress on Repair Solutions’ operational turnaround and margin stabilization, and (3) the integration and financial performance of the EKOS platform within the Connected Mobility strategy. Continued cost savings execution and the pace of customer migration to next-generation Mobility Technologies will also be critical factors. Vontier currently trades at $33.44, in line with $33.62 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 8:30 a.m. ET Vice President of Investor Relations - Ryan Edelman President and Chief Executive Officer - Mark Morelli Executive Vice President and Chief Financial Officer - Anshooman Aga Operator: And welcome to the Vontier Second Quarter 2026 Earnings Call. [Operator Instructions] This call is being recorded on Thursday, August 6, 2026, and a replay will be made available shortly after. I would now like to turn the conference over to Ryan Edelman, Vontier's Vice President of Investor Relations. Please go ahead. Ryan Edelman: Good morning, everyone, and thank you for joining us on the call this morning to discuss our second quarter results. With me on the call today are Mark Morelli, our President and Chief Executive Officer; and Anshooman Aga, our Executive Vice President and Chief Financial Officer. You can find both our press release as well as our slide presentation that we'll refer to during today's call on the Investor Relations section of our website at investors.vontier.com. Please note that during today's call, we will present certain non-GAAP financial measures. We will also make forward-looking statements within the meaning of the federal securities laws, including statements regarding events or developments that we expect or anticipate will or may occur in the future. These forward-looking statements are subject to risks and uncertainties. Actual results might differ materially from any forward-looking statements that we make today, and we do not assume any obligation to update them. Information regarding these factors that may cause actual results to differ materially from these forward-looking statements is available on our website and in our SEC filings. With that, please turn to Slide 3, and I'll turn the call over to Mark. Mark Morelli: Thanks, Ryan, and good morning, everyone. Thank you for joining us today. Let me begin with a few high-level takeaways from the quarter. We delivered a strong second quarter with results that came in ahead of our expectations on both the top and bottom line. We see healthy underlying demand across much of the portfolio, particularly in the convenience retail-facing businesses, made important progress on our cost and simplification actions and remain disciplined in how we deploy capital. Our performance this quarter reinforces our confidence in the full year outlook and in the second half growth expectations. Core sales were flat in the quarter, slightly ahead of our guide, driven by upside in Environmental & Fueling Solutions. This performance came against a difficult prior year comparison with approximately 11% core growth in the second quarter of last year. Adjusted operating margin increased 190 basis points year-over-year, led by strong performance at Mobility Technologies. Notably, after adjusting for tariff refunds in the quarter, we exceeded our expectations. Orders were up low single digits in the quarter, and book-to-bill was above 1, led by strength in Mobility Tech and Environmental & Fueling Solutions. In Environmental & Fueling, we've seen strong growth in dispensers and aftermarket parts. The broader backdrop is strong with customers continuing to invest in site modernization, new store expansion and replacement activity tied to more advanced forecourt and payment technologies. Consolidation also remains a tailwind as operators standardize equipment across acquired sites. Within Mobility Tech, core growth was affected by the difficult comparison associated with elevated vehicle identification solution shipments in the prior year. Absent that compare, Mobility Tech grew mid-single digits in the second quarter and the first half. We expect this momentum to continue and further supports our outlook for the second half. Demand for our in-store payment, point-of-sale and asset management offerings is robust, which speaks to how our portfolio is aligning with customer priorities. It also speaks to the success of our strategic growth initiatives and new product introductions and our unique positioning in the marketplace. With respect to Repair Solutions, sales trends continue to stabilize, but margin performance in the quarter was below our expectations and remains a clear area of focus. Put simply, the business is not performing where it needs to, and we are taking actions to address that. During the quarter, we announced a leadership transition at Repair Solutions. Kameron Richardson joined us from NAPA Auto Parts and brings more than 25 years of global experience in the automotive aftermarket and retail industry with a proven track record of leading successful turnarounds. We are focused on the key operational levers within the business and expect the actions now underway to strengthen execution and improve profitable growth. Turning to capital allocation. We increased our share repurchase authorization to $1 billion and accelerated buyback activity during the quarter. Given the current valuation and supported by our strong free cash flow profile, we continue to view buybacks as a very attractive use of capital. At the same time, we completed the sale of Teletrac and announced the acquisition of EKOS, both of which better align the portfolio with our Connected Mobility strategy and our returns-driven philosophy. Approximately 80% of our portfolio is aligned to end markets that are supported by favorable secular trends and durable underlying demand, particularly convenience retail and fleets. Across these markets, operators facing greater complexity are increasingly investing in a network of connected, intelligent and integrated operating environments. We are winning with customers who are prioritizing solutions that enable productivity, growth and scale, which plays to our competitive advantages. Our Connected Mobility strategy is becoming increasingly tangible in the business. One example is asset management, where we bring together connected hardware and software to help customers remotely manage and maintain fueling assets across their networks. Year-to-date, connected assets managed through our applications are up more than 20% versus last year. And in Q2 alone, we brought more than 2,000 new sites online for several existing customers. At QuikTrip, a key strategic partner, deployment of our asset management platform across its forecourt has reduced truck rolls for service events by more than 80%. Our value proposition is resonating as operators look for ways to ensure higher equipment uptime, address labor constraints and improve operating efficiency. The rollout of our next-gen payment kit offerings is in full swing. In Q2, nearly 1/4 of the new dispensers that left our factory were equipped with the updated FlexPay 6 terminal that launched late last quarter. We anticipate this mix to accelerate as retailers prefer a more engaging, common consumer experience and drive cost and complexity out of their payment technology. This not only supports top line growth in Mobility Tech and EFS, but also our margin expansion assumptions for the second half. Taken together, these examples illustrate how our product development and simplification efforts are translating into higher customer adoption and improving quality and margins. Let me spend a moment on EKOS on Slide 4, which is a compelling addition to the portfolio and an important step forward in our Connected Mobility strategy for our fleet customers. EKOS adds a high-growth fleet energy management business that integrates with our existing fuel equipment and site management offerings. As an existing strategic partner, it strengthens our ability to provide a more comprehensive solution across private fueling operations. This combination is both differentiated and durable. By embedding software into mission-critical fueling hardware, it helps customers improve visibility, control and operating efficiency. That makes the offering relevant as fleets continue to adopt more intelligent operating tools, including AI. EKOS also brings an attractive recurring revenue profile with ARR representing approximately 80% of revenue and growing at a 25% compound annual rate over the last 3 years. The platform connects more than 1 million vehicles and manages approximately 10,000 customer sites, including for customers like Ryder, GFL and XPO Logistics. As we look ahead, we remain confident in our full year outlook and are raising our EPS guidance. We enter the second half with the business in a strong position. Overall, order trends and a solid pipeline support our growth outlook for the balance of the year. Demand in Environmental & Fueling Solutions remains robust. Mobility Tech is inflecting positive as we move beyond the compare dynamics and underlying growth continues. We see a clear path to double-digit earnings growth this year, supported by stronger operational execution, delivering on our cost savings commitments and additional share repurchases. With that, I'll turn the call over to Anshooman to walk through the quarter and outlook in more detail. Anshooman Aga: Thanks, Mark, and good morning, everyone. Before discussing the quarter in more detail, I'd like to bridge our second quarter guidance to the results we reported today on Slide 5. There were two notable items in the quarter that deferred from the assumptions embedded in our original guidance. First, the Teletrac transaction closed approximately 1 month later than we had assumed, which resulted in an additional month of contribution in the quarter. Second, we recognized a onetime favorable net impact from IEEPA tariff refunds related to inventory sold in the prior year. Importantly, after adjusting for the Teletrac divestiture timing and the tariff refund, our results exceeded the high end of our original guidance range, reflecting solid underlying execution. Turning to the consolidated results for the quarter on Slide 6. Total sales were $757 million, with core sales approximately flat year-over-year, led by strong performance in Environmental & Fueling Solutions. Adjusted operating profit margin increased 190 basis points, including a net benefit of approximately 120 basis points from the IEEPA tariff refunds. Our underlying margin expanded 70 basis points, driven by solid performance at Mobility Technologies. We delivered approximately $4 million in year-over-year savings in the quarter ahead of plan and now expect to exceed our $50 million commitment for the full year. The progress we're making on our VBS-led simplification efforts, including 80/20, is showing up in several ways. In EFS, we are nearing completion of our move from 32 to 8 dispenser platforms with the remaining rationalization expected in the second half alongside regional simplification that is consolidating production capacity needs. Recently, we began a new multiyear platform rationalization program across our Mobility Tech businesses to support future productivity savings. We also rationalized approximately 1,400 SKUs in the first half following a Kaizen event. We are applying these same principles to drive R&D efficiency and optimize our customer service footprint, incorporating the use of AI tools. These actions are helping us reduce structural costs, improve execution and better align resources behind our highest value opportunities. Adjusted free cash flow of $98 million reflects approximately 80% conversion to adjusted net income or around 13% of sales. Turning to our segment results beginning on Slide 7. Environmental & Fueling Solutions delivered core growth of approximately 5%. Demand trends remain strong with healthy double-digit growth in global dispenser sales driven by continued investment and strong demand for new equipment as well as strong upgrade and replacement activity. Segment margin increased 240 basis points, including a 220 basis point tailwind from tariff refunds. Turning to Mobility Technologies on Slide 8. Core sales declined against a difficult prior year comparison related to elevated shipments of our vehicle identification system solution. That compare equated to approximately $25 million or a 10-point growth headwind in the quarter. Excluding that dynamic, sales in the segment would have increased mid-single digits, which better reflects underlying demand for these businesses. We continue to see strong customer adoption of our integrated payment, point-of-sale and asset management solutions. Segment margin expanded 190 basis points, including a 20 basis point benefit from the tariff refund. Underlying segment margins expanded 170 basis points to approximately 21%. Finally, turning to Repair Solutions on Slide 9. Same-store sales were essentially flat in the quarter, reflecting a stable demand environment and still constrained technician spend. Demand remains oriented towards products with a clear and relatively quick payback, which continues to support value-oriented technician purchasing decisions. From a margin standpoint, Repair Solutions decreased 180 basis points, including 130 basis point tailwind from the tariff refund. Profitability in the segment continues to see pressure from unfavorable price and mix as well as targeted investment spend in the quarter related to sales and the recent leadership transition. To put the margin pressure into context, the delta versus our guidance framework amounted to around a $1.5 million headwind in the quarter. Turning to the balance sheet on Slide 10. We ended the quarter with over $260 million in cash on the balance sheet and net leverage at 2.3x. Supported by strong free cash flow and including proceeds from the Teletrac divestiture, we repurchased approximately 4 million shares or $130 million during the quarter, bringing the year-to-date total to just over 6 million shares for about $200 million. As we have consistently said, we remain disciplined and balanced in our approach to capital allocation. At current valuation levels, we have leaned more heavily into share repurchases, which we believe offer the most attractive risk-adjusted return. We also completed the acquisition of EKOS after quarter end. The cash purchase price was $43 million, plus a potential earn-out tied to future ARR growth. We expect EKOS to achieve double-digit ROIC by year 3 with returns approaching 20% by year 5. Overall, our capital deployment in the first half reflects our balanced framework, continuing our portfolio transformation while also returning meaningful capital to shareholders through share repurchases. Turning to Slide 11 for a discussion on our updated guidance. Starting with the third quarter, we expect sales in the range of $720 million to $735 million, with core sales growth of approximately 5% at the midpoint, driven by mid-single-digit plus growth in both EFS and Mobility Tech. As we have discussed, tougher compare headwinds are behind us, which should allow the underlying growth across the rest of the portfolio to become more visible. We expect operating margin to expand 110 basis points at the midpoint, led by Mobility Tech, reflecting favorable volume and mix, increased productivity savings and an approximate 70 basis point tailwind from the Teletrac divestiture. Adjusted EPS is expected to be in the range of $0.82 to $0.86, representing growth of 6% to 11% year-over-year. Turning to the full year. The midpoint of the sales range increases by approximately $10 million, reflecting the net impact of acquisitions and divestitures and a modest FX headwind relative to our prior guidance. Our core growth assumptions remain approximately 3% at the midpoint. We now expect operating margin to expand by approximately 100 basis points at the midpoint to over 22%. There have been no changes to the phasing of our cost savings plan with approximately 2/3 of the savings still expected in the second half. Additionally, our margin outlook includes a tailwind of approximately 40 basis points associated with the Teletrac divestiture. We are raising our full year adjusted EPS guidance to $3.45 to $3.55, which represents growth of 8% to 11% versus the prior year. Our outlook for adjusted free cash flow conversion remains 95%, representing 15% of sales. As always, we've included some other modeling assumptions on the right-hand side of the slide. which have also been updated to reflect the divestiture impacts on the top line and adjustments to below-the-line items. I would also note our guide assumes about $250 million in share buyback and that we have already completed about $40 million in share repurchases quarter-to-date. With that, I'll pass the call back to Mark for his closing comments. Mark Morelli: Thanks, Anshooman. We had solid execution in the second quarter, and we are encouraged by what we are seeing as we head into the second half of the year. I'd like to thank the Vontier team for their continued focus, dedication and commitment to deploying our integrated operating model and a culture of continuous improvement. The progress we delivered in the second quarter reinforces our confidence in the growth and margin trajectory we expect over the balance of the year. Underlying demand across our key end markets remains healthy. Order trends through the first half were supportive. We're seeing increased traction on new product launches and our commercial pipeline remains solid. Importantly, the more difficult revenue compare headwinds are now behind us. We are seeing traction on our cost savings program, which is tracking ahead of plan and provides confidence through the balance of the year. Our integrated operating model, which simplifies the organization and aligns us more closely around our customers and end markets is sharpening our commercial focus and strengthening our ability to deliver integrated solutions. Together with our Connected Mobility strategy and disciplined capital allocation, we believe these actions are building a more focused company, a more durable earnings profile and a stronger platform for long-term shareholder value creation. With that, operator, please open the line for questions. Operator: [Operator Instructions] Our first question comes from Andy Kaplowitz with Citigroup. Andrew Kaplowitz: I just want to focus on your adjusted operating margin guidance to 100 basis points for the year. I think you had 130 basis points previously. Obviously, you're including the tariff refunds in Q2 as you disclosed. So can you give us more color on expected margin in the second half across your segments and how you're looking at price versus cost? And maybe any memory chip inflation impact that you're assuming now in the guide? Anshooman Aga: Thanks, Andy, for the question. So if you look at our guide on an absolute dollar basis, our gross -- our operating margins are down about $4 million, but that does include the benefit of the tariffs of $9 million, so roughly $13 million. The biggest piece of the difference is in Repair Solutions, where we're bringing that number down by $7 million to $8 million. So Repair Solutions will be down about 150 basis points for the year in operating profit margin. In Mobility Technologies, our growth will be low single digits. Previously, we've guided to low to mid-single digits. Operating profit margins will be about 150 basis points up year-on-year versus the previous guide of 200 basis points. In Mobility Technologies, in the car wash part of our business, while the underlying market remains strong, the credit card data on car wash is encouraging. We are seeing some of the larger migrations from our legacy technology to a new cloud-connected Patheon software are taking a little bit longer and will likely slip out of the year. As a reminder, 90% of our installed base is still on the legacy technology, and there's a pretty attractive return on investment for our customers to move to the new Patheon technology, but it's just taking a little bit longer. On the positive side, our EFS business continues to be extremely strong. We're increasing the guide from low to mid-single digits to mid-single digits. Operating profit margins will be up about 100 basis points in that business on a full year basis. So that kind of bridges the guide. From a memory chip perspective, like I mentioned on the last call, on last year's prices, we bought about $5 million, $6 million of memory chips. We probably have a high single-digit headwind related to memory price. But at the same time, we're putting in price increases in the market. And from a price cost perspective, we are slightly positive for the first half of the year. Andrew Kaplowitz: Very helpful. And then, Mark, maybe just sort of focusing on the EFS ongoing upturn. I know you mentioned the launch of next-gen payment helps. How much are new products supporting the continued growth? And obviously, as you know, like gas prices have been all over the place over the last few months, but it looks like the customers are still spending. You still got the focus on national accounts. So maybe you could double-click on sort of what you're seeing and the durability of growth in EFS. Mark Morelli: Yes. I'm happy to, Andy. Look, there's no question that convenience store market is in a really good spot with this current macro environment that's underway. Folks continue to build out NTIs, spending a lot of time with our distributors and our customers. The big players out there in the convenience store space are healthy, very healthy, in fact. And they're putting a lot of their capital to work by continuing to building out their successful formats. You can read about that. You can see that. We see the uptick. We know from our distributors that also do installation that NTI, which is new to industry, and also retrofit for the larger and smaller folks is really very, very healthy. They plan out, even though we're a short-cycle business, our book to turn is pretty quick in our business, but they plan out a couple of years in terms of their building out cycles, and there's no abatement of that where they continue to look at their footprint builds out. I think the other thing that's reading through that we're really happy about is our Unified Payment, some of the new offerings that we've been talking about that we showed in the NACS show last October, November. Those are really resonating. We're talking about bringing those to market. These products are called FlexPay 6, M2-15. It's really our unified payment offerings that are getting uptick, particularly with some of these larger players that are doing those rollouts. We talked about some of the asset management that is really falling into these secular drivers because this is a remote device management capability that helps them with managing uptime, servicing costs, rolling less trucks. So we think we've got a really good fit for our product lines in the market. And I think you see the strength in EFS and continued strength both on the top line as well as margins. Operator: Our next question comes from Jeff Sprague with Vertical Research. Jeffrey Sprague: I was hoping we could just drill in on Repair Solutions and in particular, sort of the action items anticipated under the new management change. And what are kind of the key drivers of, I guess, the turnaround you'd expect? And just thinking about the sort of the multiyear slide in margins that we've had there. I just wonder if you could kind of speak to what you view the actual margin entitlement in the business on the other side of the restructuring. Mark Morelli: Yes, Jeff, great question. Look, margins are not where we want them to be. We believe they should be better, and we can do better. A couple of key things that the new team is really grabbing hold of and we're really diving into. The first one is on the supplier management side. We're really streamlining with strategic supply chain partners. We're reducing steps in the supply chain and waste. We're also working with our suppliers on a co-marketing program, where that will help us in terms of dollars as well as there's further SKU rationalization that's going to really help us be more agile, bring our cost to serve down as well as improve our inventory costs on the margin side. When you look at the margin progression, we're holding 19% in the back half of the year. That's a step up when you take into account the benefit from the tariff. And so we feel like with the actions in place, the new management team grabbing hold of it, we're really encouraged. On the revenue side, if you may remember, we ended last year down mid- to high single digits. We've stabilized that. We think there's more room to go. We've done that on the backs of better productivity for our technicians through diagnostics, which are selling well as well as toolboxes. We also have our district management or DM structure where we've upgraded, topgraded, have new talent in for more than 20% of our DMs across the country, and there is a new program that's being prosecuted with the management team to tighten that up. So we think there are a lot of levers here that we can pull. The backdrop remains the way that it has been. Happy to talk about some of those drivers there and some of the KPIs that we watch on that. But we're essentially operating in the same backdrop, improving top line, but definitely can do better on margins. Jeffrey Sprague: So just thinking about the margins, I'm sure you don't want to give a specific target, though if you do, I'll take it. But should we just think of like normal incremental margins plus a tick or 2 or 3 as this stuff comes through? Or could we actually see maybe more of a step function in margins as maybe volumes ultimately recover looking forward a year or two? Mark Morelli: Yes. I think we're -- what we're guiding to is stability in margins on the second half around the 19%, which is a slight step up. But I do believe there's real opportunity for us to do better, and we'll drive to do better, but I think we're going to offer a responsible guide. Operator: Our next question comes from Andrew Obin with Bank of America. David Ridley-Lane: This is David Ridley-Lane on for Andrew. Just sort of a question on the rationale for the acquisition of EKOS. And also, if I could, if you're giving any revenue contribution, financial metrics on that. Mark Morelli: Yes. I'll give some of the color and the rationale for EKOS and let Anshooman talk about some of the numbers associated with it. Look, we're really excited about EKOS. If you may remember, we did a relatively small acquisition called Invenco a couple of years ago. That was a real technology unlock for us that really ignited growth and also margin improvement. And this kind of tuck-in, it's a great industrial tech company. It's got real industrial software that's embedded with our hardware. It's a bolt-on. It is an existing strategic partner with us. So we've worked very, very closely with them, integrating them with our products. And essentially, what it does is it really gives us a higher growth capability by connecting fleet fueling. So we talk a lot about convenience retail, but think about the same type thing that are needed for private fueling networks. These are fleet fueling networks where they want to put stuff on the same pane of glass. They want better control. They want better cost management of their infrastructure, think about fueling costs and how they're on the rise and getting this, it integrates with our existing fueling equipment. It has site management offerings. It's a comprehensive solution for fleet operators. It's exactly the kind of productivity they need when they face rising costs. And it really is an important step for us when you think about it in the context of our Connected Mobility strategy. This is the Connected Mobility strategy for fleet operators. So we think it's a real unlock for us, relatively small in size, but these are the kind of tuck-ins that we like to ignite higher growth and better margins. Anshooman Aga: [Audio Gap] David, from a revenue perspective, obviously, this year stub period is built into our guidance. For next year, fiscal 2027, think of this business as somewhere between $15 million and $17 million in revenue, mainly recurring revenue. And margins next year on this business should be in the mid-teens, maybe mid-teens plus. David Ridley-Lane: Got it. And then just as a quick follow-up, it sounds like some of the lower revenue in the second half of 2026 is more about delays, not to put words in your mouth, than change in the market? You say it's less than half roughly? Anshooman Aga: So maybe I'll just start. From a total guide perspective, there's really no change in our revenue. The midpoint of our guide is actually up $10 million. Core growth is still at 3%. So overall, there is no change in Vontier's revenue. There's really a little bit of a mix change where we've increased the guide on our environmental and fueling business to mid-single digits. It used to be low to mid-single digits. We've lowered Mobility Technologies from low to mid-single digits to low single digits. And that was really on the backs of DRB, some of the upgrade projects. They're still in the pipeline. They're great returns for our customers, but these are complex projects of migrating their existing software technology from our legacy solution to our new solution, and they're just taking a little bit longer from a close perspective. Operator: Our next question comes from Katie Fleischer with KeyBanc. Katie Fleischer: I wanted to ask about some of the progress on your cost-out initiatives. It sounds like you've taken out a lot of costs, they might be tracking a little bit ahead of schedule. Just curious how much upside there is in terms of that program and how you kind of think about that in the context of the margin guidance for the full year? Anshooman Aga: Yes. Thanks, Katie, for the question. So when we started the program, we said it was $15 million in year and the progression I had given was $1 million in Q1, $3 million in Q2, $5 million in Q3, $6 million in Q4. We delivered $1 million more in the second quarter as we've accelerated some of those savings. So it will be slightly above the $15 million for this year with incremental benefits for next year. The important thing is this isn't a onetime take cost out and move on. This is part of our tier business system, a process of continuous improvement. And it's structural with our focus on product line simplification, our focus on 80/20. And we talked in the prepared remarks that we started a multiyear effort in Mobility Technologies to reduce the complexity and simplify our portfolio from the different variants. We took out as part of our CEO Kaizen that we had early in the second quarter, we took out 1,400 SKUs across the company. So we're continuously looking at ways to continue to expand margin, and it's a multiyear program. We're probably third or fourth innings in it. So a long runway of margin expansion opportunity as we go through. And that's really -- I used to talk about Mobility Technologies had a lot of margin expansion, and that kind of started to read through in our margins in Q2. Our Mobility Tech margins expanded 190 basis points, 20 basis points was tariffs, so 170 basis points of core margin expansion in that business. And for the back half of the year, we will also have good margin expansion in Mobility Technologies based off a lot of the simplification effort that we're driving. Katie Fleischer: Okay. That's helpful. And then turning to EFS. So you talked about some of the really strong secular trends there and growth and modernization within C-stores. I'm curious if the growth that we saw this quarter within that business was a result of some big wins with customers or more of just the constant upgrade modernization activity and maybe we should expect that to continue at a more regular pace going forward? Mark Morelli: Yes. I think there's -- it's more of a regular pace. There clearly are some large customers that get in the mix, but that's what we're kind of seeing as a pretty regular rollout of that. There's also -- this business is also driven by some regulatory drivers on payment that has always been part of it. That is also playing through. So we -- steady as she goes in terms of the overall uptake in this. We love our competitive position in the market. We love our new product offerings. We love to see the secular drivers in this industry, just really encouraged by what we see. Operator: Our final question comes from Rob Mason with Baird. Robert Mason: Just on Mobility Tech, you already referenced DRB and some of the challenges just to deploy that -- those new systems inside the calendar year. I think there were some other projects that were due to ramp. Maybe touch on just how you think or how you risk managing those being deployed inside the year and whether they appear to be on schedule, pulled forward or just give us an update on kind of the full scope of projects within Mobility Tech. Mark Morelli: Yes, Rob, thank you for the question. Look -- the thing that is really important in DRB is our new product called the Patheon product. And the reason why that's relevant is if you look at the industry, the new builds are down year-over-year. We anticipated they would be down. I think they were probably even down probably more than we had anticipated. But what's really driving our opportunity there is Patheon because we have more than 5,000 installations of a product called SiteWatch. And when you look at what the car wash operators need to run a good car wash, Patheon is a great product, and it gives them better productivity. So what we're doing is we're going out there and we're or offering retrofits onto the SiteWatch platform with the Patheon upgrade, and they're getting real productivity. Look, if you look at some of the data out there, some of the credit card data to see what's going on in car wash and in the current consumer backdrop right now, people are definitely paying for car washes. And we know when one of our customers opens a new car wash, they may open with thousands of subscribers to the car wash system. And a large part of that is due to the Patheon technology. It enables them to get better connection to consumers. It gets better marketing pricing and productivity for that. And so they get an ROI by actually doing that. So to now get to your question, the key is these Patheon upgrades, like what's the pace and the rate of that? A bit slower in the first half than we anticipated based on permitting. By the way, we're less than 10% into the launch on Patheon. So we've got a great runway ahead of us, but a little bit slower uptake than we thought. In terms of our guidance for the back half, we have a good pipeline of these opportunities, and we're continuing to work to smooth that out. So we're encouraged on what we see for the longer term. We just -- it will just be down some from our guide that we gave you earlier. Anshooman Aga: And Rob, to your point on the other projects in Mobility Technologies, those are actually -- a lot of them were in backlog and actually are progressing extremely well. We're on track. If you really look at the underlying business of Mobility Technologies, excluding that compare issue for the vehicle identification system -- the business grew mid-single digits, excluding that in Q2, and that's our guide for Q3, really mid-single-digit growth. Our unified payment projects are moving extremely well. Also some of the fleet projects that we're working on. And actually, EKOS acquisition is part of a couple of those fleet projects. Those are progressing well. So overall, we feel pretty good about our Mobility Technology business, both from delivering mid-single-digit growth in Q3 and the margin expansion that we've guided to. Robert Mason: I see. I see. And just as a follow-up, the -- your guidance for the intersegment portion of the business has moved around as we've gone through each quarter. My sense is, obviously, that may just be mix shift around FlexPay 6 or FlexPay 4 or -- but you've commented that you've seen pretty good demand on FlexPay 6. So I'm just curious if our certification efforts coming into play there? And if they are, is that something that maybe you work past this year and it doesn't present any kind of issue constraint on your growth in '27? Anshooman Aga: That's correct. There's some movement based on mix of how much FlexPay 6, the new versions being adopted, we've seen some good uptake in that. Also, there was an update to our transfer price from our original expectations between the businesses as we went through our final analysis on transfer pricing. So that was a little bit -- but that's going to be more stable going forward and also the adoption of FlexPay 6 is just getting more and more and especially the new version. We talked about the new version that we introduced at the end of last quarter. And on our dispenser shipments, there was a 25% roughly take rate of the new version already. So we're pretty excited about the prospects of Flexpay 6 and where the payment technology is headed. Operator: There are no further questions at this time. I will now turn the call back to Mark Morelli for closing remarks. Mark Morelli: Yes. Thanks for joining us on the call today. We appreciate your continued interest in Vontier, and we look forward to engaging with many of you over the next several weeks. Have a great day. 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Interested in Vontier Corporation? Here are five stocks we like better. Vontier exceeded second-quarter expectations with $757 million in sales, flat core revenue, and 190 basis points of adjusted operating-margin expansion. The company raised full-year adjusted EPS guidance to $3.45–$3.55 while maintaining approximately 3% core sales growth. Environmental and Fueling Solutions led performance with roughly 5% core sales growth, driven by strong dispenser demand, modernization activity, and adoption of connected payment and asset-management products. Mobility Technologies also posted underlying growth, while Repair Solutions remained pressured by unfavorable mix, investments, and technician-spending constraints. Vontier is accelerating cost reduction, portfolio simplification, and capital returns, including more than $15 million of expected annual savings, $200 million in year-to-date share repurchases, and a $1 billion buyback authorization. The company also completed its $43 million acquisition of EKOS to expand its connected fleet-energy-management offerings. Vontier (NYSE:VNT) reported second-quarter results that exceeded its expectations, with flat core sales, higher operating margins and an increase in its full-year adjusted earnings outlook. Management said demand remained healthy across much of its portfolio, particularly in convenience retail-facing businesses, while the company continued cost-reduction and portfolio-simplification initiatives. Total sales were $757 million in the second quarter, while core sales were approximately flat from a year earlier. The comparison included approximately 11% core growth in the prior-year quarter, according to President and Chief Executive Officer Mark Morelli. Orders increased by low single digits and book-to-bill exceeded one, led by Mobility Technologies and Environmental and Fueling Solutions. → No Hangover: Revisiting Microsoft One Week After Earnings Adjusted operating margin increased 190 basis points year over year. Chief Financial Officer Anshooman Aga said the result included a net benefit of approximately 120 basis points from one-time IEEPA tariff refunds related to inventory sold in the prior year. Excluding that benefit, underlying margin expanded 70 basis points, driven primarily by Mobility Technologies. Aga also said the timing of Vontier’s Teletrac divestiture, which closed about one month later than assumed in the company’s original outlook, added an extra month of contribution during the quarter. After adjusting for both the divestiture timing and tariff refunds, management said results exceeded the high end of its original guidance range. → MarketBeat Week in Review – 08/03 - 08/07 Environmental and Fueling Solutions posted approximately 5% core sales growth in the quarter, supported by double-digit growth in global dispenser sales. Management cited continued customer investment in new equipment, upgrades and replacement activity, as well as demand for more advanced forecourt and payment technologies. Morelli said convenience-store operators continue to invest in new sites, retrofits and modernization initiatives. He also pointed to industry consolidation, which he said is encouraging operators to standardize equipment across acquired locations. → Why the Landlord of the AI Boom Could Outlast the Chipmakers The segment’s operating margin expanded 240 basis points, including a 220-basis-point benefit from tariff refunds. Vontier said it is nearing completion of an effort to reduce its number of dispenser platforms from 32 to eight, with the remaining rationalization expected in the second half of the year. New payment products are also gaining adoption. Morelli said nearly one-quarter of new dispensers shipped during the quarter included the updated FlexPay 6 terminal, which launched late in the first quarter. The company expects adoption to increase as retailers seek more unified consumer payment experiences and simpler technology operations. Vontier also highlighted its asset-management offerings, which combine connected hardware and software to remotely manage fueling equipment. Connected assets managed through its applications rose more than 20% year to date, and the company brought more than 2,000 sites online during the second quarter for several existing customers. Morelli said Kwik Trip reduced truck rolls for service events by more than 80% through deployment of Vontier’s asset-management platform across its forecourt. Mobility Technologies recorded a core sales decline due to a difficult comparison with elevated vehicle-identification solution shipments in the prior-year period. Aga said that comparison represented about $25 million, or a 10-point growth headwind. Excluding that factor, segment sales would have grown by mid-single digits. Segment margin increased 190 basis points, including a 20-basis-point tariff-related benefit. Underlying Mobility Technologies margin expanded 170 basis points to approximately 21%. Management said demand remains strong for integrated payment, point-of-sale and asset-management offerings. However, certain migrations from legacy car-wash technology to the cloud-connected Patheon software platform are taking longer than expected, partly due to permitting. Aga said those projects are still in the pipeline, but some are likely to move beyond the current year. Repair Solutions’ same-store sales were essentially flat, reflecting stable demand but continued constraints on technician spending. Segment margin declined 180 basis points, despite a 130-basis-point tariff-refund benefit. The business faced unfavorable price and mix, along with targeted investments in sales and its leadership transition. Morelli said Repair Solutions “is not performing where it needs to,” and Vontier has hired Cameron Richardson, formerly of NAPA Auto Parts, to lead the business. The company is focusing on supplier management, reducing supply-chain steps, SKU rationalization, inventory costs and changes to its district-management organization. Management expects Repair Solutions margins to be around 19% in the second half. Vontier delivered approximately $4 million in year-over-year savings during the quarter and now expects to exceed its prior $15 million full-year cost-savings commitment. The company said roughly two-thirds of the planned savings are still expected in the second half. The company has rationalized approximately 1,400 SKUs in the first half and began a multiyear platform-rationalization effort within Mobility Technologies. Management said it is also using simplification initiatives and AI tools to improve research and development efficiency and optimize its customer-service footprint. Adjusted free cash flow was $98 million, representing approximately 80% conversion to adjusted net income and about 13% of sales. Vontier ended the quarter with more than $260 million in cash and net leverage of 2.3 times. Supported by free cash flow and proceeds from the Teletrac sale, Vontier repurchased about 4 million shares for $130 million during the quarter. Year-to-date repurchases totaled just over 6 million shares for about $200 million. The company increased its share-repurchase authorization to $1 billion and said its outlook assumes about $250 million of buybacks for the full year. After the quarter ended, Vontier completed its acquisition of EKOS for $43 million in cash plus a potential earn-out tied to future annual recurring revenue growth. EKOS provides fleet energy-management software and is expected to generate between $15 million and $17 million in revenue in 2027, primarily recurring revenue, with mid-teens or better margins, according to Aga. Morelli said the acquisition expands Vontier’s connected-mobility offering for private fleet fueling operations. For the third quarter, Vontier expects sales of $720 million to $735 million and core sales growth of approximately 5% at the midpoint. The company expects mid-single-digit or better growth in Environmental and Fueling Solutions and mid-single-digit growth in Mobility Technologies, along with adjusted EPS of $0.82 to $0.86. For the full year, Vontier maintained its core growth assumption at approximately 3% at the midpoint but raised the midpoint of its sales outlook by about $10 million, reflecting acquisitions, divestitures and a modest foreign-exchange headwind. The company expects operating margin expansion of about 100 basis points to more than 22%. Vontier raised full-year adjusted EPS guidance to $3.45 to $3.55, representing expected growth of 8% to 11% from the prior year. It maintained its adjusted free-cash-flow conversion outlook at 95%, or approximately 15% of sales. Vontier is a global industrial technology company focused on advancing mobility infrastructure and transportation solutions. Established as a standalone public company in October 2020 through the spin-off of Fortive’s mobility and transportation platforms, Vontier is headquartered in Raleigh, North Carolina. The company’s mission centers on delivering innovative products and services that help customers meet evolving demands in fuel retail, fleet management, and automotive service. The company’s diversified portfolio spans several well-known brands. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Vontier Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Second Quarter 2026 Results Sales of $756.7 million, down 2.2% vs. prior year; Core sales down 0.2% year-over-year GAAP diluted net EPS of $0.20; Adjusted diluted net EPS of $0.89 Operating cash flow was $116.3 million; Adjusted free cash flow was $97.6 million, representing 79% adjusted free cash flow conversion 2026 Outlook Initiates Q3 2026 guidance for adjusted diluted net EPS of $0.82 to $0.86 Raises FY 2026 guidance for adjusted diluted net EPS of $3.45 to $3.55 RALEIGH, N.C., August 06, 2026--(BUSINESS WIRE)--Vontier Corporation (NYSE: VNT), a leading global provider of critical technologies and solutions to connect, manage and scale the mobility ecosystem, today announced results for the second quarter ended July 3, 2026. Reported sales in the second quarter decreased 2.2% year-over-year to $756.7 million. Core sales decreased 0.2% as healthy demand for convenience retail solutions, including fueling, payment and asset management technologies, was offset by a year-over-year headwind related to shipment timing. Operating profit of $146.7 million increased 7.6% from the prior year, and operating profit margin increased approximately 180 basis points, to 19.4%. Adjusted operating profit of $173.8 million increased 6.4% from the prior year and adjusted operating profit margin increased 190 basis points to 23.0%. Net earnings were $27.4 million, and adjusted net earnings were $124.3 million, resulting in GAAP diluted net earnings per share of $0.20 and adjusted diluted net earnings per share of $0.89. "Vontier delivered a solid second quarter, with results ahead of our expectations," said Mark Morelli, President and Chief Executive Officer. "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. We are also making measurable progress on our cost savings program, which is running ahead of plan. Our focus on disciplined execution and capital allocation has enabled us to increase our full-year adjusted EPS guidance and reflects our commitment to creating long-term shareholder value." Segment Results Environmental & Fueling Solutions reported sales increased 1.3% versus the prior year. Core sales increased 4.6%, led by strong demand for fuel dispensing equipment and aftermarket parts. Segment operating profit margin increased 240 basis points including a discrete benefit related to a tariff refund, volume leverage and ongoing simplification initiatives. Mobility Technologies reported sales decreased 6.2% versus the prior year. Core sales declined 4.9% year-over-year, reflecting lower shipments of vehicle identification solutions compared with the prior year, partially offset by healthy demand for convenience retail payment and asset management technologies. Segment operating profit margin increased 190 basis points year-over-year, driven primarily by cost savings associated with simplification initiatives, including lower R&D expense. Repair Solutions reported sales decreased 1.3% versus the prior year. Core sales also decreased 1.3% reflecting ongoing macroeconomic pressures impacting service technicians’ discretionary spending. Segment operating profit margin declined 180 basis points year-over-year due to unfavorable price and mix, as well as higher investments versus the prior year. Other Items Closed the divestiture of Teletrac Navman and received cash proceeds of $85 million. Increased share repurchase authorization to $1.0 billion. Repurchased 4.4 million shares for $130 million during the quarter; Year-to-date, share repurchases total 6.2 million shares for $200 million. Net leverage ratio ended Q2 at 2.3X 2026 Outlook Total sales of $3,000 to $3,050 million; Core sales growth midpoint of approximately 3% Adjusted operating profit margin expansion of approximately 100 basis points year-over-year at the midpoint Adjusted diluted net EPS in the range of $3.45 to $3.55 Adjusted free cash flow conversion of approximately 95% Q3 2026 Outlook Total sales of $720 to $735 million; Core sales growth of approximately 5% Adjusted operating profit margin expansion of approximately 110 basis points year-over-year at the midpoint Adjusted diluted net EPS in the range of $0.82 to $0.86 Conference Call Details Vontier will discuss results and outlook during its quarterly investor conference call today starting at 8:30 a.m. ET. A link to the live webcast can be found here. Additionally, the webcast and an accompanying slide presentation can be found on the "Investors" section of Vontier’s website, www.vontier.com, under "Events & Presentations." A replay of the webcast will be available at the same location shortly after the conclusion of the presentation. ABOUT VONTIER Vontier (NYSE: VNT) is a global industrial technology company uniting productivity, automation and multi-energy technologies to meet the needs of a rapidly evolving, more connected mobility ecosystem. Leveraging leading market positions, decades of domain expertise and unparalleled portfolio breadth, Vontier powers the way the world moves – delivering smart, safe and sustainable solutions to our customers and the planet. Vontier has a culture of continuous improvement and innovation built upon the foundation of the Vontier Business System and embraced by colleagues worldwide. Additional information about Vontier is available on the Company’s website at www.vontier.com. NON-GAAP FINANCIAL MEASURES In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release also references "core sales growth," "adjusted operating profit," "adjusted operating profit margin," "adjusted net earnings," "adjusted diluted net earnings per share," "free cash flow," "adjusted free cash flow", "adjusted free cash flow conversion," "EBITDA," "adjusted EBITDA," "net debt," and "net leverage ratio" which are non-GAAP financial measures. The reasons why we believe these measures, when used in conjunction with the GAAP financial measures, provide useful information to investors, how management uses such non-GAAP financial measures, a reconciliation of these measures to the most directly comparable GAAP measures and other information relating to these measures are included in the supplemental reconciliation schedule attached. The non-GAAP financial measures should not be considered in isolation or as a substitute for the GAAP financial measures, but should instead be read in conjunction with the GAAP financial measures. The non-GAAP financial measures used by Vontier in this release may be different from similarly-titled non-GAAP measures used by other companies. FORWARD-LOOKING STATEMENTS This release contains forward-looking statements within the meaning of the federal securities laws. These statements include, but are not limited to statements regarding Vontier Corporation’s (the "Company’s") business and acquisition opportunities, anticipated sales growth, anticipated adjusted operating profit margin expansion, anticipated adjusted diluted net earnings per share, anticipated adjusted free cash flow conversion, and anticipated earnings growth, and any other statements identified by their use of words like "anticipate," "expect," "believe," "outlook," "guidance," or "will" or other words of similar meaning. There are a number of important risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those suggested or indicated by such forward-looking statements and you should not place undue reliance on any such forward-looking statements. These risks and uncertainties include, among other things, deterioration of or instability in the economy, the markets we serve, changes in U.S. and international geopolitics, including trade policies, volatility in financial markets, contractions or lower growth rates and cyclicality of markets we serve, competition, changes in industry standards and governmental policies and regulations that may adversely impact demand for our products or our costs, our ability to successfully identify, consummate, integrate and realize the anticipated value of appropriate acquisitions and successfully complete divestitures and other dispositions, our ability to develop and successfully market new products, software, and services and expand into new markets, the potential for improper conduct by our employees, agents or business partners, impact of divestitures, contingent liabilities relating to acquisitions and divestitures, impact of changes to tax laws, our compliance with changes in applicable laws and regulations, risks relating to global economic, political, war or hostility, public health, legal, compliance and business factors, risks relating to potential impairment of goodwill and other intangible assets, currency exchange rates, tax audits and changes in our tax rate and income tax liabilities, the impact of our debt obligations on our operations, litigation and other contingent liabilities including intellectual property and environmental, health and safety matters, our ability to adequately protect our intellectual property rights, risks relating to product, service or software defects, product liability and recalls, risks relating to product manufacturing, our relationships with and the performance of our channel partners, commodity costs and surcharges, our ability to adjust purchases and manufacturing capacity to reflect market conditions, reliance on sole sources of supply, security breaches or other disruptions of our information technology systems, adverse effects of restructuring activities, impact of changes to U.S. GAAP, labor matters, and disruptions relating to man-made and natural disasters. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our Annual Report on Form 10-K for the year ended December 31, 2025. These forward-looking statements represent Vontier’s beliefs and assumptions only as of the date of this release and Vontier does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise. VONTIER CORPORATION AND SUBSIDIARIESRECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURESAND OTHER INFORMATION Core Sales Growth We define core sales growth as the change in total sales calculated according to GAAP but excluding (i) sales from acquired and certain divested businesses; (ii) the impact of currency translation; and (iii) certain other items. References to sales attributable to acquisitions or acquired businesses refer to GAAP sales from acquired businesses recorded prior to the first anniversary of the acquisition less the amount of sales attributable to certain divested or exited businesses or product lines not considered discontinued operations. The portion of sales attributable to the impact of currency translation is calculated as the difference between (a) the period-to-period change in sales (excluding sales from acquired businesses) and (b) the period-to-period change in sales, including foreign operations, (excluding sales from acquired businesses) after applying the current period foreign exchange rates to the prior year period. The portion of sales attributable to other items is calculated as the impact of those items which are not directly correlated to core sales which do not have an impact on the current or comparable period. Core sales growth should be considered in addition to, and not as a replacement for or superior to, total sales, and may not be comparable to similarly titled measures reported by other companies. Management believes that reporting the non-GAAP financial measure of core sales growth provides useful information to investors by helping identify underlying growth trends in our business and facilitating easier comparisons of our sales performance with our performance in prior and future periods and to our peers. We exclude the effect of acquisitions and certain divestiture-related items because the nature, size and number of such transactions can vary dramatically from period to period and between us and our peers. We exclude the effect of currency translation and certain other items from core sales because these items are either not under management’s control or relate to items not directly correlated to core sales growth. Management believes the exclusion of these items from core sales growth may facilitate assessment of underlying business trends and may assist in comparisons of long-term performance. Adjusted Operating Profit and Adjusted Operating Profit Margin Adjusted operating profit refers to operating profit calculated in accordance with GAAP, but excluding amortization of acquisition-related intangible assets, costs associated with restructurings including one-time termination benefits and related charges and impairment and other charges associated with facility closure, contract termination and other related activities, and the related impact of certain divested or exited businesses or product lines not considered discontinued operations ("Restructuring- and divestiture-related adjustments"), transaction- and deal-related costs, asbestos-related adjustments associated with certain divested businesses, one-time costs related to the separation, amortization of acquisition-related inventory fair value step-up, gains and losses on sale of property, and other charges which represent charges incurred that are not part of our core operating results ("Other charges"). Adjusted operating profit margin refers to adjusted operating profit divided by GAAP sales. Adjusted Net Earnings and Adjusted Diluted Net Earnings per Share Adjusted net earnings refers to net earnings calculated in accordance with GAAP, but excluding on a pretax basis amortization of acquisition-related intangible assets, Restructuring- and divestiture-related adjustments, transaction- and deal-related costs, asbestos-related adjustments associated with certain divested businesses, one-time costs related to the separation, amortization of acquisition-related inventory fair value step-up, gains and losses on sale of property, Other charges, non-cash write-offs of deferred financing costs, gains and losses on sale of businesses and gains and losses on investments, including the tax effect of these adjustments and other tax adjustments. The tax effect of such adjustments was calculated by applying our estimated adjusted effective tax rate to the pretax amount of each adjustment. Adjusted diluted net earnings per share refers to adjusted net earnings divided by the weighted average diluted shares outstanding. Free Cash Flow, Adjusted Free Cash Flow and Adjusted Free Cash Flow Conversion Free cash flow refers to cash flow from operations calculated according to GAAP but excluding capital expenditures. Adjusted free cash flow refers to free cash flow adjusted for cash received from the sale of property, plant and equipment and cash paid for Restructuring- and divestiture-related adjustments, transaction- and deal-related costs and Other charges. Adjusted free cash flow conversion refers to adjusted free cash flow divided by adjusted net earnings. Net Leverage Ratio, EBITDA and Adjusted EBITDA EBITDA refers to net earnings calculated in accordance with GAAP, excluding interest, taxes, depreciation and amortization of acquisition-related intangible assets. Adjusted EBITDA refers to EBITDA adjusted for Restructuring- and divestiture-related adjustments, transaction- and deal-related costs, asbestos-related adjustments associated with certain divested businesses, one-time costs related to the separation, amortization of acquisition-related inventory fair value step-up, gains and losses on sale of property, Other charges, non-cash write-offs of deferred financing costs, gains and losses on sale of businesses and gains and losses on investments. Net leverage ratio refers to net debt divided by Adjusted EBITDA. Management believes that these non-GAAP financial measures provide useful information to investors by reflecting additional ways of viewing aspects of our operations that, when reconciled to the corresponding GAAP measure, help our investors to understand the long-term profitability trends of our business, and facilitate comparisons of our profitability to prior and future periods and to our peers. These non-GAAP measures should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measures, and may not be comparable to similarly titled measures reported by other companies. A reconciliation of each of the projected Core Sales Growth, Adjusted Operating Profit Margin, Adjusted Diluted Net Earnings Per Share and Adjusted Free Cash Flow Conversion, which are forward-looking non-GAAP financial measures, to the most directly comparable GAAP financial measure, is not provided because the company is unable to provide such reconciliation without unreasonable effort. The inability to provide each reconciliation is due to the unpredictability of the amounts and timing of events affecting the items we exclude from the non-GAAP measure. View source version on businesswire.com: https://www.businesswire.com/news/home/20260806052416/en/ Contacts INVESTOR RELATIONS: Ryan Edelman Vice President, Investor Relations+1 (984) [email protected]

Vontier Corporation (VNT) came out with quarterly earnings of $0.89 per share, beating the Zacks Consensus Estimate of $0.82 per share. This compares to earnings of $0.79 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +8.54%. A quarter ago, it was expected that this company would post earnings of $0.82 per share when it actually produced earnings of $0.8, delivering a surprise of -2.44%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Vontier, which belongs to the Zacks Technology Services industry, posted revenues of $756.7 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 5.41%. This compares to year-ago revenues of $773.5 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Vontier shares have lost about 9.6% since the beginning of the year versus the S&P 500's gain of 12.8%. While Vontier has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Vontier was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.86 on $800 million in revenues for the coming quarter and $3.39 on $3.11 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Technology Services is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. NextNav Inc. (NN), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 11. This company is expected to post quarterly loss of $0.16 per share in its upcoming report, which represents a year-over-year change of +46.7%. The consensus EPS estimate for the quarter has been revised 12% higher over the last 30 days to the current level. NextNav Inc.'s revenues are expected to be $0.9 million, down 25% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vontier Corporation (VNT) : Free Stock Analysis Report NextNav Inc. (NN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance beat was driven by robust demand in Environmental & Fueling Solutions (EFS), specifically in dispensers and aftermarket parts as customers modernize sites. Management attributes margin expansion to VBS-led simplification efforts, including a reduction from 32 to 8 dispenser platforms and the rationalization of 1,400 SKUs. The Connected Mobility strategy is gaining traction, evidenced by a 20% year-to-date increase in connected assets managed through proprietary applications. Mobility Technologies (MT) faced a difficult prior-year comparison due to elevated vehicle identification shipments, but underlying growth remains mid-single digits. Repair Solutions underperformed management expectations, leading to a leadership transition and a focus on streamlining supply chain and co-marketing programs. Strategic portfolio shifts were finalized through the divestiture of Teletrac and the acquisition of EKOS to better align with high-growth fleet energy management. Consolidation in the convenience retail space serves as a tailwind as operators standardize equipment across newly acquired sites. Full-year EPS guidance was raised based on stronger operational execution and the impact of accelerated share repurchases. Third-quarter guidance assumes mid-single-digit growth in both EFS and MT as difficult prior-year comparisons are now largely lapsed. Management expects to slightly exceed the $15 million in-year cost savings commitment for the full year., with approximately two-thirds of savings realized in the second half. The rollout of FlexPay 6 next-gen payment terminals is expected to accelerate, supporting both top-line growth and margin expansion assumptions. The EKOS acquisition is projected to achieve double-digit ROIC by year 3, with revenue reaching $15 million to $17 million by fiscal 2027. A one-time favorable net impact from IEEPA tariff refunds contributed approximately 120 basis points to consolidated adjusted operating margins. The Teletrac divestiture closed one month later than anticipated, providing an unplanned month of contribution to the second quarter results. Repair Solutions margins are expected to remain pressured, with a full-year downward revision of $7 million to $8 million in operating profit. Memory chip price inflation is noted as a high single-digit headwind, though partially offset by strategic pricing actions. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management is focusing on supplier management and reducing supply chain steps to improve the cost to serve. The business is targeting a 19% margin in the second half, representing a step-up from current levels excluding tariff benefits. Growth is driven by a regular pace of new-to-industry builds and retrofits rather than isolated large wins. Large convenience store operators remain healthy and are planning build-out cycles several years in advance. Delays in migrating legacy car wash technology to the new Patheon cloud software are due to complex project timelines and permitting. Despite the slower uptake, management notes that 90% of the installed base still represents a future upgrade opportunity. EKOS provides a 'high-growth fleet energy management' software layer that integrates directly with existing fueling hardware. The deal adds a high-margin recurring revenue profile, with 80% of its revenue being subscription-based (ARR).