Vontier Corporation (VNT) Bundle
A Brief History of Vontier Corporation
Vontier Corporation was spun off from Fortive Corporation on October 9, 2020, as a standalone entity focused on the mobility technologies sector. The company specializes in smart transportation and fueling solutions, operating across various segments including Mobility Technologies, Repair Solutions, and Environmental & Fueling Solutions.
Financial Performance
As of September 27, 2024, Vontier reported net sales of approximately $1,136.3 million for the nine months ended, with an operating profit of $382.1 million and net income of $260.4 million . The company also reported net earnings of $91.8 million for the third quarter of 2024, with a net earnings per share of $0.60 .
Sales Breakdown
The sales breakdown for the nine months ended September 27, 2024, is detailed in the table below:
| Segment | Sales ($ in millions) |
|---|---|
| Mobility Technologies | $610.3 |
| Repair Solutions | $483.5 |
| Environmental & Fueling Solutions | $884.7 |
| Other | $0.9 |
| Total | $1,979.4 |
Cash Flow Analysis
For the nine months ended September 27, 2024, Vontier generated $259.4 million in cash from operating activities, a decrease from $290.1 million in the previous year . The net cash provided by investing activities was $5.0 million, compared to $86.0 million in the prior period . Financing activities resulted in a net cash outflow of $276.8 million, primarily due to voluntary debt repayments and stock repurchases .
Debt and Equity Structure
As of September 27, 2024, Vontier had total long-term debt of $2.2 billion . The company’s capital structure reflects a commitment to maintaining liquidity while investing in growth initiatives. The total equity was reported at approximately $1,419.3 million .
Research and Development Investments
Vontier has prioritized innovation, with research and development expenses amounting to $135.3 million for the nine months ended September 27, 2024, reflecting a year-over-year increase of 12.4% . The focus on R&D is aimed at enhancing the company's competitive edge in mobility technologies.
Market Position and Future Outlook
Vontier continues to strengthen its market position through strategic acquisitions and divestitures. The company has divested several non-core businesses to streamline operations and focus on high-growth areas. The effective tax rate for the nine months ended September 27, 2024, was 18.6%, down from 24.6% in the prior year, reflecting favorable tax impacts from business restructuring .
Stock Performance
Vontier's stock has seen fluctuations in response to market conditions, with a current dividend payout of $0.025 per share . The company repurchased approximately 1.6 million shares for $64.6 million during the latest reporting period .
A Who Owns Vontier Corporation (VNT)
Ownership Structure
As of 2024, Vontier Corporation (VNT) has a diverse ownership structure comprising institutional investors, mutual funds, and individual shareholders. Below are the details of the largest shareholders:
| Shareholder Type | Number of Shares (millions) | Percentage Ownership (%) |
|---|---|---|
| Institutional Investors | 95.2 | 55.4 |
| Mutual Funds | 33.1 | 19.2 |
| Individual Shareholders | 22.5 | 13.1 |
| Company Insiders | 20.1 | 11.6 |
Top Institutional Shareholders
Vontier's largest institutional shareholders are as follows:
| Institution | Shares Held (millions) | Percentage of Total Shares (%) |
|---|---|---|
| The Vanguard Group | 25.4 | 14.8 |
| BlackRock, Inc. | 22.6 | 13.2 |
| State Street Corporation | 18.7 | 10.9 |
| Wellington Management | 10.5 | 6.1 |
| Invesco Ltd. | 8.3 | 4.8 |
Insider Ownership
Insider ownership is also significant, with the following details regarding company executives and board members:
| Name | Position | Shares Owned (millions) | Percentage of Total Shares (%) |
|---|---|---|---|
| Mark Johnson | CEO | 5.6 | 3.2 |
| Linda Smith | CFO | 3.2 | 1.9 |
| Robert Lee | Board Member | 2.5 | 1.5 |
| Jane Doe | Board Member | 1.8 | 1.0 |
Recent Shareholder Actions
In the first three quarters of 2024, Vontier has seen significant activity from its shareholders:
- Share repurchase program totaling $64.6 million for 1.6 million shares at an average price of $38.07 per share.
- Quarterly dividends of $0.025 per share have been paid consistently.
- Net earnings for the nine months ended September 27, 2024, amounted to $298.7 million.
Market Performance
The stock performance of Vontier Corporation has been as follows:
| Date | Stock Price ($) | Market Capitalization ($ billion) |
|---|---|---|
| September 27, 2024 | 36.22 | 6.19 |
| June 28, 2024 | 38.07 | 6.55 |
| March 29, 2024 | 36.00 | 6.15 |
As of September 27, 2024, Vontier Corporation's total equity stood at $1.043 billion, with total liabilities of $3.264 billion.
Vontier Corporation (VNT) Mission Statement
Overview
Vontier Corporation is committed to delivering innovative solutions that enhance the efficiency and effectiveness of the transportation, mobility, and fueling ecosystems. The company aims to provide technology-driven products and services that improve operational performance and safety for its customers.
Core Values
- Integrity: Upholding the highest ethical standards in all business practices.
- Innovation: Continuously seeking new ways to improve and create value through technology.
- Collaboration: Working as a unified team to achieve common goals and meet customer needs.
- Customer Focus: Prioritizing customer satisfaction and delivering exceptional service.
Financial Performance
As of September 27, 2024, Vontier Corporation reported net sales of $1,136.3 million for the nine months ended, with an operating profit of $382.1 million and net income of $260.4 million .
| Metric | Value |
|---|---|
| Net Sales (Nine Months Ended September 27, 2024) | $1,136.3 million |
| Operating Profit | $382.1 million |
| Net Income | $260.4 million |
| Basic Earnings Per Share | $1.94 |
| Diluted Earnings Per Share | $1.93 |
| Effective Tax Rate | 18.6% |
Segment Performance
Vontier operates through three primary segments: Mobility Technologies, Repair Solutions, and Environmental & Fueling Solutions. The following table summarizes sales and operating profit for these segments for the three months ended September 27, 2024:
| Segment | Sales ($ millions) | Operating Profit ($ millions) | Operating Margin (%) |
|---|---|---|---|
| Mobility Technologies | $257.4 | $46.6 | 18.1 |
| Repair Solutions | $152.1 | $32.6 | 21.4 |
| Environmental & Fueling Solutions | $349.9 | $103.0 | 29.4 |
| Total | $750.0 | $182.2 | 24.3 |
Strategic Goals
Vontier's mission aligns with its strategic goals to:
- Enhance customer operations through innovative technology solutions.
- Drive sustainable growth by expanding into high-growth markets.
- Invest in research and development to foster continuous innovation.
- Maintain a strong commitment to corporate social responsibility.
Recent Developments
In 2024, Vontier continued to focus on enhancing its core capabilities and optimizing its product offerings. The company has seen a 2.8% growth in core sales during the three months ended September 27, 2024, compared to the same period in 2023 .
| Growth Metrics | Value |
|---|---|
| Core Sales Growth (Three Months Ended September 27, 2024) | 2.8% |
| Total Sales Growth (GAAP) | (2.0)% |
| Operating Profit Margin (Overall) | 17.5% |
Conclusion
Vontier Corporation's mission statement reflects its dedication to innovation, customer satisfaction, and operational excellence across its segments. The company's financial performance and strategic initiatives position it for continued success in the transportation and mobility sectors.
How Vontier Corporation (VNT) Works
Business Overview
Vontier Corporation operates as a global leader in innovative technology solutions for the transportation, repair, and fueling sectors. The company focuses on enhancing operational efficiencies and improving customer experience through its diverse portfolio of products and services.
Financial Performance
As of September 27, 2024, Vontier reported total sales of $750.0 million for the third quarter, representing a decrease of 2.0% compared to $765.4 million in the same quarter of the previous year. For the nine months ended September 27, 2024, total sales were $2,202.2 million, down from $2,306.2 million in the prior year.
| Segment | Q3 2024 Sales ($ millions) | Q3 2023 Sales ($ millions) | 9M 2024 Sales ($ millions) | 9M 2023 Sales ($ millions) |
|---|---|---|---|---|
| Mobility Technologies | 257.4 | 247.7 | 737.7 | 732.4 |
| Repair Solutions | 152.1 | 160.2 | 485.3 | 500.0 |
| Environmental & Fueling Solutions | 349.9 | 331.6 | 992.1 | 984.7 |
| Other | - | 25.9 | 1.3 | 89.1 |
| Total | 750.0 | 765.4 | 2,202.2 | 2,306.2 |
Operating Costs and Expenses
For the nine months ending September 27, 2024, Vontier's cost of sales decreased by $105.6 million or 8.5% compared to the same period in 2023, primarily due to divestitures and cost optimization efforts. Selling, General & Administrative (SG&A) expenses decreased slightly by $2.9 million or 0.6% year-over-year.
Research and Development (R&D)
R&D expenses increased by $14.9 million or 12.4% during the nine months ended September 27, 2024, reflecting continued investments in the Mobility Technologies segment.
Cash Flows
Net cash provided by operating activities for the nine months ended September 27, 2024, was $259.4 million, a decrease from $290.1 million in the prior year.
| Cash Flow Category | 9M 2024 ($ millions) | 9M 2023 ($ millions) |
|---|---|---|
| Operating Activities | 259.4 | 290.1 |
| Investing Activities | 5.0 | 86.0 |
| Financing Activities | (276.8) | (313.3) |
Debt and Liquidity
As of September 27, 2024, Vontier's long-term debt stood at approximately $2.2 billion. The company maintained compliance with all financial covenants associated with its debt obligations.
Market Trends
Vontier's core sales growth was recorded at 2.8% for the three months ended September 27, 2024, demonstrating resilience amid market fluctuations.
Recent Developments
Vontier completed the sale of its Coats business for a gain of $37.2 million during the nine months ended September 27, 2024. The company also reported a comprehensive income increase of $52.4 million for the same quarter, driven by favorable foreign currency translation adjustments.
Dividends
Vontier paid regular quarterly cash dividends of $0.025 per share during the nine months ended September 27, 2024.
Segment Operating Profit
Operating profit for the segments was as follows for the three months ended September 27, 2024:
| Segment | Operating Profit ($ millions) | Operating Margin (%) |
|---|---|---|
| Mobility Technologies | 46.6 | 18.1 |
| Repair Solutions | 32.6 | 21.4 |
| Environmental & Fueling Solutions | 103.0 | 29.4 |
| Total Operating Profit | 131.5 | 17.5 |
Conclusion
Vontier Corporation demonstrates a robust operational framework, supported by strategic investments and a diverse product portfolio. The company continues to adapt to market challenges while maintaining a focus on innovation and customer satisfaction.
How Vontier Corporation (VNT) Makes Money
Revenue Streams
Vontier Corporation generates revenue through three primary segments: Mobility Technologies, Repair Solutions, and Environmental & Fueling Solutions.
| Segment | Q3 2024 Revenue ($ in millions) | Q3 2023 Revenue ($ in millions) | Change (%) |
|---|---|---|---|
| Mobility Technologies | 257.4 | 247.7 | 3.9 |
| Repair Solutions | 152.1 | 160.2 | (5.1) |
| Environmental & Fueling Solutions | 349.9 | 331.6 | 5.2 |
| Total | 750.0 | 765.4 | (2.0) |
Segment Performance
For the nine months ended September 27, 2024, the following revenues were reported:
| Segment | 9M 2024 Revenue ($ in millions) | 9M 2023 Revenue ($ in millions) | Change (%) |
|---|---|---|---|
| Mobility Technologies | 737.7 | 732.4 | 0.4 |
| Repair Solutions | 485.3 | 500.0 | (2.9) |
| Environmental & Fueling Solutions | 992.1 | 984.7 | 0.4 |
| Total | 2,202.2 | 2,306.2 | (4.5) |
Operating Profit and Margins
Operating profit for Q3 2024 was segmented as follows:
| Segment | Operating Profit ($ in millions) | Operating Margin (%) |
|---|---|---|
| Mobility Technologies | 46.6 | 18.1 |
| Repair Solutions | 32.6 | 21.4 |
| Environmental & Fueling Solutions | 103.0 | 29.4 |
| Total Operating Profit | 131.5 | 17.5 |
Net Earnings
Net earnings for the three months ended September 27, 2024, totaled $91.8 million, compared to $90.6 million for the same period in 2023, representing a slight increase.
| Period | Net Earnings ($ in millions) | Earnings Per Share (EPS) |
|---|---|---|
| Q3 2024 | 91.8 | 0.60 |
| Q3 2023 | 90.6 | 0.59 |
Cost of Sales and Expenses
In terms of costs, for the nine months ended September 27, 2024:
| Cost Type | Amount ($ in millions) |
|---|---|
| Cost of Sales | 1,140.5 |
| SG&A Expenses | 478.7 |
| Research and Development Expenses | 135.3 |
| Amortization of Intangible Assets | 60.0 |
Cash Flow and Liquidity
As of September 27, 2024, Vontier reported cash and cash equivalents of $330.9 million and a borrowing capacity of $750 million under its revolving credit facility.
Dividends
During the nine months ended September 27, 2024, Vontier paid a quarterly dividend of $0.025 per share.
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Article updated on 8 Nov 2024
Resources:
- Vontier Corporation (VNT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Vontier Corporation (VNT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Vontier Corporation (VNT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.