Vontier Corp. 10-Q Summary: Q2 2026
Business Context and Reporting Period
This is a Quarterly Report (Form 10-Q) for Vontier Corp. for the period ended July 3, 2026. Vontier is a global industrial technology company operating through three segments: Environmental & Fueling Solutions, Mobility Technologies, and Repair Solutions. The company reported as a large accelerated filer with 135.2 million shares of common stock outstanding as of August 3, 2026.
Key Financial Metrics
| Metric (in millions) | Q2 2026 (3 Months) | Q2 2025 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|---|
| Sales | $756.7 | $773.5 | $1,507.3 | $1,514.6 |
| Operating Profit | $146.7 | $136.4 | $281.5 | $266.5 |
| Net Earnings | $27.4 | $91.9 | $121.7 | $179.8 |
| Diluted EPS | $0.20 | $0.62 | $0.86 | $1.21 |
| Operating Cash Flow (YTD) | $162.8 (YTD 2026) vs $210.4 (YTD 2025) | |||
| Cash & Equivalents | $265.8 (as of July 3, 2026) | |||
| Total Debt | $1.90 billion (Short-term: $304.8M; Long-term: $1,595.2M) |
Material Changes vs. Prior Period
- Revenue Decline: Sales decreased 2.2% year-over-year in Q2 and 0.5% year-over-year for the six months ended July 3, 2026. Core sales (non-GAAP) declined 0.2% in Q2 but grew 0.7% YTD, offset by a 2.3% negative impact from acquisitions and divestitures.
- Profitability Impact: Net earnings dropped significantly due to a $86.2 million loss on the sale of the Teletrac Navman business completed in June 2026. Excluding this loss, operating profit increased 7.6% in Q2 and 5.6% YTD.
- Segment Performance:
- Environmental & Fueling Solutions: Sales up 1.3% (Q2) and 2.8% (YTD) driven by core growth in dispenser systems.
- Mobility Technologies: Sales down 6.2% (Q2) and 3.4% (YTD) due to project timing and exited businesses.
- Repair Solutions: Sales down 1.3% (Q2) and 0.7% (YTD) due to macroeconomic impacts on technician spending.
- Cost Management: R&D expenses decreased 26.1% in Q2 and 12.8% YTD due to productivity initiatives. Cost of sales benefited by approximately $12.0 million from a tariff refund related to prior year inventory.
Outlook, Risks, and Unusual Items
- Divestiture: The sale of Teletrac Navman resulted in a preliminary loss of $86.2 million. Consideration included $85.0 million cash, $99.8 million in seller's notes, and a retained minority interest.
- Acquisition: On July 31, 2026, Vontier acquired EKOS for $43.0 million in cash plus up to $36.0 million in contingent consideration to enhance fleet and EV management software.
- Capital Allocation: The Board approved an increase in the share repurchase program to $1.0 billion total authorization. The company repurchased 6.2 million shares for $200.0 million in the first half of 2026. Quarterly dividends of $0.025 per share were maintained.
- Debt Refinancing: The company repaid $500.0 million in senior notes due in 2026 using proceeds from a new $300.0 million 364-day Term Loan and cash on hand.
- Risks: Management highlighted risks related to shifting U.S. tariff policies, supply chain disruptions, geopolitical conflicts (Russia-Ukraine, Middle East), and the potential for asbestos-related litigation liabilities.
Investor Verification Checklist
- Teletrac Navman Sale Finalization: Verify the final working capital adjustments and the ultimate realized loss on the $86.2 million preliminary loss.
- Tariff Exposure: Assess the sustainability of the $12.0 million tariff refund benefit and the impact of new U.S. tariffs on future cost of sales.
- Core Sales Trend: Monitor the divergence between GAAP sales (declining) and Core sales (flat/growing) to understand the impact of divestitures on future revenue guidance.
- Debt Maturity Wall: Confirm the repayment strategy for the $300.0 million 364-day Term Loan maturing in March 2027.
- Repair Solutions Credit Quality: Review the allowance for credit losses on financing receivables given the macroeconomic pressure on service technician spending.