Vontier’s first quarter results were met with a positive market reaction, as the company delivered better-than-expected revenue and non-GAAP earnings per share despite a modest decline in sales year over year. Management identified low-double digit growth in its Mobility Technologies business and steady demand in Environmental & Fueling Solutions as key contributors. CEO Mark Morelli highlighted the success of new product introductions and strong channel checks, noting that “underlying demand trends in Q1 were strong, slightly ahead of our expectations.” The company also cited the resilience of its core Convenience Retail & Fueling end market and effective supply chain mitigation as factors supporting performance.
Is now the time to buy VNT? Find out in our full research report (it’s free).
Vontier (VNT) Q1 CY2025 Highlights:
- Revenue: $741.1 million vs analyst estimates of $721.1 million (1.9% year-on-year decline, 2.8% beat)
- Adjusted EPS: $0.77 vs analyst estimates of $0.72 (6.4% beat)
- Adjusted EBITDA: $173.4 million vs analyst estimates of $168.4 million (23.4% margin, 2.9% beat)
- The company reconfirmed its revenue guidance for the full year of $3.01 billion at the midpoint
- Management reiterated its full-year Adjusted EPS guidance of $3.08 at the midpoint
- Operating Margin: 17.6%, down from 18.8% in the same quarter last year
- Organic Revenue was flat year on year (3.9% in the same quarter last year)
- Market Capitalization: $5.45 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are 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.
Our Top 5 Analyst Questions Vontier’s Q1 Earnings Call
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Nigel Coe (Wolfe Research LLC) asked about contingency plans for the second half and the split between price and volume. CEO Mark Morelli explained that current demand remains resilient, and most tariff impacts will be addressed through price increases already in motion.
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Julian Mitchell (Barclays Investment Bank) questioned margin pressures in Mobility Technologies versus strong top-line growth. CFO Anshooman Aga clarified that a one-time settlement affected Q1 margins, but full-year margins are expected to expand by about 100 basis points.
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Julian Mitchell (Barclays Investment Bank) also inquired about the outlook for the Repair Solutions segment and tariff exposure. Management stated that Repair Solutions is likely to see a mid-single digit sales decline, with some offset from FX and limited tariff headwinds due to supply chain adjustments.
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David Ridley-Lane (Bank of America) asked about customer hesitancy or project delays in Environmental & Fueling Solutions. Morelli responded that large and regional operators remain committed to capital plans, with no evidence of project delays so far.
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Unidentified Analyst (Citigroup) sought updates on gross margin improvement initiatives and EV strategy progress. Morelli discussed ongoing product line simplification, self-help opportunities, and strong growth in the Drives EV charging software platform.
Catalysts in Upcoming Quarters
In upcoming quarters, StockStory’s team will be watching (1) the pace of recurring revenue growth from digital platforms like Invenco and Drives, (2) execution on supply chain and tariff mitigation initiatives, and (3) demand trends in the Repair Solutions segment amid ongoing consumer sentiment uncertainty. Progress on expanding the high-margin software base and evidence of resilient capital spending in core end markets will also be important markers of success.
Vontier currently trades at $36.82, up from $31.77 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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