Breaking Down Vontier Corporation (VNT) Financial Health: Key Insights for Investors

You're looking at Vontier Corporation (VNT) and seeing a mixed signal: a company navigating a tough macro environment but still raising its full-year outlook, and honestly, that's where the real money is made-in the nuance. The Q3 2025 results showed a slight revenue miss at $753 million, but they beat on the bottom line with an Adjusted Diluted Net EPS of $0.78, which tells you management is defintely executing on cost control and operational efficiency. The big picture for 2025 is that Vontier is guiding for total sales between $3,028 million and $3,038 million, with Adjusted EPS expected to land in the $3.15 to $3.20 range, driven by strong growth in their Connected Mobility segment, which is a clear opportunity. Still, you have to weigh that against the macroeconomic pressures hitting their Repair Solutions segment, so we need to break down exactly how they plan to hit that 95% adjusted free cash flow conversion target and if the street's average price target of $45.89 is truly justified.

Revenue Analysis

You need to know if Vontier Corporation (VNT) is growing, and where that growth is coming from. The short answer is that Vontier is projecting stable, low-single-digit core growth for 2025, with an expected full-year revenue of just over $3.03 billion, driven by its shift toward connected mobility solutions.

For the full 2025 fiscal year, Vontier Corporation (VNT) is guiding for total revenue between $3.03 billion and $3.04 billion. This is a slight uptick from the trailing twelve months (TTM) revenue ending September 30, 2025, which stood at $3.044 billion, representing a modest year-over-year growth rate of 1.76%. The real story isn't the total number, but the core sales growth (excluding currency and acquisitions/divestitures), which is projected to be between 2.0% and 2.5% for the year. That's a slow-but-steady trajectory.

The company's revenue is generated across three main business segments, and their performance in the third quarter of 2025 shows a clear divergence in strength. Here's a quick math breakdown of the Q3 2025 sales contribution:

The primary revenue sources are shifting. The Environmental & Fueling Solutions (EFS) segment, which includes fueling equipment and aftermarket parts, remains the largest contributor, with its 2.3% sales growth in Q3 2025 driven by strong aftermarket demand. But the fastest-growing segment is Mobility Technologies (MT), which saw a 5.1% sales jump, fueled by demand for convenience retail payment and point-of-sale (POS) technologies. This is where the company's 'Connected Mobility' strategy is defintely gaining traction.

The significant change you need to watch is the weakness in Repair Solutions (RS), which saw a steep 6.9% decline in Q3 2025 sales due to ongoing macroeconomic pressures hitting service technicians' discretionary spending. Plus, Vontier completed the divestiture of two non-core assets in Q3, which will create a sales headwind of about $15 million in the fourth quarter. It's a strategic clean-up, but it impacts near-term reported sales. You can learn more about who is betting on this strategic shift by Exploring Vontier Corporation (VNT) Investor Profile: Who's Buying and Why?

• Focus on MT's 5.1% growth; it's the future.
• EFS aftermarket parts are holding up the core business.
• Repair Solutions is a clear drag on overall growth.

Profitability Metrics

If you're looking at Vontier Corporation (VNT), the direct takeaway from the 2025 numbers is clear: the company maintains premium gross margins, which signals a strong competitive moat, but its operating leverage (the ability to turn revenue into operating profit) is still a work in progress, particularly in certain segments.

For the third quarter of 2025, Vontier Corporation's consolidated Gross Margin stood at a robust 47.32%. This figure-calculated from a gross profit of $356 million on $753 million in revenue-is a key indicator of pricing power and efficient production, sitting well above the typical 25%-35% benchmark for the general Manufacturing sector. That's a high-quality starting point for any industrial technology company.

Moving down the income statement, the profitability picture narrows, which is where the operational efficiency story comes in. Here's the quick math on the key margins for Q3 2025:

• Gross Profit Margin: 47.32%
• Operating Profit Margin (GAAP): 18.9%
• Adjusted Operating Profit Margin (Non-GAAP): 21.3%
• Net Profit Margin (TTM): 13.34%

The difference between the high gross margin and the lower operating margin shows where the company spends its money-selling, general, and administrative (SG&A) expenses and R&D. But honestly, the 21.3% Adjusted Operating Profit Margin is a solid result, especially when compared to a broader technology sector average that can be pulled down to -5.76% by aggressive, loss-making scaling.

Margin Trends and Operational Efficiency

Vontier Corporation's profitability trend in 2025 is one of disciplined execution against macroeconomic headwinds. You can see the sequential improvement in GAAP Operating Profit Margin from 17.6% in Q1 and Q2 to 18.9% in Q3. This jump of 140 basis points year-over-year in Q3 is a direct sign that their internal cost management-driven by the Vontier Business System (VBS) and simplification efforts-is working.

The company is translating that efficiency into better forecasts. They raised the midpoint of their full-year 2025 Adjusted Earnings Per Share (EPS) guidance to $3.18, which reflects anticipated margin expansion of 20 to 40 basis points for the full year. Still, the overall operating margin has decreased by 1.5 percentage points over the last five years, suggesting that while the near-term is strong, long-term expense control remains a focus area to truly leverage their high gross profit.

The segment data tells the real story of operational health. The Environmental & Fueling Solutions segment is a profit engine, boasting a segment operating profit margin of 29.2% in Q2 2025. In contrast, the Repair Solutions segment continues to face macroeconomic pressures, which is a drag on the consolidated results, but management is focused on strategic simplification and divesting non-core assets to enhance the overall margin profile.

You can see a deeper analysis of the company's full financial picture, including valuation and strategy, in Breaking Down Vontier Corporation (VNT) Financial Health: Key Insights for Investors.

Debt vs. Equity Structure

Vontier Corporation's (VNT) capital structure leans toward debt financing, a deliberate choice that boosts returns but introduces leverage risk. You need to know that as of the third quarter of 2025, the company's Debt-to-Equity (D/E) ratio stood at approximately 1.72, which is significantly higher than the average for its broader technology sector peers.

This higher ratio means Vontier Corporation is using more borrowed money than shareholder equity to fund its assets. For every dollar of equity, the company has about $1.72 in debt. That's a stark contrast to the 0.4616 average D/E ratio seen in the Technology Hardware, Storage & Peripherals sub-industry. Higher leverage can amplify returns, but it also means less cushion in an economic downturn. The company's Altman Z-Score of 2.72 in Q3 2025 confirms this moderate risk, placing it in the 'grey area' of financial stress.

Here's the quick math on Vontier Corporation's primary financing components for 2025:

• Total Long-Term Debt: Approximately $1.6 billion
• Total Stockholders' Equity: $1,201.6 million (as of June 27, 2025)
• Net Leverage Ratio: 2.4X (at the end of Q3 2025)

The company's debt is primarily structured through its Senior Unsecured Notes, which total $1.6 billion in aggregate principal amount. These notes are staggered, with tranches of $500.0 million due in April 2026, another $500.0 million due in April 2028, and a final $600.0 million due in April 2031. Plus, they maintain a revolving credit facility with an interest rate of 5.42% as of June 27, 2025.

Vontier Corporation balances this debt-heavy approach with a clear focus on returning capital to shareholders, a key use of equity funding. Year-to-date through Q3 2025, the company deployed $175 million for share buybacks. This capital allocation strategy-using debt for growth and free cash flow for equity-friendly actions-is a classic financial engineering move. It's a way to use the cheaper cost of debt to boost earnings per share (EPS) and shareholder value, as long as the cost of servicing the debt remains manageable. If you want a deeper dive into the full picture, you can check out the rest of our analysis: Breaking Down Vontier Corporation (VNT) Financial Health: Key Insights for Investors.

The company is defintely managing a leveraged balance sheet, but the crucial factor is its ability to generate cash flow to cover the interest payments, which its Q3 2025 Interest Coverage of 9.62 suggests it is doing comfortably. Still, any investor needs to monitor the upcoming $500.0 million note maturity in April 2026; that's a near-term refinancing action you should keep an eye on.

Liquidity and Solvency

You need to know how easily Vontier Corporation (VNT) can cover its near-term obligations, and the quick answer is they are running a tight ship, but with a critical caveat. The company's liquidity ratios are adequate but show the pressure of significant short-term debt reclassification, which is the key thing to watch.

As of the end of the third quarter in 2025, Vontier Corporation (VNT) reported a Current Ratio of approximately 1.18 and a Quick Ratio of 0.90. The Current Ratio, which measures current assets ($1,525.1 million) against current liabilities ($1,290.8 million), is just above the 1.0 threshold, suggesting they have enough assets to cover liabilities due within a year. Honestly, I prefer to see a Current Ratio closer to 1.5 for a comfortable margin.

The Quick Ratio, which strips out inventories ($358.8 million) to focus on the most liquid assets like cash and receivables, is below 1.0 at 0.90. This means Vontier Corporation (VNT) would need to rely on selling some inventory to cover all its immediate, non-inventory-backed obligations. It's not a red flag, but it's defintely a yellow one.

Here's the quick math on their working capital:

• Current Assets (Q3 2025): $1,525.1 million
• Current Liabilities (Q3 2025): $1,290.8 million
• Net Working Capital: $234.3 million

The working capital is positive, but the trend analysis is more telling. Current liabilities ballooned from $909.2 million at the end of 2024 to $1,290.8 million by Q3 2025. This jump is largely due to a massive increase in the current portion of long-term debt, which rose from $52.3 million to $500.1 million over the same period. This isn't new debt, but a reclassification of existing debt coming due, which compresses the liquidity position significantly.

The cash flow statement, however, provides a strong mitigating factor. Vontier Corporation (VNT) is a consistent cash generator. For the third quarter of 2025 alone, the company reported operating cash flow (OCF) of $111 million, translating to an adjusted free cash flow of $94 million. This operational strength is crucial for servicing that maturing debt.

Looking at the year-to-date picture through Q3 2025, the adjusted free cash flow reached $278 million, which is up approximately 31% compared to the prior year. This kind of organic cash generation gives them the flexibility to manage the debt maturities without having to scramble. Investing activities were marked by the divestiture of non-core assets, which generated combined proceeds of approximately $60 million in Q3 2025. On the financing side, they repurchased approximately 1.7 million shares for $70 million in Q3, signaling confidence and a commitment to returning capital.

What this estimate hides is the company's ability to successfully refinance or repay that large chunk of current long-term debt. The strong OCF and cash on hand ($433.8 million) are major strengths, but execution on the debt maturity is the only real liquidity concern. You can read more about the market's reaction to this in Exploring Vontier Corporation (VNT) Investor Profile: Who's Buying and Why?

Here is a summary of the cash flow trends:

Valuation Analysis

Is Vontier Corporation (VNT) overvalued or undervalued? Based on its trailing valuation multiples as of November 2025, Vontier Corporation (VNT) appears to be reasonably valued, leaning toward undervalued when you consider the consensus analyst price target. The market is pricing VNT at a discount compared to its potential upside.

The stock's closing price of $34.89 on November 21, 2025, sits well below the average analyst target, suggesting a clear path for capital appreciation. To be fair, the stock has been volatile, losing about 6.69% over the last 52 weeks, but that volatility is what creates opportunity for a patient investor.

Decoding the Core Valuation Multiples

We need to look past the sticker price and check the key valuation ratios (multiples) to see what you're defintely paying for. The trailing Price-to-Earnings (P/E) ratio is a solid starting point, telling us how much investors are willing to pay for every dollar of the company's past earnings. For Vontier Corporation (VNT), the trailing P/E is around 12.80.

Here's the quick math: A P/E of 12.80 is significantly lower than the broader S&P 500 average, which often trades in the high teens or low twenties. Plus, the forward P/E-which uses expected 2025 earnings-drops even further to about 10.49, signaling strong expected earnings growth.

The Enterprise Value-to-EBITDA (EV/EBITDA) ratio, which is a better measure because it accounts for debt (Enterprise Value) and non-cash expenses, is currently at 9.57. This is a healthy, moderate figure, suggesting the company is not overly leveraged relative to its cash-generating ability. Still, the Price-to-Book (P/B) ratio is higher at 4.12, which means the market values the company significantly above its net asset value, reflecting the value of its intangible assets and future growth potential.

Stock Performance and Dividend Profile

Over the last 12 months, Vontier Corporation (VNT) stock has traded in a wide range, from a 52-week low of $27.22 to a high of $43.88. The recent drop has pushed the stock closer to the lower end of that range, which is why the valuation multiples look so attractive right now. This is a classic case of a stock being caught in a near-term downdraft, giving you a better entry point.

From a dividend perspective, Vontier Corporation (VNT) is not a high-yield play. The annual dividend is a modest $0.10 per share, translating to a low dividend yield of about 0.3%. The good news is the payout ratio is extremely low at just 2.9%, meaning the dividend is very safe and the company retains nearly all its earnings to reinvest in the business, particularly in its higher-growth digital and clean-energy transition segments.

• Annual dividend is $0.10 per share.
• Dividend yield is only 0.3%.
• Payout ratio is a very safe 2.9%.

Analyst Consensus and the Upside Opportunity

The professional consensus on Vontier Corporation (VNT) is generally positive. Analysts currently rate the stock a 'Moderate Buy,' with eight 'Buy' ratings, two 'Hold' ratings, and one 'Sell' rating among the eleven analysts covering the firm. This isn't a unanimous 'Strong Buy,' but it is a clear majority view.

The average 12-month price target is set at a compelling $46.11. Given the current price of $34.89, this implies a potential upside of over 32%. What this estimate hides is the execution risk in their digital transformation, but the target suggests the market is not fully appreciating the long-term shift toward software and services. You can dive deeper into the institutional interest in the company by Exploring Vontier Corporation (VNT) Investor Profile: Who's Buying and Why?

Next Action: Conduct a peer comparison of VNT's EV/EBITDA multiple against its closest industrial technology and software peers to confirm if the 9.57 TTM multiple is truly a discount.

Risk Factors

You're looking at Vontier Corporation (VNT) and seeing a strong push into connected mobility, but we need to talk about the real risks that could slow down that progress. The biggest near-term challenge is the uneven performance across its business segments, coupled with financial risks from managing debt in a higher interest rate environment.

The company's full-year 2025 sales guidance is tight, projecting between $3.028 billion and $3.038 billion, which means every operational headwind matters. Here's the quick math: flat core sales growth in Q3 2025, even with a strong Mobility Technologies segment, shows the vulnerability. One segment's weakness can easily neutralize another's strength.

Operational and Market Headwinds

The primary internal risk is the significant drag from the Repair Solutions (RS) segment. This division saw a 6.9% decline in sales in Q3 2025 because of continued macroeconomic pressures. Honestly, when service technicians feel a pinch, they cut back on discretionary spending like new tools and diagnostic equipment, which hits Vontier Corporation (VNT) directly. Still, management is cautiously projecting Q4 core sales growth to be flat at the midpoint, ranging from -1% to +1%, which is a very narrow margin for error. The market is defintely focused on this, as evidenced by the stock drop following the Q3 earnings, despite the adjusted EPS beat of $0.78.

• Repair Solutions Slowdown: Macroeconomic pressures cut into technician discretionary spending.
• Legacy Reliance: Heavy reliance on traditional fueling infrastructure is a long-term threat as the global energy mix shifts.
• Competition in Software: Growing competition in the software-as-a-service (SaaS) space could challenge the Mobility Technologies segment's margin expansion.

You can dive deeper into which institutional investors are betting on the long-term shift by checking out Exploring Vontier Corporation (VNT) Investor Profile: Who's Buying and Why?

Financial and Debt Management Risks

While the company has a stable outlook, its financial structure presents a couple of clear risks. The Altman Z-Score, a measure of financial health, sits at 2.88, which places Vontier Corporation (VNT) in the 'grey area,' suggesting moderate financial stress, not a crisis, but not bulletproof either. The net leverage ratio at the end of Q3 2025 was 2.4X, a manageable but notable level of debt.

The most immediate financial concern is the upcoming bond maturity in 2026. This exposes the company to potential increases in interest expenses when they refinance, especially if rates remain elevated. The cost of capital is higher now, so a refinancing event could easily eat into future earnings, even with the projected full-year adjusted EPS of $3.15 to $3.20.

Mitigation and Actionable Defense

The good news is Vontier Corporation (VNT) is taking concrete, self-help actions to counter these risks. They are strategically simplifying their product lines and optimizing the supply chain to protect margins. Plus, the strategic focus on connected mobility is working: SaaS and recurring services now make up approximately 30% or more of total revenue, which structurally improves earnings predictability. The company also completed the divestiture of two non-core assets and exited a minority equity position, generating combined proceeds of approximately $60 million in Q3 2025 alone. They are using cash flow aggressively, repurchasing 4.6 million shares for $175 million year-to-date through Q3 2025. That's a strong signal of management confidence.

Growth Opportunities

You're looking at Vontier Corporation (VNT) and wondering if the pivot from legacy fueling equipment to a connected mobility ecosystem is actually paying off. Honestly, the 2025 numbers suggest it is-but it's not a runaway train yet. The core story for Vontier is a controlled, strategic shift, moving from selling hardware to selling integrated, higher-margin digital solutions.

The company's full-year 2025 guidance, updated in late October, projects total sales to land between $3.028 billion and $3.038 billion, with core sales growth expected in the 2.0% to 2.5% range. That's steady, not explosive, but the quality of that growth is what matters. They are focusing on expanding their Adjusted Operating Profit Margin by 20 to 40 basis points this year, a clear sign the Vontier Business System (VBS) is driving operational efficiency and cost control.

The Shift to Connected Mobility and Recurring Revenue

The most significant growth driver is Vontier Corporation's 'Connected Mobility' strategy. This isn't just a buzzword; it's a structural change, moving them into software and services that generate recurring revenue. The Mobility Technologies segment, which includes these digital solutions, was the strongest performer in Q3 2025, posting 4.8% core sales growth. This segment is where the real value is being unlocked.

Their product innovations are the concrete examples of this shift. They're rolling out platforms that unify the entire convenience retail experience:

• FlexPay 6: A unified payment platform for both indoor and outdoor use, accelerating the adoption of digital payment solutions.
• Patheon Solution: A cloud-based point-of-sale software that is driving growth in their vehicle wash business.
• Integrated Solutions: Combining hardware, software, and data at the intersection of commerce and energy.

This focus is defintely about building a stickier customer base. The goal is to drive higher-margin recurring revenue, which provides better earnings predictability than one-off equipment sales. For a deeper dive into who is buying into this narrative, you should read Exploring Vontier Corporation (VNT) Investor Profile: Who's Buying and Why?

2025 Financial Projections and Competitive Edge

Looking at the full fiscal year, the earnings picture is robust, even with modest sales growth. The company is guiding for adjusted diluted Earnings Per Share (EPS) between $3.15 and $3.20, representing approximately 10% growth year-over-year at the midpoint. Here's the quick math on their current outlook:

What this estimate hides is the strategic advantage Vontier Corporation holds: a strong competitive position in the retail fueling market, which gives them a massive installed base to cross-sell their new digital solutions. Their unique ability to deliver integrated solutions-from the fuel pump to the cloud software-is what positions them for above-market growth in key areas like convenience retail and car wash.

Still, you must be a trend-aware realist. The Repair Solutions segment is facing ongoing macroeconomic pressures, which is a clear headwind. The entire investment thesis rests on their ability to execute the transition to digital faster than their legacy fueling business declines due to the long-term shift to electric vehicles (EVs).