This is an old version of VNT from 5 days ago (Nov 8, 2026).See the latest version
VNT
- Price
- $42.23
- Discount category
- Below intrinsic value
- Next earnings
- Feb 5, 2027
- Next earnings is estimate
- Yes
- Company name
- Vontier
- Sector
- Industrial technology
- About
- Vontier makes equipment and software for gas stations, convenience stores and vehicle repair. Fortive spun it off in 2020. It reports three segments. Environmental & Fueling Solutions, mainly Gilbarco, makes fuel dispensers, tank monitoring systems and spare parts, and it gives almost half of sales. Total sales were $737 million in Q3 2026. Mobility Technologies sells point-of-sale and payment systems for convenience stores, software for electric vehicle charging networks and other workflow software. Repair Solutions, mainly Matco Tools, sells tools, toolboxes and diagnostic equipment to mechanics through mobile franchisees, and it lends money to mechanics and franchisees for these purchases. Vontier expects 2026 sales of about $3.03 billion. It uses most of its free cash flow for share buybacks.
- Thesis
- The market prices Vontier as a slow-growth company tied to gasoline and to the spending of car mechanics. Fuel dispensers and related parts give almost half of its sales, and investors fear that electric vehicles will reduce demand for fueling equipment over time. The other two segments were weak in the first half of 2026. In Q3 2026, growth came back: core sales grew 5.7%, with fueling core sales up 13.1% and Mobility Technologies up 2.2%. But Repair Solutions core sales fell 1.0%, because mechanics still spent less on tools. Adjusted EPS was $0.92, and Vontier raised its 2026 guidance to $3.60 to $3.64. For the gap to close, Vontier must show that this growth continues. Core sales must grow about 3% for the full year, as guided, and adjusted free cash flow conversion must reach about 95% of adjusted net earnings in 2026. Repair Solutions sales must stop falling, and fueling demand must stay strong. The next test is the 2027 guidance in early February 2027. Vontier must also refinance or repay a $300 million term loan due on March 30, 2027. The fear of the electric vehicle shift can go away only slowly, so the gap will probably close over two to three years of steady growth and buybacks.
- Risks
- Fueling equipment gives almost half of Vontier's sales. If electric vehicles replace gasoline cars faster than expected, or if fuel retailers delay new equipment, sales and profit in this segment fall. Matco Tools depends on mechanics who buy tools on credit. In 2026, mechanics spent less on tools, and Vontier added a bad debt reserve in Q1 2026. A weaker economy can raise credit losses on these loans. Mobility Technologies sales fell 6.2% in Q2 2026 because of lower shipments of vehicle identification products, and core sales grew only 2.2% in Q3 2026. If its software and payment products do not grow, the segment stays a drag. Vontier buys back shares with cash and debt. Net debt was 2.3 times adjusted EBITDA at October 2, 2026, and $300 million of debt is due on March 30, 2027. Tariffs and higher interest rates can also raise costs.
- Balance sheet
- Cash: $258M Debt: $1.9B Net debt: $1.6B EBITDA, last 12 months: $727M Net debt / EBITDA: 2.3× (medium) Interest cover: 9.6× Undrawn credit line: $750M Debt due within 12 months: $305M Last debt due: 2031 Vontier funds itself with unsecured notes and bank term loans. Its subsidiaries Gilbarco and Matco Tools guarantee them. At October 2, 2026, total debt was $1,905.7 million: $305.5 million of short-term debt, mainly the $300 million term loan due March 30, 2027, and $1,595.5 million of long-term debt. The long-term debt is $500 million of 2.400% notes due April 2028, $600 million of 2.950% notes due April 2031 and $500 million of term loans due February 2028. Cash was $258.4 million at October 2, 2026, so net debt was $1,647.3 million. EBITDA is adjusted EBITDA of $727.2 million for the 12 months to October 2, 2026, and the company states net leverage of 2.3 times. Interest cover is operating profit divided by interest expense for the first nine months of 2026. The $750 million revolving credit facility, due in 2030, had nothing drawn at July 3, 2026. Buybacks used $280 million of cash in the first nine months of 2026, $80 million of it in Q3. Adjusted free cash flow was $133.1 million in Q3 2026. As of Oct 2, 2026.
- Checkpoints
- Nov 5, 2026: Q3 2026 results: return to core growth. Passed. Watch: Core sales growth near the guided 5% with stable Repair Solutions sales passes; core sales growth below 3% or a cut to 2026 guidance fails. Outcome: Core sales grew 5.7% and 2026 EPS guidance went up, and Repair Solutions core sales fell only 1.0%, near the 1.3% fall of Q2. Feb 5, 2027 (estimate): Q4 2026 results and 2027 guidance. Pending. Watch: 2027 guidance with core sales growth and higher adjusted EPS passes; guidance with falling core sales fails. Mar 30, 2027: $300 million term loan due. Pending. Watch: Repayment or refinancing with net leverage near 2.3 times passes; a rise in leverage above 3 times fails.
- Recent events
- Nov 5, 2026: Vontier reported Q3 2026 results. Sales fell 2.1% to $736.9 million because of the Teletrac Navman sale, but core sales grew 5.7%. Fueling core sales grew 13.1%, Mobility Technologies core sales grew 2.2%, and Repair Solutions core sales fell 1.0%. Adjusted EPS was $0.92, and adjusted free cash flow was $133.1 million. Vontier bought back $80 million of shares in Q3. It raised its 2026 adjusted EPS guidance to $3.60 to $3.64, with sales of about $3.03 billion and core growth of about 3%. Oct 15, 2026: Vontier said that it will discuss its Q3 2026 results on a call at 8:00 a.m. Eastern Time on November 5, 2026. Oct 2, 2026: Kathryn Rowen, Executive Vice President and Chief Transformation and Operations Officer, told Vontier that she will leave on October 16, 2026, for another job. Aug 6, 2026: Vontier reported Q2 2026 results. Sales fell 2.2% to $756.7 million, and core sales fell 0.2%. Adjusted EPS was $0.89. Fueling core sales grew 4.6%, Mobility Technologies core sales fell 4.9%, and Repair Solutions sales fell 1.3%. Vontier raised its 2026 adjusted EPS guidance to $3.45 to $3.55 and guided Q3 core sales growth of about 5%. Jun 30, 2026: Vontier sold a majority of Teletrac Navman, its fleet software business. It received $85 million in cash, seller notes and a minority stake, and it recorded a preliminary loss of $86.2 million. May 19, 2026: The board raised the share buyback authorization to $1.0 billion. In the first half of 2026, Vontier bought back 6.2 million shares for $200 million. May 7, 2026: Vontier reported Q1 2026 results. Sales grew 1.3% to $750.6 million, and adjusted EPS was $0.80. Repair Solutions margin fell 180 basis points, partly because of a reserve for bad debt. Vontier also agreed to sell a majority of Teletrac Navman at a value of $220 million. Apr 1, 2026: Vontier repaid $500 million of notes that were due. It used $300 million from a new 364-day term loan and $200 million of cash.