What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2026-02-25 compared with 2025-02-25 · 444 added, 431 removed, 1001 unchanged (47% of the section changed)

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Based on this assessment, management concluded that, as of December 31, 2025, the Company’s internal control over financial reporting is effective.

The Company acquired EA Elektro-Automatik Holding GmbH (“EA”) during the year ended December 31, 2024.

The Company has not yet fully incorporated the internal controls and procedures of the EA acquisition into the Company’s internal control over financial reporting, and as such, management excluded the EA acquisition from its assessment.

The assets and revenues of the EA acquisition excluded from management’s assessment of internal controls constituted approximately 12% of the Company’s total assets as of December 31, 2024 and less than 2% of the Company’s total revenues for the year ended December 31, 2024, respectively.

The Company’s independent registered public accounting firm has issued an audit report on the effectiveness of the Company’s internal control over financial reporting.

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We believe that our audit provides a reasonable basis for our opinion.

As indicated in the accompanying Report of Management on Fortive Corporation’s Internal Control Over Financial Reporting, management’s assessment of and conclusion on the effectiveness of internal control over financial reporting did not include the internal controls of the EA Elektro-Automatik Holding GmbH which is included in the 2024 consolidated financial statements of the Company and constituted less than 12% of total assets, respectively, as of December 31, 2024 and less than 2% of revenues, for the year then ended.

Our audit of internal control over financial reporting of the Company also did not include an evaluation of the internal control over financial reporting of the EA Elektro-Automatik Holding GmbH.

Definition and Limitations of Internal Control Over Financial Reporting

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Description of the Matter

Accounting for the acquisition of EA Elektro-Automatik Holding GmbH

As discussed in Note 3 to the consolidated financial statements, on January 3, 2024, the Company acquired EA Elektro-Automatik Holding GmbH (“EA”), for a purchase price of $1.72 billion.

The transaction was accounted for as a business combination.

As part of the allocation of the purchase price, the Company estimated the fair value of finite-lived intangible assets to be $681.2 million, comprised of product trade names, developed technology and customer relationships.

Auditing the Company's accounting for its acquisition of EA was complex due to the estimation uncertainty in determining the fair value of finite-lived intangible assets related to customer relationships.

The significant assumption used to estimate the value of this asset was the attrition rate.

Accounting for indefinite-lived intangible assets

As discussed in Note 2 and 4 to the consolidated financial statements, the Company has $309.9 million of indefinite-lived intangible assets.

Auditing the Company's accounting for its evaluation of potential impairment was complex due to the estimation uncertainty in determining the fair value of a certain indefinite-lived intangible asset.

The significant assumption used to estimate the value of this asset was forecasted revenues.

This assumption is forward-looking and could be affected by future economic and market conditions.

How We Addressed the Matter in Our Audit We tested the Company's controls over its accounting for acquisitions, including controls over management’s review of the significant assumption described above.

To test the estimated fair value of customer relationship asset, we performed audit procedures that included, among others, evaluating the Company's use of the selected valuation model, testing the significant assumption used in the model and testing the completeness and accuracy of the underlying data.

For example, we compared the attrition rate selected by management to the historical results of the acquired business and to assumptions used by guideline companies within the industry.

Our valuation specialists assisted with the evaluation of the valuation model selected, including the attrition rate.

How We Addressed the Matter in Our Audit We tested the Company's controls over its accounting for the impairment analysis, including controls over management’s review of the significant assumption, described above.

To test the estimated fair value of the indefinite-lived intangible asset, we performed audit procedures that included, among others, involving our valuation specialists to assist in evaluating the Company's use of the selected valuation model, testing the significant assumption used in the model and testing the completeness and accuracy of the underlying data.

For example, we compared the revenue growth rate selected by management to publicly available market data and historical results of the Company’s business.

We also performed a sensitivity analysis of the significant assumption to evaluate the change in the fair value of the indefinite-lived intangible asset resulting from changes in the assumption.

/s/ Ernst & Young LLP

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Prepaid expenses and other current assets 234.0 233.6

Current assets, discontinued operations 20.8 614.3

Total current assets 1,605.7 2,592.3

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Other intangible assets, net 2,188.4 2,530.5

Other assets, discontinued operations — 4,096.0

Total assets $ 11,737.7 $ 17,016.1

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Accrued expenses and other current liabilities 910.7 868.3

Current liabilities, discontinued operations — 568.5

Total current liabilities 2,246.6 2,238.4

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Long-term debt 2,306.5 3,331.1

Long-term liabilities, discontinued operations — 403.8

Commitments and Contingencies (Note 12)

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Retained earnings 5,428.5 8,227.6

Accumulated other comprehensive loss ( 465.4 ) ( 326.1 )

Accumulated other comprehensive income (loss)

41.0 ( 465.4 )

Total Fortive stockholders’ equity 6,453.4 10,188.6

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2025 2024 2023

Sales of products and software $ 5,282.3 $ 5,137.7 $ 4,920.1

Sales of services 949.5 927.6 905.6

Products and software $ 3,341.3 $ 3,290.9 $ 3,157.7

Services 817.8 790.0 756.2

Total sales 4,159.1 4,080.9 3,913.9

Cost of product and software sales ( 1,994.7 ) ( 1,981.8 ) ( 1,994.8 )

Cost of service sales ( 506.1 ) ( 489.4 ) ( 467.5 )

Cost of Sales:

Products and software ( 1,113.7 ) ( 1,070.4 ) ( 1,081.4 )

Services ( 404.3 ) ( 391.4 ) ( 355.4 )

Total cost of sales ( 1,518.0 ) ( 1,461.8 ) ( 1,436.8 )

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( 259.2 ) ( 251.3 ) ( 237.0 )

Gain on sale of property

Russia exit and wind down costs — — ( 17.9 )

Operating profit 720.2 716.3 574.0

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Interest expense, net ( 120.5 ) ( 152.8 ) ( 123.5 )

Loss from divestiture

Other non-operating expenses, net ( 58.6 ) ( 19.4 ) ( 15.6 )

Earnings before income taxes

Other non-operating income (expenses), net

2.5 ( 57.2 ) ( 17.4 )

Earnings from continuing operations before income taxes

602.2 506.3 433.1

Income taxes ( 69.5 ) ( 23.8 ) ( 24.7 )

Net earnings from continuing operations 532.7 482.5 408.4

Net earnings from discontinued operations

46.5 350.4 457.4

Net earnings $ 579.2 $ 832.9 $ 865.8

Net earnings per common share from continuing operations:

Basic $ 1.60 $ 1.38 $ 1.16

Diluted $ 1.59 $ 1.37 $ 1.15

Net earnings per common share from discontinued operations:

Basic $ 0.14 $ 1.01 $ 1.30

Diluted $ 0.14 $ 0.99 $ 1.28

Net earnings per common share:

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Diluted 334.6 352.8 355.6

Certain amounts may not sum due to rounding.

See the accompanying Notes to the Consolidated Financial Statements.

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Comprehensive

Loss Noncontrolling

Income (Loss)

Noncontrolling

Shares Outstanding Amount

Balance, December 31, 2022 352.9 $ 3.6 $ 3,706.3 $ ( 442.9 ) $ 6,742.1 $ ( 325.7 ) $ 5.2

Adoption of ASU 2020-06 — — ( 65.7 ) — 62.8 — —

Balance, January 1, 2022

359.1 3.6 3,604.3 — 6,086.4 ( 185.0 ) 4.8

Net earnings for the period — — — — 865.8 — —

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— — — — — ( 0.4 ) —

Common stock-based award activity 1.0 — 115.2 — — — —

Stock-based compensation

2.3 — 176.8 — — — —

Common stock repurchases

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— — — — — ( 139.3 ) —

Common stock-based award activity 2.3 — 176.8 — — — —

Stock-based compensation

3.0 0.1 212.7 — — — —

Common stock repurchases

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— — — — — 174.1 —

Common stock-based award activity 3.0 0.1 212.7 — — — —

Stock-based compensation

3.1 — 212.6 — — — —

Common stock repurchases

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Change in noncontrolling interests — — — — — — 0.7

Distribution of Ralliant Corporation

— — — — ( 3,286.1 ) 332.3 —

Balance, December 31, 2025 313.4 $ 3.7 $ 4,210.0 $ ( 3,229.8 ) $ 5,428.5 $ 41.0 $ 7.7

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$ 579.2 $ 832.9 $ 865.8

net earnings from discontinued operations

( 46.5 ) ( 350.4 ) ( 457.4 )

Net earnings from continuing operations

532.7 482.5 $ 408.4

Adjustments to reconcile net earnings to net cash provided by operating activities:

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Stock-based compensation 116.8 90.1 94.5

109.2 113.3 93.8

Gain on sale of property

Loss from divestiture

Loss from equity investments — 39.4 17.3

39.4 17.3 17.3

Russia exit and wind down costs — — 9.2

Change in certain assets and liabilities:

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Change in accrued expenses and other liabilities 13.0 ( 26.8 ) 26.7

Total operating cash provided by continuing operations 1,035.7 1,028.5 833.4

Total operating cash provided by discontinued operations

47.5 498.3 520.2

Net cash provided by operating activities 1,083.2 1,526.8 1,353.6

Cash flows from investing activities:

Cash paid for acquisitions, net of cash received ( 1,721.8 ) ( 95.8 ) ( 12.8 )

Purchases of property, plant and equipment ( 105.1 ) ( 86.1 ) ( 78.6 )

( 120.4 ) ( 107.8 ) ( 95.8 )

Proceeds from sale of property

Cash infusion into divestiture

Proceeds from sale of business

Cash paid for acquisitions, net of cash received ( 25.7 ) ( 3.6 ) ( 95.8 )

All other investing activities 11.2 0.9 1.4

Total investing cash used in continuing operations ( 119.6 ) ( 88.8 ) ( 173.0 )

Total investing cash used in discontinued operations ( 15.8 ) ( 1,707.2 ) ( 22.4 )

Net cash used in investing activities ( 135.4 ) ( 1,796.0 ) ( 195.4 )

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Net proceeds from (repayments of) commercial paper borrowings 0.9 ( 596.5 ) 839.9

( 596.5 ) 839.9 38.5

Proceeds from borrowings (maturities greater than 90 days), net of issuance costs 1,733.5 549.3 1,394.1

Repayment of borrowings (maturities greater than 90 days) ( 1,000.0 ) ( 1,000.0 ) ( 1,000.0 )

Payment of 0.875 % convertible senior notes due 2022

— — ( 1,156.5 )

Repurchase of common shares ( 1,610.1 ) ( 889.6 ) ( 272.9 )

( 889.6 ) ( 272.9 ) ( 442.9 )

Payment of dividends ( 92.2 ) ( 111.2 ) ( 102.0 )

( 111.2 ) ( 102.0 ) ( 99.5 )

Proceeds from borrowings (maturities greater than 90 days), net of issuance costs — 1,733.5 549.3

Repayment of borrowings (maturities greater than 90 days) ( 715.7 ) ( 1,000.0 ) ( 1,000.0 )

Proceeds from Ralliant Dividend

All other financing activities 40.8 71.1 18.0

Total financing cash (used in) provided by continuing operations ( 1,226.3 ) ( 792.7 ) 32.3

Total financing cash used in discontinued operations ( 160.3 ) — —

Net cash provided by (used in) financing activities

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BUSINESS OVERVIEW AND BASIS FOR PRESENTATION

Fortive Corporation (“Fortive,” “the Company,” “we,” “us,” or “our”) is a provider of essential technologies for connected workflow solutions across a range of attractive end-markets.

Our strategic segments - Intelligent Operating Solutions (“IOS”), Precision Technologies (“PT”), and Advanced Healthcare Solutions (“AHS”) - include well-known brands with leading positions in their markets.

Our businesses design, develop, manufacture, and service professional and engineered products, software, and services, building upon leading brand names, innovative technologies, and significant market positions.

Fortive Corporation (“Fortive,” “the Company,” “we,” “us,” or “our”) innovates essential technologies to keep our world safe and productive.

Our strategic segments - Intelligent Operating Solutions (“IOS”) and Advanced Healthcare Solutions (“AHS”) - include iconic inventor brands with leading positions in their markets.

Our businesses design, develop, manufacture, and market products, software, and services, building upon leading brand names, innovative technologies, and strong market positions.

Our research and development, manufacturing, sales, distribution, service, and administrative facilities are located in approximately 50 countries around the world.

Basis of Presentation

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Net earnings attributable to noncontrolling interests have been reflected in Selling, general, and administrative expenses and were insignificant in all periods presented.

Reclassification of certain prior year amounts in the Consolidated Statements of Cash Flows have been made to conform to current year presentation.

Update on Pending Separation of the Precision Technologies Segment

On September 4, 2024, we announced our intention to separate our PT segment business into an independent publicly-traded company (the “Separation”), which will be named Ralliant.

The Separation will create (i) a technology solutions company, retaining the Fortive name, with a portfolio of the brands currently operating under Fortive’s IOS and AHS business segments, focused on resilient, high-quality recurring growth by delivering productivity and safety to customers, and (ii) a global technology company consisting of our brands currently operating under the PT segment with a focus on precision instruments and highly engineered products essential for breakthrough innovation and aligned to powerful secular trends.

The Separation is intended to qualify as a tax-free spin-off for Fortive shareholders for U.S.

federal income tax purposes.

The Company is targeting completion of the Separation early in the third quarter of 2025, subject to the satisfaction of certain conditions, including, among others, final approval of Fortive’s Board of Directors, satisfactory completion of financing, receipt of a favorable opinion of legal counsel and/or a private letter ruling from the U.S.

Internal Revenue Service with respect to the tax treatment of the transaction for U.S.

federal income tax purposes, the effectiveness of a Form 10 registration statement filed with the SEC, and other regulatory approvals.

All assets, liabilities, revenues and expenses of Ralliant are included in the consolidated results of the Company in the accompanying consolidated financial statements.

Certain of our operations have been presented as discontinued operations.

We present businesses whose disposal represents a strategic shift that has, or will have, a major effect on our operations and financial results as discontinued operations when the components meet the criteria for held for sale, are sold, or spun-off.

Segment Presentation

We operate and report our results in three segments, Intelligent Operating Solutions, Precision Technologies, and Advanced Healthcare Solutions, each of which is further described below.

We operate and report our results in two segments, Intelligent Operating Solutions and Advanced Healthcare Solutions, each of which is further described below.

Our IOS segment provides advanced instrumentation, software and services to tens of thousands of customers enabling their mission-critical workflows.

These offerings include electrical test & measurement, facility and asset lifecycle software applications, connected worker safety and compliance solutions across a range of vertical end markets, including manufacturing, process industries, healthcare, utilities and power, communications and electronics, among others.

Our PT segment helps solve tough technical challenges to speed breakthroughs in a wide range of applications, from food and beverage production and manufacturing to next-generation electric vehicles and clean energy, as our customers seek new test solutions to enable the electrification and connectivity of everything.

Our expertise in materials, methods and measurements are reflected in our electrical test & measurement and sensing and material technologies offered to a broad set of customers and vertical end markets, including industrial, power and energy, automotive, medical equipment, food and beverage, aerospace and defense, semiconductor, and other general industries.

These offerings include professional instruments used in applications including maintenance, repair, measurement and condition monitoring, facility and asset lifecycle software applications, connected worker safety and compliance solutions across a range of vertical end markets, including manufacturing, process industries, healthcare, utilities and power, communications and electronics, among others.

Typical users of these safety, productivity and sustainability solutions include electrical engineers, electricians, electronic technicians, EHS professionals, network technicians, facility managers, first-responders, and maintenance professionals.

Our AHS segment supplies critical workflow solutions enabling healthcare providers to deliver exceptional patient care more efficiently.

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Our healthcare offerings help ensure critical safety standards are met, instruments and operating rooms are working at peak performance, and complex procedures are followed accurately in these mission-critical healthcare environments.

Segment Realignment

In January 2024, we realigned Invetech from the AHS segment to the PT segment (the “Segment Realignment”) based on our strategic decision to divest the equipment design and manufacturing businesses of Invetech, while retaining the motion solution businesses (the “Motion Solution Business”) that are more closely aligned with the PT segment than the AHS segment.

Prior period segment amounts in Note 5, 11, and 16 have been recast to conform to the revised segment presentation.

Refer to Note 3 for further detail on the divestiture.

Russian Invasion of Ukraine

In February 2022, Russian forces invaded Ukraine resulting in broad economic sanctions being imposed on Russia.

In the second quarter of 2022, the Company exited business operations in Russia, other than for ASP’s sterilization products, which are exempt from international sanctions as humanitarian products.

During the year ended December 31, 2022, the Company recorded pre-tax charges of $ 17.9 million, primarily relating to the write-off of net assets, the cumulative translation adjustment in earnings for legal entities deemed substantially liquidated, and to record provisions for employee severance and legal contingencies.

These costs are identified as the “Russia exit and wind down costs” in the Consolidated Statements of Earnings.

The exit activities were completed in 2022.

Precision Technologies Separation

On June 28, 2025 (the “Distribution Date”), the Company completed the separation (the “Separation” or the “PT Separation”) of its former Precision Technologies segment by distributing to Fortive shareholders on a pro rata basis all of the issued and outstanding common stock of Ralliant Corporation (“Ralliant”), the entity incorporated to hold the PT businesses.

The accounting requirements for reporting Ralliant as a discontinued operation were met when the Separation was completed.

Accordingly, the accompanying consolidated financial statements for all periods presented reflect this business as a discontinued operation.

Unless otherwise indicated, all references in this Annual Report refer to continuing operations.

Refer to Note 3 of the consolidated financial statements for additional information.

During the year ended December 31, 2025, we made two acquisitions, one in each of our segments, with aggregate cash consideration totaling $ 25.7 million, net of acquired cash.

These acquisitions are intended to accelerate our strategy and strengthen our product portfolio to provide world-class solutions to our customers.

We recorded approximately $ 15.9 million of goodwill, which is not tax deductible, and $ 11.4 million of intangible assets consisting of customer relationships, technology, and trade names.

All other acquired assets and assumed liabilities are immaterial.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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In circumstances where we are aware of a specific customer’s inability to meet its financial obligations, a specific reserve is recorded against amounts due to reduce the recognized receivable to the amount reasonably expected to be collected.

Amounts determined to be uncollectible are charged directly against the allowances, while amounts recovered on previously written-off accounts increase the allowances.

Amounts determined to be uncollectible are charged directly against the allowances.

The allowance for doubtful accounts as well as the provision for credit losses, write-off activity and recoveries for the periods presented were immaterial.

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Machinery, equipment and other 3 – 10 years

Estimated useful lives are periodically reviewed and, when appropriate, changes to estimates are made prospectively.

The classes of property, plant and equipment as of December 31 are summarized as follows ($ in millions):

Land and improvements $ 8.7 $ 9.2

Buildings and leasehold improvements 135.4 140.9

Machinery, equipment and other 555.9 475.0

Gross property, plant and equipment 700.0 625.1

accumulated depreciation ( 430.2 ) ( 392.2 )

Property, plant and equipment, net $ 269.8 $ 232.9

Property, plant, and equipment are reviewed for impairment whenever events or changes in business circumstances indicate the carrying value of the assets may not be recoverable.

Impairment losses are recognized based on estimated fair values if the sum of estimated future undiscounted cash flows of the related assets is less than the carrying values.

There were no impairment losses during the years ended December 31, 2025, 2024, or 2023.

Investments —We account for our equity investments using either the measurement alternative approach when the fair value of the investment is not readily determinable and we do not have the ability to exercise significant influence, or the equity method of accounting when it is determined that we have significant influence over but do not have a controlling financial interest.

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There were no material impairment losses during the years ended December 31, 2025, 2024, or 2023.

We recorded a loss from equity investments of $ 39.4 million during the year ended December 31, 2024, and $ 17.3 million during both the years ended December 31, 2023 and 2022.

The loss was recorded within Other non-operating expense, net in our Consolidated Statement of Earnings.

During the year ended December 31, 2022, we recorded a pre-tax impairment loss of $ 8.1 million to write down an equity investment in a third party held by our IOS segment to fair value.

The loss was recorded within “Other non-operating expense, net” in our Consolidated Statement of Earnings.

There was no loss from equity investments during the year ended December 31, 2025.

We recorded a loss from equity investments of $ 39.4 million and $ 17.3 million during the years ended December 31, 2024 and 2023, respectively.

The losses are recorded within Other non-operating expense, net in our Consolidated Statement of Earnings.

Other Assets —Other assets principally include operating lease right-of-use assets, contract assets, deferred tax assets, and other investments.

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however, certain finite-lived identifiable intangible assets, primarily customer relationships and acquired technology, are amortized over their estimated useful lives.

In-process research and development (“IPR&D”) is initially capitalized at fair value and when the IPR&D project is complete, the asset is considered a finite-lived intangible asset and amortized over its estimated useful life.

If an IPR&D project is abandoned, an impairment loss equal to the value of the intangible asset is recorded in the period of abandonment.

We review identified intangible assets for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable.

We also test intangible assets with indefinite lives and goodwill at least annually for impairment.

The impairment analysis for indefinite-lived assets requires an evaluation of each asset’s fair value, which is based on management’s estimates of sales growth rates, royalty rates, and applicable discount rates.

Refer to Note 4 for additional information about our goodwill and other intangible assets.

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Revenue is recognized when control of promised products or services is transferred to customers in an amount that reflects the consideration we expect to be entitled to in exchange for those products or services.

Product sales include revenue from the sale of products and equipment, which includes our software and software as a service (“SaaS”) product offerings and equipment rentals.

Service sales include revenues from extended warranties, post-contract customer support (“PCS”), maintenance contracts or services, contract labor to perform ongoing service at a customer location, services related to previously sold products, and software implementation services.

Product sales include revenue from the sale of products and equipment, which includes our software and software as a service (“SaaS”) product offerings and equipment rentals.Service sales include revenues from extended warranties, post-contract customer support (“PCS”), maintenance contracts or services, contract labor to perform ongoing service at a customer location, services related to previously sold products, and software implementation services.

For revenue related to a product or service to qualify for recognition, we must have an enforceable contract with a customer that defines the goods or services to be transferred and the payment terms related to those goods or services.

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Revenue from sales of hardware is recognized when control transfers to the customer, which is generally when the product is shipped.

If any significant obligation to the customer with respect to a sales transaction remains to be fulfilled following shipment (typically installation, other services noted above, or acceptance by the customer), revenue recognition is deferred until such obligations have been fulfilled.

If any significant obligation to the customer with respect to a sales transaction remains to be fulfilled following

shipment (typically installation, other services noted above, or acceptance by the customer), revenue recognition is deferred until such obligations have been fulfilled.

Further, revenue related to separately priced extended warranty and product maintenance agreements is deferred when appropriate and recognized as revenue over the term of the agreement.

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Research and development costs are expensed as incurred.

Restructuring —We periodically initiate restructuring activities to appropriately position our cost base relative to prevailing economic conditions and associated customer demand, as well as in connection with certain acquisitions.

Costs associated with restructuring actions can include one-time termination benefits and related charges, in addition to facility closure, contract termination, and other related activities.

Restructuring —We may initiate restructuring activities to appropriately position our cost base relative to prevailing economic conditions and associated customer demand, as well as in connection with certain acquisitions.

Costs associated with restructuring actions can include one-time termination benefits and related charges, facility closure costs, contract termination, and other related activities.

We record the cost of the restructuring activities when the associated liability is incurred.

In the fourth quarter of 2024, we initiated a discrete restructuring plan that is expected to be completed by December 31, 2025.

The nature of the plan initiated in 2024 was related to the Separation and consisted primarily of targeted workforce reductions to realign the cost structures between the two companies.

In the first quarter of 2023, we initiated a separate discrete restructuring plan that was completed by the end of 2023.

In the fourth quarter of 2024, we initiated a discrete restructuring plan that was initially expected to be completed by December 31, 2025, and has been extended through the second half of 2026.

The nature of the plan is related to the Separation and consisted primarily of targeted workforce reductions to realign cost structures.

During 2023, we initiated and completed a separate discrete restructuring plan that was completed by the end of 2023.

The nature of the activities in 2023 was broadly consistent throughout our segments and consisted primarily of targeted workforce reductions in response to overall macroeconomic and other external conditions.

We incurred these costs to position ourselves to provide superior products and services to customers in a cost-efficient manner, while taking into consideration the impact of broad economic uncertainties.

We incurred charges of $ 19.7 million and $ 58.6 million during the years ended December 31, 2024 and 2023, respectively.

We incurred charges of $ 32 million, $ 10 million, and $ 38 million during the years ended December 31, 2025, 2024, and 2023, respectively.

These charges are recorded within Cost of sales and Selling, general, and administrative expenses in the Consolidated Statements of Earnings.

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Equity-based compensation expense is recognized net of an estimated forfeiture rate over the requisite service period.

Generally, equity awards are subject

to graded vesting and compensation expense is recognized separately over each vesting tranche of the award, resulting in an accelerated expense recognition pattern.

Generally, equity awards are subject to graded vesting and compensation expense is recognized separately over each vesting tranche of the award, resulting in an accelerated expense recognition pattern.

Refer to Note 13 for additional information.

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We evaluate the realizability of deferred income tax assets for each of the jurisdictions in which we operate.

If we experience cumulative pretax income in a particular jurisdiction in the three-year period including the current and prior two years, we normally conclude that the deferred income tax assets will more likely than not be realizable and no valuation allowance is recognized, unless known or planned operating developments would lead management to conclude otherwise.

unless known or planned operating developments would lead management to conclude otherwise.

However, if we experience cumulative pretax losses in a particular jurisdiction in the three-year period including the current and prior two years, we then consider a series of factors in the determination of whether the deferred income tax assets can be realized.

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We recognize potential accrued interest and penalties associated with unrecognized tax positions in income tax expense.

For the year ended December 31, 2025, the Company adopted ASU 2023-09, Improvements to Income Tax Disclosures , on a prospective basis .

Refer to Note 11 for additional information.

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subsidiaries.

As of December 31, 2024, our outstanding € 500 million Euro-denominated senior unsecured notes due 2026, € 700 million Euro-denominated senior unsecured notes due 2029, ¥ 14.4 billion Yen-denominated variable interest rate term loan, and € 275 million Euro-denominated variable interest rate term loan were designated as net investment hedges of our investment in applicable foreign operations.

Accordingly, foreign currency transaction gains or losses on the debt were deferred in the foreign currency translation component of AOCI as an offset to the foreign currency translation adjustments on our investments in foreign subsidiaries.

For the years ended December 31, 2024, 2023, and 2022, we recognized after-tax gains of $ 60.4 million, losses of $ 1.2 million, and losses of $ 5.1 million within Other comprehensive income (loss) related to the net investment hedges, respectively.

We recorded no ineffectiveness from our net investment hedges during the years ended December 31, 2024, 2023, and 2022.

On the Distribution Date, due to certain investments in foreign subsidiaries transferred to Ralliant, the Company de-designated as net investment hedges the outstanding € 500 million Euro-denominated senior unsecured notes due 2026, € 275 million Euro-denominated term loan, and ¥ 14.4 billion Yen-denominated term loan.

Refer to Note 8 for further detail on the repayments of these debt instruments during the third quarter of 2025.

As of December 31, 2025, a portion of the € 700 million Euro-denominated senior unsecured notes due 2029 remained designated as a net investment hedge on our investment in applicable foreign operations.

When designated as net investment hedge, the after-tax foreign currency transaction gains and losses on the debt were deferred in the foreign currency translation component of AOCI as an offset to the foreign currency translation adjustments on our investments in foreign subsidiaries.

Any amounts deferred in AOCI will remain until the hedged investment is sold or substantially liquidated.

Concurrent with the Separation, cumulative net foreign currency transaction losses of $ 120 million were reclassified from AOCI into retained earnings.

We recognized after-tax foreign currency transaction losses of $ 161.1 million, gains of $ 60.4 million, and losses of $ 1.2 million during the years ended December 31, 2025, 2024, and 2023, respectively, on the debt that was deferred in the foreign currency translation component of AOCI as an offset to the foreign currency translation adjustments on our investments in foreign subsidiaries.

We recorded no ineffectiveness from our net investment hedges during the years ended December 31, 2025, 2024, and 2023.

During the year ended December 31, 2025, the foreign currency transaction losses associated with Euro-denominated notes not designated as a net investment hedge were immaterial.

The changes in AOCI by component are summarized below ($ in millions):

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Balance, December 31, 2022 $ ( 301.4 ) $ ( 24.3 ) $ ( 325.7 )

Other comprehensive income (loss) before reclassifications:

Increase (decrease) ( 181.4 ) 47.6 ( 133.8 )

Income tax impact — ( 10.3 ) ( 10.3 )

Other comprehensive income (loss) before reclassifications, net of income taxes 9.7 ( 10.1 ) ( 0.4 )

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Balance, December 31, 2023 $ ( 291.7 ) $ ( 34.4 ) $ ( 326.1 )

Other comprehensive income (loss) before reclassifications:

Increase (decrease) 9.7 ( 13.9 ) ( 4.2 )

Income tax impact — 3.8 3.8

Other comprehensive income (loss) before reclassifications, net of income taxes ( 146.7 ) 0.2 ( 146.5 )

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Balance, December 31, 2024 $ ( 431.4 ) $ ( 34.0 ) $ ( 465.4 )

Other comprehensive income (loss) before reclassifications:

Increase (decrease) ( 152.9 ) 0.8 ( 152.1 )

Income tax impact 6.2 ( 0.6 ) 5.6

Other comprehensive income (loss) before reclassifications, net of income taxes 174.1 ( 0.4 ) 173.7

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Net current period other comprehensive income (loss) 174.1 — 174.1

PT Separation (c)

316.1 16.2 332.3

Balance, December 31, 2025 $ 58.8 $ ( 17.8 ) $ 41.0

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(b) Includes balances relating to defined benefit plans, supplemental executive retirement plans, and other postretirement employee benefit plans.

Refer to Note 3 for additional details.

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We record all components of net periodic pension costs, with the exception of service costs, in other non-operating expenses as a component of non-operating income in the accompanying Consolidated Statements of Earnings.

Service costs are recorded within Cost of sales and Selling, general and administrative expenses in the Consolidated

Statements of Earnings according to the classification of the participant’s compensation.

Service costs are recorded within Cost of sales and Selling, general and administrative expenses in the Consolidated Statements of Earnings according to the classification of the participant’s compensation.

Refer to Note 9 for additional information on our pension plans including a discussion of actuarial assumptions.

Recently Issued Accounting Standard

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.

2023-07, Segment Reporting (Topic 280)—Improvements to Reportable Segment Disclosures , which amends the disclosure requirements for reportable segments on the interim and annual basis.

This standard is effective for fiscal year ending December 31, 2024 and interim periods within fiscal year ending December 31, 2025.

The adoption of the standard did not impact our consolidated financial statements and we updated the applicable annual disclosures to align with the new standard.

In the first quarter of 2025, we will update the applicable interim disclosures to align with the new standard.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) —Improvements to Income Tax Disclosures , which amends certain disclosure requirements related to income taxes on an annual basis.

This standard is effective for fiscal year ending December 31, 2025.

This standard should be applied on a prospective basis, with retrospective application permitted.

The adoption of the standard will not impact our consolidated financial statements;

however, we are currently evaluating the impact of the new disclosure requirements on the notes to the financial statements.

We will update the applicable annual disclosures to align with the new standard.

Recently Issued Accounting Standards

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) — Disaggregation of Income Statement Expenses , which amends the disclosure requirements related to certain costs and expenses on an interim and annual basis.

This standard is effective for fiscal year ending December 31, 2027, and interim periods within fiscal year ending December 31, 2028.

This standard should be applied either on a prospective basis or retrospective basis.

The adoption of the standard will not impact our combined financial statements;

however, we are currently evaluating the impact of the new disclosure requirements on the notes to the financial statements.

This standard is effective for fiscal year ending December 31, 2027, and interim periods within fiscal year ending December 31, 2028, and can be applied either on a prospective or retrospective basis.

The adoption of the standard will not impact our consolidated financial statements.

Upon adoption, we will update the applicable interim and annual disclosures to align with the new standard.

ACQUISITIONS AND DIVESTITURES

We continually evaluate potential mergers and acquisitions that align with our business portfolio strategy.

We have completed a number of acquisitions that have been accounted for as purchases of businesses and resulted in the recognition of goodwill in our financial statements.

This goodwill arises when the purchase price for an acquired business exceeds its identifiable assets, net of liabilities.

The purchase price for acquired businesses reflect a number of factors, including the future earnings and cash flow potential of the business, the strategic fit and resulting synergies from the complementary portfolio of the acquired business to our existing operations, industry expertise, and market access.

During the year ended December 31, 2024, immaterial adjustments were made to the purchase price allocation of current and prior year acquisitions.

The following describes our significant acquisition activities for the years ended December 31, 2024 and 2023.

On January 3, 2024, we acquired EA Elektro-Automatik Holding GmbH (“EA”), a leading supplier of high-power electronic test solutions for energy storage, mobility, hydrogen, and renewable energy applications.

The acquisition of EA will bolster the PT segment’s innovative portfolio of products and services for engineers with complementary test and measurement solutions enabling the global energy transition.

The total consideration paid was approximately $ 1.72 billion, net of acquired cash.

We funded this transaction with financing activities and available cash.

We recorded approximately $ 1.18 billion of goodwill within our PT segment related to the EA acquisition, which is not tax deductible.

For the year ended December 31, 2024, we incurred approximately $ 33.2 million of pretax transaction-related costs related to the EA acquisition, which were primarily for banking fees, legal fees, and amounts paid to other third-party advisers.

These costs were recorded within Selling, general, and administrative expenses in the Consolidated Statement of Earnings.

The fair value of the net assets acquired was based on estimates and assumptions.

Significant assumptions include the discount rates and certain assumptions that form the basis of the forecasted cash flows of the acquired business including earnings before interest, taxes, depreciation and amortization (“EBITDA”), revenue, revenue growth rates, royalty rates, customer attrition rates, and technology obsolescence rates.

The following table summarizes the estimated acquisition date fair values of the assets acquired and liabilities assumed as of December 31, 2024 ($ in millions):

Accounts receivable $ 18.1

Property, plant and equipment

Goodwill 1,175.0

Other intangible assets (customer relationships, technology, and trade names)

Deferred tax liabilities ( 191.8 )

Other assets and liabilities, net ( 18.4 )

Net cash consideration $ 1,718.2

During the year ended December 31, 2023, we made four acquisitions (“the 2023 acquisitions”) in our Intelligent Operating Solutions segment for an aggregate cash consideration of $ 101.4 million, which includes an immaterial deferred payment, net of acquired cash.

The 2023 acquisitions are intended to accelerate our strategy and strengthen our product portfolio, providing world-class solutions to our customers.

We recorded approximately $ 57.3 million of goodwill related to the acquisitions, which is not tax deductible, as well as $ 43.2 million of intangible assets, primarily consisting of customer relationships, technology, and trade names.

All other acquired assets and assumed liabilities are immaterial.

In June 2024, we divested and transferred ownership of Invetech, excluding the Motion Solution Business, to its management team (the “Invetech Divestiture”).

As a result of the divestiture, in the year ended December 31, 2024, we recorded a net realized loss of $ 25.6 million, which is identified as “Loss from divestiture” in the Consolidated Statements of Earnings.

The divested businesses accounted for less than 1.0 % of total revenue and less than 1.0 % of total assets for the fiscal year ended December 31, 2023.

The Invetech Divestiture did not represent a strategic shift with a major effect on the Company’s operations and financial results, and therefore the divested businesses are not reported as discontinued operations.

On September 30, 2022, we completed the sale of our Therapy Physics product line, which was reported in our Advanced Healthcare Solutions segment, to an unrelated third party for cash consideration of $ 9.6 million.

As a result of the sale, during the year ended December 31, 2022, we recorded a net realized pre-tax gain totaling $ 0.5 million, net of transaction costs, which was recorded within “Other non-operating expense, net” in the Consolidated Statements of Earnings.

The divestiture of this product line did not represent a strategic shift with a significant effect on the Company’s operations and financial results and therefore the divested product line is not reported as a discontinued operation.

PROPERTY, PLANT AND EQUIPMENT

The classes of property, plant and equipment as of December 31 are summarized as follows ($ in millions):

Land and improvements $ 45.1 $ 54.4

Buildings and leasehold improvements 284.0 317.2

Machinery, equipment and other 932.6 877.2

Gross property, plant and equipment 1,261.7 1,248.8

accumulated depreciation ( 828.6 ) ( 809.0 )

In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326) — Measurement of Credit Losses for Accounts Receivable and Contract Assets , which provides a practical expedient to measure credit losses on current accounts receivable and current contract assets.

The practical expedient allows companies to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset when measuring credit losses.

This standard is effective for fiscal year ending December 31, 2026 and interim periods within 2026, with early adoption permitted, and should be applied on a prospective basis.

We are not anticipating this standard to have a material impact on our consolidated financial statements.

In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) — Targeted Improvements to the Accounting for Internal-Use Software , which clarifies and modernizes the software cost capitalization guidance by removing the previous “development stage” model and introducing a more judgment-based approach.

This standard is effective for fiscal year ending December 31, 2028, and interim periods within 2028, with early adoption permitted, and may be applied using a prospective, retrospective or modified transition approach.

We are currently in the process of evaluating the effects of this standard on our consolidated financial statements.

DISCONTINUED OPERATIONS

On the Distribution Date, the Company completed the PT Separation by distributing all of the issued and outstanding shares of Ralliant, the entity that was created to hold the corresponding businesses, to Fortive stockholders on a pro rata basis.

To effect the Separation, the Company distributed to its stockholders one share of Ralliant common stock for every three shares of Fortive common stock held on June 16, 2025, the record date for the distribution.

Fortive stockholders received cash in lieu of any fractional shares of Ralliant common stock that they would have received after application of this ratio.

In preparation for the Separation, on May 15, 2025, Ralliant entered into a credit agreement with a syndicate of banks and on June 27, 2025, borrowed $ 1.15 billion to fund the $ 1.15 billion cash dividend Ralliant made to Fortive prior to the Distribution Date (the “Ralliant Dividend”).

The accounting requirements for reporting Ralliant as a discontinued operation were met when the Separation was completed.

Accordingly, the accompanying consolidated financial statements for all periods presented reflect this business as a discontinued operation.

In connection with the Separation, the Company incurred $ 112 million in Separation-related costs during the year ended December 31, 2025, which were recorded within net earnings (loss) from discontinued operations in the Consolidated Condensed Statements of Earnings.

These costs were primarily related to professional fees associated with finance, tax, legal, banking and information technology services as well as redundant general and administrative costs.

Fortive and Ralliant entered into various agreements to effect the Separation and to provide a framework for their relationship after the Separation, including a separation and distribution agreement, a transition services agreement, an employee matters agreement, a tax matters agreement, an intellectual property matters agreement, a Fortive Business System (“FBS”) license agreement and a Fort solutions license agreement.

These agreements provide for the allocation between Fortive and Ralliant of assets, employees, liabilities and obligations (including investments, property, employee benefits and tax-related assets and liabilities) attributable to periods prior to, at and after the Separation and govern certain relationships between Fortive and Ralliant after the Separation.

The amounts paid and received by Fortive for transition services provided under the above agreements, as well as sales and purchases to and from Ralliant, were not material to the Company’s results of operations during the year ended December 31, 2025.

The key components of income from discontinued operations for the year ended months ended December 31, 2025 and December 31, 2024 were as follows ($ in millions):

Year Ended December 31,

2025 2024 2023

Sales $ 983.5 $ 2,150.9 $ 2,151.4

Cost of sales ( 489.9 ) ( 1,039.0 ) ( 1,034.4 )

Selling, general and administrative expenses ( 339.9 ) ( 522.0 ) ( 396.4 )

Research and development expenses ( 83.0 ) ( 162.7 ) ( 160.8 )

Gain on sale of property

Loss from divestiture

Other expenses

( 0.5 ) ( 1.4 ) ( 2.0 )

Earnings from discontinued operations before income taxes

70.2 463.3 557.8

Income taxes ( 23.7 ) ( 112.9 ) ( 100.4 )

Net earnings from discontinued operations $ 46.5 $ 350.4 $ 457.4

The following table summarizes the major classes of assets and liabilities of discontinued operations that were included in the Company’s Consolidated Condensed Balance Sheets as of December 31, 2024.

($ in millions)

December 31, 2024

Accounts receivable, net $ 284.1

Inventories 275.0

Prepaid expenses and other current assets

Total current assets, discontinued operations 614.3

Property, plant and equipment, net 200.2

Property Sale

On March 14, 2024, we sold land and certain office buildings in our PT segment for $ 90 million, for which we received $ 20 million in cash proceeds and a $ 70 million promissory note secured by a letter of credit.

We received $ 10 million of principal in August and the remaining in November 2024.

During the year ended December 31, 2024, we recorded a gain on sale of property of $ 63.1 million in the Consolidated Statements of Earnings.

Concurrently, using a portion of the proceeds from the property sale, we pledged a charitable contribution of $ 20 million to the Fortive Foundation (the “Foundation”), which had no donor imposed conditions or restrictions.

The Foundation, a not-for-profit entity established to expand our philanthropic efforts, is a related party due to certain Fortive executives serving as members of the entity’s board of directors.

The charitable contribution is recorded within the “Other non-operating expense, net” line in the Consolidated Statements of Earnings.

In the third quarter of 2024, $ 20 million of the promissory note due in November 2024 was reassigned to the Foundation.

Other non-current assets 146.2

Goodwill 2,940.0

Other intangible assets, net 809.6

Total other assets, discontinued operations 4,096.0

Total assets, discontinued operations $ 4,710.3

Trade accounts payable $ 252.0

Accrued expenses and other current liabilities 316.5

Total current liabilities, discontinued operations 568.5

Other long-term liabilities 403.8

Total liabilities, discontinued operations $ 972.3

The assets from discontinued operations as of December 31, 2025 were $ 20.8 million, which consisted of receivables from Ralliant related to the tax matters agreement and pass through arrangements.

During the year ended December 31, 2025, we received cash payments from Ralliant of $ 135 million as reimbursement for pass through costs paid on Ralliant’s behalf.

This activity is recorded within operating cash provided by discontinued operations in the Consolidated Statement of Cash Flows.

GOODWILL AND OTHER INTANGIBLE ASSETS

As discussed in Note 3, goodwill arises from the purchase price for acquired businesses exceeding the fair value of tangible and intangible assets acquired, less assumed liabilities.

Goodwill arises from the purchase price for acquired businesses exceeding the fair value of tangible and intangible assets acquired, less assumed liabilities.

We assess the goodwill of each of our reporting units for impairment at least annually as of the first day of the fourth quarter and as “triggering” events occur that indicate that it is more likely than not that an impairment exists.

We performed both qualitative and quantitative impairment tests for reporting units, as determined to be appropriate.

We estimate the fair value of our reporting units primarily using a market approach, based on multiples of earnings before interest, taxes, depreciation, and amortization (“EBITDA”) determined by current trading market multiples of earnings for companies operating in businesses similar to each of our reporting units, in addition to recent market available sale transactions of comparable businesses.

companies operating in businesses similar to each of our reporting units, in addition to recent market available sale transactions of comparable businesses.

In certain circumstances we also evaluate other factors including results of the estimated fair value utilizing a discounted cash flow analysis (i.e., an income approach), market positions of the businesses, comparability of market sales transactions, and financial and operating performance in order to validate the results of the market approach.

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We performed goodwill impairment testing for our reporting units, and no goodwill impairment charges were recorded for the years ended December 31, 2025, 2024, and 2023.

We assessed all “triggering” events subsequent to the performance of the 2024 annual impairment test and, as a result, have not identified any impacts to goodwill.

We assessed all potential indicators of impairment subsequent to the performance of the 2025 annual impairment test and, as a result, have not identified any impacts to goodwill.

The factors used by management in its impairment analysis are inherently subject to uncertainty.

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The following is a rollforward of our goodwill by segment ($ in millions):

Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions Total

Intelligent Operating Solutions Advanced Healthcare Solutions Total

Balance, December 31, 2023 $ 4,148.9 $ 3,116.3 $ 7,265.2

Attributable to current year acquisitions

56.7 — — 56.7

Measurement period adjustments for prior year acquisitions 0.6 — 0.6

Foreign currency translation and other ( 27.8 ) ( 22.0 ) ( 49.8 )

Balance, December 31, 2024 4,121.7 3,094.3 7,216.0

Measurement period adjustments for prior year acquisitions

Attributable to current year acquisitions

— 1,175.0 — 1,175.0

Foreign currency translation

Attributable to current year acquisitions (a)

15.1 0.8 15.9

Foreign currency translation and other 45.9 20.5 66.4

Balance, December 31, 2025 $ 4,182.7 $ 3,115.6 $ 7,298.3

Due to the Segment Realignment, the beginning goodwill balances for PT and AHS have been recast to conform to the revised segment presentation.

Refer to Note 1 for further information on the realignment.

Refer to Note 3 for more information related to goodwill attributable to acquisitions.

(a) Refer to Note 1 for further detail on the current year acquisitions.

Finite-lived intangible assets are amortized over the shorter of their legal or estimated useful lives.

The following summarizes the gross carrying value and accumulated amortization for each major category of intangible asset as of December 31 ($ in millions):

Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization

Gross Carrying Amount (a)

Accumulated Amortization (a)

Gross Carrying Amount Accumulated Amortization

Finite-lived intangibles:

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Total intangibles $ 4,609.4 $ ( 2,421.0 ) $ 4,592.8 $ ( 2,062.3 )

During the year ended December 31, 2024, we acquired finite-lived intangible assets, consisting of customer relationships, developed technology, and trade names, with a weighted average life of approximately nine years as a result of the EA acquisition.

(a) During the year ended December 31, 2025, certain trademarks and trade names were reclassified from indefinite-lived intangible assets to finite-lived intangibles.

We performed an impairment test at the time of the reclassification and determined that no impairment had occurred.

Total intangible amortization expense in 2025, 2024, and 2023 was $ 368 million, $ 369 million and $ 367 million, respectively.

Based on the intangible assets recorded as of December 31, 2025, amortization expense is estimated to be $ 354 million during 2026, $ 324 million during 2027, $ 298 million during 2028, $ 222 million during 2029, and $ 143 million during 2030.

We evaluated events or circumstances that may indicate the carrying value of our intangible assets may not be fully recoverable during the year ended December 31, 2024, and recorded no material impairments.

We evaluated events or circumstances that may indicate the carrying value of our intangible assets may not be fully recoverable during the year ended December 31, 2025, and recorded no impairments.

FAIR VALUE MEASUREMENTS

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(Level 3) Total

December 31, 2024

Deferred compensation liabilities $ — $ 46.7 $ — $ 46.7

December 31, 2023

Deferred compensation liabilities $ — $ 39.9 $ — $ 39.9

Deferred compensation liabilities, as of December 31, 2025

$ — $ 39.1 $ — $ 39.1

Deferred compensation liabilities, as of December 31, 2024

$ — $ 39.2 $ — $ 39.2

Certain management employees participate in our nonqualified deferred compensation programs that permit such employees to defer a portion of their compensation, on a pretax basis, until after their termination of employment.

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Operating lease liabilities 27.0 73.6 24.8 73.1

Sales and product allowances 16.8 0.1 17.6 —

Warranty 19.6 0.8 19.4 1.4

Claims, including self-insurance and litigation 5.2 14.7 6.4 14.4

Pension obligations 1.0 26.6 0.9 27.4

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Total $ 910.7 $ 723.5 $ 868.3 $ 847.2

We generally accrue estimated warranty costs at the time of sale.

In general, manufactured products are warranted against defects in material and workmanship when properly used for their intended purpose, installed correctly, and appropriately maintained.

Warranty period terms depend on the nature of the product and range from 90 days up to the life of the product.

The amount of the accrued warranty liability is determined based on historical information such as past experience, product failure rates or number of units repaired, estimated cost of material and labor, and, in certain instances, estimated property damage.

The accrued warranty liability is reviewed on a quarterly basis and may be adjusted as additional information regarding expected warranty costs becomes known.

Warranty related activity for the periods presented was immaterial.

We determine if an arrangement is or contains a lease at inception and recognize a right-of-use (“ROU”) asset and a lease liability for all leases with terms greater than 12 months.

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We have lease agreements with lease and non-lease components, and we have elected the practical expedient for all underlying asset classes to account for the lease and related non-lease component(s) as a single lease component.

Lease-related balances are recorded within the following three line items on the Consolidated Balance Sheet:

(i) Other assets ;

(ii) Accrued expenses and Other current liabilities ;

and (iii) Other long-term liabilities .

Operating lease cost was $ 51 million, $ 49 million, and $ 56 million for the years ended December 31, 2024, 2023, and 2022, respectively.

During the years ended December 31, 2024, 2023, and 2022, cash paid for operating leases included in operating cash flows was $ 49 million, $ 47 million, and $ 50 million, respectively.

Operating lease ROU assets obtained in exchange for operating lease liabilities were $ 33 million and $ 31 million for the years ended December 31, 2024 and 2023, respectively.

Operating lease ROU assets were $ 164 million and $ 155 million as of December 31, 2024 and 2023, respectively.

Operating lease liabilities were $ 170 million and $ 164 million as of December 31, 2024 and 2023, respectively.

Supplemental information related to operating leases for each period is presented as follows ($ in millions):

As of December 31,

Right-of-use (“ROU”) assets (a)

$ 96.1 $ 91.8

Operating lease liabilities (b)

(a) ROU assets are recorded in the Consolidated Condensed Balance Sheets within Other assets.

(b) Operating lease liabilities are recorded in the Consolidated Condensed Balance Sheets within Accrued expenses and other current liabilities, and Other long-term liabilities.

Year Ended December 31,

2025 2024 2023

Operating lease costs $ 30.6 $ 32.0 $ 34.4

Cash paid for operating leases

$ 31.5 $ 32.6 $ 33.0

ROU assets obtained in exchange for operating lease obligations

17.5 4.2 13.0

The following table presents the maturities of our operating lease liabilities as of December 31, 2025 ($ in millions):

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Total operating lease liabilities $ 100.6

As of December 31, 2024 and 2023, the weighted average lease term of our operating leases was 7.2 years and 9 years, respectively, and the weighted average discount rate of our operating leases was 3.9 % and 3.6 %, respec tively.

As of December 31, 2025 and 2024, the weighted average lease term of our operating leases were both approximately 7 years, and the weighted average discount rate of our operating leases was 3.1 % and 3.2 %, respec tively.

We primarily use our incremental borrowing rate as the discount rate for our operating leases, as we are generally unable to determine the interest rate implicit in the lease.

As of December 31, 2024, we did not enter into operating leases for which the lease term had not yet commenced.

As of December 31, 2025, operating leases for which the lease term had not yet commenced were immaterial.

The components of our debt as of December 31 were as follows ($ in millions):

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3.7 % Euro-denominated senior unsecured notes due 2029

Euro Term Loan due 2025 284.7 303.6

Yen Term Loan due 2025 91.6 102.1

3.15 % senior unsecured notes due 2026

4.30 % senior unsecured notes due 2046

Delayed-Draw Term Loan due 2024 — 550.0

Euro Term Loan due 2025 — 284.7

Yen Term Loan due 2025 — 91.6

Long-term debt, principal amounts 3,213.5 3,718.8

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Long-term debt, carrying value 3,206.0 3,707.3

current portion of long-term debt 376.2 —

current portion of long-term debt, carrying value

Long-term debt, net of current maturities $ 2,306.5 $ 3,331.1

Commercial Paper Programs

We periodically issue commercial paper under our U.S.

We generally satisfy any short-term liquidity needs that are not met through operating cash flows and available cash primarily through issuances of commercial paper under our U.S.

dollar and Euro-denominated commercial paper programs (“Commercial Paper Programs”).

Under these programs, we may issue unsecured promissory notes with maturities not exceeding 397 and 183 days, respectively.

Credit support for the Commercial Paper Programs is provided by a five-year $ 2.0 billion senior unsecured revolving credit facility that expires on October 18, 2027 (the “Revolving Credit Facility”).

Proceeds from borrowings under the commercial paper programs are typically available for general corporate purposes, including acquisitions.

Interest expense on commercial paper is paid at maturity and is generally based on our credit ratings at the time of issuance and prevailing short-term interest rates.

Credit support for our Commercial Paper Programs is provided by a five-year $ 2.0 billion senior unsecured revolving credit facility that expires on October 18, 2027 (the “Revolving Credit Facility”) which, to the extent not otherwise providing credit support for our Commercial Paper Programs, can also be used for working capital and other general corporate purposes.

As of December 31, 2025, no borrowings were outstanding under the Revolving Credit Facility.

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We expect to limit any future borrowings under the Revolving Credit Facility to amounts that would leave sufficient credit available under the facility to allow us to borrow, if needed, to repay any outstanding commercial paper as it matures.

We classified our borrowings outstanding under the Commercial Paper Programs as of December 31, 2024 as long-term debt in the accompanying Consolidated Balance Sheets as we have the intent and ability, as supported by availability under the Revolving Credit Facility referenced above, to refinance these borrowings for at least one year from the balance sheet date.

Proceeds from borrowings under the commercial paper programs are typically available for general corporate purposes, including acquisitions.

We classified our borrowings outstanding under the Commercial Paper Programs as of December 31, 2025 as Long-term debt in the accompanying Consolidated Balance Sheets as we have the intent and ability, as supported by availability under the Revolving Credit Facility, to refinance these borrowings for at least one year from the balance sheet date.

Credit Facilities

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Borrowings under the new Revolving Credit Facility in U.S Dollars bear interest at a rate equal, at our option, to either (1) Term Secured Overnight Financing Rate (“Term SOFR”), plus a 10 basis points Credit Spread Adjustment (“CSA”) plus a margin of between 68.5 and 110.0 basis points, depending on our long-term debt credit rating or (2) the highest of (a) the Federal funds rate plus 50 basis points, (b) the prime rate, (c) Term SOFR plus 100 basis points and (d) 1.0 %, plus in each case a margin between zero and 10 basis points depending on our long-term debt credit rating.

In addition, beginning with our 2023 performance relative to our annual greenhouse gas reduction targets, the interest rate on any borrowings can increase or decrease by 4.0 basis points and the facility fee can increase or decrease by 1.0 basis points, for a maximum impact of an increase or decrease of 5.0 basis points.

In addition, performance relative to our annual greenhouse gas reduction targets, the interest rate on any borrowings can increase or decrease by 4.0 basis points and the facility fee can increase or decrease by 1.0 basis points, for a maximum impact of an increase or decrease of 5.0 basis points.

The Amended and Restated Credit Agreement requires us to maintain a consolidated net leverage ratio of debt to consolidated EBITDA (as defined in the Credit Agreement) of less than 3.5 to 1.0.

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The Amended and Restated Credit Agreement also contains customary representations, warranties, conditions precedent, events of default, indemnities, and affirmative and negative covenants.

As of December 31, 2024 and 2023, we were in compliance with all covenants under the Amended and Restated Credit Agreement.

Euro-denominated Senior Unsecured Notes Due 2026 and 2029

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Redemption Provisions and Covenants Applicable to 2026 and 2029 Notes

Prior to July 15, 2029 for the 2029 Notes, and prior to maturity for the 2026 Notes, we may redeem the applicable series of notes at our option, in whole or in part, at any time and from time to time, at the applicable make-whole redemption price

specified in the indentures.

On or after July 15, 2029, we may redeem the 2029 Notes, in whole or in part, at any time and from time to time, at a redemption price equal to 100 % of the principal amount of the 2029 Notes being redeemed plus accrued and unpaid interest thereon to, but not including, the redemption date.

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Except in connection with a change of control triggering event, the 2026 Notes and 2029 Notes do not have any credit rating downgrade triggers that would accelerate the maturity of the notes.

The 2026 Notes and 2029 Notes contain customary covenants.

None of these covenants are considered restrictive to our operations and as of December 31, 2024, we were in compliance with all of our covenants.

Euro Term Loan

On June 21, 2022, we entered into a three-year € 275 million senior unsecured term facility (“Euro Term Loan”).

On June 28, 2022, we drew and converted the entire available balance under the facility, which yielded net proceeds of $ 290 million.

The Euro Term Loan is due on June 23, 2025 and is pre-payable at our option.

The Euro Term Loan bears interest at a rate of Euro Interbank Offered Rate (“Euribor”), plus 55 basis points;

provided, however that the Euribor may not be less than zero for the Euro Term Loan.

Yen Term Loan

On June 17, 2022, we entered into a three-year , ¥ 14.4 billion senior unsecured term facility (“Yen Term Loan”).

On the same day, we drew and converted the entire available balance under the facility, which yielded net proceeds of $ 107 million.

The Yen Term Loan is due on June 17, 2025 and is pre-payable at our option.

The Yen Term Loan bears interest at a rate of Tokyo Term Risk Free Rate (“TORF”), plus 65 basis points;

provided, however, that the TORF may not be less than zero for the Yen Term Loan.

The 2026 Notes and 2029 Notes contain customary covenants, and none of these covenants are considered restrictive to our operations.

During the third quarter of 2025, Fortive used approximately $ 302 million of the Ralliant Dividend to redeem € 252 million of the outstanding principal of the 2026 Notes, and the accrued interest thereon, with € 248 million, or approximately $ 291 million remaining outstanding following such redemption.

Financing Transactions Subsequent to December 31, 2025

During February 2026, we refinanced € 248 million of the outstanding principal on the 2026 Notes and accrued interest thereon, primarily using the proceeds from the commercial paper issued under the U.S.

dollar and Euro-denominated commercial paper programs during the first quarter of 2026.

Registered Notes

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We may redeem the Registered Notes of the applicable series, in whole or in part, at any time prior to the dates specified in the Registered Notes indenture (the “Call Dates”) by paying the principal amount and the “make-whole” premium specified in the Registered Notes indenture, plus accrued and unpaid interest.

Additionally, we may redeem all or any part of the Registered Notes of the applicable series on or after the Call Dates without paying the “make-whole” premium specified in the Registered

Notes indenture.

Registered Notes Series Call Dates

3.15 % senior unsecured notes due 2026

March 15, 2026

4.30 % senior unsecured notes due 2046

December 15, 2045

Additionally, we may redeem all or any part of the Registered Notes of the applicable series on or after the Call Dates without paying the “make-whole” premium specified in the Registered Notes indenture.

We may redeem the 3.15 % senior unsecured notes due 2026 and the 4.30 % senior unsecured notes due 2046 on or after March 15, 2026 and December 15, 2045, respectively.

If a change of control triggering event occurs, we will, in certain circumstances, be required to make an offer to repurchase the Registered Notes at a purchase price equal to 101 % of the principal amount, plus accrued and unpaid interest.

A change of control triggering event is defined as the occurrence of both a change of control and a rating event, each as defined in the Registered Notes indenture.

control triggering event is defined as the occurrence of both a change of control and a rating event, each as defined in the Registered Notes indenture.

Except in connection with a change of control triggering event, the Registered Notes do not have any credit rating downgrade triggers that would accelerate the maturity of the Registered Notes.

The Registered Notes contain customary covenants, including limits on the incurrence of certain secured debt and sale/leaseback transactions.

None of these covenants are considered restrictive to our operations and as of December 31, 2024, we were in compliance with all of our covenants.

None of the covenants from the Amended and Restated Credit Agreement, the 2026 and 2029 Notes, and the Registered Notes are considered restrictive to our operations and as of December 31, 2025, and we were in compliance with all of our covenants.

Euro and Yen Term Loan

In 2022, we entered into and drew down on a € 275 million and a ¥ 14.4 billion senior unsecured term facility (“Euro Term Loan” and “Yen Term Loan”, respectively).

During the third quarter of 2025, Fortive used $ 324 million and $ 98 million of the Ralliant Dividend to repay the outstanding principle of the Euro Term Loan and Yen Term Loan, and accrued interest thereon.

Delayed-Draw Term Loan due 2024

On December 7, 2023, we entered into a term loan credit agreement, which provides for a delayed-draw term loan facility up to an aggregate principal amount of $ 1.3 billion (the “Term Loan Credit Agreement”).

On December 14, 2023 and January 2, 2024, we drew down $ 550 million and $ 450 million of the $ 1.3 billion available under the delayed-draw senior unsecured term facility (“Delayed-Draw Term Loan Due 2024”) as a Term SOFR Loan, as part of the funding for the acquisition of EA, with $ 1.0 billion outstanding immediately following such additional draw.

Refer to Note 3 for additional information regarding the EA acquisition.

The Delayed-Draw Term Loan Due 2024 bore interest at a variable rate equal to Term SOFR plus a margin of between 75 and 125 basis point, depending on the Company’s long-term credit rating.

In 2023 and 2024, we drew down $ 550 million and $ 450 million under a delayed-draw senior unsecured term facility (“Delayed-Draw Term Loan Due 2024”), respectively.

On February 13, 2024, we used the net proceeds from the 2026 Notes and 2029 Notes to refinance the entire $ 1.0 billion outstanding principal and accrued interest thereon.

Delayed-Draw Term Loan due 2023

On August 24, 2023, we repaid $ 250 million of the Delayed-Draw Term Loan Due 2023.

On December 14, 2023, we repaid the remaining $ 750 million in outstanding principal and accrued interest thereon using the proceeds from the Delayed-Draw Term Loan Due 2024 and available cash.

Convertible Senior Notes

On February 22, 2019, we issued $ 1.4 billion in aggregate principal amount of our 0.875 % Convertible Senior Notes due 2022 (the “Convertible Notes”).

Upon adopting ASU No.

2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40):

Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity , on January 1, 2022, we reclassified the carrying value of the instrument wholly to debt, eliminating the value formerly attributable to the conversion feature and the associated debt issuance costs that were previously classified as equity.

On February 15, 2022, the maturity date of the Convertible Notes, Fortive repaid, in cash, $ 1.2 billion in outstanding principal and accrued interest thereon.

The Company’s future minimum principal payments due are presented in the following table:

2026 $ 1,191.3

Thereafter 550.0

Total principal payments (a)

(a) The table above does not include principal balance of $ 650 million under the Commercial Paper Program.

(a) The table above does not include principal balance of $ 650 million under the Commercial Paper Programs.

We made interest payments of $ 145 million, $ 136 million, and $ 131 million during the years ended December 31, 2025, 2024 and 2023, respectively.

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Total pre-tax amount $ 5.6 $ 4.2 $ ( 30.1 ) $ ( 29.5 )

Weighted average assumptions used to determine benefit obligations at date of measurement

Pension Plans Non-U.S.

Pension Plans

2024 2023 2024 2023

Discount rate 5.62 % 5.14 % 3.38 % 3.33 %

Rate of compensation increase (a)

N/A N/A 2.66 % 2.65 %

(a) The frozen U.S.

pension plans do not use the rate of compensation increase as an input in determining the benefit obligations at date of measurement.

Components of net periodic pension cost

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Net periodic pension cost $ 0.2 $ ( 0.1 ) $ 0.2 $ 2.4 $ 1.7 $ 2.9

Weighted average assumptions used to determine benefit obligations at date of measurement

Pension Plans Non-U.S.

Pension Plans

2025 2024 2025 2024

Discount rate 5.4 % 5.6 % 3.0 % 2.5 %

Rate of compensation increase (a)

N/A N/A 2.4 % 2.4 %

(a) The frozen U.S.

pension plans do not use the rate of compensation increase as an input in determining the benefit obligations at date of measurement.

Weighted average assumptions used to determine net periodic pension cost at date of measurement

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Rates appropriate for each plan are determined based on investment grade instruments with maturities approximately equal to the average expected benefit payout under the plan.

The expected rates of return reflect the asset allocation of the plans and ranged from 1.75 % to 6.48 % in 2024, 1.50 % to 6.47 % in 2023, and 1.25 % to 5.20 % in 2022.

The expected rates of return reflect the asset allocation of the plans and ranged from 2.0 % to 5.9 % in 2025, and 1.8 % to 6.5 % in both 2024 and 2023.

The domestic plan rate is based primarily on broad publicly-traded-equity and fixed-income indices and forward-looking estimates of active portfolio and investment management.

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Defined Contribution Plans

We administer and maintain 401(k) programs and contributions to the 401(k) programs are determined based on a percentage of compensation.

We recognized compensation expense for our participating U.S.

employees in the 401(k) programs totaling $ 63 million in 2024, $ 61 million in 2023, and $ 60 million in 2022.

We administer and maintain 401(k) programs with contributions determined based on a percentage of compensation.

We recognized compensation expense totaling $ 40 million in 2025, $ 41 million in 2024, and $ 39 million in 2023.

We derive revenue primarily from the sales of products, including software, and services.

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Contract assets were $ 151 million as of December 31, 2025 and $ 116 million as of December 31, 2024.

Contract assets are recorded within Prepaid expenses and other current assets in our Consolidated Balance Sheets.

Contract assets are primarily recorded within Prepaid expenses and other current assets and Other assets in our Consolidated Balance Sheets.

Contract Costs — We incur and capitalize incremental costs to obtain certain contracts, typically sales-related commissions where the amortization period is greater than one year , and costs associated with assets used by our customers in certain service arrangements.

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Revenue-related contract costs are recorded within Other assets in our Consolidated Balance Sheets.

These assets have estimated useful lives between three and five years .

Contract Liabilities — Our contract liabilities consist of deferred revenue generally related to subscription-based software contracts, PCS, and extended warranty sales, where we generally receive up-front payment and recognize revenue over the service or support term.

These assets are amortized over the period of benefit, which it is typically between three and five years .

For incremental costs to obtain contracts with a duration of one year or less, we apply the practical expedient to expense such costs as incurred.

Contract Liabilities — Our contract liabilities consist of deferred revenue generally related to subscription-based software contracts, PCS, and extended warranty sales, where we generally receive up-front payment and subsequently recognize revenue over the service or support term.

We classify deferred revenue as current or noncurrent based on the timing of when we expect to recognize revenue.

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In the year ended December 31, 2025, we recognized $ 390 million of revenue related to our contract liabilities at January 1, 2025.

The change in our contract liabilities from December 31, 2023 to December 31, 2024 was primarily due to the timing of billings and recognition as revenue of subscription-based software contracts, PCS and extended warranty services.

The change in our contract liabilities from December 31, 2024 to December 31, 2025 was primarily due to the timing of billings and recognition of revenue related to subscription-based software contracts, PCS, and extended warranty services.

Remaining Performance Obligations — Our remaining performance obligations represent the transaction price of firm, non-cancelable orders and the average contract value for software contracts, for which work has not been performed.

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Intelligent Operating Solutions $ 726.3

Precision Technologies 57.8

Advanced Healthcare Solutions 114.4

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Disaggregation of revenue for the year ended December 31, 2025 is presented as follows ($ in millions):

Total Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions

Total Intelligent Operating Solutions Advanced Healthcare Solutions

Sales of products and software $ 3,341.3 $ 2,319.4 $ 1,021.9

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Total $ 4,159.1 $ 2,856.3 $ 1,302.8

United States $ 3,372.0 $ 1,514.2 $ 1,136.3 $ 721.5

China 648.2 219.8 325.0 103.4

North America (a)

$ 2,491.1 $ 1,737.0 $ 754.1

Total $ 6,231.8 $ 2,714.7 $ 2,229.4 $ 1,287.7

Direct sales:

730.1 449.7 280.4

Industrial & Manufacturing 1,336.2 947.1 370.8 18.3

Europe, Middle East, and Africa

725.8 553.8 172.0

Utilities & Power 427.4 198.6 228.8 —

Communication, Electronics & Semiconductor 368.1 112.4 255.7 —

Aerospace & Defense 331.2 0.5 330.7 —

Retail & Consumer 335.1 270.8 64.3 —

Oil & Gas 293.7 281.8 11.9 —

Latin America

212.1 115.8 96.3

$ 4,159.1 $ 2,856.3 $ 1,302.8

Healthcare $ 1,280.5 $ 44.9 $ 1,235.6

Industrial & Manufacturing 1,198.7 1,181.7 17.0

Energy & Infrastructure 687.6 687.6 —

Government 350.6 314.0 36.6

Retail 315.7 315.7 —

Other 326.0 312.4 13.6

Total direct sales 5,851.6 2,560.5 2,017.0 1,274.1

Distributors 380.2 154.2 212.4 13.6

Total $ 4,159.1 $ 2,856.3 $ 1,302.8

(a) Direct sales by end market include sales made through third-party distributors where we have visibility into the end customer.

(a) North America is comprised of the United States and Canada.

Sales attributed to the United States were 56 % of total Fortive sales.

Disaggregation of revenue for the year ended December 31, 2024 is presented as follows ($ in millions):

Total Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions

Total Intelligent Operating Solutions Advanced Healthcare Solutions

Sales of products and software $ 3,290.9 $ 2,278.7 $ 1,012.2

1 unchanged sentence

Total $ 4,080.9 $ 2,793.2 $ 1,287.7

United States $ 3,288.4 $ 1,441.6 $ 1,165.1 $ 681.7

China 694.9 228.6 361.8 104.5

North America (a)

$ 2,416.8 $ 1,674.5 $ 742.3

Total $ 6,065.3 $ 2,612.2 $ 2,223.7 $ 1,229.4

Direct sales:

733.3 456.5 276.8

Industrial & Manufacturing 1,410.1 931.4 461.3 17.4

Europe, Middle East, and Africa

721.1 553.0 168.1

Utilities & Power 400.2 189.3 210.9 —

Communication, Electronics & Semiconductor 398.3 100.4 297.9 —

Aerospace & Defense 303.7 0.6 303.1 —

Retail & Consumer 338.6 258.2 80.4 —

Oil & Gas 281.7 271.6 10.1 —

Latin America

209.7 109.2 100.5

$ 4,080.9 $ 2,793.2 $ 1,287.7

Healthcare $ 1,264.7 $ 47.5 $ 1,217.2

Industrial & Manufacturing 1,172.6 1,154.3 18.3

Energy & Infrastructure 659.5 659.5 —

Government 356.9 318.3 38.6

Retail 291.2 291.2 —

Other 336.0 322.4 13.6

Total direct sales 5,808.3 2,472.3 2,119.5 1,216.5

Distributors 257.0 139.9 104.2 12.9

Total $ 4,080.9 $ 2,793.2 $ 1,287.7

(a) Direct sales by end market include sales made through third-party distributors where we have visibility into the end customer.

(a) North America is comprised of the United States and Canada.

Sales attributed to the United States were 56 % of total Fortive sales.

Disaggregation of revenue for the year ended December 31, 2023 is presented as follows ($ in millions):

Total Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions

Total Intelligent Operating Solutions Advanced Healthcare Solutions

Sales of products and software $ 3,157.7 $ 2,201.9 $ 955.8

1 unchanged sentence

Total $ 3,913.9 $ 2,684.5 $ 1,229.4

United States $ 3,136.8 $ 1,356.0 $ 1,107.9 $ 672.9

China 702.1 217.9 378.7 105.5

North America (a)

$ 2,292.4 $ 1,592.4 $ 700.0

Total $ 5,825.7 $ 2,466.1 $ 2,152.3 $ 1,207.3

Direct sales:

727.2 447.8 279.4

Industrial & Manufacturing 1,352.0 887.9 446.2 17.9

Europe, Middle East, and Africa

697.6 541.6 156.0

Utilities & Power 368.9 183.1 185.8 —

Communication, Electronics & Semiconductor 399.8 96.3 303.5 —

Aerospace & Defense 259.7 0.6 259.1 —

Retail & Consumer 335.7 248.9 86.8 —

Oil & Gas 271.1 262.1 9.0 —

Latin America

196.7 102.7 94.0

$ 3,913.9 $ 2,684.5 $ 1,229.4

Healthcare $ 1,210.9 $ 48.5 $ 1,162.4

Industrial & Manufacturing 1,139.1 1,121.7 17.4

Energy & Infrastructure 633.8 633.8 —

Government 330.8 294.1 36.7

Retail 276.7 276.7 —

Other 322.6 309.7 12.9

Total direct sales 5,574.1 2,334.5 2,045.5 1,194.1

Distributors 251.6 131.6 106.8 13.2

Total $ 3,913.9 $ 2,684.5 $ 1,229.4

(a) Direct sales by end market include sales made through third-party distributors where we have visibility into the end customer.

(a) North America is comprised of the United States and Canada.

Sales attributed to the United States were 53 % of total Fortive sales.

Earnings and Income Taxes

Earnings before income taxes for the years ended December 31 were as follows ($ in millions):

Earnings from continuing operations before income taxes for the years ended December 31 were as follows ($ in millions):

2025 2024 2023

2 unchanged sentences

Total $ 602.2 $ 506.3 $ 433.1

The provision for income taxes for the years ended December 31 were as follows ($ in millions):

The continuing operations provision for income taxes for the years ended December 31 were as follows ($ in millions):

2025 2024 2023

5 unchanged sentences

State and local ( 5.8 ) ( 19.9 ) ( 6.6 )

Income tax provision $ 136.7 $ 125.0 $ 118.3

9.1 ( 1.9 ) ( 24.2 )

51.0 43.9 43.8

State and local 9.4 ( 18.2 ) 5.1

Total income tax provision

$ 69.5 $ 23.8 $ 24.7

Effective Income Tax Rate

The effective income tax rate for the years ended December 31 varies from the U.S.

The continuing operations effective income tax rate for the year ended December 31, 2025 varies from the U.S.

statutory federal income tax rate as follows, in both dollar amounts (in millions) and as a percentage of earnings from continuing operations before income taxes:

Statutory federal income tax rate $ 126.5 21.0 %

Increase (decrease) in tax rate resulting from:

State income taxes (net of federal income tax benefit) (a)

Foreign tax effects

Nontaxable interest

( 13.2 ) ( 2.2 ) %

Other 4.7 0.8 %

Other foreign jurisdictions

Effect of change in tax laws or rates enacted in the current period (b)

Effect of cross-border tax laws

Foreign-derived intangible income ( 51.2 ) ( 8.5 ) %

Other 7.3 1.2 %

Research and development tax credits ( 10.9 ) ( 1.8 ) %

Other ( 0.8 ) ( 0.1 ) %

Nontaxable or nondeductible items 5.9 1.0 %

Changes in unrecognized tax benefits

( 11.6 ) ( 1.9 ) %

Other adjustments

Effective income tax rate

$ 69.5 11.5 %

(a) For the year ended December 31, 2025, state taxes in California, Illinois, New Jersey, New York, Texas, and Massachusetts made up the majority (greater than 50%) of the tax effect in this category.

(b) The sum of the components of effective income tax rate may not equal due to rounding.

The continuing operations effective income tax rate for the years ended December 31, 2024 and 2023 varies from the U.S.

statutory federal income tax rate as follows:

Percentage of Pretax Earnings

2024 2023 2022

Statutory federal income tax rate 21.0 % 21.0 %

4 unchanged sentences

federal permanent differences related to the TCJA ( 7.5 ) % ( 10.2 ) %

Separation transaction tax costs

3.3 % — % — %

Effect of change in tax rates enacted in the current period ( 0.5 ) % ( 5.7 ) %

4 unchanged sentences

Effective income tax rate

14.1 % 12.6 % 13.5 %

Our effective tax rate for 2024 differs from the U.S.

federal statutory rate of 21% due primarily to the positive and negative effects of the Tax Cuts and Jobs Act (“TCJA”), U.S.

federal permanent differences, the impacts of credits and deductions provided by law, including those associated with state income taxes, a decrease in our uncertain tax positions, non-deductible transaction costs related to the Separation and the effect of changes in tax rates enacted in the current period.

We made income tax payments of $ 220 million, $ 225 million, and $ 148 million during the years ended December 31, 2024, 2023 and 2022, respectively.

Income tax payments, net of refunds received, related to continuing operations during the year ended December 31, 2025 were as follows ($ in millions):

Federal $ 40.7

State and local 7.5

United States 48.2

International 51.8

Total $ 100.0

We made income tax payments, net of refunds received, of $ 114 million, and $ 122 million during the years ended December 31, 2024 and 2023, respectively.

Deferred Tax Assets and Liabilities

All deferred tax assets and liabilities have been classified as noncurrent and are included in Other assets and Other long-term liabilities in the Consolidated Balance Sheets.

Deferred income tax assets and liabilities as of December 31 were as follows ($ in millions):

Deferred income tax assets and liabilities from continuing operations as of December 31 were as follows ($ in millions):

Deferred Tax Assets:

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We evaluate the realizability of deferred income tax assets for each of the jurisdictions in which we operate.

unless known or planned operating developments would lead management to conclude otherwise.

4 unchanged sentences

Deferred taxes associated with U.S.

entities consist of net deferred tax liabilities of approximately $ 485 million and $ 519 million inclusive of valuation allowances of $ 30 million and $ 38 million as of December 31, 2024 and 2023, respectively.

entities from continuing operations consist of net deferred tax liabilities of approximately $ 336 million and $ 426 million inclusive of valuation allowances of $ 21 million and $ 24 million as of December 31, 2025 and 2024, respectively.

Deferred taxes associated with non-U.S.

entities consist of net deferred tax liabilities of $ 159 million and net deferred tax assets of $ 10 million, inclusive of valuation allowances of $ 282 million and $ 245 million, as of December 31, 2024 and 2023,

respectively.

Our valuation allowance increased by $ 29 million and by $ 208 million during the years ended December 31, 2024 and 2023, respectively, due primarily to foreign credits and net operating losses in both years.

entities from continuing operations consist of net deferred tax liabilities of $ 1 million and of $ 15 million, both inclusive of valuation allowances of $ 247 million, as of December 31, 2025 and 2024.

Our valuation allowance decreased by $ 3.0 million and increased by $ 15 million during the years ended December 31, 2025 and 2024, respectively, due primarily to foreign credits and net operating losses in both years.

As of December 31, 2025, our U.S.

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We recognize potential accrued interest and penalties associated with unrecognized tax positions in income tax expense.

As of December 31, 2024, gross unrecognized tax benefits were $ 145 million ($ 155 million total, including $ 28 million associated with interest and penalties, and net of the impact of $ 18 million of indirect tax benefits).

As of December 31, 2023, gross unrecognized tax benefits were $ 176 million ($ 189 million total, including $ 31 million associated with interest and penalties, and net of the impact of $ 18 million of indirect tax benefits).

As of December 31, 2025, gross unrecognized tax benefits for continuing and discontinued operations were $ 133 million ($ 147 million total, including $ 26 million associated with interest and penalties, and net of the impact of $ 12 million of indirect tax benefits).

As of December 31, 2024, gross unrecognized tax benefits for continuing and discontinued operations were $ 130 million ($ 144 million total, including $ 26 million associated with interest and penalties, and net of the impact of $ 12 million of indirect tax benefits).

We recognized approximately $ 8 million, $ 10 million and $ 11 million in potential interest and penalties associated with uncertain tax positions during 2025, 2024, and 2023, respectively.

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These examinations include filings of tax returns prior to our separation from Danaher, tax returns of enterprises no longer in our portfolio, and tax returns for pre-acquisition periods of enterprises added to our portfolio.

Significant obligations are detailed in the tax matters agreements in connection with the separation of Fortive from Danaher on July 1, 2016, the split-off of the A&S business on October 1, 2018, and the Vontier separation on October 9, 2020.

Some examinations may conclude in the next twelve months and the unrecognized tax benefits recorded in relation to the audits may differ from actual settlement amounts.

It is not practical to estimate the effect, if any, of any amount of such change during the next twelve months to previously recorded uncertain tax positions in connection with the audits.

It is reasonably possible that $ 55 million in unrecognized tax benefits may be resolved in the next twelve months, due to statute of limitations expiration.

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding amounts accrued for potential interest and penalties, is as follows ($ in millions):

7 unchanged sentences

Effect of foreign currency translation 2.9 ( 1.8 ) 0.1

Acquisition related adjustments

Acquisition and separation related adjustments

Unrecognized tax benefits, end of year $ 133.1 $ 130.1 $ 160.6

Repatriation and Unremitted Earnings

As of December 31, 2024, we recorded estimated incremental foreign remittance taxes of $ 5 million on the planned 2025 repatriation of $ 52 million of previously unremitted earnings from 2024 and prior periods.

As of December 31, 2024, the earnings we plan to reinvest indefinitely outside of the United States for which foreign deferred taxes have not been provided was estimated at $ 1.9 billion.

No provisions for foreign remittance taxes have been made with respect to earnings that are planned to be reinvested indefinitely.

The amount of foreign remittance taxes that may be applicable to such earnings is not readily determinable given local law restrictions that may apply to a portion of such earnings, unknown changes in foreign tax law that may occur during the applicable restriction periods caused by applicable local corporate law for cash repatriation, and the various tax planning alternatives we could employ if we repatriated these earnings.

As of December 31, 2025, we have undistributed earnings of certain foreign subsidiaries that we have indefinitely reinvested, and on which we have not recognized deferred taxes.

Estimating the amount of potential tax is not practicable because of the complexity and variety of assumptions necessary to compute the tax.

LITIGATION AND CONTINGENCIES

15 unchanged sentences

While we actively pursue financial recoveries from insurance providers, we do not recognize any recoveries until realized or until such time as a sustained pattern of collections is established related to historical matters of a similar nature and magnitude.

If risk insurance reserves we have established are inadequate, we would be required

to incur an expense equal to the amount of the loss incurred in excess of the reserves, which would adversely affect our net earnings.

Refer to Note 7 for information about the amount of our accruals for self-insurance and litigation liability.

In addition, our operations, products, and services are subject to environmental laws and regulations in various jurisdictions, which impose limitations on the discharge of pollutants into the environment and establish standards for the generation, use, treatment, storage, and disposal of hazardous and non-hazardous wastes.

A number of our operations involve the handling, manufacturing, use, or sale of substances that are or could be classified as hazardous materials within the meaning of applicable laws.

We must also comply with various health and safety regulations in both the United States and abroad in connection with our operations.

Compliance with these laws and regulations has not had and, based on current information and the applicable laws and regulations currently in effect, is not expected to have a material effect on our capital expenditures, earnings, or competitive position, and we do not anticipate material capital expenditures for environmental control facilities.

In addition to environmental compliance costs, from time to time, we incur costs related to alleged damages associated with past or current waste disposal practices or other hazardous materials handling practices.

For example, generators of hazardous substances found in disposal sites at which environmental problems are alleged to exist, as well as the current and former owners of those sites and certain other classes of persons, are subject to claims brought by state and federal regulatory agencies pursuant to statutory authority.

We have received notification from the United States Environmental Protection Agency, and from state and non-U.S.

environmental agencies, that conditions at certain sites where we and others previously disposed of hazardous wastes and/or of which we are or were property owners require clean-up and other possible remedial action, including sites where we have been identified as a potentially responsible party under United States federal and state environmental laws.

We have projects underway at a number of current and former facilities, in both the United States and abroad, to investigate and remediate environmental contamination resulting from past operations.

Remediation activities generally relate to soil and/or groundwater contamination and may include pre-remedial activities such as fact-finding and investigation, risk assessment, feasibility study and/or design, as well as remediation actions such as contaminant removal, monitoring and/or installation, operation and maintenance of longer-term remediation systems.

From time to time we are also party to personal injury or other claims brought by private parties alleging injury due to the presence of, or exposure to, hazardous substances.

We have recorded a provision for environmental investigation and remediation and environmental-related claims with respect to sites we and our subsidiaries owned or formerly owned and third party sites where we have been determined to be a potentially responsible party.

We generally make an assessment of the costs involved for our remediation efforts based on environmental studies, as well as our prior experience with similar sites.

The ultimate cost of site cleanup is difficult to predict given the uncertainties of our involvement in certain sites, uncertainties regarding the extent of the required cleanup, the availability of alternative cleanup methods, variations in the interpretation of applicable laws and regulations, the possibility of insurance recoveries with respect to certain sites and the fact that imposition of joint and several liability with right of contribution is possible under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 and other environmental laws and regulations.

If we determine that potential liability for a particular site or with respect to a personal injury claim is known or considered probable and reasonably estimable, we accrue the total estimated loss, including investigation and remediation costs, associated with the site or claim.

As of both December 31, 2024 and 2023, we had reserves of $ 7 million and $ 6 million, respectively, recorded within Accrued expenses and Other liabilities in the Consolidated Balance Sheets for environmental matters that are known or considered probable and reasonably estimable, which reflects our best estimate of the costs to be incurred with respect to such matters on an undiscounted basis.

All reserves for environmental liabilities have been recorded without giving effect to any possible future third party recoveries.

While we actively pursue insurance recoveries, as well as recoveries from other potentially responsible parties, we do not recognize any insurance recoveries for environmental liability claims until realized or until such time as a sustained pattern of collections is established related to historical matters of a similar nature and magnitude.

If risk insurance reserves we have established are inadequate, we would be required to incur an expense equal to the amount of the loss incurred in excess of the reserves, which would adversely affect our net earnings.

The amount of our accruals for self-insurance and litigation liability was immaterial as of December 31, 2025 and 2024.

As of December 31, 2025 and 2024, we had approximately $ 30 million and $ 33 million, respectively, of guarantees consisting primarily of outstanding standby letters of credit, bank guarantees, and performance and bid bonds.

These guarantees have been provided in connection with certain arrangements with vendors, customers, financing counterparties, and governmental entities to secure our obligations and/or performance requirements related to specific transactions.

These guarantees have been

provided in connection with certain arrangements with vendors, customers, financing counterparties, and governmental entities to secure our obligations and/or performance requirements related to specific transactions.

We believe that if the obligations under these instruments were triggered, they would not have a material effect on our consolidated financial statements.

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For grants made subsequent to 2022, the performance target is based on a mix of both achievement of an internal growth metric and the Company’s total shareholder return ranking, both over a performance period of approximately three years .

PSUs issued are subject to an additional holding period of up to two years and are entitled to dividend equivalent rights.

PSUs issued are subject to an additional holding period of up to one year and are entitled to dividend equivalent rights.

The PSU dividend equivalent rights are subject to the same vesting and payment restrictions as the related shares, but do not have voting rights and the shares underlying the PSUs are not considered issued and outstanding.

11 unchanged sentences

The amount of stock-based compensation expense recognized during a period is based on the portion of the awards that are ultimately expected to vest.

We estimate pre-vesting forfeitures at the time of grant by analyzing historical data and revise those estimates in subsequent periods if actual forfeitures differ from those estimates.

We estimate pre-vesting forfeitures at the time of grant by

analyzing historical data and revise those estimates in subsequent periods if actual forfeitures differ from those estimates.

Ultimately, the total expense recognized over the vesting period will equal the fair value of awards that actually vest.

23 unchanged sentences

Total unrecognized compensation cost $ 102.7

Ralliant Separation

In connection with the Separation and in accordance with the employee matters agreement between Fortive and Ralliant, the number of shares underlying each stock-based award outstanding as of the date of the Separation was multiplied by a factor of 1.3662 and the related exercise price for the stock options was divided by a factor of 1.3662 , which was intended to preserve the intrinsic value of the awards immediately prior to the Separation.

The adjustment factor was calculated using the Fortive common stock per share price at the close of market on June 27, 2025 relative to the 3 -trading day volume weighted average price of Fortive common stock immediately after the Separation.

Stock-based awards of Fortive held by employees who transferred to Ralliant in the Separation were converted into stock-based awards of Ralliant issued under Ralliant’s stock plan.

Additionally, at the completion of the Separation, we accelerated the recognition of compensation expense related to certain Stock Awards due to executive retirements.

In the year ended December 31, 2025, we recorded $ 33 million of stock based compensation expense related to these adjustments within Selling, general, and administrative expenses in the Consolidated Statement of Earnings.

Stock Options

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2025 2024 2023

Weighted-average grant-date fair value

$ 27.47 $ 29.28 $ 18.59

Risk-free interest rate 4.1 % - 4.3 %

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Expected years until exercise 5.5 - 8.0

(a) Expected volatility is based on a weighted average blend of the company’s historical stock price volatility from July 2, 2016 (the date of separation from Danaher) through the stock option grant date and the average historical stock price volatility of a group of peer companies for the expected term of the options.

(a) Expected volatility for 2025 was based on is based on the company’s historical stock price volatility from July 2, 2016 (the date of separation from Danaher) through the stock option grant date.

Expected volatility for 2024 and 2023 were weighted average blend of the company’s historical stock price volatility from July 2, 2016 (the date of separation from Danaher) through the stock option grant date and the average historical stock price volatility of a group of peer companies for the expected term of the options.

(b) The dividend yield is calculated by dividing our annual dividend, based on the most recent quarterly dividend rate, by Fortive’s closing stock price on the grant date.

The following summarizes option activity under the Stock Plan (in millions, except price per share and numbers of years):

Options Weighted

Price Weighted

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Canceled/forfeited ( 0.4 ) 54.24

Adjustment due to PT Separation (b)

( 2.2 ) 44.67

Outstanding as of December 31, 2025 9.4 49.44 5 $ 62.5

Vested and expected to vest as of December 31, 2024 (a)

Vested and expected to vest as of December 31, 2025 (c)

9.4 49.40 5 $ 62.3

Exercisable as of December 31, 2025 6.4 47.17 4 $ 52.5

(a) The “expected to vest” options are the net unvested options that remain after applying the forfeiture rate assumption to total unvested options.

(a) The outstanding options as of December 31, 2024 and the option activity prior to December 31, 2024 (except those options canceled as part of the PT Separation as noted below) have been adjusted by a factor of 1.3662 , as noted above, due to the PT Separation.

(b) The “Adjustment due to PT Separation” reflects the cancellation of outstanding options held by Ralliant employees as of June 27, 2025, which were replaced with Ralliant options issued by Ralliant as part of the PT Separation.

(c) The “expected to vest” options are the net unvested options that remain after applying the forfeiture rate assumption to total unvested options.

The aggregate intrinsic values in the table above represent the total pretax intrinsic value (the difference between the closing stock price of Fortive common stock on the last trading day of 2025 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2025.

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except price per share):

Stock Awards Weighted Average

Stock Awards (a)

Weighted Average

Unvested as of December 31, 2023 4.5 $ 44.00

Granted 1.8 54.19

Vested ( 0.8 ) 67.09

( 1.2 ) 48.52

Forfeited ( 0.4 ) 52.09

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Granted 1.8 58.62

Vested ( 0.9 ) 66.29

( 1.3 ) 50.81

Forfeited ( 0.5 ) 55.16

Adjustment due to PT Separation (c)

( 0.7 ) 50.59

Unvested as of December 31, 2025 4.0 55.85

(a) The outstanding stock awards as of December 31, 2024 and the option activity prior to December 31, 2024 (except those options canceled as part of the PT Separation as noted below) have been adjusted by a factor of 1.3662 , as noted above, due to the PT Separation.

(b) The fair value of Stock Awards vested during the year ended December 31, 2025, 2024, and 2023 was $ 60.6 million, $ 50.7 million, and $ 53.0 million, respectively.

(c) The “Adjustment due to PT Separation” reflects the cancellation of unvested awards held by Ralliant employees as of June 27, 2025, which were replaced with Ralliant equity awards issued by Ralliant as part of the PT Separation.

CAPITAL STOCK AND EARNINGS PER SHARE

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The Board’s authority to issue preferred stock with voting rights or conversion rights that, if exercised, could adversely affect the voting power of the holders of common stock, could potentially discourage attempts by third parties to obtain control of the Company through certain types of takeover practices.

Beginning in the fourth quarter of 2023, we increased the quarterly dividend paid on our common stock from $ 0.07 per share to $ 0.08 per share.

We currently pay a quarterly dividend of $ 0.06 per share on our common stock.

Share Repurchase Program

On February 17, 2022, the Company's Board of Directors approved a share repurchase program authorizing the Company to repurchase up to 20 million shares of the Company's outstanding common stock from time to time on the open market or in privately negotiated transactions.

On January 23, 2024, the Company’s Board of Directors increased the number of shares authorized under the share repurchase program by an additional 11 million shares, with 8 million remaining authorized under the share repurchase program as of December 31, 2024.

There is no expiration date for the repurchase program, and the timing and amount of repurchases under the program are determined by the Company's management based on market conditions and other factors.

The repurchase program may be suspended or discontinued at any time by the Board of Directors.

During the years ended December 31, 2024, 2023, and 2022, respectively, the Company purchased 12 million, 4 million, and 7 million shares of its common stock at an average share price of $ 73.93 and $ 68.20 , and $ 63.25 .

On February 17, 2022, our Board approved a share repurchase program authorizing us to repurchase up to 20 million shares of our outstanding common stock (the “General Share Repurchase Program”).

Under this program, shares may be repurchased from time to time on the open market or in privately negotiated transactions, including under accelerated share repurchase programs or under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (“10b5-1 Plans”).

On May 27, 2025, in connection with the Separation, our Board adopted a separate and incremental special purpose share repurchase program (the “Special Purpose Share Repurchase Program”) under which we may purchase up to $ 550 million in our common stock exclusively from the proceeds we received as a dividend from Ralliant in connection with the Separation (the “Ralliant Dividend”), together with any other cash received from Ralliant in connection with the Separation (collectively, the “Ralliant Cash Proceeds”).

Repurchases of shares of our common stock using the Ralliant Cash Proceeds will only be made through the Special Purpose Share Repurchase Program.

On May 27, 2025 and November 5, 2025, our Board increased the number of shares authorized under the General Share Repurchase Program by an additional 15.6 million and 12.1 million shares, respectively.

As of December 31, 2025, there were 15.5 million shares remaining authorized under the General Share Repurchase Program and $ 67.5 million remaining authorized under the Special Share Repurchase Program, respectively.

There is no expiration date for the repurchase programs, and the timing and amount of repurchases under the programs are determined by our management based on market conditions, tax regulations and other factors.

The repurchase programs may be suspended or discontinued at any time by the Board.

Refer to Part II - Item 5 for additional information.

During the years ended December 31, 2025, 2024, and 2023, respectively, we purchased 30 million, 12 million, and 4 million shares of our common stock at an average share price of $ 52.79 and $ 73.93 , and $ 68.20 .

Our common stock repurchases in excess of issuances are subject to a 1% excise tax enacted by the Inflation Reduction Act.

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Basic net earnings per share (“EPS”) is calculated by dividing net earnings by the weighted average number of shares of common stock outstanding for the applicable period.

Diluted EPS is similarly calculated, except that the calculation includes the dilutive effect of the assumed conversion of 0.875 % Convertible Notes and associated issuance of shares under the if-converted method, while outstanding in 2022, and the assumed issuance of shares under stock-based compensation plans under the treasury stock method, except where the inclusion of such shares would have an anti-dilutive impact.

Diluted EPS from continuing operations is similarly calculated, except that the calculation includes the dilutive effect of the assumed issuance of shares under stock-based compensation plans under the treasury stock method, except where the inclusion of such shares would have an anti-dilutive impact.

For the years ended December 31, 2025, 2024, and 2023, the anti-dilutive options to purchase shares excluded from the diluted EPS calculation were 1.0 million shares, 1.2 million shares, and 0.5 million shares, respectively.

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2025 2024 2023

$ 832.9 $ 865.8 $ 755.2

Convertible note interest add-back (“if-converted” method) — — 1.8

Diluted Net earnings

Net earnings from continuing operations

$ 532.7 $ 482.5 $ 408.4

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Assumed exercise of dilutive options and vesting of dilutive Stock Awards 2.6 3.6 3.1

Conversion of convertible notes (if converted method) — — 1.6

Weighted average common shares outstanding used in diluted earnings per share 334.6 352.8 355.6

Net earnings per common share - Basic

Net earnings from continuing operations per common share - Basic

$ 1.60 $ 1.38 $ 1.16

Net earnings per common share - Diluted

Net earnings from continuing operations per common share - Diluted

$ 1.59 $ 1.37 $ 1.15

SEGMENT INFORMATION

We report our results in three separate business segments consisting of Intelligent Operating Solutions, Precision Technologies, and Advanced Healthcare Solutions.

We determine our business segments based on the identification of segment managers and similarities in products, end markets, economic characteristics, technologies, and services, as well as the financial data utilized by the Company's chief executive officer.

We report our results in two separate business segments consisting of Intelligent Operating Solutions and Advanced Healthcare Solutions.

We determine our business segments based on the identification of segment managers and similarities in products,

end markets, economic characteristics, technologies, and services, as well as the financial data utilized by the Company's chief executive officer.

The Company's chief operating decision maker ("CODM") is the chief executive officer.

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The CODM also compares the actual results to expectations in assessing the performance of the segments.

Gross profit represents total revenue less total cost of sales.

Operating expenses generally include selling, general and administrative expenses, and research and development expenses.

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Amortization expense is recorded within Selling, general, and administrative expenses.

Operating profit represents gross profit less operating expenses.

The identifiable assets by segment are those used in each segment’s operations.

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Unallocated costs and other costs are not considered part of our evaluation of reportable segment operating performance.

On January 1, 2024, we realigned Invetech from the AHS segment to the PT segment.

Prior period segment amounts have been recast to conform to the revised segment presentation.

Refer to Note 1 for further information on the realignment.

Segment results for the year ended December 31, 2025 are shown below ($ in millions):

Intelligent Operating Solutions

Precision Technologies

Advanced Healthcare Solutions

Unallocated Corporate Costs and Other

Unallocated Corporate Costs and Other (a)

$ 4,159.1 $ 2,856.3 $ 1,302.8 $ —

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( 1,920.9 ) ( 1,145.4 ) ( 618.8 ) ( 156.7 )

Gain on sale of property (a)

63.1 — 63.1 — —

Operating profit (loss)

3 unchanged sentences

( 120.5 ) — — ( 120.5 )

Loss from divestiture (a)

( 25.6 ) — — — ( 25.6 )

Other non-operating expense, net

( 58.6 ) — — — ( 58.6 )

Earnings before income taxes

$ 969.6 $ 704.6 $ 500.0 $ 155.6 $ ( 390.6 )

Earnings from continuing operations before income taxes $ 602.2 $ 738.3 $ 138.6 $ ( 274.7 )

Depreciation and amortization expenses

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$ ( 105.1 ) $ ( 82.2 ) $ ( 22.8 ) $ ( 0.1 )

(a) Refer to Note 4 and Note 3, respectively, for further detail on Gain on sale of property, and Loss from divestiture.

(a) Unallocated Corporate Costs and Other included $ 33 million of stock based compensation expense related to adjustments in connection with the PT Separation.

Refer to Note 13 for further detail.

Segment results for the year ended December 31, 2024 are shown below ($ in millions):

Intelligent Operating Solutions

Precision Technologies

Advanced Healthcare Solutions

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( 152.8 ) — — ( 152.8 )

Other non-operating expense, net

( 19.4 ) — — — ( 19.4 )

Earnings before income taxes

Other non-operating expense, net (a) (b)

( 57.2 ) — — ( 57.2 )

Earnings from continuing operations before income taxes $ 506.3 $ 708.0 $ 138.5 $ ( 340.2 )

Depreciation and amortization expenses

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$ ( 86.1 ) $ ( 67.6 ) $ ( 15.6 ) $ ( 2.9 )

(a) During 2024, we pledged a charitable contribution of $ 20 million to the Fortive Foundation (the “Foundation”), which had no donor imposed conditions or restrictions.

The Foundation, a not-for-profit entity established to expand our philanthropic efforts, is a related party due to certain Fortive executives serving as members of the entity’s board of directors.

(b) We recorded a loss from equity investments of $ 39.4 million during the year ended December 31, 2024.

Segment results for the year ended December 31, 2023 are shown below ($ in millions):

Intelligent Operating Solutions

Precision Technologies

Advanced Healthcare Solutions

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( 1,903.1 ) ( 1,149.2 ) ( 614.2 ) ( 139.7 )

Russia exit and wind down costs (a)

( 17.9 ) — — — ( 17.9 )

Operating profit (loss)

3 unchanged sentences

( 123.5 ) — — ( 123.5 )

Other non-operating expense, net

( 15.6 ) — — — ( 15.6 )

Earnings before income taxes

Other non-operating expense, net (a)

( 17.4 ) — — ( 17.4 )

Earnings from continuing operations before income taxes $ 433.1 $ 629.9 $ 83.8 $ ( 280.6 )

Depreciation and amortization expenses

2 unchanged sentences

$ ( 78.6 ) $ ( 55.7 ) $ ( 17.6 ) $ ( 5.3 )

(a) Refer to Note 1 for further detail on Russia exit and wind down costs.

(a) We recorded a loss from equity investments of $ 17.3 million during the year ended December 31, 2023.

Segment Assets:

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Intelligent Operating Solutions $ 6,346.0 $ 6,324.1

Precision Technologies 4,691.9 3,064.3

Advanced Healthcare Solutions 4,861.6 5,008.6

Total segment assets 11,207.6 11,332.7

995.5 2,085.8

Assets of discontinued operations

Total assets $ 11,737.7 $ 17,016.1

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Total $ 269.8 $ 232.9

QUARTERLY DATA - UNAUDITED

($ in millions, except per share data) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

$ 993.1 $ 1,016.4 $ 1,027.1 $ 1,122.5

Gross profit 637.5 645.5 649.2 708.9

Operating profit 165.3 169.8 159.6 225.5

Net earnings from continuing operations 112.6 111.6 117.0 191.5

Net earnings (loss) from discontinued operations

59.3 55.0 ( 62.0 ) ( 5.8 )

Net earnings 171.9 166.6 55.0 185.7

Net earnings (loss) per common share - basic:

Continuing operations

0.33 0.33 0.35 0.61

Discontinued operations 0.17 0.16 ( 0.19 ) ( 0.02 )

Net earnings per common share - basic

0.50 0.49 0.17 0.59

Net earnings (loss) per common share - diluted:

Continuing operations

0.33 0.33 0.35 0.60

Discontinued operations 0.17 0.16 ( 0.19 ) ( 0.02 )

Net earnings per common share - diluted

0.50 0.49 0.16 0.58

$ 984.2 $ 1,020.2 $ 1,003.7 $ 1,072.8

Gross profit 628.5 653.6 641.5 695.5

Operating profit 149.8 182.3 172.0 212.2

Net earnings from continuing operations 65.8 112.0 111.5 193.2

Net earnings from discontinued operations

141.6 83.1 110.1 15.6

Net earnings 207.4 195.1 221.6 208.8

Earnings per common share - basic:

Continuing operations

0.19 0.32 0.32 0.56

Discontinued operations 0.40 0.24 0.31 0.05

Net earnings per common share - basic

0.59 0.56 0.63 0.61

Earnings per common share - diluted:

Continuing operations

0.18 0.32 0.32 0.56

Discontinued operations 0.40 0.23 0.31 0.04

Net earnings per common share - diluted

0.58 0.55 0.63 0.60

The sum of net earnings per share amount may not add due to rounding.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data