Vontier (NYSE:VNT) executives said the company closed 2025 with “meaningful momentum across the portfolio,” pointing to mid-single-digit end-market growth in convenience retail, strong cash generation, and contributions from new products tied to its connected mobility strategy.
Fourth-quarter performance and full-year highlights
For the fourth quarter, Vontier reported total sales of $809 million and 5% core growth. Chief Executive Officer Mark Morelli said growth was led by high single-digit gains in both the Mobility Technologies and Environmental and Fueling segments, which he said were “underpinned by robust demand in our convenience retail end market.”
For 2025, management said organic sales grew nearly 4% and EPS increased 11%. Morelli emphasized cash generation, stating Vontier produced more than $460 million in adjusted free cash flow for the year, about 15% of annual sales. Aga said full-year free cash flow conversion was 98% on an adjusted basis.
Segment trends: fueling, payments, car wash software, and repair tools
In Environmental and Fueling Solutions (EFS), Vontier said it continued to benefit from investment in North American fueling infrastructure. Morelli cited broad-based market growth from new site builds, retrofits, and replacement activity, and referenced a NACS industry report indicating U.S. convenience store counts were roughly flat while fueling sites grew about 1%.
Aga said EFS posted high single-digit growth in dispenser sales in the quarter and double-digit growth in Environmental Solutions, with segment margins up 90 basis points in Q4 on volume leverage and productivity actions. For the full year, he said EFS delivered 6% core growth (following 6% growth in the prior year) and expanded operating margin 40 basis points to “over 29%.”
Mobility Technologies rose 8.5% on a core basis in the quarter, with Aga describing growth as “relatively broad-based.” Invenco’s Q4 sales were up 9% after six straight quarters of double-digit growth, he said. Morelli noted Invenco ended the year with a revenue base of nearly $650 million, up 22% organically versus the prior year, supported by demand for payment technologies using its iNFX microservices architecture, new product rollouts, and execution against an order pipeline.
Morelli highlighted product introductions including FlexPay 6, Vehicle Identification System, and the iNFX payment server. He also said Vontier launched an indoor payment terminal in Q4 that shares software across devices, rounding out what management calls its “unified payment” solution.
Within Mobility Technologies, management said DRB’s growth accelerated in Q4 and turned positive in the second half, driven “almost entirely” by adoption of the company’s new Patheon software. Morelli said customers upgrading to Patheon have seen membership growth, reduced churn, and “mid-teens revenue growth on average.” Aga added that while DRB was down high single digits for the full year, the return to growth and order momentum position the business well for 2026. In the Q&A, management said Patheon is still early in its upgrade cycle, with a large legacy installed base (SiteWatch) representing additional opportunity, and noted Patheon carries higher recurring revenue than the legacy offering.
Repair Solutions showed signs of stabilization, management said, though the segment remained pressured. Aga said sales declined 2% in the quarter, with lower volumes pressuring margins, but sales increased sequentially, and “distributors sell through off the truck inflected positive for the first time all year in Q4.” He said higher-ticket categories such as tool storage and diagnostics returned to growth. Morelli said Vontier saw low double-digit growth in diagnostic scan tools in Q4 and described traction in diagnostic products and tool-organization products aimed at technician productivity.
Unified payment focus and the Invenco inventory reserve
Management devoted part of the call to the rationale for unified payment, arguing that growing complexity across devices and security requirements has made payment certification a major cost for customers. Morelli said certification can consume significant operating budgets and scarce engineering resources, with costs ranging from “hundreds of thousands to millions annually.”
Vontier said its unified payment approach combines outdoor terminals, the iNFX electronic payment server linking terminals to processors, and the new indoor terminal sharing the same software as outdoor devices. Morelli said a common platform can reduce certification costs, speed feature deployment, and improve consumer experience, while enabling revenue-driving features such as media and loyalty. He also said the strategy can “pull through additional equipment and recurrent revenues,” and noted the company recently entered an agreement for a full unified payment solution with a global convenience-store customer, adding that early feedback has been positive.
Mobility Technologies margins were affected in Q4 by a one-time Invenco inventory reserve. Aga said the reserve was $4 million for legacy inventory that predated the acquisition, and he attributed it to higher inventory levels kept during supply-chain disruptions and the subsequent shift to new product versions that saw strong market uptake. In response to an analyst question, he said the adjustment had about a 130 basis point impact to Invenco’s margins in the quarter; excluding it, underlying Mobility Technologies margins would have been “around 20% for Q4.”
Capital deployment, balance sheet, and cost savings
On capital allocation, Aga said Vontier deployed $125 million to share repurchases in the quarter, bringing 2025 buybacks to $300 million—“equating to over 5% of our shares outstanding.” He said the company continues to view buybacks as a compelling use of capital given what he called a valuation disconnect relative to long-term fundamentals.
Vontier ended 2025 with nearly $500 million in cash and a net leverage ratio of 2.3x, down from 2.6x at the start of the year, the CFO said. Regarding an upcoming $500 million bond maturity, Aga said the company intends to repay $200 million with cash on hand and plans to enter a $300 million, 364-day term loan agreement for the remainder, which he said would minimize the interest headwind and provide flexibility for future maturities.
Morelli also said the company is continuing a simplification effort aimed at making the organization “easier to do business with” and improving efficiency. Aga said the next phase is expected to deliver $15 million of incremental in-year cost savings in 2026, with most actions implemented in the first quarter and savings ramping into the second half. He also said the savings reflect both simplification and “improved efficiency and velocity of product development with adoption of AI tools.”
2026 guidance and near-term phasing
For 2026, Vontier guided to sales of $3.1 billion to $3.15 billion, which management said implies about 3% core growth at the midpoint. Aga said the outlook assumes low- to mid-single-digit growth for EFS, mid-single-digit growth for Mobility Technologies, and flattish growth for Repair Solutions.
The company expects adjusted operating margins to expand 80 basis points at the midpoint, according to Aga, and guided to adjusted EPS of $3.30 to $3.35, which he said represents high single-digit growth year-over-year. The EPS outlook assumes less than $50 million of share repurchases in 2026 and excludes additional capital deployment benefits, he added. Adjusted free cash flow conversion is expected to be about 95%, which Aga said would again equate to roughly 15% of sales.
For the first quarter, Vontier guided to sales of $730 million to $740 million and about 1% core growth at the midpoint. Aga said margins are expected to be “relatively flat to start the year,” citing year-over-year timing differences in R&D and other operating expenses and less favorable mix, with EPS of $0.78 to $0.81 in line with normal seasonality. Management said first-half sales should be just over 48% of the full year and first-half EPS near 47%, consistent with historical patterns, and noted organic growth rates are expected to look better in the second half due to comparisons and the timing of project shipments and backlog that favor the third and fourth quarters.
In the Q&A, management said it expects Q1 core growth to be low single digits in EFS, flattish in Mobility Technologies due to a strong comparison, and relatively flat in Repair Solutions. Aga also said price-cost dynamics are expected to be steady through the year, and that the company anticipates an average price increase of about 1.3% in 2026.
About Vontier (NYSE:VNT)
Vontier is a global industrial technology company focused on advancing mobility infrastructure and transportation solutions. Established as a standalone public company in October 2020 through the spin-off of Fortive’s mobility and transportation platforms, Vontier is headquartered in Raleigh, North Carolina. The company’s mission centers on delivering innovative products and services that help customers meet evolving demands in fuel retail, fleet management, and automotive service.
The company’s diversified portfolio spans several well-known brands.
