Fortive Corporation (NYSE: FTV) has officially completed the strategic separation of its Precision Technologies segment, resulting in the spin-off of Ralliant Corporation (NYSE: RAL) on June 28, 2025. This pivotal corporate restructuring marks a significant milestone for Fortive, positioning both entities as independent, purpose-built companies with enhanced focus and growth potential.
Fortive shareholders received one share of Ralliant common stock for every three shares of Fortive held as of June 16, 2025, distributing approximately 113 million shares of Ralliant.
Fortive continues to trade under the ticker “FTV,” while Ralliant commenced trading under “RAL” on the New York Stock Exchange.
Olumide Soroye has been appointed President, CEO, and Director of Fortive, succeeding James Lico, who retired but remains a senior advisor through the end of 2025.
Fortive emerges from this separation with a robust financial profile, underpinned by a strong track record of free cash flow generation and approximately 50% recurring revenue. For fiscal year 2024, Fortive reported total revenues of $6.23 billion with a free cash flow margin of 22.57%, reflecting operational efficiency and cash generation strength. However, the company carries a relatively high debt-to-equity ratio of 2.72, indicating leveraged capital structure, while delivering a return on equity of 8.17%, signaling moderate profitability.
The separation aligns with Fortive’s strategic orientation toward markets with strong secular tailwinds, including intelligent operating solutions and advanced healthcare solutions. The company anticipates that this focused approach, combined with the Fortive Business System (FBS) and a disciplined capital allocation strategy, will accelerate profitable growth and enhance shareholder returns.
In recent earnings calls, Fortive management highlighted increased tariff-related pricing pressures and uncertainty in trade, healthcare, and government spending policies as headwinds impacting revenue growth. Specifically, second-quarter revenue and core revenue are expected to be flat to slightly down, with the former Precision Technologies segment (now Ralliant) experiencing a mid-single-digit decline. Despite these challenges, adjusted earnings per share (EPS) are projected near the midpoint of prior guidance, underscoring resilience in profitability.
Olumide Soroye’s appointment as CEO signals a new era for Fortive, emphasizing innovation, operational excellence, and shareholder value creation. Soroye stated, “New Fortive emerges with a strong financial track record, significant competitive advantages, and a strategic orientation toward attractive markets with strong secular tailwinds.” The leadership transition is part of a planned succession, with James Lico praised for his visionary leadership and foundational role in shaping Fortive’s culture and portfolio.
As an industrials sector company, Fortive operates in a capital-intensive environment sensitive to global economic cycles, tariffs, and government policies. The recent tariff impacts and economic uncertainties underscore the importance of supply chain resilience and cost management. Fortive’s focus on recurring revenue streams and operational efficiency positions it well to navigate these challenges.
Looking ahead, Fortive’s strategic focus on intelligent operating solutions and advanced healthcare markets, combined with disciplined capital allocation and the Fortive Business System, is expected to drive sustainable growth and shareholder value. The company remains confident in its ability to unlock significant value despite macroeconomic volatility.
Fortive’s successful separation from Ralliant marks a transformative step, enabling both companies to pursue tailored growth strategies. With strong financial metrics, a clear strategic focus, and experienced leadership, Fortive is well-positioned to capitalize on market opportunities and deliver long-term value to shareholders.
For further details, access the original 8-K filing here: Fortive 8-K Report.
Tags: FTV, Fortive Corporation, FY2025 Q2, Ralliant Separation, Tariff Impact, Industrial Sector Strategy