Fortive Announces Expansion of Share Repurchase Programs in Preparation for Ralliant Separation
Fortive Corporation (NYSE: FTV), a leading diversified industrial technology company, announced today significant updates to its share repurchase strategy. The company’s Board of Directors has approved an increase in the total number of shares authorized for repurchase under its ongoing general share repurchase program by approximately 15.63 million additional shares. This decision increases the total shares available for buyback to 20 million shares, including approximately 4.37 million shares still available from previous authorizations. Notably, the general share repurchase program carries no expiration date, allowing Fortive the flexibility to repurchase shares at its discretion as market conditions and corporate strategy dictate.
Alongside this increase in the general repurchase program, Fortive concurrently announced the establishment of a new special purpose share repurchase program in connection with the planned separation of its Precision Technologies segment, which will be spun off as Ralliant Corporation. This special program allows Fortive to repurchase up to $550 million of its common stock exclusively using cash proceeds derived from Ralliant. These proceeds come from an anticipated $1.15 billion pre-Separation cash dividend from Ralliant to Fortive, as well as any additional cash payments Fortive may receive from Ralliant related to the separation transaction.
This dual-pronged approach to share repurchases reflects Fortive’s strategic commitment to capital allocation discipline and shareholder value creation as it prepares for the forthcoming corporate separation, which is expected to occur on June 28, 2025.
Background on Fortive and Ralliant Separation
Fortive is a diversified industrial technology company with a broad portfolio of businesses spanning software, automation, sensing, and precision instruments. In line with its strategic focus on increasing shareholder value through simplification and portfolio optimization, Fortive announced last year the spin-off of its Precision Technologies segment, which will operate as Ralliant Corporation following separation.
The creation of two independent, focused public companies — Fortive and Ralliant — is intended to unlock greater operational agility and sharpen each company’s ability to pursue its distinct market opportunities. Fortive will maintain its emphasis on software, automation, and sensing technologies, while Ralliant will specialize in precision technologies and instrumentation.
The separation is a key milestone in Fortive’s multi-year strategy to enhance value by creating companies with clearer investment profiles, enabling investors to more precisely align capital with their areas of interest.
Details on the Share Repurchase Programs
General Share Repurchase Program
The general share repurchase program is a long-standing capital management tool that allows Fortive to repurchase shares on the open market or through other means, including Rule 10b5-1 trading plans. These trading plans permit prearranged purchases, providing flexibility while adhering to securities regulations. With no expiration date, the program can be activated or paused as market conditions evolve.
The Board’s recent approval to increase the authorization by 15.63 million shares replenishes the program’s capacity after significant repurchases were completed in the preceding period. Following this increase, approximately 20 million shares remain available for repurchase under the general program, reinforcing Fortive’s commitment to returning capital to shareholders in a disciplined and strategic manner.
Special Purpose Share Repurchase Program
In addition to the general program, the Board approved a separate share repurchase authorization tied specifically to the cash proceeds Fortive expects to receive from Ralliant as part of the separation. Under this special program, Fortive may repurchase up to $550 million of its common stock exclusively with the proceeds received from Ralliant’s pre-Separation cash dividend and any other related cash transfers.
This arrangement ensures that the capital received from Ralliant is effectively recycled back to Fortive’s shareholders, maintaining capital efficiency and optimizing Fortive’s balance sheet post-spin-off.
Leadership Commentary
James Lico, President and Chief Executive Officer of Fortive, shared his enthusiasm regarding the company’s dual-track share repurchase authorization and the impending separation of Ralliant:
I am excited for the opportunities ahead for Fortive and Ralliant as two focused, independent public companies with distinct and compelling investment profiles. We look forward to bringing our Fortive and Ralliant leadership teams together for the upcoming investor day conferences to share our respective vision for the future.”
Mr. Lico emphasized that the Board’s approval of this special purpose share repurchase program underscores its confidence in Fortive’s future trajectory and highlights a continued commitment to delivering sustained value to shareholders:
Since we announced the separation of the Precision Technologies segment last year, we have deployed approximately 75 percent of our free cash flow to share repurchases. We are pleased to replenish our repurchase authorization, demonstrating a commitment to disciplined, balanced and value-enhancing capital deployment following the spin-off of Ralliant on June 28, 2025.”
This strategic use of free cash flow to repurchase shares reflects Fortive’s disciplined approach to capital allocation, balancing reinvestment in the business with returns to shareholders.
Strategic Importance of Share Repurchases
Share repurchases are a widely used mechanism by publicly traded companies to return capital to shareholders and optimize capital structure. By reducing the number of outstanding shares, share repurchases can increase earnings per share (EPS), potentially support stock price appreciation, and signal management’s confidence in the company’s long-term prospects.
Fortive’s approach to share repurchases demonstrates a thoughtful balance between ongoing capital deployment under its general program and targeted repurchases linked to the separation proceeds from Ralliant. This approach is designed to ensure that shareholder interests remain central throughout the structural transition, providing stability and value as the companies embark on independent paths.
Flexibility and Regulatory Compliance
Under both repurchase programs, Fortive retains full discretion over the timing and amount of repurchases. The company may purchase shares through open market transactions, privately negotiated purchases, or trading plans that comply with Rule 10b5-1 under the Securities Exchange Act of 1934.
This flexibility allows to respond to changing market conditions, stock price levels, and other factors that affect capital allocation decisions. However, neither repurchase program obligates to acquire any specific number of shares, and the Board or management may suspend or discontinue repurchases at any time.
Upcoming Investor Events
As and Ralliant prepare to operate as independent entities, both companies are set to host investor day conferences and innovation showcases on June 10, 2025, at the New York Stock Exchange (NYSE). These events will provide a platform for management teams to present their respective strategies, operational priorities, and innovation roadmaps to investors, analysts, and the broader financial community.
- Ralliant’s Investor Day: Scheduled for 10 a.m. ET, this event will focus on Ralliant’s market position, growth initiatives, and product innovation in precision technologies.
- Fortive’s Investor Day: Following Ralliant’s presentation, will hold its own investor day conference, highlighting its strategy, market opportunities, and future outlook.
Both presentations will be webcast live and made available on the companies’ respective websites, www.fortive.com and www.ralliant.com, where investors can also access related materials prior to the events.
Fortive’s announcement of increased share repurchase authorizations, including a dedicated program linked to the Ralliant separation proceeds, marks a significant step in the company’s ongoing strategy to optimize capital deployment and enhance shareholder value. By maintaining flexibility and discipline in its repurchase activities, positions itself strongly as it transitions to a more focused industrial technology company post-spin-off.
The dual investor day conferences in June will be important opportunities for both and Ralliant to articulate their distinct futures and solidify their positions as attractive investment opportunities in their respective markets.
Shareholders and investors should continue to monitor announcements and participation in these upcoming events to stay informed of the company’s evolving strategy and performance in the lead-up to and following the spin-off of Ralliant Corporation.
