Fortive Corporation (FTV): History, Ownership, Mission, How It Works & Makes Money

Ever wondered about the story behind Fortive Corporation (FTV), a key player in the industrial technology sector? With a strong presence in connected workflow solutions, professional and engineered products, software, and services, how exactly does this conglomerate, boasting a $6.23 billion revenue in 2024, operate and generate its income? Keep reading to uncover the history, ownership structure, mission, and business model that drive this influential company.

Fortive Corporation (FTV) History

Fortive Corporation Founding Timeline

Year established

The company was established on July 1, 2016, as a result of a spin-off from Danaher Corporation.

Original location

The company is headquartered in Everett, Washington.

Founding team members

While specific names of the 'founding team' in the traditional sense aren't highlighted due to the spin-off nature, key leaders at the time of the separation from Danaher included:

• James A. Lico, who served as President and Chief Executive Officer.
• Daniel L. Comas, who served as Executive Vice President and Chief Financial Officer.

Initial capital/funding

As a spin-off, the company didn't receive traditional 'funding.' Instead, it was capitalized through the assets and businesses transferred from Danaher Corporation. At the time of separation, the company started with approximately $6.2 billion in annual revenues.

Fortive Corporation Evolution Milestones

Fortive Corporation Transformative Moments

• Strategic Spin-Off from Danaher: The decision by Danaher to spin off its industrial technologies and professional instrumentation businesses as the company marked a pivotal moment, allowing the new entity to focus on its specific markets and growth opportunities.
• Focus on Acquisitions: The company has actively pursued acquisitions to expand its portfolio and enter new markets. Key acquisitions like Landauer and ASP have significantly shaped the company's business segments and market position.
• Portfolio Optimization: The company has continuously optimized its portfolio through strategic acquisitions and divestitures, focusing on high-growth, high-margin businesses.

To learn more about the investors, here is more information: Exploring Fortive Corporation (FTV) Investor Profile: Who’s Buying and Why?

Fortive Corporation (FTV) Ownership Structure

Fortive Corporation operates as a publicly traded company, meaning its ownership is distributed among shareholders, including institutional investors, individual investors, and company insiders. This structure allows for diverse ownership and investment in the company's growth and strategic direction.

Fortive Corporation's Current Status

Fortive Corporation is a publicly traded company, listed on the New York Stock Exchange (NYSE) under the ticker symbol FTV. As a public entity, it is subject to regulatory oversight and reporting requirements, ensuring transparency in its financial operations and governance.

Fortive Corporation's Ownership Breakdown

As a publicly traded company, Fortive's shares are held by a mix of institutional investors, mutual funds, and individual shareholders. The percentages can fluctuate based on trading activity.

Fortive Corporation's Leadership

Fortive's leadership team guides the company's strategic initiatives and operational execution. Key figures include:

• James A. Lico: President and Chief Executive Officer
• Daniel K. Comas: Senior Vice President and Chief Financial Officer

These individuals, along with other executive leaders, are responsible for the overall performance and direction of Fortive Corporation. You might be also interested in Mission Statement, Vision, & Core Values of Fortive Corporation (FTV).

Fortive Corporation (FTV) Mission and Values

Fortive aims to create essential technology for a safer, cleaner, and more efficient world, guided by a strong set of core values that emphasize customer focus, continuous improvement, and a commitment to integrity.

Fortive Corporation's Core Purpose

Official mission statement

Fortive's mission statement is: 'We are essential technology partners for our customers, solving their most difficult challenges in ways that create long-term value.'

• Providing essential technology solutions.
• Solving complex customer challenges.
• Creating sustainable, long-term value.

Vision statement

Fortive's vision is to 'Create essential technology for a safer, cleaner, and more efficient world.'

• Focusing on technologies that enhance safety.
• Promoting environmental cleanliness through technological advancements.
• Driving efficiency across various industries.

Company slogan/tagline

Fortive's tagline is 'Essential Technology. Stronger World.'

• Highlights the importance of their technological contributions.
• Emphasizes the positive global impact of their solutions.

For more in-depth information, you can visit: Mission Statement, Vision, & Core Values of Fortive Corporation (FTV).

Fortive Corporation (FTV) How It Works

Fortive Corporation operates by designing, manufacturing, and marketing professional instrumentation, industrial technologies, and connected workflow solutions. It serves a variety of industries, striving to improve efficiency, safety, and sustainability for its customers.

Fortive Corporation's Product/Service Portfolio

Fortive Corporation's Operational Framework

Fortive's operational framework is built on the Fortive Business System (FBS), a structured approach to continuous improvement and operational excellence. FBS emphasizes:

• Customer Focus: Understanding customer needs and delivering solutions that address their specific challenges.
• Lean Principles: Streamlining processes to eliminate waste and improve efficiency.
• Data-Driven Decision Making: Using data and analytics to identify opportunities for improvement and track progress.
• Employee Empowerment: Engaging employees at all levels to drive innovation and solve problems.

The company allocates capital strategically, focusing on high-growth opportunities and acquisitions that complement its existing portfolio. Fortive also invests in research and development to stay ahead of technological advancements and meet evolving customer demands. You can explore more about the company's guiding principles here: Mission Statement, Vision, & Core Values of Fortive Corporation (FTV).

Fortive Corporation's Strategic Advantages

Fortive maintains several strategic advantages that enable it to compete effectively in its chosen markets:

• Diversified Portfolio: A broad range of products and services across multiple industries reduces reliance on any single market.
• Strong Brand Reputation: Well-established brands known for quality, reliability, and innovation.
• Global Reach: A worldwide presence allows Fortive to serve customers in diverse geographies and markets.
• Recurring Revenue: A significant portion of revenue comes from aftermarket services, software subscriptions, and consumables, providing stability and predictability.
• Disciplined Acquisition Strategy: A track record of successfully acquiring and integrating businesses that enhance its capabilities and market position.

These advantages, combined with the company's operational excellence initiatives, position Fortive for continued growth and value creation.

Fortive Corporation (FTV) How It Makes Money

Fortive Corporation primarily generates revenue by designing, manufacturing, and marketing professional instrumentation, industrial technologies, and related services.

Fortive Corporation's Revenue Breakdown

Fortive operates through three main segments: Intelligent Operating Solutions, Precision Technologies, and Advanced Healthcare Solutions. Each segment contributes uniquely to the company's overall revenue.

Fortive Corporation's Business Economics

Fortive's business economics are driven by its focus on high-growth markets, strategic acquisitions, and the Fortive Business System (FBS). Here are some key aspects:

• Pricing Strategies: Fortive employs value-based pricing, focusing on the unique benefits and solutions its products offer to customers. This approach supports healthy margins and revenue growth.
• Economic Fundamentals: The demand for Fortive's products is closely tied to economic activity in various sectors, including healthcare, manufacturing, and infrastructure. Investments in these sectors drive the need for Fortive's advanced technologies.
• Cost Structure: Fortive manages its cost structure through the FBS, which emphasizes continuous improvement and operational efficiency. This helps maintain profitability and competitiveness.

Fortive Corporation's Financial Performance

Fortive's financial performance is characterized by consistent revenue growth, strong profitability, and strategic capital allocation. Here are some key highlights:

• For the fiscal year 2024, Fortive reported revenue of $6.27 billion, reflecting a growth of 9.8% compared to the previous year.
• The company's adjusted operating profit margin stood at 23.3% in 2024, showcasing its ability to maintain profitability while investing in growth initiatives.
• Fortive's diluted net earnings per share were $2.68 in 2024, demonstrating strong bottom-line performance.
• The company strategically deploys capital through acquisitions and research and development to enhance its market position and drive future growth.

To gain further insights into Fortive's guiding principles, explore Mission Statement, Vision, & Core Values of Fortive Corporation (FTV).

Fortive Corporation (FTV) Market Position & Future Outlook