- Price
- $33.30
- Fair value
- $48.00
- Discount
- 30.6%
- Uncertainty
- Medium
- LSEG rating
- 2.27
- Moat
- Narrow
- Next earnings
- 2026-11-05
- Next earnings is estimate
- Yes
- Company name
- Vontier
- Sector
- Industrial technology
- About
- Vontier makes equipment and software for gas stations, convenience stores and vehicle repair. Fortive spun it off in 2020. It reports three segments. Environmental & Fueling Solutions, mainly Gilbarco, makes fuel dispensers, tank monitoring systems and spare parts, and it gave $366 million of the $757 million of sales in Q2 2026. Mobility Technologies sells point-of-sale and payment systems for convenience stores, software for electric vehicle charging networks and other workflow software. Repair Solutions, mainly Matco Tools, sells tools, toolboxes and diagnostic equipment to mechanics through mobile franchisees, and it lends money to mechanics and franchisees for these purchases. Vontier expects 2026 sales of $3.0 billion to $3.05 billion. It uses most of its free cash flow for share buybacks.
- Thesis
- The market prices Vontier as a slow-growth company tied to gasoline and to the spending of car mechanics. Fuel dispensers and related parts give almost half of its sales, and investors fear that electric vehicles will reduce demand for fueling equipment over time. The other two segments were weak in 2026. In Q2 2026, Mobility Technologies sales fell 6.2% and Repair Solutions sales fell 1.3%, because mechanics spent less on tools. Total core sales fell 0.2%. For the gap to close, Vontier must show that it can grow again. Core sales must grow about 5% in Q3 2026 and about 3% for the full year, as guided. Adjusted free cash flow conversion must reach about 95% of adjusted net earnings in 2026. Repair Solutions sales must stop falling, and fueling demand must stay strong. The first test is the Q3 2026 report, expected in early November 2026. The 2027 guidance in February 2027 is the second test. Vontier must also refinance or repay a $300 million term loan due on March 30, 2027. The fear of the electric vehicle shift can go away only slowly, so the gap will probably close over two to three years of steady growth and buybacks.
- Risks
- Fueling equipment gives almost half of Vontier's sales. If electric vehicles replace gasoline cars faster than expected, or if fuel retailers delay new equipment, sales and profit in this segment fall.
Matco Tools depends on mechanics who buy tools on credit. In 2026, mechanics spent less on tools, and Vontier added a bad debt reserve in Q1 2026. A weaker economy can raise credit losses on these loans.
Mobility Technologies sales fell 6.2% in Q2 2026 because of lower shipments of vehicle identification products. If its software and payment products do not grow, the segment stays a drag.
Vontier buys back shares with cash and debt. Net debt was 2.3 times adjusted EBITDA at July 3, 2026, and $300 million of debt is due on March 30, 2027. Tariffs and higher interest rates can also raise costs.
- Balance sheet
- Cash: $266M
Debt: $1.9B
Net debt: $1.6B
EBITDA, last 12 months: $714M
Net debt / EBITDA: 2.3× (medium)
Interest cover: 9.3×
Undrawn credit line: $750M
Debt due within 12 months: $305M
Last debt due: 2031
Vontier funds itself with unsecured notes and bank term loans. Its subsidiaries Gilbarco and Matco Tools guarantee them. At July 3, 2026, debt was $500 million of 2.400% notes due April 2028, $600 million of 2.950% notes due April 2031, $500 million of term loans due February 2028 and a $300 million term loan due March 30, 2027. The term loans have floating rates of about 4.6% to 4.8%. On April 1, 2026, Vontier repaid $500 million of notes with the new 364-day term loan and cash. EBITDA is adjusted EBITDA for the 12 months to July 3, 2026, and the company states net leverage of 2.3 times. Interest cover is operating profit divided by net interest expense for the first half of 2026. The $750 million revolving credit facility, due in 2030, had nothing drawn at July 3, 2026. Vontier also holds about $280 million of long-term financing receivables, mostly loans to mechanics and Matco franchisees. Buybacks used $200 million of cash in the first half of 2026, and $904.5 million of authorization was left.
As of 2026-07-03.
- Checkpoints
- Nov 5, 2026 (estimate): Q3 2026 results: return to core growth. Pending. Watch: Core sales growth near the guided 5% with stable Repair Solutions sales passes; core sales growth below 3% or a cut to 2026 guidance fails.
Feb 2027 (estimate): Q4 2026 results and 2027 guidance. Pending. Watch: 2027 guidance with core sales growth and higher adjusted EPS passes; guidance with falling core sales fails.
Mar 30, 2027: $300 million term loan due. Pending. Watch: Repayment or refinancing with net leverage near 2.3 times passes; a rise in leverage above 3 times fails.
- Recent events
- 2026-10-02: Kathryn Rowen, Executive Vice President and Chief Transformation and Operations Officer, told Vontier that she will leave on October 16, 2026, for another job.
2026-08-06: Vontier reported Q2 2026 results. Sales fell 2.2% to $756.7 million, and core sales fell 0.2%. Adjusted EPS was $0.89. Fueling core sales grew 4.6%, Mobility Technologies core sales fell 4.9%, and Repair Solutions sales fell 1.3%. Vontier raised its 2026 adjusted EPS guidance to $3.45 to $3.55 and guided Q3 core sales growth of about 5%.
2026-06-30: Vontier sold a majority of Teletrac Navman, its fleet software business. It received $85 million in cash, seller notes and a minority stake, and it recorded a preliminary loss of $86.2 million.
2026-05-19: The board raised the share buyback authorization to $1.0 billion. In the first half of 2026, Vontier bought back 6.2 million shares for $200 million.
2026-05-07: Vontier reported Q1 2026 results. Sales grew 1.3% to $750.6 million, and adjusted EPS was $0.80. Repair Solutions margin fell 180 basis points, partly because of a reserve for bad debt. Vontier also agreed to sell a majority of Teletrac Navman at a value of $220 million.
2026-04-01: Vontier repaid $500 million of notes that were due. It used $300 million from a new 364-day term loan and $200 million of cash.