Fortive Corp (FTV) CEO James Lico on Q2 2022 Results - Earnings Call Transcript

Fortive Corp (NYSE:FTV) Q2 2022 Earnings Conference Call July 28, 2022 12:00 PM ET

Company Participants

Elena Rosman - VP, IR

James Lico - President, CEO & Director

Charles McLaughlin - SVP & CFO

Conference Call Participants

Julian Mitchell - Barclays Bank

Andrew Obin - Bank of America Merrill Lynch

Charles Tusa - JPMorgan Chase & Co.

Nigel Coe - Wolfe Research

Scott Davis - Melius Research

Deane Dray - RBC Capital Markets

Amit Daryanani - Evercore ISI

Andrew Kaplowitz - Citigroup

John Walsh - Crédit Suisse

Jeffrey Sprague - Vertical Research Partners

Joseph Giordano - Cowen and Company

Operator

My name is Rob, and I will be your conference facilitator this afternoon. At this time, I would like to welcome everyone to Fortive Corporation's Second Quarter 2022 Earnings Results Conference Call. [Operator Instructions]. I would now like to turn the call over to Ms. Elena Rosman, Vice President of Investor Relations. Ms. Rosman, you may begin your conference.

Elena Rosman

Thank you, Rob, and thank you, everyone, for joining us on today's earnings call. With us today are Jim Lico, our President and Chief Executive Officer; and Chuck McLaughlin, our Senior Vice President and Chief Financial Officer. We present certain non-GAAP financial measures on today's call. Information required by Regulation G are available on the Investors section of our website at fortive.com. Our statements on period-to-period increases or decreases refer to year-over-year comparisons on a continuing operations basis.

During the call, we will make forward-looking statements, including statements regarding events or developments that we expect or anticipate will or may occur in the future. These forward-looking statements are subject to a number of risks, and actual results might differ materially from any forward-looking statements that we make today. Information regarding these factors is available in our SEC filings, including our annual report on Form 10-K for the year ended December 31, 2021. These forward-looking statements speak only as of the date that they are made, and we do not assume any obligation to update. With that, I'd like to turn the call over to Jim.

James Lico

Thanks, Elena. Hello, everyone, and thank you for joining us. I'll begin on Slide 3. We had an excellent second quarter with strong broad-based execution across the portfolio, contributing to revenue, margins and earnings all above the high end of our guidance, resulting in our raised outlook for the year. Despite the effects of COVID-related shutdowns in Shanghai, significant FX headwinds and ongoing supply chain constraints, our team was able to achieve 9% core revenue growth, 190 basis points adjusted operating margin expansion, 18% adjusted earnings per share growth and outstanding free cash flow generation in the second quarter.