Fortive Corporation has announced the completion of the separation of its precision technologies segment, through the 100% spin-off of Ralliant Corporation to its shareholders on June 28, 2025. In connection with the separation, Fortive shareholders received one share of common stock of Ralliant for every three shares of common stock of Fortive held at the close of business on June 16, 2025. Approximately 113 million shares of Ralliant common stock were distributed in the separation.
Concurrently with the separation, Olumide Soroye has assumed the role of President and Chief Executive Officer of Fortive Corporation, succeeding James Lico who has retired. Soroye has expressed confidence in the future of Fortive, citing the company's strong financial track record with robust free cash flow generation, approximately 50% recurring revenue, significant competitive advantages, and a strategic orientation toward attractive markets with strong secular tailwinds. However, he also noted that the company has experienced increased pressure on tariff-related pricing and customer demand, leading to headwinds for revenue and core revenue growth late in the second quarter. As a result, the second quarter revenue and core revenue are estimated to be flat to slightly down across the new Fortive, with the precision technologies segment (now Ralliant) declining mid-single digits as expected.
Despite these challenges, Soroye remains confident in the company's ability to deliver durable, profitable growth across dynamic market conditions and expressed strong conviction in the path ahead. He acknowledged the efforts of the teams at Fortive and Ralliant for their dedication, which enabled the completion of the spin-off ahead of schedule. Soroye emphasized the shared purpose of innovating essential technologies to keep the world safe and productive, expressing confidence in the new Fortive team to drive meaningful success for customers, employees, and shareholders in the next phase of the company's strategic evolution.
Sharmistha “Shar” Dubey, Chair of Fortive’s Board of Directors, expressed excitement about Soroye taking the reins of the new Fortive, highlighting his wealth of experience and expertise in executing profitable growth strategies across multiple industries. The Board extends its deepest gratitude to Jim for his visionary leadership and unwavering dedication over nearly a decade.
Fortive Corporation, headquartered in Everett, Washington, employs a team of more than 10,000 research and development, manufacturing, sales, distribution, service, and administrative team members in approximately 50 countries around the world.
The company's businesses design, develop, manufacture, and market products, software, and services, building on leading brand names, innovative technologies, and strong market positions. The core of the company’s operating model is the Fortive Business System, rooted in continuous improvement. The market has reacted to these announcements by moving the company's shares 0.53% to a price of $71.60. For more information, read the company's full 8-K submission here.
