Vontier Corp Q2 FY2025 Earnings Call

Good morning, ladies and gentlemen, and welcome to the Vontier Second Quarter 2025 Earnings Call. This call is being recorded on Thursday, July 31, 2025, and a replay will be available shortly after. I would now like to turn the conference call over to Mr. Ryan Edelman, Vontier's Vice President of Investor Relations. Please go ahead.

Thank you. Good morning, everyone, and thank you for joining us on the call this morning to discuss our second quarter results. With me today are Mark Morelli, our President and Chief Executive Officer; and Anshooman Aga, our Senior Vice President and Chief Financial Officer. You can find both our press release as well as our slide presentation that we will refer to during today's call on the Investor Relations section of our website at investors.vontier.com. Please note that during today's call, we will present certain non-GAAP financial measures. We will also make forward-looking statements within the meaning of the federal securities laws, 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 risks and uncertainties. Actual results might differ materially from any forward-looking statements that we make today, and we do not assume any obligation to update them. Information regarding these factors that may cause actual results to differ materially from these forward-looking statements is available on our website and in our SEC filings. With that, please turn to Slide 3, and I'll turn the call over to Mark.

Thanks, Ryan, and good morning, everyone. Thank you for joining us on the call today. We delivered strong second quarter results with core sales, adjusted operating profit, and adjusted EPS exceeding our guidance, reflecting disciplined execution against a dynamic backdrop. Core sales growth of 11% was led by Mobility Technologies and Environmental and Fueling Solutions, which both grew over 15% in the quarter. Orders were up 8% organically, and our book-to-bill was approximately 1 in the quarter. We're encouraged by the market's acceptance of our new product introductions, validating the R&D investments we've made, strengthening our competitive advantage. The traction we are seeing demonstrates Vontier's unique position to capitalize on secular trends across our end markets. Our innovative solutions and deep domain expertise create a compelling value proposition for our customers, unlocking growth, improving productivity, and elevating their customer experience. This is a testament to our team who has been instrumental in focusing our business on process improvements and new product innovation. I couldn't be more thankful for their hard work and dedication. Adjusted operating profit increased 15% year-over-year with margin expansion of 80 basis points. This improvement reflects the benefits of ongoing simplification efforts and productivity gains driven by the Vontier Business System and what we call our focus and prioritization process, or our 80/20 initiatives. While tariff-related cost pressures are real, we were able to maintain positive price cost in the second quarter. We delivered another quarter of free cash flow conversion above seasonal norms. This enables us to maintain our dynamic capital allocation program with ongoing share repurchases at attractive levels and a bolt-on acquisition completed during the quarter. We continue to advance our strategic priorities with an intensifying focus on operational discipline and commercial excellence, critical in navigating the current macro environment. These efforts are underpinned by our 3 pillar value-creation framework, with Pillar 1 centered on self-help and Pillars 2 and 3 driving sustainable organic revenue growth. Under Pillar 1, optimizing our core, we delivered meaningful operational efficiencies in the first half, supported by our 80/20 process initiatives. At Fueling Solutions, we are driving further savings through product line simplification and lean manufacturing to countermeasure tariff-related cost headwinds. We've reduced labor costs by nearly 10% year-to-date at our Greensboro dispenser facility through increasing labor efficiency and reducing overtime. At the same time, we've identified incremental simplification opportunities, including actions to reduce the cost of quality by more than half over the next couple of years. We're also moving forward on a number of opportunities to optimize our regional footprint in various international markets, ensuring we are aligning our resources to the most profitable regions and product lines. We're advancing an agreement to divest our European Service business, which exemplifies this effort. At Invenco, we set up our global software factory last year, which reduced our overall engineering labor cost by 30%. Invenco is on track to double its engineering velocity this year while driving R&D efficiency through automation, the use of AI, and global scale. As it relates to tariffs, we've made significant progress on our mitigation initiatives year-to-date. From a supply chain standpoint, our primary focus is reducing our exposure to China with several major projects underway expected to complete in the second half. Within Repair Solutions, for example, we started the year with 20% exposure to China with the goal of reducing this to less than 10% by year-end. We implemented pricing actions mid-quarter, and we expect the benefits to ramp in Q3 and Q4 with price expected to offset about half of our updated tariff exposure. Innovation has been a cornerstone of our Pillar 2, expand the core initiatives and a key driver of above-market organic growth. Our disciplined investments in new product development are strategically aligned with powerful secular drivers, including digital transformation. This underpins our connected mobility strategy and positions us to capture evolving customer needs. The benefits are evident across our portfolio but are perhaps most visible at Mobility Technologies. As an example, the Invenco team has successfully accelerated adoption of the FlexPay 6 payment terminal, with over 50% of new dispensers leaving the factory with the FlexPay 6 unit. Our market-leading global dispenser base provides us with a sizable funnel of upgrade and replacement opportunities ahead. As we migrate customers to FlexPay 6, we enable flexible on-site commerce, which unlocks revenue growth potential for customers and enables recurring revenue for Vontier. We are actively expanding our recurring revenue base, a key strategic initiative for Vontier. Invenco's recurring revenue, which accounts for about 35% of the base, was up 17% year-over-year, as the installed base of iNFX continues to ramp and as the feature set continues to expand. We've nearly completed the initial deployment with Shell and continue to make good progress for Chevron, and recently surpassed 1 billion transactions on our iNFX payment servers. Invenco's solutions cater to executing fuel and in-store commerce, driving more consumer engagement through loyalty and media and ensuring assets, physical and digital, are available when a consumer is transacting. We are enabling all this with leading-edge technologies that are transforming and enhancing the way convenience retailers operate their businesses. Environmental and Fueling Solutions delivered broad-based growth across both above-ground dispensers and underground environmental sensing and monitoring. Our Environmental Solutions business continues to capitalize on multiyear replacement opportunities, particularly through automated tank gauge upgrades with an installed base of over 350,000 ATG units globally. Our new TLS-450PLUS connected ATG offers market-leading technology for advanced fuel management, enabling real-time monitoring, improved accuracy, and proactive maintenance that reduces downtime and lowers operating costs for our customers. Just this quarter, we were thrilled to be selected by one of the largest global convenience store operators in North America to upgrade their entire installed base of ATGs across 4,500 sites over the next 5 years. Alongside the equipment upgrade, this customer will adopt Veeder-Root's new cloud-based device management software. This application will collect data from on-site environmental devices across their network and produce outcomes that improve uptime and asset reliability as well as reduce maintenance costs. This integrated approach highlights our ability to cross-sell and deliver future-proof scalable solutions that unify forecourt and site management, helping our customers maximize operational efficiency and make smarter decisions across their entire network. It also highlights the meaningful progress we're making on our efforts to deliver fully integrated solutions and technologies by leveraging our relationships with some of the largest global convenience retail operators. Our commitment to new product development remains strong with R&D investments hovering around 6% of total sales. We're redeploying resources freed up by our Pillar 1 80/20 initiatives to create capacity for margin expansion and growth. This enables Pillar 2 successes, including a focus on connected hardware and smart software that enables higher recurring revenue streams across the portfolio. Given our strong first half results, we're raising our full year guide with adjusted EPS on track for high single-digit growth. While tariff headwinds and macro uncertainties are still expected to weigh on demand in the second half, particularly in Repair Solutions, key end markets such as convenience retail and fueling continue to show resilience. We are confident we're on the right path to delivering sustainable above-market growth. As we navigate through the remainder of the year, we'll remain agile and focused on controlling what we can, while delivering innovative solutions for our customers and driving value for our shareholders. With that, I'll turn the call over to Anshooman.

Thanks, Mark, and good morning, everyone. I'll start off with a summary of our consolidated results for Q2 on Slide 4. As Mark mentioned, we had a very strong second quarter with sales, adjusted operating profit margin, and EPS coming in at or above the high end of our guidance range. Sales of $774 million increased 11%, both on a reported and core basis. Recognizing, we had a favorable prior year comparison in Q2 on a 2-year stack basis, total Vontier core sales are up approximately 8%. Overall, roughly 70% of our portfolio outperformed in the quarter, reflecting the strong progress we are making in a resilient end market and the success of new product introductions. Relative to our guidance, we estimate sales outperformance benefited by approximately $15 million to $20 million related to favorable shipment timing given a planned factory maintenance outage and a successful ERP go-live, both in the first week of July. Adjusted operating profit margin improved 80 basis points year-over-year and adjusted EPS increased 25% to $0.79 above the high end of our guidance range. Adjusted free cash flow of $89 million increased significantly versus the prior year and reflects a seasonably strong 76% conversion to adjusted net income or approximately 12% of sales. Turning to our segment results, starting on Slide 5. Environmental and Fueling Solutions delivered core growth of nearly 16%, bringing first half growth to over 8%. Shipments of dispensers increased over 20% in the second quarter, with strong growth in both North America and the rest of the world. We are seeing strong demand tied to new build activity from large, national, and regional players, as well as healthy refresh and replacement activity. Environmental Solutions also showed strong momentum, growing in the high teens in the quarter, fueled by new product launches and higher shipments of submersible pumps related to last year's India tender win. Segment operating profit margin expanded another 50 basis points, driven by volume leverage, combined with strong self-help measures and disciplined cost management. On Slide 6, Mobility Technologies core sales grew 18% driven by solid performance at Invenco, up strong double digits in the quarter on higher shipments of payment technology and enterprise productivity solutions. DRB sales declined in the teens year-over-year, relatively consistent with what we were anticipating. While the industry is experiencing some minor project timing delays, car wash operators are bullish regarding the CapEx plans going forward. We still expect DRB to inflect positively later this year as new build and replacement activity continues and as we drive higher customer conversion to a Patheon software platform. Conversion rates for Patheon contributed to approximately a 2% increase in software revenue for DRB in the quarter. Mobility Tech's operating profit margin increased over 180 basis points versus the prior year on strong volume leverage and cost savings from Pillar 1 initiatives. On Slide 7, Repair Solutions sales were flat compared to the prior year as ongoing market pressures offset the gains expected from the annual Matco Expo. Sales strength post-expo confirm that we experienced elevated pre-buy activity. Sell-through of the truck was down mid-single digits in the first half, but exceeded sell-in, suggesting distributors were destocking. Tool storage and hard lines declined in the quarter, offset in part by strength in specialty, power tools, and branded merchandise. While higher ticket product categories remain under pressure, we continue to see solid demand for lower price point tools that improve technicians' productivity. We made clear progress in focusing our offerings on these categories with our new product vitality up nearly 50% year-over-year for the first half of 2025. Two notable examples of these lower price point offerings are the new folding clip lifter and the ready tool cart. These products were developed after extensive voice of the customer work and performed well through the expo and the remainder of the quarter. Segment operating profit declined $700,000 on flat revenue, reflecting mix headwinds, offset in part by Pillar 1 actions that drove cost savings in the quarter. Turning to the balance sheet and cash flow on Slide 8. Our net leverage ratio stepped down sequentially to 2.5x, highlighting the health of our balance sheet. We completed another $50 million in share buybacks in the quarter, bringing us to $105 million in the first half. Over the past 3-plus years, we have now completed over $730 million in share buybacks, representing 15% of our shares outstanding. Turning to our updated outlook assumptions for Q3 and the full year on Slide 9. For the third quarter, we project revenues in the range of $745 million to $755 million. At the midpoint, we expect core sales to be roughly flat. Adjusted EPS is expected in the range of $0.74 to $0.78, up mid-single digits. Both the top and bottom line reflect the impacts of the shipment timing dynamics I mentioned earlier. As Mark mentioned at the start of the call, we are raising our full year guidance. Operationally, our outlook for the second half is mostly unchanged. Our full year sales guidance range is now $3.02 billion to $3.07 billion, reflecting our strong operational performance and a tailwind from FX relative to our prior guide. Strength within our Fueling and Invenco business is more than offsetting our outlook for Repair Solutions. As we have communicated previously, Invenco's core growth will begin lapping more difficult comparisons, with this business having grown 25% on average over the past 4 quarters. As we look into next year, we still expect Invenco to achieve attractive mid- to high single-digit core growth supported by strong pipeline of opportunities for unified payment and enterprise productivity solutions. Operating margin expansion is expected to be in the range of 20 to 40 basis points, which incorporates lower drop-through on FX. We still expect to fully mitigate tariff headwinds within the year, with encouraging progress made in Q2. We now expect adjusted earnings per share of $3.15 at the midpoint, at the high end of our prior guide, equating to 9% growth year-over-year. You can find our other guidance assumptions on the right-hand side of the slide. Based on our first half performance and the recent passage of the Big Beautiful Bill, we are raising our free cash flow conversion target to approximately 100%. Our teams are well prepared to execute in any environment and the end markets we operate in have proven to be resilient over time. We have a solid runway of self-help opportunities through our Pillar 1 actions, and we are confident in our growth trajectory. Our balance sheet is in good shape. We're generating strong free cash flow and we're returning capital to our shareholders. With that, I'll pass the call back over to Mark for his closing comments.

Thanks, Anshooman. Vontier had great performance in the first half, delivering results that surpassed our guidance ranges and substantiated our strategic priorities. We have the right strategy. We're executing well, and our portfolio transformation is taking hold. I couldn't be more proud of our team's execution against an incredibly complex backdrop. Our focus on innovation is gaining traction, validating the differentiated value propositions we're bringing to market. While we are mindful of the macro environment, we have leading positions in traditionally resilient end markets, and our strategy is well aligned with the needs of the strongest operators in the industry. Our connected mobility strategy, deep domain expertise, and broad service network provide us with a clear competitive advantage to capitalize on secular trends across our Mobility ecosystem. We have a significant runway of self-help opportunities ahead with strong free cash flow and prudent capital allocation, all of which position Vontier well for the future. With that, operator, please open the line for questions.

And your first question comes from Julian Mitchell from Barclays.

I suppose, first off, I just wanted to try and understand as we think about sort of the revenue outlook into the second half. What’s dialed in for sort of Repair? And have you seen a sort of short-term stabilization in that business as it's been under pressure for a couple of years? And then sort of dialing into the fourth quarter sales, should we expect EFS to be sort of flattish year-on-year just because of the very tough comp?

Thank you, Julian. Looking at the second half for Repair Solutions, we anticipate a decline in the mid- to high single digits. While we are starting to observe some signs of stabilization, it is still early to determine a turnaround in that business. The lower-priced items that support technician productivity are performing well, but we continue to see declines in some of the higher-priced products. This is why we are projecting that segment to be down in the mid- to high single digits. On the other hand, 80% of our portfolio, which includes Environmental and Fueling and Mobility Technologies, is performing strongly. Both markets are demonstrating resilience, and the innovations we have invested in are yielding positive results, showing good traction. Mobility Technologies is expected to grow in the mid-single digits to high single digits this year, while EFS should see a mid-single-digit increase for the entire year. Overall, both of these businesses are performing slightly better than our previous forecast, and we are very proud of our team's innovative efforts and competitive strengths in the go-to-market approach.

That's helpful. And sort of on the margin front, I think when we look at it, you had a pretty good performance in terms of most of the businesses. It looks like Repair is sort of finding a floor perhaps now. Maybe help us understand kind of what's the scope for Repair margins to move up from here. They're quite a bit below where they were a couple of years ago. What do we need to get those moving higher? And do we expect the other 2 divisions to be sort of flattish half-on-half in the second half?

Starting with Repair Solutions, the margins have stabilized. In terms of what would drive those margins to increase, as the market improves and higher-priced items sell better, that will positively impact the mix. Over the past few years, we've faced challenges with bad debt, such as write-offs and delinquencies, which are stable but at the lower end of their typical range over a longer period. As consumer health improves and delinquency rates and write-offs decrease, this will also help margins over time. Therefore, there is potential for margin expansion in the midterm for Repair Solutions, given these two dynamics. Additionally, our ongoing Pillar 1 actions, including 80/20 initiatives and productivity enhancements, will significantly contribute to driving margin expansion for the business.

Julian, this is Mark. One other item is the backdrop on repair. We believe it remains a strong environment. Our Repair Solutions business is primarily influenced by consumers, particularly working-class Americans, who are currently navigating a somewhat unstable market. As a result, their purchasing habits are leaning towards more value-oriented products, especially in productivity, which we have a solid assortment of. What you mentioned is entirely accurate. I believe that business is currently stabilizing. However, the pattern we are observing suggests an upward trend, but it is too early to determine exactly when that will occur.

And then, Julian, just on the other 2 segments, we still expect Mobility Technologies margins for the full year to be up about 100 basis points. So a little bit sequential increase, and the margin quality in the back half for them. EFS margins will be up slightly year-on-year. So just that should give you some color for the other 2 segments on margins.

And your next question comes from Nigel Coe from Wolfe Research.

So I think Anshooman, you called out $15 million to $20 million of pull ahead in EFS. I think there was also a small pull ahead in MT as well, maybe I'm wrong there. But maybe size that. And just based on sort of full year outlook by segment. It seems like the second half, that flattish outlook, it seems like it's sort of bifurcated between low to mid-single-digit growth for EFS and MT and down mid- to high for Repair. I just want to make sure that's correct.

Yes. So we did benefit from the shipment timings of about $15 million to $20 million, that was a combined number between both EFS and Mobility Technologies. Mobility Technologies was probably $5 million to $7 million of that. The benefit was really because of the timing of our go-live ERP system at one location and a planned outage for maintenance at another factory where customers requested us to pull in some of the shipments because we were down the first week of July. While there can be some quarterly timing differences, we do have a pretty good 2% core growth for the year despite some of the headwinds we've had in Repair Solutions. Both EFS is growing about mid-single digits for this year, Mobility Technologies is growing mid-single digits plus to high single digits for the year. So really strong performance with those businesses. Our EPS is growing high single digits, with free cash flow conversion of about 100%, and a free cash flow yield of about 7.5%. So overall, pretty strong metrics or numbers for the year for us.

Agreed. Yes. I couldn't agree more. Invenco continues to grow very strong as you highlighted. Can you maybe just kind of help us size where that business would likely be in 2025 in terms of revenue base? How does the sort of the backlog stroke project funnel look for Invenco? And then just broadening out the conversation a little bit, the recurring revenue portions of Drives, Invenco portions of DRB, where does the recurring revenue base for Vontier stand today?

Yes. So overall, Invenco will be over $600 million this year, probably somewhere around $625 million, $630 million from a revenue perspective. As you mentioned, we've seen some exceptional growth at Invenco for the last 4 quarters, growth has been over 20%, averaging about 25% a quarter. So definitely going into some more difficult comps. But we still expect good annual growth. I think next year, we should see mid- to high single-digit growth in this business. So just really the innovation that we're driving in this business, bringing our microservices-based architecture digital solutions that help with both productivity, but also with consumer engagement, is really starting to read through. From an overall Mobility Technologies perspective, about 40% of our revenue is recurring. DRB is about 35%, sorry, DRB is about 60%, Invenco about 35%, and all of Drives is recurring in nature. So overall, we get to about 40% of Mobility Technologies. At a Vontier level, we're probably in the low 30s right now from a recurring revenue, and we include spare parts and stuff like that in our recurring revenue number.

Nigel, I'm going to add a couple of comments here as well. I mean, not only do we think there are some really good proof points that our investments are paying off for our Connected Mobility strategy, smart hardware, connected application software. We provided some really good proof point examples. Invenco continues to go forward with a ramping installed base and new customer pipeline that is developing. We talked about our environmental, our underground offerings. The other piece that also was mentioned was Patheon in the car wash space. So as we continue to post these proof points and grow scale here, our integrated solutions are also at higher margins, as you know, and that can also help us overall with Vontier margins. So I'm really pleased with what we're showing. Just as another proof point here, we've got over 1,200 software engineers now at Vontier. So the portfolio is substantially different than it was at the time of spin.

And your next question comes from Andrew Obin from Bank of America.

This is David Ridley-Lane on for Andrew. Any initial commentary from the field or conversations you're having with customers about the potential benefit part of the one Big Beautiful Bill was the accelerated depreciation that came back on. Is that a needle mover for some of your more sophisticated customers?

Yes. Go ahead, Anshooman, you want to answer that one?

Yes. So obviously, looking at the Big Beautiful Bill, the first benefit for us is around free cash flow where the R&D expense can now be expensed versus capitalized and depreciated over time. And that led to us raising our free cash flow guidance from about 90% to about 100% for the year from a conversion perspective. Now the benefits to some of our customers are going to be around the accelerated depreciation where both on the equipment they're buying, but also for production buildings, there's some accelerated depreciation available. It's a little early to say what that means in terms of speeding up decisions, and the benefit probably would be given the permit cycle and construction cycle, the benefit would probably be next year. But it's definitely good for our customers, especially the smaller operators, which are more cash-based and that don't have strong balance sheets. So it's definitely good for business. But I would expect some of the benefits to read through more next year because of the timing of getting some of these projects started.

Yes. One segment of customers that we're particularly paying attention to is around DRB because these tend to be smaller type customers where this kind of effect could read through. But just a little color on where we are on DRB. We definitely saw sales inflect higher in Q2, and we think that was really important because it was the first time in 5 quarters that we had higher sales. So we definitely see some very encouraging signs there in the marketplace. So anything else like what we're just talking about with certainly pile on and help that, we expect the build to be about flattish, but on the back of also launching and ramping our Patheon. We know there are good returns here. And so we're encouraged by what we're seeing for a return to growth in this business.

Got it. And I think we understand there's an underground tank replacement cycle, your underground business, I think scoring mid-teens this quarter. Again, sort of sustainability of that, you sort of have these conversations, you kind of see a pathway to kind of maintaining that growth for a while here?

Yes, that's a great point you're bringing up. I'm glad you brought it up. It was pretty early innings on the tank upgrade cycle. When you look at the installed base, and you look at the opportunities to do that, and we're also seeing international opportunities. We've also invested in our underground business or our environmental business, as we call it. We've come out with new products, including the 4-horsepower pump. So we think we've got some real innovations here that really enable folks to manage that asset base, and we talked a little bit about it in the call, but us launching some enhanced offerings on maintenance, asset management for that is definitely a plus. And keep in mind, this is really the first time someone in that industry can do an over-the-air update for security reasons and for improvements in the software. So we continue to advance that offering, and I think we're showing that it's really appreciated. And I think the backdrop on a real driver like the underground upgrade cycle is definitely going to be a tailwind for some time to come.

And just one quick numbers one. what was book-to-bill in the quarter?

Book-to-bill was just about 1. Orders grew about 8% year-on-year and book-to-bill was just about 1.

And your last question comes from Rob Mason from Baird.

Wanted to go back to the discussion we had on Invenco. Again, aware that you probably hit some tougher comps in the second half of this year. But it does sound like you're confident about some reacceleration as you move into '26, mid-high single-digit growth. And I'm aware you've got some pilots out for iNFX as well. Are you counting on some of these pilots to convert to drive that mid-single to high single digit, or how are you thinking about that?

Thank you for the question, Rob. The encouraging aspect is that we're observing significant adoption of this technology. However, the timing of some orders can be challenging to predict due to their large size. The positive news is that we're moving towards more recurring revenue. The uncertainty lies in when these orders will come in and when we will conclude the last delivery. This may result in some fluctuations from quarter to quarter, but when looking at the year-over-year performance, it's clear that we're gaining traction. The key focus is on how we can smooth this out over time as we achieve greater scale. It's evident that there are strong indicators for robust organic growth and excellent drop-through performance.

Rob, I'll also add, it's not just iNFX that's going to help drive some of this growth. Our new FlexPay 6 from a payment perspective is really making a lot of positive traction in the market. Once you start looking at unified payment, which is FlexPay 6 plus iNFX, also you're going to start seeing more offerings related to consumer engagement in there, which is going to help with some of the growth. So just a continuation of our strategy to bring digitalization and innovation to the space is going to help Invenco drive some of the growth next year.

It's encouraging to see a potential improvement with DRB. In the recent quarter, you finalized a smaller acquisition in that area. How is that affecting the financial outlook? I understand it’s relatively minor, but what is its strategic significance or contribution?

Yes. Let me talk about the strategic contribution here. So, if you think of our real value proposition in car wash is that we provide the brains for the car wash. It's the area that really drives productivity for the car wash operator, enabling them to scale a lot of their assets. It enables the larger car wash operators in particular to focus on how they attract more consumers to the site. We know from surveys and talking to customers that recurring revenue for them, which is on the subscription, is actually up for car wash right now, which is great, and our technologies really help enable that in customer pull. So this small acquisition is a bolt-on that really adds a smart controller. And when that works with their point-of-sale system, which we're the leading provider in, then you can provide more productivity and more insights into how they can manage their car wash and their car wash footprint better, which is exactly what the operators are looking to do. And so when you look at our Invenco acquisition, it was a pretty small acquisition, but it really ignited a lot of growth. We think we have some real potential here as we continue to build out this more tech-enabled way by which you drive productivity and enhance consumer engagement to the site.

And just from a numbers perspective, the 2024 revenue for the acquisition was about $7 million in revenue and $1 million in EBITDA. So relatively small and doesn't move the needle that much this year from a revenue perspective. But as Mark said, very strategic, allowing us to be the brains of the car wash, with lots of upside opportunity as we go forward.

Sure, sure. And just last question real quick, I may have missed this, juggling other calls here. But did you talk about the maybe the month-to-month trends that you were seeing in Matco? And I guess I'm thinking more on sell-out off the truck. I know Liberation Day was kind of a shock back in April, but I'm just curious how the progression went here through July.

Yes. Just when we look at sellout, the sellout was about down 5% for the first half. There have been some ebbs and flows during the first 6 months. Sell-in was lower than that. So actually, our channel partners, our distributors, lowered inventory on the truck. When we look at the month of July, the sellout of the truck is better than what the year-to-date trend was. And also, the good thing at the end of July, actually, inventory levels on the truck are now back to what they were last year at the end of July. So inventory levels will definitely come down. So hopefully, that bodes well for us and the industry. But again, a little early to call an inflection given just macro uncertainty and the health of the consumer.

Thank you. There are no further questions at this time. I will now turn the call back over to Mr. Mark Morelli. Please continue.

Yes. Thank you, everyone. Thanks for joining us on today's call. I'm encouraged by the progress we're making, and I'm really confident in our team's ability to navigate near-term uncertainty and advance our strategic initiatives. We're delivering differentiated solutions in attractive end markets, and we're committed to creating long-term value for our customers and returns for our shareholders. We appreciate your continued interest in Vontier, and I look forward to engaging many of you over the next several weeks and at our investor event in mid-October. Have a great day.

Ladies and gentlemen, this concludes today's conference call. Thank you very much for your participation. You may now disconnect. Have a great day.