Earnings call transcript Q2 2023

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Operator

Good morning, ladies and gentlemen, and welcome to the Vontier Second Quarter 2023 Earnings Call. At this time, all lines are in a listen-only mode.

Following the presentation, we will conduct a question-and-answer session. [Operator Instructions] This call is being recorded on Thursday, August 3, 2023, and the replay will be made available shortly after.

I would now like to turn the conference over to Ryan Edelman, Vontier's Vice President of Investor Relations. ahead. go Please

Ryan Edelman

President morning, Financial on Good second thank for Vice Morelli, you results. Anshooman Officer; Thank our Aga, call everyone this us Senior our Mark are the me and our Chief morning joining Executive With and Chief you. President today and and Officer. to quarter discuss

Relations website can both our today's our investors.vontier.com. we that presentation to find press during as our You will on call section Investor the slide at release as of refer well

Please statements the we expect financial we events note future. securities will present measures. We'll regarding during today's in that that call, meaning or federal certain anticipate also within the statements developments non-GAAP make of will including forward-looking or laws, or occur the may

statements them. Actual to not factors our from regarding forward-looking our statements make are materially differ is that website update uncertainties. available do on that today. cause materially forward-looking results in We might to Information forward-looking and any obligation risks SEC to these results statements and differ assume actual from these filings. may any we subject These

that I now last updated call hand Mark, everyone to want quarter, take line Before segmentation. a our remind to we over to are results discussing reporting moment our and I in the beginning with

our included information today's in is segmentation Additional presentation. regarding the appendix of

over Mark. the to With call that, turn like I'd to

Mark Morelli

morning, and us everyone, today's thanks Good Ryan. call. joining Thanks for on

on high-level some beginning with slide off things commentary kick me five. Let

of line X%. growth above strong profitability on strategy. baseline traction with We another continue mobility on We of accelerating strong performance growth QX in our to deliver top demonstrating and expectations commitments, quarter and our core our connected baseline delivered

contributed outlook us beyond. EMV continues growth the setting baseline in and EMV impact trough our All from reminder, XXXX XXXX, segments play as is in the up related to no sunset, upside. the core to for year-over-year out a is core excludes three There anticipated. which As for which change to growth the accelerating

energy growth at reported businesses. by First, Mobility our double-digit baseline low growth double-digit Technologies led alternative DRB and

& in capitalize our U.S. we adds our to rebuild to solid same-store franchisee And Matco segment, end refresh market continues a in by strong segment, Solutions and see very Environmental activity. continued growth Repair Second, on Fueling in dispenser driven sales expansion, and our this dynamics, significant business, delivering quarter. strong performance net

QX, strong chain execution. in of enabling convert on our building and to record levels our Supply of higher continued to top operational line conditions teams exceed backlog commitments, normalize our

our supported checks conversations channel in across by Recent remains markets portfolio. the and traction the backdrop customer across strong constructive, and secular accelerating demand end tailwinds gaining indicate that the growth we're

book-to-bill provides X.XX, we year. our line was were full comes in QX after what activity backlog Order levels, anticipating confidence a and in with the with solid along elevated Our healthy and for outlook indicators, leading performance.

reported profit sunset declined of versus Our prior the operating as year the EMV. to expected due

execution, as Now, power to share points incremental underlying excellence to restructuring actions. and I'm performance our well of our excited want on basis as Baseline VBS deliver about rigorous I businesses. margin demonstrates XXX why operating of expansion of the with operational you progress the

I remain optimizing our our the with in confident the half, accomplished you end and what as year. businesses. target our high through achieve on savings, first I'm on ability for We deliver of the pleased the million to we've the expansion range the the we this margin track committed we in-year which is multi-year of earlier to $XX year. our remainder at confident continue of path to in outlook of I'm am

vision strategic on we're focused laser to Importantly, executing growth. our on accelerate

ongoing capitalize portfolio, we're our our mobility performance secular seeing those out positioned ecosystem, uniquely of on we're strong to play breadth and the in and the tailwinds and depth the outlook. With within

the over couple you our will seeing next connected slides, we traction share we're mobility of with on strategy. strong As

are our majority a of set shared growth drivers. A experiencing end of markets

increasing size modernizations increasing of mobility industry and means drive these for which site expansions, investment ecosystem and example, Underpinning capital consolidation; in complexity, is regulatory greater our complexity increasing For a trends productivity the compliance, customers. and higher automation, car decarbonization. levels by park

to six. Turning slide

as You Day our from accelerating core, centered and leverage the call, core through excellence leveraging pillars: core, Investor gaining mobility and driving our expanding businesses our markets. operational our around through strategy adjacent quarter We first optimizing to and markets. may expanding connected recall refer our and earnings is the adjacent these three growth

better Retail this success, is both process is convenience our formal more that retail transparency, greater GVR long-term our meet needs. Invenco fueling and truly businesses businesses. milestone Starting focus Solutions positioning depth with the rebranding accelerated for than greater to business a expanding and announced accelerate operationally our by about recently our Invenco business last growth a of to acquisition This following strategically us rebranding. and year. core. to providing legacy for significant Re-segmenting gives both GVR, a the We in customers' of

side point-of-sale to fueling of the set software by new, to payment by software. and enables able retail our are innovative of In core unique of services platforms more analytics Invenco Invenco's and brings our the better focus platform ways Invenco GVR, customers same the together our time, GVR challenges solve cloud-based micro we're focusing the payment for on serve automation technology and At most on with by better that convenience facing. the this for case are them. creation outcomes us important in customers

and to enables combination The a system and best-in-class increase the convenience portfolio automation technology retailers customer creates of that engagement. productivity better drive operating next-generation

develop increased leveraging C-store more bring serve provider deploying hardware to better in software and scale with market connected the and and positioned we unified a and solutions. strategy We're product flexible platform preferred now modular a cohesive how operators technology platforms, to global as with delivering agility We solutions. are for

XX,XXX locations. announced quarter, the Shell innovative our solution we iNFX Last rollout of to

and in project doing power out The fantastic quarter. job our wins a this similar recent differentiated with a accelerating opportunities with of about set unmatched X,XXX-store for us awarded scope, laid the business. this operator to third team an with the The iNFX path pipeline C-store channel capabilities I'm and of we've and growth, is the fueling demonstrates large-scale excited that combined time automation Another growing begin presence. deployment

seven solution slide on improves simplifies and infrastructure. charging scaling and to for AI-driven operators management us leveraging their software our turn pillar the support enables Driivz and network fleet better experience. with charging business, there, our Let's EV combining providers to that in an interoperable charging We focus all, energy business adjacent Of provide our EV Sparkion markets EV growth. customer

of in dollars for unprecedented infrastructure charging level the bipartisan likely globe. EV Program U.S. In Infrastructure available parts the of across EV many funds established for strategically way the billions the You're incentive charging federal billion to credits and National aware $X of Funding interconnected tax the of create available an in Inflation fuels Act. states deploy infrastructure that to infrastructure alone, the This under by network Reduction through EV XXXX. addition alternative is

in of of their be EV continues European target Commission European infrastructure by for and charging billions Europe, reliability some EV investment to required governments. hundreds of the led ramp, and of continent. to will Investment estimates, By dollars reach In across investment the national expansion chargers Bank, the

of ports this year, manages value Driivz in our management yet on under the XXXX, XX,XXX ports its reinforcing compelling system. doubled than more Driivz proposition again currently is and track Having operating double to

new number customers deployment, Driivz management. additional recent signed will their During a the than add ports XX,XXX who quarter, rapidly. infrastructure X of these On scaling wins Tier are more under initial

of, is management ports a the quantity of charging one high-speed of managers platform standpoint, under if globally. Driivz the largest From not networks

and momentum growth that the recognition scale, leading Our is we have of current allows operating interoperability. rate system that

number point between operators. provides critical a amongst rapidly of charge Driivz global the connective and and growing tissue diverse

that continue more position more infrastructure enable with experience, charging simplistic, utilization and consumers and to As algorithms. the reliable rapidly, charging hardware-agnostic a in experience. a EV seamless and with including pole Driivz expand reliable self-healing charging accessible is demand solutions

In more our of addition future. are customers automation multi-energy This productivity sustainable our comprehensive leading investing benefits to a solutions. and portfolio in also solutions,

infrastructure and renewable we leading and in natural gas are compressed emerging alternative an business Our supplier market-leading of global hydrogen. a where energy markets growth natural is capabilities. solutions solutions attractive have gas These leader

continuing trucks and recently to three renewable with on grid to years. customers demand natural recently and buildout. who infrastructure with expand plans in completed over even over partner to for Management, build-outs CNG their now our early we're They're gas We solutions. with remain supply that announced R&D the We're and XXXth WM, next further in WM hydrogen U.S. gas. uses support sustainable network fuel incredibly seeing invest our their CNG to infrastructure committed the a proud and them network to own Our and Waste RNG. fleet landfill of their to the RNG has XX,XXX station fleet running

decades anticipated we're and gain the Broader buildout hydrogen unveiled billion, tons national expertise bail The production industry and tons zero to increase support which domain with fuels. a continues high today nearly investment Department of be the clean hubs. for from acceptance with XXXX and by through metric hydrogen hydrogen for June, by infrastructure use this hydrogen infrastructure and fueling million required channel of of to XXXX out million to strategy and aims near metric In roadmap, Energy to XX support to its momentum. XX clean to is this well $XX robust presence positioned pressure

over month first next key with lined our months. the to this We delivery several are shipping customers hydrogen take units up

I'd for on to year. Now, on our like and turn financial call update over color our results Anshooman to the full you more for the to provide outlook

Anshooman Aga

a I'll summary Mark, good quarter Thanks our with and everyone. second start performance. morning, of

the both eight. basis. the for slide to reported second under core and prior turn million, Reported Please X% on year quarter $XXX just revenue from was a down

quarter single of the are fueling X% X%, price. good our the to volume across we growth and business. by Approximately growth But in growth importantly, impact growth this was growth led digit was guidance exceeding EMV, getting XX% Mobility and Technologies attributable approximately high baseline second double-digit low in portfolio. of Excluding our

As baseline growth, Mark growth we've seen reflected mentioned, are on well the we healthy is strategic the our to accelerate half. initiatives in first in which executing

which conditions normalizing levels QX, continued to convert backlog of supply We in this from to again benefit higher us allowed quarter. chain

EMV Total points, margin driven headwind from was slightly profit and roughly which profit down than $X benefiting margin operating $XXX was range. basis expanded better million, performance price/cost was year-over-year, XXX Adjusted savings. guidance improved productivity XX.X%, adjusted sunset. the by our from operating the Baseline million expected

gain on ramping to and continued half. most actions our second into traction the with restructuring complete savings activities We

high-end per Adjusted disciplined the of working was conversion of $X.XX Adjusted quarter capital prior revenue. second XX%, of a flow versus free $XX share by with the our year, for management. above earnings million range, improvement the supported of guidance was significant result higher cash the the

with solid performance Core nine. Turning across Mobility XX%. of to baseline top the growth with the increased starting XX%, board. performance X% segments, slide approximately core on our over was Technologies line growth of three

Our DRB attractive increase reported on car leading double-digit sales, wash space. wash market low tunnel car in and a solutions business a solution capitalizing

Alternative Energy Sales which and compressed Solutions strong double-digit in remained comes renewable alternative for business over gas hydrogen were prior our like quarter, XX% up strong. year. natural Demand and after growth fuels in the this

an GVR, As optimistic earlier, we Mark EVolve, of position remain have about well, enviable and performed Invenco by multi-energy noted ahead adoption the connected from drivers the and all landscape Teletrac strong opportunities secular increased and benefiting us. across our solutions. of

million this profit expectations increased the Invenco notably with profit and points for Mix in and from quarter. from GVR acquired to Technologies, the synergies year, strategically driver the ongoing margins Mobility acquisition and the line are breakeven by but our Invenco Profitability profit QX business investments as XXX in and the year for in margin, to prior to in growth QX ramp we down the expected operating across behind basis later to invest with prior related of to in margin high digit primary translates single increased decline $XX operating most X% the approximately XX.X% Segment still Invenco continue EVolve. QX year. over

and car $XXX X% The wages, all levels. Turning storage, strong park of same-store complexity as remains first sales demand for we high of Top repair, age was the by mid for miles to line demand adds, as and robust XX. remain slide Repair the as single quarter. auto the increase well quarter. tool a of power net backdrop on employment, the Matco to digits million revenue growth technician tools, franchisee increased with Solutions and growth positive at across saw growth supported hardline continuation in a driven, solid

receivables Operating in previously with results, points, portfolio profit adjustments the year prior margin declined we communicated. primarily as of by to operating the line and $XX million related XXX profit year-over-year is reserve driven basis

the anticipate in year. bad to do slight benefit We tailwind to margin expense rate. QX, half. headwind Matco's in second flips will the the which largest adjustments this related to pre-pandemic normalizing is QX out us back Looking on a debt to levels. reserve This

Fueling Reported by & XX. EMV demand the our million on $XXX than offset XX% slide U.S. And about in aftermarket finally, strong and as dispenser impact more sunset. Environmental Solutions revenues the of declined businesses to was

the EMV, baseline growth X%. Excluding just core impact was from sales over

demand we large to be Strength national installed attributed As track operators fueling continues mentioned, investments to year-to-date base have sites. U.S. the can by of dispenser of modernize and to expand and the expectations. increased and C-store regional ahead

large results. growing share drive large high trend and this XXXX was and digits continuing into we we see players our base into beyond. good up single Given with to customer the leading to project parts our installed position as Aftermarket leverage and continued visibility pipeline,

was profit execution is price/cost. of Margin restructuring actions basis result our announced expanded million, operating previously the operating margin to points continued and Segment a XX.X%. XXX $XX profit and performance on

cover within range slide our flow the target paydown sheet free additional reducing XX. anticipate year. July, an to detail X.X net our we debt repaid total now high-end for in of quarter. QX, to million the range million debt, we year-to-date X.X Turning debt, We for full bringing paydown I'll and times. early X times, down balance prior $XXX the our $XX $XXX million the to $XXX leverage a of In cash of paid million. for about or achieving In to

for share an have a share price $XX just outstanding we count by our Since in of repurchase repurchase we quarter Additionally, in began during average XXXX, repurchases at million our $XX million the shares. $XX year-to-date million per X or share we completed program around of share. over share X% reduced

assumptions the XX. on to slide Turning outlook

in $X.XX the impact sales mid We to an a quarter of or single guidance EMV. core of excluding digits which assumes EPS are decline mid adjusted single of increase third initiating for $X.XX, digit plus

operating adjusted flat margins roughly XXX We and basis. on and expect to basis points between a sequential XXX decline

a to bit margins. provide Just on more color

were underpinned last margins items. by year quarter abnormally few Third strong, favorable a

may You allow there than and easier giving an Net-net, margin the recall lower were our normal in last to outsized fourth that quarter no comparison are planning year, for us also will seasonality second expansion assumptions margins for changes profitability. QX. half

EPS to increasing the year, end $X.XX low our guidance $X.XX to range from full the to are of previously. adjusted For we $X.XX $X.XX

headwind change earlier, noted related our the Mark is As to for sunset. to the there EMV no assumptions

other As are a half. which the appendix. a this headwind for planning reminder, year, the ramped sequentially slide into assumptions full second included as No material now in changes to the

With back that, the call over I Mark. will to turn

Mark Morelli

single Vontier revenue company sustained aligning profitability, free flow. Anshooman. and deliver a industry-leading double-digit cash in portfolio earnings motion, our is and growth Thanks mid digit transforming to significant growth,

mobility market-leading The unique mobility our on leveraging executing ecosystem. theme. with to our unique expertise these growth Vontier automation need to the ecosystem. robust tailwinds on for solutions mobility productivity is are We the and team secular across offer connected the deliver ability domain strategy, to underpinning drivers most and positions the benefiting differentiated capitalize this prominent through is drivers growth greater well-positioned

challenges. Technologies, out In Let segment. EV and me rapidly management and improve our wash, technology enabled to this We're We for to systems digitally spike high customers' asset connect cloud-based customers optimize assets. customers' our and seeking of by charging provide fleet adopting labor operating connected solutions leveraging differentiated C-stores, productivity. solve that the car our and are significantly are networks Mobility value

technicians future further the higher the vitality. model technology of to at X% content transition, complexity well-positioned and an next of the rate is Solutions, a increasing to secular labor greater to significant park In The single product driven shops size park at the to through and is is driving driving trends are Matco. the business garage need expected respond for and Agile makeup growth mid that and to the productivity least aging providing equip of CAGR energy to due digit need decade. its grow for carry. car segment Powertrain toolkits Repair the the Matco repair by opportunities through car these and shortages

Solutions, A This our expanded connected ensuring in its making the of constraints our to In it increasingly recently in level Environmental solution & address the while footprints highest early devices underground remote automated timed expand site in with improve U.S. increasing capabilities Fueling asset the great tank of example the most gauge certified California requires market, we're upgrade comply innings regulations, modern system California. labor managing efficiency. is received environmental this in and the With and is Board of complying with the to cycle standards recovery need Resource well of as system in Air business. vapor the compliance, it significant high connectivity certification,

Across robust ecosystem. automation, positioned productivity in our growth of all for need of and we're the mobility opportunities on pipeline capitalizing and for we increased future are the segments, across a with growing

As trilemma transition, broad progress energy. through need multi-decade sustainable, uniquely world; facing to with multi-energy we for address our positioned energy the and solutions portfolio the is the energy affordable the secure

We expansive enabling the capitalize mobility for portfolio including customers, safe, driving charging solutions solutions, industries smart, and the infrastructure and moves, we world employees is of landscape. comprehensive CNG Different suite will a petrol-based Through fueling clear fueling and on the capabilities, modes fueling, RNG Vontier's poised channel sustainable of range shareholders. leading to and energy way our are technological vision, systems, and changing solutions. for a presence our are of a require leader geographies solutions transportation, with environmental EV hydrogen global and technologies,

operator, line ready for open the that, With questions. to we're

Operator

you. Thank

begin We session. [Operator now the question-and-answer will Instructions]

Mitchell ahead. from Julian from Barclays. first question the your of Please line And comes go

Julian Mitchell

QX. Maybe business, the sales core around & Fueling down in That morning. Environmental the and question first X%, are X% Solutions. Thanks good just

next now customer any you're that this reverses of year Just the sort replacement of of from of rate on in in EFS. right When wondered you on next sales? about And organic business about of in seeing give if going help please? destocking exit initial could year sort of you the there's into sort cyclical fourth recovery year. on how all that of pace any rates, sort point, us thinking baseline think demand, sort quarter terms Any at help that

Mark Morelli

of some to morning. give we good is little but Look, Julian, it's how in out. playing a color early terms it guidance Yeah. for you seeing let we're into This and XXXX, see Mark. me get what

happening strong all, in first that sunsetting essentially And driver are a is that what's no So, that of we we there's is years. the that experienced -- whatsoever. change to EMV number secular of

doing doing do what these that checks, we're announced seeing But we driver not that our year go an is in conversations channel new in players many of our driving only with so, business. and next into that building but compare. our predominantly sell the refresh to customers in is that is that the year, folks we our into that, larger year-over-year And well this consolidation. and acquisitions see growth is products intact driver future. sites. They're of baseline what's And the have out very plans is They're underneath when the a we they're strong year. And certainly And rebuild. out this that industry for doing industry that

very on formats their interest to and that that capital. of have rebuilds. these growth. up, experience gone returns a have positioned well to outstanding access building Yes, folks getting and rates They're out great We're but lot refresh

there, I any know So, color you want to don't if add Anshooman.

Anshooman Aga

important are cycles This are from secular that this about C-store industry seeing Mark think has resilient industry in the and the drive forward. perspective talked that continuing past, through we I investments. help consolidation to are continued the been economic business a and very drivers,

about feel this we So business. good

Julian Mitchell

out segments then maybe third if look similarly That's call major us flattish the shorter that and QX comps points very then help Do of development. then sort all segment, margin? change through maybe thinking steep you it margins quarter you. an And the helpful. of as and of sequentially, sequentially easier it at fourth anything QX in like way in we're the looks that to margin have understand terms it eases sort you've kind Thank in they're to and with plus three just by XXX got QX quarter. with QX. margin we year-on-year term, into Maybe go moving Maybe in in the we decline of up see sequential

Anshooman Aga

Yeah, Julian.

thinking margins, three On But flattish QX because of year, QX, a year-on-year few from sequentially really or the QX, all -- then driven to relatively flat across last had segments, when items. take. And we for from we compare start into few give the ramp a benefited things. tough a QX margins by you

quarter drive volume, of QX and going to for that's our being seasonality good strongest us. the margins incrementals, One, higher

payment of talk benefits, example, on Second synergies, revenue the of in And savings, plus shipments. we've some have QX about the the wins into ramp perspective our Invenco restructuring most dispensers thing that quarter. the great going both finally, through of completed. from ramp then for which is the certification, There it's I the some a announced And cost is Invenco the also been fourth with synergies. which will when start actions

all that rate helps the margin fourth So, quarter. for of our

Julian Mitchell

That's Thank very you. helpful.

Mark Morelli

Thanks Julian.

Operator

your America. ahead. next of question from Thank Obin Bank And of Please from the Andrew go comes line you.

David Ridley-Lane

Sure.

Andrew Wondering included in this Obin. any on for your from Just David impact see if forward is did destocking? you guidance? is Ridley-Lane any -- And

Mark Morelli

if it's built underlying Mark. overall at some strong David, We've destocking I the our inventory think Good businesses this of issue we're quite Look, post-COVID some is is has growth been where business. not and sort certainly out. platform look a is of evident. Yeah. that in seen for through, businesses level, reading big morning. our the But you certainly seeing and pockets

of in our demand. continuing solid have, really indicative and product see the we're it's lineups market, we to positions our So, that I think

David Ridley-Lane

Got it.

levels distributors not about So, at currently? concerned you're you don't inventory --

Mark Morelli

businesses. is of There but the in the that, pockets have overriding have the think that we are sentiment basic strength I we smaller that

So, of business. a something our it's that's part not big

Anshooman Aga

destocking and unanticipated. there's our is the of importantly, revenues. some less be David, than where It's nothing there could just add, total that XX% to areas

we So, as is surprises. would our where part any out impacted business of no not by get a destocking. playing expected, material Everything

David Ridley-Lane

your quick three-year a change recent plus type a of growth just do growth over about wins horizon? at How of time trajectory Invenco? And follow-up. longer kind you term, How think these do kind

Mark Morelli

Yeah.

that what have build the by seeing we're I previously platform. an And momentum just with it's think that is and off we've we wins GVR growth Invenco recent I these outstanding think announced. just

Our Mobility businesses store consolidating, Technologies their where a to set as they're more systems is about deal industry whether and software of they're trying the to ongoing convenience serve ecosystem. operating get to operational is the leading assets, And the to talking and this operate with with you're productive. mobility that regulatory we're getting able outstanding they changes having productivity of need that be be traction

so, some rate, wins recent gives there. that And really other over the that longer we're operating or systems period single confidence Invenco car to then electric building a which for GVR systems it's that solid of time, growth clearly buildouts. accrues think growth also momentum those links digit seeing Vontier mid wash we by with us the and a overall. the significant space, very network charging And And whether in our in

Anshooman Aga

our also business software hardware also there. revenue these gives hardware which revenue, you sales think get visibility out you when plus into the so do initial are you devices, of really only model, not recurring us intelligent add -- long-term traction I'll the that the get and just because

David Ridley-Lane

very you Thank much. Perfect.

Operator

Nigel ahead. Research. And line comes go from your from question Please the of Wolfe you. Coe Thank next

Nigel Coe

morning, everyone. Good Hi.

Mark Morelli

morning, Nigel. Good

Nigel Coe

growth. DRB -- DRB morning, very double-digit Mark. remains strong,

I plus was think if I'm not last like XX, quarter mistaken.

we some how question that Just their your wash half my the of DRB? does look? called car in got weakness major is baked business. And competitor What second the out for third in

see curious second half how just this you developing? So,

Mark Morelli

Yeah.

So, still Nigel, this in business. we really growth solid see

into you're slowing that growth normalize their a manage what growth. they folks able that is the highlighting that be effectively. lot believe build We talking is And of that the think to but still been more high I we growth, consolidating it a the confidence tools high really continuing and is going being need rate. see in digit about kind they're reason and reason gives this see and space to the single to out we've us what is the why we industry of to are footprint,

to in the need They to to make the this the need exactly more the better be good They to the folks the that. hardware We of and don't environment, make and for and We consolidating be tools software capabilities accurately better know how productive. do experience, more business. don't provide We provide for software make they connected the the we that consumer price we're don't enable a And capabilities we the their We consumers. make attract hardware. productive to make where to that's brushes. out think industry and that seeing and market that's going, why intelligence to is growth rollers.

Nigel Coe

guide tracked more second doesn't $XX or the you my your It online year. that. like U.S. embeds build It like the million seasonal pretty was business the We normally much what of half reported, in you dispensers. I then the that less quarter. look with seems And this great. It on some follow-on see That's is think, headwind. in

-- sounds commentary bullish. yet pretty the but So

there. to Any just So, the help? trying square circle

Anshooman Aga

Yeah.

which we million, So, to change the prepared remarks, what there's is said EMV the in no $XXX that. the sunset,

So, dispensers refresh, our rebuilds, than putting or that expectations. aside, the U.S. business, which industry better to for underlying trending new is actually the that is site

the We and are growth seeing that in we're strong beginning at of year, business. the

to out. we a are industry, there's also good So, peak market large no to to trough building site But we the site said new a where national regional there share what million have that. in U.S. is rebuilds -- by refresh, players driven baseline $XXX business will the ramp dispenser that the with for be change EMV, and regional

Nigel Coe

leave basis contraction, Thanks. Okay. great. might margins and be of by points just -- on. unpack but segment it XQ, the for there I'll the it maybe just then XXX -- That's to it pass helpful And

Anshooman Aga

Yeah.

I think plus the are points, this or XX margins by QX quarter give best the minus, way third flat, of take, relatively to year. or think basis about segment for

that segment that items helpful compares sequentially Last made be by So more thinking to model but flattish. start of had few really difficult, QX from sequentially will QX a little out. and year, we margin a to

Nigel Coe

Okay. Thank you.

Operator

Instructions] [Operator you. Thank

your And Please [ph] comes ahead. Citi. Sahil of question line from from Maneka next go the

Unidentified Analyst

Hi. Good Andy morning. This is on Sahil morning. Kaplowitz. for Good

Mark Morelli

Sahil. morning, Good

Anshooman Aga

Hi, Sahil.

Unidentified Analyst

Hi.

iNFX revenue goal? Just is the XX% XX% three pace question. as achieving ahead called XX% targeting wins key Would previous We're in by a out near-term of EV yourselves currently, you a years, in XXXX. to next follow-on the you and characterize charging. in recurring in Vontier

Mark Morelli

Yeah.

no question of all think talk recurring the building solution, the software, is, is also charge and hardware and cloud-based are for predominantly momentum that by four, electric sale. software. did buildout is provide multi-year I is we offerings. revenue the operating five-year networks, SaaS theme some about small That is this there contracts, a GVR component, a that's These portion iNFX only but connected contracts, that system that Invenco Not here. SaaS relatively of but a

of business I So, really building on many our parts revenue can think recurring you see that theme.

Unidentified Analyst

$XX could this of ANGI the in by Awesome. long-term? nascent hydrogen XXXX, shipping have And first a follow-on in the States the driver infrastructure big the hydrogen sense do units hydrogen your how United given billion And Great be you is, for color. and hydrogen projected business my a spend you're month. related

Mark Morelli

dispensing Yeah. given It's us and that. concerns It's regulatory experts the Predominantly and LNG, requires to safety concerns stone that. for in stepping because do reliability we're a around great pressure. high RNG difficult

ANGI our natural it's stone us, for business. for very So, stepping a

that. As growth benefit we of end a see, we lined very to just business able and entire It's approaching that that it's ANGI very of high business can for be from not the this at at the pipeline really million is solution $XX about off to rate. year And hydrogen. hydrogen, you strong growth can dispensing, see build and turnkey platform excellent now experiencing are the with folks up an is

So, we definitely a off see business ANGI that driver growth base. building as the

Unidentified Analyst

Thank you.

Operator

Morelli, no Thank proceed. this at Mr. there are further you. Please questions time.

Mark Morelli

you, Yeah. [ph]. Thank Yenna

of employees, of that I benefits I financial I'm to that proud And performance. teams performance just thank top-tier Before think dedication all the deliver wanted teams we not only across enable the but stakeholders. close, us incredibly Vontier. all to our really our and

call, and of soon. today's forward on we us day. Have to you a joining up look great for you thank catching with So, many

Operator

today. that does conference Thank you. for all Thank and conclude participating. our you gentlemen, Ladies for

disconnect. You all may

Vontier (VNT) 3 Aug 232023 Q2 Earnings call transcript