Vontier Corporation (VNT) Earnings Call Transcript & Summary

So we're very excited to have Vontier Corporation with us today. We've got Mark Morelli, who is the President and CEO; and then Anshooman Aga, who is the SVP and CFO.

So guys, as I kind of walk over here, I'll start with my first question. I think you guys have talked about Connected Mobility for a while now, and it does seem to be gaining additional traction, particularly in the year 2025. I think we've seen how Invenco seems to be helping to bridge your 2 segments, 2 larger segments in EFS and Mobility with innovations such as FlexPay 6. So could you talk a little bit more about the progress you've made? How the solutions you're offering going forward, different from what exists today?

Yes. Thank you for the question, Andy. Thank you for having us. Look, I think '25 was a good proof point year for the Connected Mobility strategy as you asked in your question. And the reason why is that, really, for the first time, you're seeing some of our innovation read through at scale. And a great proof point of that for us was our investor event, we had at the NACS show, NACS is National Association for Convenience Store Owners, which showed real concrete examples of how we're solving high-value problems with some of the products we're introducing. But this is -- it is a point of a departure for us, if you will, because when we spun, we had a bunch of decentralized operating companies. We spun with what we had. And we used to talk about our business the way we ran our business, which was in these very discrete siloed businesses that didn't necessarily have a lot of connected tissue between them. And if you look at the progress that we've made, we've really oriented our business into 3 verticals, Convenience Retail being the biggest, where overall, 70% of our businesses really rely on that. And then our Fleets and Fleet Depot and Operators, is about 10% and 20% is in Repair and Repair Solutions. So those are really centered around the Connected Mobility strategy. And more importantly, last year, we did a reorganization around these verticals so that we bring to market our solutions not in a siloed fashion, but also in an integrated fashion. And we're really excited about the setup for 2026 because not only is the strategy differentiating with our positions being #1 or #2 in the market for each one of our product offerings that we have, but the way to bring the Connected Mobility strategy forward through our new organization that is really centered around the customers in these 3 verticals really enables us to bring these integrated solutions forward. I think FlexPay 6 and iNFX is a great example, where we talked about Unified Payment where each of our technologies can work together to accrue to the same payment system architecture that makes it a lot easier for our customers to be able to manage their infrastructure and enable things like loyalty. So we're really excited about the progress we've made, and we're really excited about the setup we have for 2026.

That's helpful, Mark. And then on the EFS and Mobility side, as these connected solutions become a larger share of the mix. How are you thinking about pricing over the next couple of years? Are you seeing opportunities to expand value-based pricing as customers adopt more of these integrated solutions?

Yes. So we operate in competitive markets. They're also very disciplined markets, and we've been able to maintain price cost ahead of that curve. And as we bring these other solutions to the market, they really enhance productivity. They grow our addressable market opportunity at a healthy rate at really good margins.

Got it. And then maybe let's click on 80/20. Like you guys have talked about 80/20, I think since 2020. Maybe you don't get enough fanfare on it, but you've significantly reduced fuel dispensers from, I think, 32 to 14 and software platforms from 30 to 20, and you've talked about further room to go. So I understand that you're guiding to greater than 60% incremental margins for '26, which seems pretty good. But you've talked about sort of a normalized still 30% to 35% incrementals. So is that conservative? Does that not anticipate bigger productivity improvements? Can you talk about sort of where you are in the process?

Yes. We're very proud of the 80/20 journey we've gone through so far. 80/20 is a very important part of the Vontier Business System and Vontier Business System is how we do what we do. We've really incorporated the 80/20 thinking in multiple layers of how we go about doing our business, starting off with portfolio. We've made decisions around portfolio based on 80/20, for example, we, just this past year in 2025, got out of our European Services business and really followed the U.S. model where we're servicing our customers, where they're rolling trucks through partners, but we're selling the higher-margin spare parts. We also got out of oil and lube point-of-sale business. And we added Sergeant Sudz, which is part of the brains of the car wash where we now have the whole brains of the car wash. Also, when you go down to the SKU level, we've been rationalizing our portfolio from a SKU perspective, you gave the examples of going down from 32 dispensers to 14, reducing the number of software platforms and that has material benefits for the business. For example, we've already taken out 1 million square foot of real estate. It gives us leverage as we have more standardized components from a supply chain perspective, both from a pricing and from a cash flow perspective. So we're going to continue to see these benefits. Next year's margins are greater than 60%, as you said, very attractive. But continuous improvement is part of our culture. Lean is a journey we're on. And from a longer framework perspective, 30% to 35% incrementals are still valid. Obviously, we are never happy with our results. It's the constant drive to get through breakthrough performance. So we'll continue to try to do better, but 30% to 35% is the way to think about it longer term.

You've got to set a reasonable bar, Anshooman. So maybe just like you also -- you have simplification savings that you've talked about, $15 million, I think, that you're targeting for '26. And a lot of it comes from lower R&D spend as you've made improvements in the velocity of product development. I think you guys have talked about using AI to do that and maybe been one of the early adopters on AI. So maybe talk about what you're doing from an efficiency standpoint in that respect?

Yes. Let me start with this, and Anshooman can certainly jump in here, too, with some examples. But look, the AI journey for us really started, both in 2 camps. One is the productivity, which we'll elaborate on a little bit further, but also how do we help our customers do business better. And in both those camps, we really started with some pretty broad-reaching piloting experimentation going back a couple of years. And now what you really see is really deeply embedded into our industrial software, some capabilities around AI that are really being valued, but on the productivity front, you want to give some examples Anshooman?

Yes. So over 90% of our software engineers, and we have over 1,000 software engineers as a company. Over 90% of our software engineers are using AI in their day-to-day work. It comes to cogeneration of code where we've significantly increased the velocity of the R&D efforts. It also is coming through an automated testing. We're using AI for all our testing, and we've seen the cost of poor quality go down by 20% to 25%. So really -- when you look at what we're doing with higher velocity, we measure EPX, which is a series of sprints from R&D perspective. We've seen well into the double-digit increase in the velocity of our EPX or Sprints. And so you really -- in the beginning, you could speed up R&D efforts and bring products to market faster. And with our integrated offerings like Unified Payments, we've really seen traction. But at a certain stage, the incremental velocity starts converting into savings, which is what we're going to start seeing this year in our results. So we'll see R&D velocity continue to increase, costs go down and fall to the bottom line. But we're also using AI in other aspects of our business. For example, we're basically in the process of rolling out AI for internal IT help desk support. We conservatively expect 30% of all tickets will be handled by AI, taking out human intervention. We're using AI in terms of cybersecurity. So the benefits of AI are going to continue to compound for us as we continue to look at new ways to get more efficient, drive more productivity. And then as Mark said, also continue to embed it in our products to provide better outcomes for our customers.

That's helpful. And Anshooman, just to get it out of the way, your bookings were up low single digits, exiting Q4. You're guiding at 1% core growth, I think, from Q1 '26, which seems to line up with your bookings. But you're guiding to 3% organic revenue growth of 26%. So do you need to see a bigger pickup in any of your markets to get that higher growth? And could you talk about what you're seeing so far in Q1 with the understanding that you did just report it.

Sure. So when you really think of most of our products that we sell, book-to-ship cycle is not that long. But when you really step back and really understand our customers' cycle where they're buying these products for, these are longer-cycle projects. So some of our customers are actually planning out the 2028, 2029 CapEx plans right now because they're in the process of building out new stores, renovating existing stores, building out new car washes. These are longer cycle projects that we're selling into, just when they place the order to us to the time we ship it out is pretty short duration. We also had some wins in 2025, which -- both around payments and the vehicle identification system, which serves fleet customers that will add revenue in the back half of the year. And -- so we feel pretty good about it. January was actually a very solid month of bookings for us, just in line with our expectations. So we had a strong start to the year. And we're feeling relatively good around our guide for the year. We also were at the recent NACS event meeting with a lot of the leadership of our customers, and Mark can probably add some comments from there.

Yes, this was what they call a leadership forum. This is where C-suite officers from the convenience store operator space come and we have the opportunity to meet with some of the more blue-chip names in the space. And one of the questions that we always want to understand is what's their visibility on their growth plans, whether that would be new-to-industry sites. So they're building out new storefronts, whether they're scraping and rebuilding on that, what's the M&A activity for buying up sort of the mom-and-pops. As you know, the mom-and-pops are about 60% of the overall industry itself in North America. And the area that's difficult for us to show to investors is that we are relatively short cycle in our bookings, as Anshooman said, but the visibilities folks have in their planning cycle is pretty long term out. I mean they're building out their footprints for 2028 and 2029, in terms of the real estate that they buy, in terms of how you get permitting for sites. And this is pretty robust in terms of how they're thinking about growing their successful storefronts. And these folks are winning in the marketplace. So when you look at what's really driving our growth, it's not necessarily the total growth in the industry, but it's the growth in the segment of this industry that we're serving, which is the successful regional, national multi oil -- national oil companies that are building out the successful storefronts, and they have really good secular drivers behind them, and that creates a level of comfort for us in terms of what we're bringing to market and the anticipated adoption rates.

Also, I'll add, having had the opportunity to sit in with Mark on some of these meetings. It's really their pain points which we're serving through our integrated offerings that really came across, and that also gives us confidence that they'll continue to deploy solutions like Unified Payment.

And so guys, I wanted to ask you sort of a related question, right? Because you're -- if I look at Environmental and Fueling Solutions, you're guiding to low to mid-single-digit growth. But the last couple of years, you did 7 in '25 and 6 and '24, a [ 50%] growth. So maybe talk about what's contributed to the higher growth. I think you kind of answered that, Mark. It seems like Connected Mobility, Integrated Solution, all that good stuff. But why shouldn't I think that this is a multiyear cycle. It seems like...

Well, I think we do believe it is a multiyear cycle. I think the uptake on the Integrated Solutions that we're offering is clearly there. I think real evidence for folks is go back, look at what we broadcasted from our NACS investor event last fall and some of the real concrete examples, that's what we're talking about, is Unified Payment order at the pump a digital hub for remote monitoring for underground equipment, new innovations around the automatic tank gauge for the 450 plus new horsepower. I mean all of these innovations are providing real growth, 6% on EFS as we spoke about with overall mid-single-digit growth last year in dispensers and low teens growth for Environmental, which is the underground. And so I think we're really showing legs to it. I think we're offering responsible guidance. Some of these orders are large because now you're talking about large technology adoptions for folks. And these have been a little bit harder to exactly call the timing on some of those order uptakes. That's also a bit of a difference in the business model that we've had historically. We're not selling no replacement dispensers here, you're really doing larger technology infrastructure rollouts with people like we did with Shell and 13,000 sites, 8,000 sites with Chevron as an example, or Costco Canada, which was a large rollout of FlexPay 6 within iNFX. And so as we sort of predict the timing there, we've also had India tenders that were part of that growth last year, and those tenders, how they come to market, can also be a little bit uneven. So I think the backdrop is really strong on a year-over-year basis. And I think we feel really good that you're seeing real proof points on growth. We're at industry average or better for MI. And I think we have certainly opportunities to do better on that, but it certainly has to be responsible guidance that we're offering based on the timing that we see.

Right. So you're reserving for timing when you put it in low single digits as part of low to mid basically.

Right.

Yes. Okay. And then turning to DRB. The turnaround here seems to be pretty encouraging, first in Q3, with low single-digit growth and high single-digit growth in Q4. So to start with, talking about the 60% recurring revenue, particularly with continued Patheon adoption. You've just been at NACS as you said. So can you give us a flavor of what you heard about existing potential customers on that side and remind us where current penetration rates sit with that?

Yes. So we really have 4 streams of recurring revenue when you think about it. We have the software subscription. We have maintenance and support. We have aftermarket parts and we have payments. So even if the tunnel newbuilds is flat or like last year, it was down slightly, their installed base is growing. So as the installed base grows, you're going to continue to grow your software subscription, you're going to continue to grow your maintenance aftermarket parts and your payments revenue that you're generating. On top of that, you layer on Patheon. And Patheon, just as a reminder, is our cloud connected solution moving old technology from on-prem to the cloud, but also adding significant functionality which provides benefits of simplifying operations for our customers, but really adds revenue. We actually looked at over 150 sites, over 15 customers for those sites and benchmark that with our legacy solution. And our customers have seen an uptick of revenue north of 10% based on our new platform. And the penetration of Patheon is about 10% in the market right now of our installed base. So we have a long journey ahead of upgrading our installed base. And the good news is with the additional functionality comes additional fees for us, the recurring revenue on Patheon is higher. And as it drives more revenue for our customers. We get a small cut of the transaction, which drives higher payment revenue for us, already a win-win for both our customers and us. So we see a long opportunity of potential growth in the car wash market based on our market position and our technology and innovation.

Got it. And then Anshooman, just on the other 40% of DRB. I mean you just talked about ton of builds being relatively flat. There are some tailwinds out there. Rates are obviously a little bit lower, accelerated and depreciation under OBBBA. Are you seeing anything in the early stage project pipeline that would suggest that you begin to get better on the tunnel side? And how should we think about the those projects, converting into orders, I think there's typically a 12- to 18-month lag tied to customers dealing with permits and stuff.

Yes. We don't have any assumption on uptick based on the Big Beautiful Bill in our guidance. When you really think about at the interest rates and the lower tax rate or accelerated depreciation, is definitely helpful for a build-out of new tunnel car washes. But really when you think about the duration, our customers, it will take them roughly up to 4 months for site acquisitions, then you go to permitting and zoning which could take 8 months, then construction 4 months, and then basically the installation of the equipment on site. So it is a longer cycle. So by the time we get our orders, it's towards the tail end. So I would expect more of the benefit to be in 2027 based on the cycle of the build-out of carwash. But our customers that -- our good operators continue to build out carwashes, but also going back to the Patheon opportunity, there's the opportunity as they focus on running better car or existing car washes and improving the revenue yield on those car washes, we've proven with our Patheon solution that helps drive revenue for our customers. So we actually like where we are positioned in the car wash space.

That's helpful. And then just focusing on Invenco for a bit, even with tough comps in the first half of '26, you've reiterated the business should still grow in '26. So I think you've talked about significant recurring revenue after delivering these large equipments to -- significant equipment to large customers. So can you unpack that for us. And what gives you visibility toward growth? Do you see any other large rollouts like the original Shell and Chevron deals?

Yes. When you really think about the Invenco part part of our business in Mobility technology. There's growth coming from 2 aspects. The first aspect is Unified Payments. And just as a reminder, Unified Payments is the actual payment terminal it might pay outside, which it could be on the dispenser, but also moving more and more why do they have different payments on the car wash. Why do they have a different payment on the EV charger. And also why do they have different indoor payment terminals. So it's bringing together all the payment terminals. One, it reduces operating costs because it's not only the cost of spare parts, you have to keep getting because of regulation changes around the Payment Card Industry standards and changes to the internal systems, they have to keep getting recertification. If you have 4 different payment terminals, that's payment certifications times 4 for everything you do. But also when you have these different payment terminals, it's about consumer experience, how do you bring together one transaction for the consumer bring in loyalty, bring in media, all of that. And central to all of this is the iNFX solution that we talked about with Shell and Chevron being the early rollouts, but we've deployed Shell, Costco Canada, but the use case was slightly different, where for them, it was the speed of the transaction because they can increase the throughput at their pumps. So we continue to see great traction around our Unified Payments and that revenue is going to be significantly up this year, offsetting some of the difficult compares we had, which were mainly on a vehicle identification system also. And on the vehicle identification system, we had a pretty large rollout last year. Now it goes into recurring revenue, which is a little less, but we also have potential new opportunities out there, including one win we had last year in the Vehicle Identification System. So we still feel that there will be growth in Invenco. It won't be at teens or 20% that has been growing the last 6 quarters. It's probably more mid-single digit kind of growth this year of pretty strong compares for the last 2 years.

That's helpful. So I want to open it up to the audience in a minute. Let me just ask you one more question before I do. So we have been getting the software resiliency question quite a bit lately. So I just want to ask you upfront. You've talked about there being no option to buy GVR dispenser without your payment system, but could you elaborate on how you approach this software topic. What is the percentage of the software at Vontier and/or software that isn't tied to hardware? And are you concerned that AI could be a threat to any of your specific offerings?

Yes. Thank you for that question. So we can hopefully dispel any misconceptions here. So first of all, our software offerings are about 10% to 12% of our total revenue. And these -- the software that we do is not a generic enterprise software. It's not a thin SaaS layer. It's deeply embedded industrial software. With a very strong linkage to hardware. But most importantly, it really controls, automates and optimizes the physical layer. And this is very durable industrial software. Many times, we -- if you look at the Invenco acquisition, this was a hardware and software acquisition, was not just a thin enterprise layer. And one of the key reasons why we find this particularly so attractive and have found it attractive is that the regulatory drivers in our industry are really deep. And just to certify new payment kit offering, the software takes 3 levels of certification. It's very complicated for our customers to manage, we take on that complexity and manage that complexity and that certification, which is why it adds value to the industry. But it also means that it also is a collection point for data. It's a foundational layer that is really important to, one, aggregate the data there, but also add value through the software. And it's also a basis by which AI is a real tailwind for us because we can incorporate AI into that foundational layer to be able to provide that. Now it's also on open system architecture. So it can also enable AI from outside of what we might write to add value into that micro services architecture, but we'll also charge for the API. So it's a real win-win. So we sit on a ton of data for the industry. And we also manage that complexity in that application in this foundational layer. And hopefully, if there's any misconceptions out there, we'd love to get more questions around it, but I think it's very clear in our minds.

Helpful. Any questions from the audience? Anyone has a question? Well, you know I have more questions. So let's move over to repair. So you're seeing sellout improve in Q4. You talked about that. Could you touch on how you've been -- have you seen delinquencies trending in Q4 and as we move into '26. And with comps getting meaningfully easier, carpark age quite elevated, as you know. What do you need to see in the underlying trend indicators to getting confidence the business could actually grow rather than the roughly flat that you've guided to?

Yes. So delinquencies have stabilized? And how do we see the market and the market evolution and the evolution of our business. Let me just sort of double click on this just for a second. So the backdrop for repair is attractive is what you just said, Andy, I mean look at the age of the car park, that's the fleet of all vehicles on the road. And that's getting older. The new cost of the vehicle on average is 45,000, 55,000 for ICE -- excuse me, for EVs. And folks are buying less new cars. So they're buying more used cars, and that's 12.8 years is the average age and why is that relevant for repair? The sweet spot for repair is a vehicle anywhere from 5 to 7 years old to the end of life of that vehicle is the spot for the repair market. So as that fleet of vehicles on the road gets older, that repair market size grows. So that's one. The second is complexity of repair is up. Vehicles are more complicated to repair, hybrids are coming on the road. That's a great vehicle to repair. EVs actually, while they don't offer maintenance opportunities, they absolutely offer repair opportunities. And if you look at the cost of insurance for EVs, that's really being driven by the cost and complexity of repair is one of the fundamental things. And then ICE vehicles have more sensors on them. They're more complicated repair as well. And so that in conjunction with a shortage of repair technicians means that repair technicians in the United States are under more pressure than ever to be productive. The way that repair technicians and shops make money is they have a standard rate by which they do business, they charge that standard rate. If they're able to get that repair done more quickly, they can pocket the difference if it takes them longer, then they have to eat that cost. The area for Matco that is differentiating for us is we have market-leading vitality, which means that we're not trapped into a backward integration. We have a nimble supply chain base so we can bring the products to market more quickly, and we are bringing them in the fashion of better productivity for technicians. So the area that we got some uplift in Q4 was on the diagnostics. We have a great lineup of diagnostics that help reduce the complexity of repair. The issue is that we're -- we don't sell diagnostics completely through our distribution the way we'd like to. We're fairly thinly penetrated. And as we expand our competencies to be able to sell our offering, our lineup better, we'll get an uplift. You saw a little bit of that in Q4. Also, on what we call productivity carts where you can bring your tools right into the job site from your large installed toolbox you might have, you can bring those right into your repair site. They're really organized in a way to be more productive. We've got an uplift there. So we're really looking at more productive solutions. We don't see the K-shaped economy helping us here. Certainly, technicians are under pressure for the amount that they can spend. But what we are seeing is there is a great ability for them to spend money on things related to productivity, and that's what we see going forward. I don't think there'll be any dramatic change or improvement in the economy that might bolster the buying behavior there in a way. There is a possibility that income tax refunds that people might get. They might put to work. We're not putting that in our guidance, but that is a possible upside. But I think more importantly, it's staying on this theme of enhanced productivity to continue to stabilize and continue the momentum we're seeing in the repair space.

That's helpful. And then just a few years ago, you're getting lots of questions on your EV strategy and here we are and I'm asking toward the end, but maybe update us on Driivz and sort of what it's doing in the period towards profitability. How are you thinking about potential growth on that side of the business?

So our Driivz platform is making real measurable progress on the profitability front and is continuing to see really solid growth. We've been really excited about the traction that we're getting in the EV space. I know it's not a real popular theme to talk about right now. But if you remember, Andy, we were talking to you about petrol-based dispensers at the time it wasn't popular either. It Gets really difficult to be able to predict what any area in the world will favor, based on government incentives and consumer preferences. But I think more and more of our portfolio now is really balanced to be able to offer what is needed in those geographies, in those markets. That Driivz, our big idea from Driivz from the beginning is how can any EV driver have the same experience they have with petrol-based dispensing. It should be frictionless, it should be easy for them to be able to have a transaction. And it should also be something that is very capable to manage the available energy. It's on site. The grid is more constrained than ever. We have real proprietary capabilities to do energy management very efficiently. We've done some acquisitions on that technology front, incorporated that into our platform, and I think in a differentiating way. And the third element of this is that all the EV drivers that are out there are really looking for very high uptime. And 20% of drivers outside of China use our network, which is a staggering number. And we have about a terawatt of energy that's going through that. So think about all that data and how can you create higher uptime. We have nearly 100% uptime on that network, and we use AI for self-healing networks, and we're leveraging that data now at scale. So I think EVs are in their infancy, globally. Some areas in the Nordics are highly penetrated. Other areas in the U.S. are very thinly penetrated. I think overall, we've got the right offering for us to continue to build out a really attractive business model for the long term.

It's very interesting. So Anshooman, I want to go over to free cash flow for a second. I think at the Convenience Retail Showcase where you went to last year and the analysts went to. You modestly tweaked your adjusted free cash flow conversion to greater than 90%. Over a longer term, you're targeting 100% conversion before that. This year, you've got 95%, all pretty close. But can you talk about what drove that change and how you characterize working capital opportunity at Vontier.

We're very proud of the cash generation profile of our business, we're capital-light, and we throw off a lot of cash. Now whether it's 95% or 100% in a year, it's in the noise, I think a good way to think about it is one minus the growth rate for a multiyear period. So we'll throw off a lot of cash. If you really look at elements of our working capital, I'd say our Days Sales Outstanding and Days Payable Outstanding are probably near industry-leading from our profile perspective. Inventory, I'd say we do have some opportunities over time to reduce, but it is deliberately a little elevated right now, given the fact that while not too much noise in the market, some electronic components like memory because of the data center build-outs are longer cycle to get in from a supply perspective, prices are tending up a little bit on memory components. So we're just mindful and have a little extra electronic components on inventory to manage through. So we don't have any supply chain disruptions.

Got it. But you're not worried about availability of memory chips or anything like that.

No, we're managing through it. I think there was a lot of lessons learned coming out of COVID when we had supply chain disruptions. We put in a lot of processes and mechanisms to work around it. So we continue to work around it. The one constant we've had since COVID is, there's some disruption every year, whether it was COVID, whether it was the supply chain, whether it was tariffs. And I think we can be very proud of the Vontier team of how we've managed through it, and it's a great testament to our employees.

Sure. And you guys seem pretty happy with focusing on share repurchases, debt pay down. Obviously, there is M&A out there. And maybe talk about the funnel, would you say it's relatively static for you guys? Is it improving? Are there any white spaces that help you expedite your journey towards Connected Mobility.

Yes. We're really happy with our balance sheet. It's in great position. We have dry powder. We -- our capital deployment as we describe as dynamic, i.e., we always go towards the highest return option we are evaluating and continue to evaluate in our pipeline, a bunch of M&A activities, more bolt-on-ish near adjacencies fit in what we do. But again, it's -- really, it has to be a meeting of minds between a buyer and seller. And sometimes there's a bit of spread, and we remain very disciplined in how we deploy capital and the price we pay for acquisitions because we are committed to delivering great returns for our shareholders. We've deployed and spent north of $1 billion on acquisitions. We've deployed about just under $1 billion on buybacks. The cumulative return is about double digits on that combined capital deployment, and we remain committed. And given our current stock price, buybacks remain extremely attractive to us, and we see that as a great use of capital deployment.

So all that sounds pretty good Anshooman. So maybe Mark and Anshooman I'll ask you, like I do not ask this question to most companies on this stage. But what do you think investors are missing about Vontier. Vontier at like half of its multi-industry peer set. And if you just look at P/E and it seems like you've got a relatively good outlook you put on the stage here. Just this year, it's mid- to high single-digit EPS growth. Companies have lower than that with much higher multiples. So what do you think we're missing? Or how do you attract more interest?

I think that if you look at some of the headwinds we've had since spin, we've done a great job at really cleaning that up. And as a consequence, I think getting past some of those challenges and also solidifying our portfolio around 3 very easy-to-understand verticals with really strong secular drivers where we're able to point towards solving customer high-value problems. I think events like our NACS show and the Investor Day that we had are prime proof points for that. And I think folks are following the story, they see the traction that we're getting and that -- all that we ask is people do work on the company, if you do work and follow what we're saying, I think you can start connecting the dots. I think it was a lot harder to do in early innings after spin, given all the work that we've done to help clean things up. But I think we're really excited about what we're being able to show folks based on the progress we're making. And hopefully, the folks doing that work, we'll see that as well.

Last question. So what are the top 2 or 3 innovations and structural changes affecting your company over the next 5 years? Are there any emerging industry trends that are perhaps being overlooked in the current disclose?

Yes. I think that's a great question for us. I think one of the hallmarks of Vontier as you can see it is we're really bringing industry in -- we're bringing innovation to our industry. It's been historically a fairly sleepy under-managed infrastructure. We call this the Mobility Ecosystem. I think people have kind of got Industry 4.0 and what you can do with -- how do you connect, manage and scale that through better asset management, people get that fully. Look at the Mobility Ecosystem, $30 billion market. Look at all that capital that's going in there, look how challenged they are with labor turnover and the ability for this infrastructure to work in a connect managed scale way is what we call the Connected Mobility strategy, and look at great examples on Unified Payment that we've been talking about, look at fleet operators and getting everything on a single pane of glass as they try to manage their fleet operations out of their depots. And all this, when you look forward, it's a deeply embedded foundational layer of software with connected hardware that is really also AI-enabled, which is a real tailwind for us. This is an open system architecture where we can charge for the APIs, but we can also bring our equipment and software together in a really value-added layer that is very differentiating for what we have to offer, and we're really excited with where we are.

Thanks, Mark, Anshooman. Appreciate it. .

Thanks for having us.