Fortive Corp (NYSE:FTV) saw its stock decline by 1.9% after completing the spin-off of its Precision Technologies business and issuing a cautionary update on second-quarter revenue performance.
The industrial conglomerate confirmed the successful completion of its 100% spin-off of Ralliant Corporation, with shares of the new company now trading on the NYSE under the ticker “RAL.” Fortive investors received one Ralliant share for every three Fortive shares held as of June 16, 2025.
The restructuring also brought leadership changes: Olumide Soroye has officially stepped in as President and CEO of Fortive, taking over from James Lico, who is retiring from executive duties but will remain with the company as a non-executive senior advisor through year-end.
While the spin-off was long anticipated, investor sentiment turned negative after Fortive warned of unexpected revenue pressure in the latter part of Q2. The company cited deteriorating conditions in key sectors and macroeconomic uncertainty.
“Increased pressure on tariff-related pricing and customer demand driven largely by heightened uncertainty in trade, healthcare and government spending policy” has created more challenging conditions than initially expected, the company said in a statement.
Fortive now forecasts second-quarter revenue and core revenue to be flat or slightly negative, while the spun-off Precision Technologies unit posted a mid-single-digit revenue decline, in line with earlier expectations.
Despite the headwinds, the company still expects to deliver consolidated adjusted earnings per share near the midpoint of its previously issued guidance range.
The distribution of around 113 million shares of Ralliant wraps up a strategic realignment effort aimed at creating two specialized and focused public companies. Fortive will continue trading under the “FTV” ticker on the NYSE.