ITT
ITT is a company with over 175 years of history, serving diverse markets including automotive, rail, chemical, industrial, aerospace, and defense. In Q1 2024, ITT reported a 14.1% revenue increase to $910.6 million and a 20% rise in operating income to $149 million.
Company Overview
ITT is a company that has been in existence for more than 175 years, serving expanding markets such as automotive, rail, chemical, industrial, aerospace, and defense. The company provides highly engineered, critical components designed for harsh environments. Its product range includes solutions for automotive, chemical, aerospace and defense, rail, industrial, and energy sectors. ITT Goulds Pumps is one of the most recognized and respected brands in the global pump industry.
Financial Performance Q1 2024
ITT reported Q1 2024 revenue of $910.6 million, marking a 14.1% increase from Q1 2023. The company saw a 20% rise in operating income to $149 million and a 22.8% increase in adjusted operating income to $155 million. Q1 2024 EPS was $1.34, a 12% rise from the previous year, and adjusted EPS was $1.42, reflecting a 21.4% increase. ITT achieved a 16.4% operating margin, an 80 basis point expansion, and a 17.0% adjusted operating margin, a 120 basis point increase. The net cash from operating activities was $58 million and free cash flow reached $30 million.
Business Segments Performance
ITT's Industrial Process segment recorded a 25.3% revenue increase in Q1 2024, driven by pump projects and the acquisition of Svanehøj. The Motion Technologies segment saw a 7.6% revenue rise and a 32.2% increase in operating income, influenced by higher sales volume in Friction OE and rail demand. The Connect & Control Technologies segment realized a 10.4% revenue increase with an 11.2% rise in operating income, powered by pricing actions and higher volumes in connectors and components for aerospace and defense.
2024 Guidance
ITT projects 2024 revenue growth between 9% and 12%, with organic growth anticipated to be between 4% and 7%. The expected operating margin ranges from 16.9% to 17.5%, with the adjusted operating margin ranging from 17.1% to 17.7%. The 2024 full-year EPS is forecasted to be between $5.51 and $5.76, with adjusted EPS expected between $5.65 and $5.90. ITT anticipates a free cash flow in the range of $435 million to $475 million. The guidance does not account for potential impacts from foreign currency fluctuations, acquisitions, and specific other items.
Historical Milestones
ITT boasts a legacy of over 175 years, making it one of the more enduring and established companies in its field. Throughout its history, ITT has consistently served key industries such as energy, chemical, and general industrial markets. The company has expanded its reach and product lines progressively to adapt to evolving market demands, maintaining a focus on reliability and engineering excellence.