Apr 01, 2023

ITT Q1 2023 Earnings Report

ITT reported first quarter earnings with EPS of $1.20 and adjusted EPS of $1.17.

Key Takeaways

ITT Inc. reported a 10% year-over-year revenue increase driven by IP short-cycle demand and pump project activity, aerospace demand in CCT, and pricing actions across all segments. EPS for the first quarter was $1.20, a 36% increase, and adjusted EPS was $1.17, a 21% increase. The company is raising the mid-point of its adjusted EPS guidance range by five cents.

Revenue increased by 10% year-over-year, driven by higher volume and pricing actions.

Orders grew by 7%, influenced by Industrial Process short-cycle and pump projects, and Connect & Control Technologies aerospace demand.

Segment operating margin expanded by 270 basis points (150 basis points adjusted) to 17.3% (17.5% adjusted).

EPS grew by 36% (21% adjusted) due to pricing actions, volume leverage, and productivity.

Acquired Micro-Mode Products, a specialty harsh application connectors provider.

Total Revenue
$798M
Previous year: $726M
+9.9%
EPS
$1.17
Previous year: $0.97
+20.6%
Total Organic Growth
10.3%
Previous year: 6.8%
+51.5%
Industrial Process Organic Growth
25.5%
Previous year: 1.9%
+1242.1%
Motion Technologies Organic Growth
2.2%
Previous year: 4%
-45.0%
Gross Profit
$262M
Previous year: $218M
+19.9%
Cash and Equivalents
$462M
Previous year: $710M
-35.0%
Free Cash Flow
$29.4M
Previous year: -$32.7M
-189.9%
Total Assets
$3.77B
Previous year: $3.73B
+1.1%

ITT

ITT

ITT Revenue by Segment

Forward Guidance

The company is updating its 2023 guidance and now expects EPS of $4.49 to $4.79, and adjusted EPS of $4.65 to $4.95.

Revenue & Expenses

Visualization of income flow from segment revenue to net income