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Jul 02, 2022

ITT Q2 2022 Earnings Report

ITT reported Q2 2022 earnings with EPS of $0.91 and adjusted EPS of $0.98.

Key Takeaways

ITT Inc. reported a revenue increase of 6% year-over-year, with a 10% increase on an organic basis. The growth was primarily driven by Connect & Control Technologies (CCT) and Industrial Process (IP), and pricing actions across all businesses. The company also deployed approximately $275 million in the quarter, including share repurchases and M&A investments.

ITT delivered solid results in the second quarter, with 10% organic revenue growth.

Strong demand and share gains in Industrial Process and in CCT drove organic orders growth.

Adjusted earnings per share grew sequentially and year over year.

ITT deployed nearly $275 million in the quarter, investing in growth and innovation.

Total Revenue
$733M
Previous year: $692M
+6.0%
EPS
$0.98
Previous year: $0.94
+4.3%
Total Organic Growth
9.6%
Previous year: 29.5%
-67.5%
Industrial Process Organic Growth
8.1%
Previous year: 7.7%
+5.2%
Motion Technologies Organic Growth
4.7%
Previous year: 63.6%
-92.6%
Gross Profit
$222M
Previous year: $225M
-1.1%
Cash and Equivalents
$526M
Previous year: $579M
-9.2%
Total Assets
$3.7B
Previous year: $3.46B
+6.9%

ITT

ITT

ITT Revenue by Segment

Forward Guidance

ITT reaffirmed its full-year 2022 guidance.

Positive Outlook

  • Expects revenue growth of 7% to 9%.
  • Expects organic revenue growth of 10% to 12%.
  • Segment operating margin of 17.5% to 18.4%.
  • Adjusted segment operating margin of 17.6% to 18.5%.
  • Free cash flow of $250 million to $300 million.

Challenges Ahead

  • Continued disruptions in the global supply chain stemming from labor shortages.
  • Supplier delays.
  • High raw material prices.
  • Significant reduction in sales in Russia stemming from the war in Ukraine.
  • Expects EPS of $4.12 to $4.45, and adjusted EPS of $4.35 to $4.65.

Revenue & Expenses

Visualization of income flow from segment revenue to net income