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Jun 29, 2024
ITT Q2 2024 Earnings Report
ITT reported strong Q2 2024 earnings with revenue growth and portfolio reshaping.
Key Takeaways
ITT Inc. reported a strong second quarter in 2024, with a 9% increase in revenue driven by sales volume across all segments and the acquisition of Svanehøj. The company also announced a portfolio reshaping with the acquisition of kSARIA and the divestiture of Wolverine. ITT is maintaining its full-year revenue, operating margin, EPS, and cash flow guidance.
Revenue increased by 9% (6% organic) due to higher sales across all segments and the Svanehøj acquisition.
Operating margin expanded by 60 basis points to 17.6%, with an adjusted operating margin expansion of 100 basis points to 18.0%.
Earnings per share (EPS) grew by 11% (12% adjusted) driven by volume, productivity, and value pricing.
ITT signed an agreement to acquire kSARIA and divested its Wolverine Advanced Materials business.
Revenue by Segment
Forward Guidance
The company is maintaining its revenue, margin, EPS and free cash flow guidance despite the Wolverine divestiture.
Positive Outlook
- Revenue growth of 9% to 12%, up 4% to 7% on an organic basis
- Operating margin of 16.9% to 17.5% and adjusted operating margin of 17.1% to 17.7%, up 20 to 80 bps (up 100 to 160 bps excluding acquisition dilution)
- Full year EPS of $5.51 to $5.76 and adjusted EPS of $5.65 to $5.90, up 8% to 13% for the full year including the ~($0.15) impact from the divestiture
- Free cash flow of $435 million to $475 million, representing 12% to 13% free cash flow margin for the full year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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