ITT Q4 2022 Earnings Report
Key Takeaways
ITT Inc. reported a 13% year-over-year revenue increase in Q4 2022, with a 17% increase on an organic basis. EPS increased by 16% to $1.39, and adjusted EPS increased by 22% to $1.29. The company overcame cost inflation and foreign currency headwinds to deliver on its original revenue and adjusted EPS guidance.
Revenue increased by 13% (17% organic) due to pricing recovery and higher volume.
Orders grew by 8% (12% organic), driven by connectors, aerospace and defense components, and pump projects.
EPS increased by 16% (22% adjusted) due to price recovery, productivity, and the Habonim contribution.
The company initiated 2023 EPS guidance up 4% at the midpoint (adjusted EPS up 7% at the midpoint).
ITT
ITT
ITT Revenue by Segment
Forward Guidance
ITT expects revenue growth of 7% to 9%, up 6% to 8% on an organic basis; segment operating margin of 17.0% to 17.8%, and adjusted segment operating margin of 17.3% to 18.1%, up 10 to 90 bps; EPS of $4.38 to $4.78, and adjusted EPS of $4.55 to $4.95, representing growth of 7% at the midpoint; and free cash flow of $350 million to $400 million, representing free cash flow margin of 11% to 12% for the full year 2023.
Positive Outlook
- Revenue growth of 7% to 9%
- Organic revenue growth of 6% to 8%
- Segment operating margin of 17.0% to 17.8%
- Adjusted segment operating margin of 17.3% to 18.1%
- Free cash flow of $350 million to $400 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income