ITT Reports 9% Revenue Growth in Q2, but Misses Estimates

STAMFORD, Conn. – ITT Inc. has announced a strong performance for the second quarter of the fiscal year 2024, reporting a revenue increase of 9%, amounting to $905.9 million, compared to $833.9 million in the same quarter of the previous year.

This growth was primarily fueled by increased sales across all segments and the strategic acquisition of Svanehøj. The company’s adjusted earnings per share (EPS) for the quarter reached $1.49, exceeding analyst expectations by $0.03.

Organic growth was reported at 6%, with the Svanehøj and Micro-Mode acquisitions contributing 4% to the total revenue growth. However, there was a 1% negative impact from foreign currency translation. Operating income increased by 12% to $159 million, and EPS rose by 11% to $1.45 compared to the prior year. Adjusted operating income improved by nearly 15% to $163.2 million, with an adjusted operating margin expansion of 100 basis points to 18.0%.

Luca Savi, the CEO and President of ITT, emphasized the company’s solid performance, highlighting a margin expansion of 60 basis points and a significant sequential improvement in free cash flow, which grew by more than $100 million. Savi also addressed the strategic reshaping of the portfolio with the acquisition of kSARIA, a provider of mission-critical connectivity solutions for the defense and aerospace sectors, alongside the divestiture of the Wolverine Advanced Materials business.

For the complete fiscal year 2024, ITT is maintaining its guidance for revenue, margins, EPS, and free cash flow, despite an expected $0.15 impact from the divestiture. The company anticipates revenue growth of 9% to 12%, with an adjusted operating margin of 17.1% to 17.7%. The EPS guidance is set between $5.65 and $5.90, reflecting an increase of 8% to 13% for the year, considering the impact of the Wolverine divestiture.

This article was generated with AI support and reviewed by an editor.