Core Insights - ITT Corporation is experiencing growth across its segments, particularly in the Industrial Process, Connect and Control Technologies, and Motion Technologies segments, driven by strong demand and strategic acquisitions [1][2][7]. Segment Performance - The Industrial Process (IP) segment is benefiting from solid momentum in short-cycle business within energy and industrial markets, with growth in demand for parts, services, and valves [1]. - The Connect and Control Technologies (CCT) segment is supported by increased sales of components and connectors in defense and industrial markets, bolstered by the acquisition of kSARIA [1][2]. - The Motion Technologies (MT) segment is expected to perform well due to strong demand for brake components, specialized sealing solutions, and damping technologies in OEM and rail transportation markets [1]. Acquisitions and Growth - Acquisitions contributed 6.3% to ITT's sales in Q1 2025, with significant deals including kSARIA and Svanehøj, enhancing capabilities in defense, aerospace, and marine markets [2][7]. - The acquisition of Micro-Mode Products in May 2023 expanded ITT's product portfolio and customer base, particularly for long-term defense programs [2]. Financial Performance - In Q1 2025, ITT paid out dividends of $28.7 million and repurchased shares worth $100 million, with a 10% increase in the quarterly dividend rate announced in February 2025 [3]. - ITT's sales rose 6.3% in Q1 2025, driven by strength across its segments, although higher costs and foreign exchange translation negatively impacted revenues [7][9]. Cost Challenges - The company has faced rising operating costs, with a 9.6% year-over-year increase in cost of sales in 2024 due to higher raw material and labor costs [8]. - Sales and marketing expenses rose 18.2% year-over-year in 2024, continuing into Q1 2025 with a 6.2% increase [8].

ITT Inc. (ITT) has been benefiting from strength in the short-cycle business within the energy and industrial markets. Growth in demand for parts, services and valves is aiding the Industrial Process segment. Growth in component and connector sales within the defense and industrial markets is supporting the Connect and Control Technologies segment.Strong demand for the company’s brake components and specialized sealing solutions, shock absorbers and damping technologies in the OEM and rail transportation ma ...

ITT FY Conference Summary Company Overview - **Company**: ITT - **Industry**: Engineering manufacturing, focusing on components for harsh environments across various sectors including automotive, rail, defense, chemical, mining, oil and gas, and energy transition [4][5] Key Financial Highlights - **Q1 Performance**: Generated over $1 billion in orders, with a strong capital deployment strategy including $100 million in share repurchases during Q1 and $500 million year-to-date [5][6] - **Long-term Targets**: - Organic revenue growth of over 5% through 2030 - Total growth target of 10% - Adjusted operating margin of approximately 23% - EBITDA above 25% - EPS target of $11 (organic) or over $12 (total) [8] Growth Strategy - **Organic Growth**: - Targeting 5-7% in Industrial Process (IP), 2-4% in Motion Technologies (MT), and 7-9% in Connect and Control Technologies (CCT) [9] - Emphasis on higher growth and margin businesses, particularly in flow and connectors [11] - **Market Outperformance**: Historically outperformed market growth by 300-400 basis points through execution and innovation [15] - **Margin Expansion**: Aiming for 500 basis points of margin expansion by 2030 through efficiency improvements, automation, and better supply chain management [16][19] Capital Allocation and M&A Strategy - **M&A Focus**: - Targeting high-growth, high-margin businesses with strong management teams - Recent acquisitions include Habony (LNG hydrogen), MicroMode (RF connectors), and Kisaria (aero and defense) [35][36][38] - **Criteria for M&A**: Must have a leading market position and align with ITT's strategic goals [36][37] Innovation and Product Development - **R&D Investment**: Over 4% of revenue allocated to R&D, focusing on continuous improvement and new product development [34] - **New Product Launch**: Introduction of Vida, an embedded motor drive technology aimed at reducing energy waste in industrial pumps, with a projected addressable market of $6 billion [57][61] Segment Performance Insights - **Motion Technologies**: - Friction OE business expected to achieve 400-500 basis points of outgrowth in 2025, with historical outperformance of 700-800 basis points [45][46] - Continuous improvement in productivity and quality is a key focus [51] - **Connect and Control Technologies**: - Recent acquisition of Kisaria expected to drive high single-digit growth and margin progression through synergies with ITT's existing connector business [64][66] Market Outlook - **Book-to-Bill Ratio**: Strong performance in the marine industry with a book-to-bill ratio of 2.0 in Q1, driven by market demand for cleaner energy solutions [54][55] - **Future Growth**: Confidence in double-digit growth for the Svanoy segment, supported by strong order quality and customer loyalty [55] Additional Considerations - **Working Capital Management**: Significant room for improvement in working capital across segments, particularly in IP and CCT, with a focus on inventory management [42][43] - **Intellectual Property Protection**: Strong emphasis on protecting innovations, particularly in new motor technologies, with a competitive edge expected to last several years [71]

Wolfe Research Global Transportation & Industrials Conference May 22, 2025 Safe Harbor and Non-GAAP Disclosures Safe Harbor This presentation contains "forward-looking statements"intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. In addition, the accompanying webcast may include, and officers and representatives of ITT may from time to time make and discuss, projections, goals, assumptions, and statements that may constitute "forward-l ...

2025 Capital Markets Day Safe Harbor and Non-GAAP Disclosures Safe Harbor This presentation contains "forward-looking statements"intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. In addition, the accompanying webcast may include, and officers and representatives of ITT may from time to time make and discuss, projections, goals, assumptions, and statements that may constitute "forward-looking statements". These forward-looking statemen ...

ITT 2025 Investor Day Summary Company Overview - ITT is a global manufacturing leader specializing in critical components for harsh environments across various industries including energy, chemicals, automotive, and defense [6][12][18] Key Themes and Strategies - **Differentiation**: The company emphasizes differentiation through execution and innovation, aiming for scalable growth and long-term value creation [5][22][41] - **Organic Growth**: ITT has achieved over 9% organic revenue growth and more than 13% average earnings per share (EPS) growth over the past three years [13][14] - **Mergers and Acquisitions (M&A)**: ITT plans to invest $500 to $700 million annually in M&A to acquire market-leading companies in high-margin sectors [34][36] Financial Targets for 2030 - Revenue growth target of 10% total, with 5% organic growth - Adjusted operating margin target of 23% or EBITDA higher than 25% - Adjusted EPS target of more than $12 - Free cash flow margin target between 14-15% [40] Business Segments 1. **Industrial Process**: Focus on pumps and valves, with significant market share in North America and a backlog growth of 16% over the last four years [52][53] 2. **Motion Technologies**: Global leader in brake pads and shock absorbers, with a strategic focus on electric vehicles and high-performance markets [16][25] 3. **Connect and Control**: Specializes in connectors for aerospace and defense, with a strong emphasis on rapid prototyping and customer-centric solutions [84][93] Market Position and Growth - ITT has shifted its portfolio, reducing automotive business from 46% of revenue in 2018 to approximately 31% today, while focusing on higher growth sectors [23][24] - The company aims to maintain growth in Motion Technologies while expanding its Connect and Control and Industrial Process segments [25][26] Operational Excellence - ITT's operational strategy includes a relentless focus on continuous improvement, lean manufacturing, and customer-centricity, which has resulted in a 96% on-time delivery performance over the last four years [60][77] - The company has implemented a culture of safety and quality, with significant investments in employee training and development [74][75] Innovation and Technology - ITT is committed to innovation, with recent developments in green technologies and advanced materials, such as a new type of brake pad using an inorganic binder [43][44] - The company has established a new product team focused on solving complex customer challenges, leading to significant revenue opportunities [84][90] Conclusion - ITT is positioned for robust growth through a combination of organic expansion, strategic M&A, and a strong focus on operational excellence and innovation, aiming to achieve its ambitious 2030 targets while maintaining a competitive edge in the market [36][40][41]

Core Viewpoint - ITT Inc. reported strong first-quarter 2025 adjusted earnings of $1.45 per share, exceeding the Zacks Consensus Estimate of $1.44, with a year-over-year increase of 2.1% driven by sales growth in the Connect & Control Technologies segment [1] Financial Performance - Total revenues for ITT in Q1 2025 were $913 million, matching the consensus estimate and reflecting a 0.3% year-over-year increase. Organic sales remained flat, with growth in parts, service, and valves in the Industrial Process segment, connectors in the Connect & Control Technologies segment, and rail in the Motion Technologies segment [2] - Revenues from the Industrial Process segment were $333.3 million, down 0.2% year over year, impacted by unfavorable pump project shipment timing. Organic sales decreased by 1%, while adjusted operating income grew by 0.4% [2] - Motion Technologies segment revenues were $346.1 million, a decrease of 11.8% year over year, primarily due to reduced auto production in Europe and North America. Organic revenues increased by 0.5%, but adjusted operating income fell by 3.9% [3] - The Connect & Control Technologies segment reported revenues of $234.7 million, up 26.8% year over year, driven by favorable pricing and growth in defense and industrial connectors. Adjusted operating income increased by 13.1% [4] Margin Profile - ITT's cost of revenues decreased by 2% year over year to $596.7 million, while gross profit increased by 4.9% to $316.3 million. General and administrative expenses rose by 19.3% to $85.3 million, and sales and marketing expenses increased by 6.2% to $53.2 million. Research and development expenses decreased by 10.3% to $26.9 million. Adjusted operating income climbed by 2.3% to $159.3 million, with a margin expansion of 30 basis points to 17.4% [5] Balance Sheet and Cash Flow - At the end of Q1 2025, ITT had cash and cash equivalents of $439.8 million, slightly up from $439.3 million at the end of Q4 2024. Short-term borrowings increased to $732.6 million from $427.6 million at the end of December 2024 [6] - ITT generated net cash of $113.4 million from operating activities in Q1 2025, compared to $57.8 million in the same period last year. Capital expenditure was $36.8 million, up 32.9% year over year. Free cash flow reached $76.6 million, compared to $30.1 million in the prior-year period. The company paid dividends of $28.7 million, an increase of 8.3% year over year, and repurchased shares worth $100 million [7] Dividend Update - ITT's board approved a quarterly cash dividend of 35.1 cents per share, payable on June 30, 2025, to shareholders of record as of June 2 [8] 2025 Outlook - ITT reaffirmed its financial outlook for 2025, expecting adjusted earnings in the range of $6.10-$6.50 per share, indicating a 4-11% increase from the prior year. Revenue growth is projected at 2-4% (3-5% organically), with adjusted operating margin estimated between 18.1% and 19.0%. Free cash flow is anticipated to be between $450-$500 million, reflecting a free cash flow margin of 12-13% [9]

For the quarter ended March 2025, ITT (ITT) reported revenue of $913 million, up 0.3% over the same period last year. EPS came in at $1.45, compared to $1.42 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $913 million, representing no surprise. The company delivered an EPS surprise of +0.69%, with the consensus EPS estimate being $1.44.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Str ...

Core Viewpoint - ITT reported quarterly earnings of $1.45 per share, exceeding the Zacks Consensus Estimate of $1.44 per share, and showing an increase from $1.42 per share a year ago, indicating a positive earnings surprise of 0.69% [1] Group 1: Earnings Performance - Over the last four quarters, ITT has surpassed consensus EPS estimates four times [2] - The company posted revenues of $913 million for the quarter ended March 2025, aligning with the Zacks Consensus Estimate and showing a slight increase from $910.6 million year-over-year [2] - ITT has topped consensus revenue estimates two times over the last four quarters [2] Group 2: Stock Performance and Outlook - ITT shares have declined approximately 4.1% since the beginning of the year, while the S&P 500 has decreased by 5.3% [3] - The future stock price movement will largely depend on management's commentary during the earnings call [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.53, with expected revenues of $930.51 million, and for the current fiscal year, the estimate is $6.35 on $3.72 billion in revenues [7] Group 3: Industry Context - The Zacks Industry Rank places Diversified Operations in the top 38% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

ITT (ITT) Q1 2025 Earnings Call May 01, 2025 08:30 AM ET Speaker0 Welcome to ITT's twenty twenty five First Quarter Conference Call. Today is Thursday, 05/01/2025. Today's call is being recorded and will be available for replay beginning at 12PM Eastern. At this time, all participants have been placed in a listen only mode and the floor will be open for your questions following the presentation. It is now my pleasure to turn the call over to Mark McAluso, vice president, investor relations and global commun ...