ITT (US:ITT)2025-02-06 11:32Financial Performance - ITT reported Q4 2024 EPS of $1.55, a 38% increase year-over-year, and full year EPS of $6.30, up 26.8% from the previous year[1][4][15]. - Q4 2024 revenue reached $929 million, reflecting a 12% year-over-year increase, with organic growth of 6% driven by higher volume and pricing actions[2][6][15]. - Operating income for Q4 2024 was $160 million, a 35% increase compared to the prior year, resulting in an operating margin of 17.2%, up 290 basis points[3][6][15]. - Full year revenue for 2024 was $3.63 billion, a 10.6% increase, with an organic growth rate of 6.9%[15]. - Gross profit for the year ended December 31, 2024, was $1,247.3 million, up 12.7% from $1,107.3 million in 2023[26]. - Operating income for the twelve months ended December 31, 2024, increased to $676.0 million, representing a 28.0% rise from $528.2 million in 2023[26]. - Net income attributable to ITT Inc. for the year was $518.3 million, a 26.3% increase compared to $410.5 million in 2023[26]. - Total Revenue for Q4 2024 is $326.0 million, with a full year total of $3,630.7 million, showing a reported revenue growth of 10.6%[36]. - Organic Revenue for 2024 is $836.6 million, with a year-over-year growth of 6.9%[36]. - Total Orders for Q4 2024 amount to $914.8 million, with a full year total of $3,785.7 million, reflecting an overall growth of 9.7%[37]. - The company experienced a reported revenue decline of 10.6% in the MT segment, while the IP segment grew by 25.2%[36]. - The CCT segment reported a revenue growth of 37.2%, contributing significantly to the overall performance[36]. Cash Flow and Capital Management - Operating cash flow for Q4 2024 was $223 million, a 31% increase year-over-year, with a free cash flow of $187 million, up 42%[5][6]. - The company deployed $1.2 billion in capital, more than double the full year free cash flow, focusing on high growth and high margin segments[5][9]. - The company generated $562.6 million in net cash from operating activities for the year, compared to $538.0 million in 2023[29]. - Free Cash Flow for the year is defined as net cash from operating activities minus capital expenditures, providing insight into cash flow management[34]. - Free cash flow for FY 2024 is projected at $438.7 million, with a free cash flow margin of 12.1%[54]. - The company reported a net cash from operating activities of $223.2 million for Q4 2024, up from $170.4 million in Q4 2023[54]. Guidance and Future Outlook - ITT initiated 2025 EPS guidance of $6.05 to $6.45, with adjusted EPS guidance of $6.10 to $6.50[5][17]. - The company expects 2025 revenue growth of 2% to 4%, with an operating margin of 18.0% to 18.9%[17]. - The company anticipates capital expenditures of $125 million for FY 2025[54]. - Full year 2025 guidance for EPS from continuing operations (GAAP) is projected between $6.05 and $6.45, with adjusted EPS expected between $6.10 and $6.50[49]. Dividends and Shareholder Returns - The company announced a 10% increase in its quarterly dividend to $0.351 per share, continuing a trend of annual dividend growth[16]. Assets and Liabilities - Cash and cash equivalents at the end of 2024 were $440.0 million, down from $489.9 million at the end of 2023[29]. - Total assets increased to $4,710.7 million in 2024, compared to $3,932.6 million in 2023, reflecting a growth of 19.7%[28]. - Total liabilities rose to $1,941.1 million in 2024, up from $1,393.5 million in 2023, marking a 39.4% increase[28]. Research and Development - Research and development expenses for the year were $116.3 million, an increase from $102.6 million in 2023[26]. Special Items and Adjustments - The impact of special item adjustments on Operating Margin for Full Year 2024 was -310 basis points[39]. - Adjusted Operating Margin for Full Year 2024 was 18.6%, reflecting a change of 590 basis points from the previous year[39]. - Q4 2024 tax benefits include valuation allowance impacts of ($8.9 million) and undistributed foreign earnings of $7.6 million, with total tax expenses for the full year 2024 amounting to $12.5 million[47]. Strategic Initiatives - The company plans to focus on market expansion and new product development to drive future growth[36]. - Strategic acquisitions and divestitures are being evaluated to enhance operational efficiency and market presence[37]. - The company experienced a divestiture of Wolverine in Q3 2024 and Matrix in Q4 2023, impacting financial results[46].