The first quarter financial performance was expected to be moderate, but the increased macroeconomic and geopolitical uncertainty has impacted NNIT to a larger extent than expected. Based on the realized results and the continued uncertainty, NNIT adjusts the 2025 financial outlook. Given the current uncertainty, organic revenue growth is expected to be 0% to 5% (previously 7% to 10%), which is due to postponement of projects and the sales pipeline materializing at a slower pace than planned as customers ar ...

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]