Full Year Highlights:
- 11% revenue growth (7% organic) driven by higher volume and
pricing actions, and contributions from the Svanehøj and kSARIA
acquisitions
- 18.6% operating margin, up 250 basis points; 17.7% adjusted
operating margin, up 80 basis points; surpassing long-term margin
target
- Deployed $1.2 billion of capital, over two times full year free
cash flow, shifting portfolio to high growth, high margin flow and
connector segments
- Initiates 2025 EPS guidance of $6.05 to $6.45; adjusted EPS of
$6.10 to $6.50
February 6, 2025-- ITT Inc. (NYSE: ITT) today reported financial
results for the fourth quarter and full year ended December 31,
2024. For the fourth quarter, the company reported a year-over-year
revenue increase of 12%, up 6% on an organic basis, primarily
driven by higher volume, pricing actions and the acquisitions of
Svanehøj and kSARIA.
Fourth quarter operating income of $160 million increased 35%
compared to prior year, and operating margin of 17.2% increased 290
basis points versus prior year primarily due to higher volume
leverage, favorable price and cost actions, lower restructuring
charges and the impact of a $15 million loss on sale in prior year.
On an adjusted basis, operating income of $163 million increased
16% primarily due to higher volumes, pricing actions and
productivity, partially offset by higher strategic growth
investments and corporate costs.
Earnings per share for the fourth quarter of $1.55 increased 38%
versus prior year primarily due to the impact of non-recurring
items in prior year, higher operating income and a lower tax rate,
partially offset by higher interest expense related to acquisition
debt. On an adjusted basis, earnings per share of $1.50 increased
12% compared to prior year due primarily to higher operating
income.
Operating cash flow for the fourth quarter of $223 million
increased 31% versus prior year driven by higher operating income
and working capital improvements, resulting in operating cash flow
margin of 24%. Free cash flow for the fourth quarter of $187
million increased 42% versus prior year, resulting in free cash
flow margin of 20%. For the full year, operating cash flow of $563
million increased 5%, and free cash flow of $439 million increased
2%. Both increases were due to higher net income, improved accounts
receivable collections and inventory management.
Table 1. Fourth Quarter Performance
Q4
2024
Q4
2023
Change
Revenue
$
929.0
$
829.1
12.0
%
Organic Growth
5.9
%
Operating Income
$
159.9
$
118.8
34.6
%
Operating Margin
17.2
%
14.3
%
290
bps
Adjusted Operating Income
$
162.8
$
140.9
15.5
%
Adjusted Operating Margin
17.5
%
17.0
%
50
bps
Earnings Per Share
$
1.55
$
1.12
38.4
%
Adjusted Earnings Per Share
$
1.50
$
1.34
11.9
%
Operating Cash Flow
$
223.2
$
170.4
31.0
%
Free Cash Flow
$
186.8
$
131.3
42.3
%
Note: all results unaudited; dollars in
millions except for per share amounts.
Management Commentary
“In 2024, our teams delivered on our commitments once again. We
grew revenues 11% in total, 7% organically, with strength across
all segments. Our businesses drove strong margin expansion and
eclipsed our long-term margin target two years ahead of plan. We
deployed over $860 million of capital through the acquisitions of
cryogenic pump manufacturer, Svanehøj, and defense interconnect
specialist, kSARIA. These acquisitions, coupled with the
divestiture of our automotive component business, significantly
enhanced ITT’s opportunities in higher growth and higher margin
flow and connectors businesses whilst strategically shifting our
portfolio. On top of this, we invested over $100 million in growth
and productivity to further our differentiation, paid down over
$500 million of debt related to M&A, and returned over $200
million of capital to shareholders. We entered 2025 with a $1.6
billion backlog, continued growth and margin expansion
opportunities in our core and ramping value creation from our
acquisitions,” said Luca Savi, ITT’s Chief Executive Officer and
President.
Table 2. Fourth Quarter Segment Results
Revenue
Operating Income
Operating Margin
Q4 2024
Reported Change
Organic Growth
Q4 2024
Reported Change
Adjusted Change
Q4 2024
Reported Change
Adjusted Change
Motion Technologies
326.0
(10.6
)%
—
%
$
62.8
4.1
%
1.0
%
19.3
%
280 bps
220 bps
Industrial Process
362.6
25.2
%
10.4
%
76.9
34.4
%
28.3
%
21.2
%
150 bps
60 bps
Connect & Control Technologies
241.0
37.2
%
9.4
%
39.9
141.8
%
26.0
%
16.6
%
720 bps
(150) bps
Note: all results unaudited; excludes intercompany revenue
eliminations of $0.6 million; comparisons to Q4 2023; dollars in
millions.
Motion Technologies revenue decreased 11% due to the
Wolverine divestiture in July 2024, partially offset by strength in
rail and Friction’s automotive aftermarket. Operating income of $63
million increased 4% due to productivity, including supply chain
savings, and lower material and overhead costs, partially offset by
higher strategic investments.
Industrial Process revenue increased 25%, primarily due
to the acquisition of Svanehøj and growth in pump projects and
short cycle. This was partially offset by unfavorable foreign
currency impacts. Operating income of $77 million increased 34%
driven by increased volume, pricing and productivity actions, and
lower restructuring charges.
Connect & Control Technologies revenue increased 37%,
primarily due to the acquisition of kSARIA, as well as growth in
defense and industrial connectors and pricing actions. Operating
income of $40 million increased 142% due to the impact of a prior
year loss on sale and current year benefits from pricing actions,
productivity and contributions from kSARIA. This was partially
offset by higher material, labor and overhead costs.
Table 3. 2024 Full Year Performance
FY
2024
FY
2023
Change
Revenue
$
3,630.7
$
3,283.0
10.6
%
Organic Growth
6.9
%
Operating Income
$
676.0
$
528.2
28.0
%
Operating Margin
18.6
%
16.1
%
250
bps
Adjusted Operating Income
$
642.7
$
554.6
15.9
%
Adjusted Operating Margin
17.7
%
16.9
%
80
bps
Earnings Per Share
$
6.30
$
4.97
26.8
%
Adjusted Earnings Per Share
$
5.86
$
5.21
12.5
%
Operating Cash Flow
$
562.6
$
538.0
4.6
%
Free Cash Flow
$
438.7
$
430.4
1.9
%
Note: dollars in millions except for per
share amounts
Quarterly Dividend Increase
The company announced today an increase in its quarterly
dividend of 10% to $0.351 per share on the company’s outstanding
common stock. ITT’s Board of Directors approved the cash dividend
for the first quarter of 2025, which will be payable on March 31,
2025 to shareholders of record as of the close of business on March
6, 2025. The 10% increase in the quarterly dividend announced today
follows increases of 10% in both 2023 and 2024. Including the
increase in 2025, the company’s dividend has grown at a 16%
compounded annual growth rate since 2020.
2025 Guidance
We expect revenue growth of 2% to 4%, up 3% to 5% on an organic
basis; operating margin of 18.0% to 18.9%, and adjusted operating
margin of 18.1% to 19.0%, up 40 to 130 bps; EPS of $6.05 to $6.45,
and adjusted EPS of $6.10 to $6.50; and free cash flow of $450
million to $500 million, representing free cash flow margin of 12%
to 13% for full year 2025.
It is not possible, without unreasonable efforts, to estimate
the impacts of foreign currency fluctuations, acquisitions,
divestitures, and certain other special items that may occur in
2025 as these items are inherently uncertain and difficult to
predict. As a result, we are unable to quantify certain amounts
that would be included in a reconciliation of organic revenue
growth and adjusted operating margin to the most directly
comparable GAAP financial measures without unreasonable efforts and
we have not provided reconciliations for these forward-looking
non-GAAP financial measures.
Investor Conference Call Details
ITT’s management will host a conference call for investors on
Thursday, February 6, 2025 at 9:30 a.m. Eastern Time. The briefing
can be accessed live via webcast which is available on the
company’s website: https://investors.itt.com. A replay of the
webcast will be available two hours after the presentation
concludes. Reconciliations of non-GAAP financial performance
metrics to their most comparable U.S. GAAP financial performance
metrics are defined and presented below and should not be
considered a substitute for, nor superior to, the financial data
prepared in accordance with U.S. GAAP.
Safe Harbor Statement
This release 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
conference call (including the financial results presentation
material) 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 statements are not historical
facts, but rather represent only a belief regarding future events
based on current expectations, estimates, assumptions and
projections about our business, future financial results, the
industry in which we operate, and other legal, regulatory, and
economic developments. These forward-looking statements include,
but are not limited to, future strategic plans and other statements
that describe the company’s business strategy, outlook, objectives,
plans, intentions or goals, and any discussion of future events and
future operating or financial performance.
We use words such as “anticipate,” “believe,” “continue,”
“could,” “estimate,” “expect,” “future,” “guidance,” “intend,”
“may,” “plan,” “potential,” “project,” “should,” “target,” “will,”
“would,” and other similar expressions to identify such
forward-looking statements. Forward-looking statements are
uncertain and, by their nature, many are inherently unpredictable
and outside of ITT’s control, and involve known and unknown risks,
uncertainties and other important factors that could cause actual
results to differ materially from those expressed or implied in, or
reasonably inferred from, such forward-looking statements.
Where in any forward-looking statement we express an expectation
or belief as to future results or events, such expectation or
belief is based on current plans and expectations of our
management, expressed in good faith and believed to have a
reasonable basis. However, we cannot provide any assurance that the
expectation or belief will occur or that anticipated results will
be achieved or accomplished.
Among the factors that could cause our results to differ
materially from those indicated by forward-looking statements are
risks and uncertainties inherent in our business including, without
limitation:
- uncertain global economic and capital markets conditions, which
have been influenced by heightened geopolitical tensions,
inflation, changes in monetary policies, the threat of a possible
regional or global economic recession, trade disputes between the
U.S. and its trading partners, political and social unrest, and the
availability and fluctuations in prices of energy and commodities,
including steel, oil, copper and tin;
- fluctuations in interest rates and the impact of such
fluctuations on customer behavior and on our cost of debt;
- fluctuations in foreign currency exchange rates and the impact
of such fluctuations on our revenues, customer demand for our
products and on our hedging arrangements;
- volatility in raw material prices and our suppliers’ ability to
meet quality and delivery requirements;
- impacts and risk of liabilities from recent mergers,
acquisitions, or venture investments, and past divestitures and
spin-offs;
- our inability to hire or retain key personnel;
- failure to compete successfully and innovate in our
markets;
- failure to manage the distribution of products and services
effectively;
- failure to protect our intellectual property rights or
violations of the intellectual property rights of others;
- the extent to which there are quality problems with respect to
manufacturing processes or finished goods;
- the risk of cybersecurity breaches or failure of any
information systems used by the Company, including any flaws in the
implementation of any enterprise resource planning systems;
- loss of or decrease in sales from our most significant
customers;
- risks due to our operations and sales outside the U.S. and in
emerging markets, including the imposition of tariffs and trade
sanctions;
- fluctuations in demand or customers’ levels of capital
investment, maintenance expenditures, production, and market
cyclicality;
- the risk of material business interruptions, particularly at
our manufacturing facilities;
- risks related to government contracting, including changes in
levels of government spending and regulatory and contractual
requirements applicable to sales to the U.S. government;
- fluctuations in our effective tax rate, including as a result
of changing tax laws and other possible tax reform legislation in
the U.S. and other jurisdictions;
- changes in environmental laws or regulations, discovery of
previously unknown or more extensive contamination, or the failure
of a potentially responsible party to perform;
- failure to comply with the U.S. Foreign Corrupt Practices Act
(or other applicable anti-corruption legislation), export controls
and trade sanctions; and
- risk of product liability claims and litigation.
The forward-looking statements included in this release speak
only as of the date hereof. We undertake no obligation (and
expressly disclaim any obligation) to update any forward-looking
statements, whether written or oral or as a result of new
information, future events or otherwise.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(IN MILLIONS, EXCEPT PER SHARE
AMOUNTS)
Three Months Ended
Twelve Months Ended
December 31,
2024
December 31, 2023
December 31,
2024
December 31, 2023
Revenue
$
929.0
$
829.1
$
3,630.7
$
3,283.0
Cost of revenue
612.6
543.1
2,383.4
2,175.7
Gross profit
316.4
286.0
1,247.3
1,107.3
General and administrative expenses
73.9
83.3
296.6
294.5
Sales and marketing expenses
54.5
42.8
205.7
174.0
Research and development expenses
28.0
25.5
116.3
102.6
(Gain) loss on sale of businesses
—
15.3
(47.8
)
8.1
(Gain) loss on sale of long-lived
assets
0.1
0.3
0.5
(0.1
)
Operating income
159.9
118.8
676.0
528.2
Interest expense
11.5
3.8
36.6
19.2
Interest income
(1.6
)
(2.3
)
(6.6
)
(8.8
)
Other non-operating income, net
0.3
(0.2
)
(1.6
)
(1.7
)
Income from continuing operations before
income tax
149.7
117.5
647.6
519.5
Income tax expense
22.2
24.2
125.8
104.8
Income from continuing operations
127.5
93.3
521.8
414.7
Loss from discontinued operations, net of
income tax
0.1
(0.9
)
(0.1
)
(0.9
)
Net income
127.6
92.4
521.7
413.8
Less: Income attributable to
noncontrolling interests
0.6
0.9
3.4
3.3
Net income attributable to ITT Inc.
$
127.0
$
91.5
$
518.3
$
410.5
Amounts attributable to ITT
Inc.:
Income from continuing operations
$
126.9
$
92.4
$
518.4
$
411.4
Income (loss) from discontinued
operations, net of tax
0.1
(0.9
)
(0.1
)
(0.9
)
Net income attributable to ITT Inc.
$
127.0
$
91.5
$
518.3
$
410.5
Earnings per share attributable to ITT
Inc.:
Basic:
Continuing operations
$
1.56
$
1.13
$
6.34
$
5.00
Discontinued operations
—
(0.02
)
—
(0.01
)
Net income
$
1.56
$
1.11
$
6.34
$
4.99
Diluted:
Continuing operations
$
1.55
$
1.12
$
6.30
$
4.97
Discontinued operations
—
(0.01
)
—
(0.01
)
Net income
$
1.55
$
1.11
$
6.30
$
4.96
Weighted average common shares – basic
81.5
82.1
81.8
82.3
Weighted average common shares –
diluted
82.0
82.6
82.3
82.7
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(IN MILLIONS, EXCEPT PER SHARE
AMOUNTS)
As of the Period Ended
December 31,
2024
December 31, 2023
Assets
Current assets:
Cash and cash equivalents
$
439.3
$
489.2
Receivables, net
703.0
675.2
Inventories
591.2
575.4
Other current assets
131.2
117.9
Total current assets
1,864.7
1,857.7
Non-current assets:
Plant, property and equipment, net
577.2
561.0
Goodwill
1,430.1
1,016.3
Other intangible assets, net
454.1
116.6
Other non-current assets
384.6
381.0
Total non-current assets
2,846.0
2,074.9
Total assets
$
4,710.7
$
3,932.6
Liabilities and Shareholders’
Equity
Current liabilities:
Short-term borrowings
$
427.6
$
187.7
Accounts payable
458.4
437.0
Accrued and other current liabilities
447.2
413.1
Total current liabilities
1,333.2
1,037.8
Non-current liabilities:
Non-current portion of long-term debt
232.6
5.7
Postretirement benefits
119.0
138.7
Other non-current liabilities
256.3
211.3
Total non-current liabilities
607.9
355.7
Total liabilities
1,941.1
1,393.5
Shareholders’ equity:
Common stock:
Authorized – 250.0 shares, $1 par value
per share
Issued and outstanding – 81.5 shares and
82.1 shares, respectively
81.5
82.1
Retained earnings
3,099.4
2,778.0
Accumulated other comprehensive income
(loss):
Postretirement benefits
3.2
(1.6
)
Cumulative translation adjustments
(421.5
)
(330.3
)
Total accumulated other comprehensive
loss
(418.3
)
(331.9
)
Total ITT Inc. shareholders’ equity
2,762.6
2,528.2
Noncontrolling interests
7.0
10.9
Total shareholders’ equity
2,769.6
2,539.1
Total liabilities and shareholders’
equity
$
4,710.7
$
3,932.6
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(IN MILLIONS)
For the Year Ended
December 31, 2024
December 31, 2023
Operating Activities
Income from continuing operations
attributable to ITT Inc.
$
518.4
$
411.4
Adjustments to income from continuing
operations:
Depreciation and amortization
137.3
109.2
Equity-based compensation
25.9
20.2
Deferred income tax (benefit) expense
(20.6
)
(27.6
)
(Gain) loss on sale of businesses
(47.8
)
8.1
Loss (gain) on sale of long-lived
assets
0.5
(0.1
)
Other non-cash charges, net
30.5
29.0
Changes in assets and liabilities:
Change in receivables
(43.2
)
(39.2
)
Change in inventories
2.0
(34.4
)
Change in contract assets
(7.9
)
(0.3
)
Change in contract liabilities
(0.9
)
23.1
Change in accounts payable
1.8
26.3
Change in accrued expenses
(10.8
)
47.6
Change in income taxes
(2.1
)
5.4
Other, net
(20.5
)
(40.7
)
Net Cash – Operating Activities
562.6
538.0
Investing Activities
Capital expenditures
(123.9
)
(107.6
)
Proceeds from sale of business
177.9
11.5
Proceeds from sale of long-lived
assets
1.6
0.9
Acquisitions, net of cash acquired
(864.8
)
(79.3
)
Payments to acquire interest in
unconsolidated subsidiaries
(2.6
)
(2.5
)
Other, net
(6.1
)
(4.0
)
Net Cash – Investing Activities
(817.9
)
(181.0
)
Financing Activities
Commercial paper, net borrowings
239.5
(266.0
)
Long-term debt issued, net of debt
issuance costs
763.9
—
Long-term debt, repayments
(537.4
)
(2.2
)
Share repurchases under repurchase
plan
(104.5
)
(60.0
)
Payments for taxes related to net share
settlement of stock incentive plans
(14.2
)
(7.2
)
Dividends paid
(104.7
)
(95.8
)
Other, net
(7.7
)
(1.1
)
Net Cash – Financing Activities
234.9
(432.3
)
Exchange rate effects on cash and cash
equivalents
(29.0
)
3.6
Net cash from discontinued operations –
operating activities
(0.5
)
(0.3
)
Net change in cash and cash
equivalents
(49.9
)
(72.0
)
Cash and cash equivalents – beginning of
year (includes restricted cash of $0.7 and $0.7, respectively)
489.9
561.9
Cash and cash equivalents – end of year
(includes restricted cash of $0.7 and $0.7, respectively)
$
440.0
$
489.9
Supplemental Disclosures of Cash Flow
and Non-Cash Information:
Cash paid for Interest
$
33.4
$
15.7
Cash paid for Income taxes, net of refunds
received
$
128.6
$
113.1
Capital expenditures included in current
liabilities
$
31.2
$
25.3
Key Performance Indicators and Non-GAAP
Measures
ITT reviews a variety of key performance indicators including
revenue, operating income and margin, earnings per share, order
growth, and backlog. In addition, we consider certain measures to
be useful to management and investors when evaluating our operating
performance for the periods presented. These measures provide a
tool for evaluating our ongoing operations and management of assets
from period to period. This information can assist investors in
assessing our financial performance and measures our ability to
generate capital for deployment among competing strategic
alternatives and initiatives, including, but not limited to,
acquisitions, dividends, and share repurchases. Some of these
metrics, however, are not measures of financial performance under
accounting principles generally accepted in the United States of
America (GAAP) and should not be considered a substitute for
measures determined in accordance with GAAP. We consider the
following non-GAAP measures, which may not be comparable to
similarly titled measures reported by other companies, to be key
performance indicators for purposes of our reconciliation
tables.
Organic Revenues and Organic Orders are defined,
respectively, as revenue and orders, excluding the impacts of
foreign currency fluctuations, acquisitions, and divestitures that
may or may not qualify as discontinued operations. Current year
activity from acquisitions is excluded for twelve months following
the closing date of acquisition. The period-over-period change
resulting from foreign currency fluctuations is estimated using a
fixed exchange rate for both the current and prior periods. Prior
year revenue and orders are adjusted to exclude activity during the
comparable period for twelve months post-closing date for
divestitures that do not qualify as discontinued operations. We
believe that reporting organic revenue and organic orders provide
useful information to investors by helping identify underlying
trends in our business and facilitating comparisons of our revenue
performance with prior and future periods and to our peers.
Adjusted Operating Income is defined as operating income
adjusted to exclude special items that include, but are not limited
to, restructuring, certain asset impairment charges, certain
acquisition- and divestiture-related impacts, and unusual or
infrequent operating items. Special items represent charges or
credits that impact current results, which management views as
unrelated to the Company's ongoing operations and performance.
Adjusted Operating Margin is defined as adjusted operating
income divided by revenue. We believe these financial measures are
useful to investors and other users of our financial statements in
evaluating ongoing operating profitability, as well as in
evaluating operating performance in relation to our
competitors.
Adjusted Income from Continuing Operations is defined as
income from continuing operations attributable to ITT Inc. adjusted
to exclude special items that include, but are not limited to,
restructuring, certain asset impairment charges, certain
acquisition- and divestiture-related impacts, income tax
settlements or adjustments, and unusual or infrequent items.
Special items represent charges or credits, on an after-tax basis,
that impact current results, which management views as unrelated to
the Company’s ongoing operations and performance. The after-tax
basis of each special item is determined using the jurisdictional
tax rate of where the expense or benefit occurred and the tax
deductibility under local tax rules. Adjusted Income from
Continuing Operations per Diluted Share (Adjusted EPS) is
defined as adjusted income from continuing operations divided by
diluted weighted average common shares outstanding. We believe that
adjusted income from continuing operations and adjusted EPS are
useful to investors and other users of our financial statements in
evaluating ongoing operating profitability, as well as in
evaluating operating performance in relation to our
competitors.
Free Cash Flow is defined as net cash provided by
operating activities less capital expenditures. Free Cash Flow
Margin is defined as free cash flow divided by revenue. We
believe that free cash flow and free cash flow margin provide
useful information to investors as it provides insight into a
primary cash flow metric used by management to monitor and evaluate
cash flows generated by our operations.
ITT Inc. Non-GAAP Reconciliation
Statements (In millions; all amounts unaudited)
Reconciliation of Revenue to Organic
Revenue
Fourth Quarter 2024
Full Year 2024
MT
IP
CCT
Elim
Total
MT
IP
CCT
Elim
Total
2024 Revenue
$
326.0
$
362.6
$
241.0
$
(0.6
)
$
929.0
$
1,447.8
$
1,361.0
$
825.1
$
(3.2
)
$
3,630.7
Less: Acquisitions
—
49.0
51.5
—
100.5
—
156.2
73.9
—
230.1
Less: Foreign currency translation
(1.3
)
(6.1
)
(0.7
)
—
(8.1
)
(9.7
)
(13.0
)
(2.0
)
—
(24.7
)
2024 Organic revenue
$
327.3
$
319.7
$
190.2
$
(0.6
)
$
836.6
$
1,457.5
$
1,217.8
$
753.2
$
(3.2
)
$
3,425.3
2023 Revenue
$
364.7
$
289.7
$
175.6
$
(0.9
)
$
829.1
$
1,457.8
$
1,129.6
$
699.4
$
(3.8
)
$
3,283.0
Less: Divestitures
37.3
—
1.8
—
39.1
68.7
—
10.2
0.1
79.0
2023 Organic revenue
$
327.4
$
289.7
$
173.8
$
(0.9
)
$
790.0
$
1,389.1
$
1,129.6
$
689.2
$
(3.9
)
$
3,204.0
Organic Revenue Growth - $
$
(0.1
)
$
30.0
$
16.4
$
46.6
$
68.4
$
88.2
$
64.0
$
221.3
Organic Revenue Growth - %
—
%
10.4
%
9.4
%
5.9
%
4.9
%
7.8
%
9.3
%
6.9
%
Reported Revenue Growth - $
$
(38.7
)
$
72.9
$
65.4
$
99.9
$
(10.0
)
$
231.4
$
125.7
$
347.7
Reported Revenue Growth - %
(10.6
)%
25.2
%
37.2
%
12.0
%
(0.7
)%
20.5
%
18.0
%
10.6
%
Reconciliation of Orders to Organic
Orders
Fourth Quarter 2024
Full Year 2024
MT
IP
CCT
Elim
Total
MT
IP
CCT
Elim
Total
2024 Orders
$
321.2
$
372.0
$
222.4
$
(0.8
)
$
914.8
$
1,471.6
$
1,484.6
$
833.0
$
(3.5
)
$
3,785.7
Less: Acquisitions
—
54.2
49.0
—
103.2
—
206.0
61.8
—
267.8
Less: Foreign currency translation
(0.7
)
(2.7
)
(0.5
)
—
(3.9
)
(8.6
)
(7.6
)
(2.1
)
—
(18.3
)
2024 Organic orders
$
321.9
$
320.5
$
173.9
$
(0.8
)
$
815.5
$
1,480.2
$
1,286.2
$
773.3
$
(3.5
)
$
3,536.2
2023 Orders
$
373.0
$
285.9
$
183.1
$
(0.9
)
$
841.1
$
1,487.5
$
1,227.0
$
738.3
$
(3.3
)
$
3,449.5
Less: Divestitures
37.3
—
1.7
—
39.0
68.7
—
7.3
—
76.0
2023 Organic orders
$
335.7
$
285.9
$
181.4
$
(0.9
)
$
802.1
$
1,418.8
$
1,227.0
$
731.0
$
(3.3
)
$
3,373.5
Organic Orders Growth - $
$
(13.8
)
$
34.6
$
(7.5
)
$
13.4
$
61.4
$
59.2
$
42.3
$
162.7
Organic Orders Growth - %
(4.1
)%
12.1
%
(4.1
)%
1.7
%
4.3
%
4.8
%
5.8
%
4.8
%
Reported Orders Growth - $
$
(51.8
)
$
86.1
$
39.3
$
73.7
$
(15.9
)
$
257.6
$
94.7
$
336.2
Reported Orders Growth - %
(13.9
)%
30.1
%
21.5
%
8.8
%
(1.1
)%
21.0
%
12.8
%
9.7
%
Note: Immaterial differences due to
rounding.
ITT Inc. Non-GAAP Reconciliation
Statements (In millions; all amounts unaudited)
Reconciliations of Operating
Income/Margin to Adjusted Operating Income/Margin
Fourth Quarter 2024
Fourth Quarter 2023
MT
IP
CCT
Corporate
ITT
MT
IP
CCT
Corporate
ITT
Reported Operating Income
$
62.8
$
76.9
$
39.9
$
(19.7
)
$
159.9
$
60.3
$
57.2
$
16.5
$
(15.2
)
$
118.8
Loss on sale of businesses
—
—
—
—
—
—
—
15.3
—
15.3
Restructuring costs
0.4
0.5
0.6
—
1.5
2.5
3.7
0.9
—
7.1
Acquisition-related expenses
—
0.1
1.6
—
1.7
—
—
0.8
—
0.8
Impacts related to Russia-Ukraine war
(0.3
)
—
—
—
(0.3
)
(0.6
)
(0.6
)
—
—
(1.2
)
Other special items
—
—
—
—
—
0.1
0.1
(0.1
)
—
0.1
Adjusted Operating Income
$
62.9
$
77.5
$
42.1
$
(19.7
)
$
162.8
$
62.3
$
60.4
$
33.4
$
(15.2
)
$
140.9
Change in Operating Income
4.1
%
34.4
%
141.8
%
29.6
%
34.6
%
Change in Adjusted Operating Income
1.0
%
28.3
%
26.0
%
29.6
%
15.5
%
Reported Operating Margin
19.3
%
21.2
%
16.6
%
17.2
%
16.5
%
19.7
%
9.4
%
14.3
%
Impact of special item adjustments
0 bps
20 bps
90 bps
30 bps
60 bps
110 bps
960 bps
270 bps
Adjusted Operating Margin
19.3
%
21.4
%
17.5
%
17.5
%
17.1
%
20.8
%
19.0
%
17.0
%
Change in Operating Margin
280 bps
150 bps
720 bps
290 bps
Change in Adjusted Operating Margin
220 bps
60 bps
-150 bps
50 bps
Full Year 2024
Full Year 2023
MT
IP
CCT
Corporate
ITT
MT
IP
CCT
Corporate
ITT
Reported Operating Income
$
314.6
$
276.3
$
146.1
$
(61.0
)
$
676.0
$
230.8
$
243.6
$
107.5
$
(53.7
)
$
528.2
(Gain) loss on sale of businesses
(47.8
)
—
—
—
(47.8
)
—
—
15.3
—
15.3
Restructuring costs
2.7
3.0
2.4
—
8.1
4.0
4.6
1.3
—
9.9
Acquisition-related expenses
—
4.2
2.8
—
7.0
—
—
2.4
—
2.4
Impacts related to Russia-Ukraine war
(0.6
)
—
—
—
(0.6
)
1.3
1.2
—
—
2.5
Other special items [a]
—
—
—
—
—
0.1
—
(0.1
)
(3.7
)
(3.7
)
Adjusted Operating Income
$
268.9
$
283.5
$
151.3
$
(61.0
)
$
642.7
$
236.2
$
249.4
$
126.4
$
(57.4
)
$
554.6
Change in Operating Income
36.3
%
13.4
%
35.9
%
13.6
%
28.0
%
Change in Adjusted Operating Income
13.8
%
13.7
%
19.7
%
6.3
%
15.9
%
Reported Operating Margin
21.7
%
20.3
%
17.7
%
18.6
%
15.8
%
21.6
%
15.4
%
16.1
%
Impact of special item adjustments
-310 bps
50 bps
60 bps
-90 bps
40 bps
50 bps
270 bps
80 bps
Adjusted Operating Margin
18.6
%
20.8
%
18.3
%
17.7
%
16.2
%
22.1
%
18.1
%
16.9
%
Change in Operating Margin
590 bps
-130 bps
230 bps
250 bps
Change in Adjusted Operating Margin
240 bps
-130 bps
20 bps
80 bps
Note: Immaterial differences due to
rounding.
[a] 2023 includes income from a recovery
of costs associated with the 2020 lease termination of a legacy
site.
ITT Inc. Non-GAAP Reconciliation
Statements (In millions; all amounts unaudited)
Reconciliation of Reported vs.
Adjusted Income from Continuing Operating and Diluted EPS
Income from Continuing
Operations
Diluted Earnings per Share
Q4
2024
Q4
2023
%
Change
FY
2024
FY
2023
%
Change
Q4
2024
Q4
2023
%
Change
FY
2024
FY
2023
%
Change
Reported
$
126.9
$
92.4
37.3
%
$
518.4
$
411.4
26.0
%
$
1.55
$
1.12
38.4
%
$
6.30
$
4.97
26.8
%
Special Items Expense / (Income):
(Gain) loss on sale of businesses [a]
—
15.3
(47.8
)
15.3
—
0.19
(0.58
)
0.19
Restructuring costs
1.5
7.1
8.1
9.9
0.01
0.09
0.09
0.12
Acquisition-related costs
1.7
0.8
7.0
2.4
0.02
0.01
0.08
0.03
Impacts related to Russia-Ukraine war
(0.3
)
(1.2
)
(0.6
)
2.5
—
(0.01
)
(0.01
)
0.03
Other pre-tax special items [b]
—
0.1
—
(2.3
)
—
(0.01
)
—
(0.04
)
Net tax benefit of pre-tax special
items
(0.4
)
(5.4
)
(3.3
)
(6.2
)
—
(0.07
)
(0.04
)
(0.07
)
Other tax-related special items [c][d]
(6.7
)
1.8
0.5
(2.0
)
(0.08
)
0.02
0.02
(0.02
)
Adjusted
$
122.7
$
110.9
10.6
%
$
482.3
$
431.0
11.9
%
$
1.50
$
1.34
11.9
%
$
5.86
$
5.21
12.5
%
Note: Amounts may not calculate due to
rounding.
Per share amounts are based on diluted
weighted average common shares outstanding.
[a]
The (gain) loss on sale of businesses
reflects the divestiture of Wolverine in Q3 2024 and the
divestiture of Matrix in Q4 2023.
[b]
FY 2023 primarily includes income of $3.7
from a recovery of costs associated with the 2020 lease termination
of a legacy site, partially offset by interest expense of $1.4
related to a tax audit settlement in Italy.
[c]
Q4 2024 includes tax benefit from
valuation allowance impacts of ($8.9M), tax benefit on
undistributed foreign earnings ($7.6M), tax expense on
distributions of $7.1M, tax expense from tax rate change impacts of
$1.9M, and other tax expense items totaling $0.8M. Full year 2024
includes tax expense on distributions of $12.5M, tax benefit from
valuation allowance impacts of ($6.7M), tax benefit on
undistributed foreign earnings of ($5.7M), tax benefit related to
the Micro-Mode acquisition of ($2.2M), tax expense from tax rate
change impacts of $1.6M, and other tax expense items totaling
$1.0M.
[d]
Q4 2023 tax-related special items include
expense (benefits) from the tax impact on distributions of $5.9,
return to accrual adjustments of $(1.8), a change in uncertain tax
positions of $(1.5) and other tax special items of $(0.8). FY 2023
tax-related special items include expense (benefits) from valuation
allowance reversals of $(16.4), settlements of $14.4 primarily
related to a tax audit in Italy, the tax impact on distributions of
$7.5, an amendment of our federal tax return of $(4.9), and other
tax special items of $(2.6).
ITT Inc. Non-GAAP Reconciliation
Statements (In millions; all amounts unaudited)
Reconciliation of GAAP vs
Adjusted EPS Guidance - Full Year 2025
2025 Full-Year
Guidance
Low
High
EPS from Continuing Operations - GAAP
$
6.05
$
6.45
Estimated restructuring
0.05
0.05
Other special items
0.01
0.01
Tax on special Items
(0.01
)
(0.01
)
EPS from Continuing Operations -
Adjusted
$
6.10
$
6.50
Note: The Company has provided
forward-looking non-GAAP financial measures for organic revenue
growth and adjusted operating margin. It is not possible, without
unreasonable efforts, to estimate the impacts of foreign currency
fluctuations, acquisitions, divestitures, and certain other special
items that may occur in 2025 as these items are inherently
uncertain and difficult to predict. As a result, the Company is
unable to quantify certain amounts that would be included in a
reconciliation of organic revenue growth and adjusted operating
margin to the most directly comparable GAAP financial measures
without unreasonable efforts and accordingly has not provided
reconciliations for these forward looking non-GAAP financial
measures.
ITT Inc. Non-GAAP Reconciliation
Statements (In millions; all amounts unaudited)
Reconciliation of Cash from
Operating Activities to Free Cash Flow
Three Months Ended
Full Year Ended
FY 2025 Guidance
12/31/2024
12/31/2023
12/31/2024
12/31/2023
Low
High
Net Cash - Operating Activities
$
223.2
$
170.4
$
562.6
$
538.0
$
575
$
625
Less: Capital expenditures
36.4
39.1
123.9
107.6
125
125
Free Cash Flow
$
186.8
$
131.3
$
438.7
$
430.4
$
450
$
500
Revenue
$
929.0
$
829.1
$
3,630.7
$
3,283.0
$
3,720
$
3,720
[a]
Operating Cash Flow Margin
24.0
%
20.6
%
15.5
%
16.4
%
15
%
17
%
Free Cash Flow Margin
20.1
%
15.8
%
12.1
%
13.1
%
12
%
13
%
[a] Revenue included in the full year 2025
free cash flow margin guidance represents the expected revenue
growth mid-point.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250206546298/en/
Investor Contact Mark Macaluso +1 914-641-2064
mark.macaluso@itt.com
Media Contact Phil Terrigno +1 914-641-2143
phil.terrigno@itt.com
ITT (NYSE:ITT)
Graphique Historique de l'Action
De Jan 2025 à Fév 2025
ITT (NYSE:ITT)
Graphique Historique de l'Action
De Fév 2024 à Fév 2025
