ITT Announces Preliminary 2025 First Quarter Results and Intent to Repurchase up to $500 Million of ITT Shares
ITT Inc. (NYSE: ITT) has released preliminary Q1 2025 financial results, reporting orders of $1.0 billion, showing 7% growth (2% organic), driven by pump project and connectors awards. Revenue exceeded $900 million, remaining flat on both GAAP and organic basis, with strength in pumps aftermarket, connectors and rail, offset by lower aerospace demand.
The company achieved an operating margin of 16.5% and adjusted operating margin of 17.4%, with earnings per share projected between $1.29-$1.35 and adjusted EPS of $1.43-$1.45. Net cash from operations is expected at $107-117 million, with free cash flow of $70-80 million.
Additionally, ITT announced plans to repurchase up to $500 million of shares under its existing $1 billion authorization plan, while maintaining capacity for future acquisitions and its investment grade credit rating.
ITT Inc. (NYSE: ITT) ha rilasciato i risultati finanziari preliminari per il primo trimestre del 2025, riportando ordini per 1,0 miliardi di dollari, con una crescita del 7% (2% organica), sostenuta da progetti di pompe e assegnazioni di connettori. I ricavi hanno superato 900 milioni di dollari, rimanendo stabili sia in termini GAAP che organici, con una solidità nel mercato post-vendita delle pompe, nei connettori e nelle ferrovie, compensata da una domanda inferiore nel settore aerospaziale.
L'azienda ha raggiunto un margine operativo del 16,5% e un margine operativo rettificato del 17,4%, con utili per azione previsti tra $1,29 e $1,35 e un EPS rettificato di $1,43-$1,45. Si prevede che il flusso di cassa netto dalle operazioni si attesti tra $107 e $117 milioni, con un flusso di cassa libero di $70-$80 milioni.
Inoltre, ITT ha annunciato piani per riacquistare fino a 500 milioni di dollari di azioni nell'ambito del suo piano di autorizzazione esistente da 1 miliardo di dollari, mantenendo la capacità per future acquisizioni e il suo rating creditizio di investimento.
ITT Inc. (NYSE: ITT) ha publicado resultados financieros preliminares para el primer trimestre de 2025, reportando órdenes de 1.0 mil millones de dólares, mostrando un crecimiento del 7% (2% orgánico), impulsado por proyectos de bombas y premios de conectores. Los ingresos superaron los 900 millones de dólares, manteniéndose estables tanto en base GAAP como orgánica, con fortaleza en el mercado de postventa de bombas, conectores y ferrocarriles, compensada por una menor demanda en el sector aeroespacial.
La compañía logró un margen operativo del 16.5% y un margen operativo ajustado del 17.4%, con ganancias por acción proyectadas entre $1.29 y $1.35 y un EPS ajustado de $1.43 a $1.45. Se espera que el flujo de efectivo neto de las operaciones se sitúe entre $107 y $117 millones, con un flujo de caja libre de $70 a $80 millones.
Además, ITT anunció planes para recomprar hasta 500 millones de dólares en acciones bajo su plan de autorización existente de 1 mil millones de dólares, manteniendo capacidad para futuras adquisiciones y su calificación crediticia de grado de inversión.
ITT Inc. (NYSE: ITT)는 2025년 1분기 예비 재무 결과를 발표하며 10억 달러의 주문을 보고하고, 7% 성장(2% 유기적)을 기록했습니다. 이는 펌프 프로젝트와 커넥터 수주에 의해 주도되었습니다. 수익은 9억 달러를 초과했으며, GAAP 및 유기적 기준 모두에서 평평하게 유지되었고, 펌프 애프터마켓, 커넥터 및 철도에서 강세를 보였지만 항공우주 수요 감소로 상쇄되었습니다.
회사는 운영 마진 16.5%와 조정된 운영 마진 17.4%를 달성했으며, 주당 수익은 $1.29에서 $1.35 사이로 예상되며 조정된 EPS는 $1.43에서 $1.45 사이입니다. 운영에서의 순 현금은 $1억 7천만에서 $1억 1천7백만 달러로 예상되며, 자유 현금 흐름은 $7천만에서 $8천만 달러로 예상됩니다.
또한, ITT는 최대 5억 달러의 자사주 매입 계획을 발표했으며, 기존의 10억 달러 승인 계획 하에 있으며, 향후 인수 및 투자 등급 신용 등급을 유지할 수 있는 능력을 갖추고 있습니다.
ITT Inc. (NYSE: ITT) a publié des résultats financiers préliminaires pour le premier trimestre 2025, rapportant des commandes de 1,0 milliard de dollars, affichant une croissance de 7% (2% organique), soutenue par des projets de pompes et des attributions de connecteurs. Les revenus ont dépassé 900 millions de dollars, restant stables tant sur une base GAAP qu'organique, avec une solidité sur le marché après-vente des pompes, des connecteurs et des chemins de fer, compensée par une demande plus faible dans le secteur aérospatial.
L'entreprise a atteint un marge opérationnelle de 16,5% et une marge opérationnelle ajustée de 17,4%, avec des bénéfices par action projetés entre 1,29 et 1,35 dollar et un BPA ajusté de 1,43 à 1,45 dollar. Le flux de trésorerie net provenant des opérations est prévu entre 107 et 117 millions de dollars, avec un flux de trésorerie libre de 70 à 80 millions de dollars.
De plus, ITT a annoncé des plans pour racheter jusqu'à 500 millions de dollars d'actions dans le cadre de son plan d'autorisation existant de 1 milliard de dollars, tout en maintenant la capacité pour de futures acquisitions et sa notation de crédit de qualité investissement.
ITT Inc. (NYSE: ITT) hat vorläufige Finanzzahlen für das erste Quartal 2025 veröffentlicht und berichtet von Bestellungen in Höhe von 1,0 Milliarden Dollar, was einem Wachstum von 7% (2% organisch) entspricht, angetrieben durch Pumpenprojekte und Auszeichnungen für Stecker. Der Umsatz überstieg 900 Millionen Dollar und blieb sowohl auf GAAP- als auch auf organischer Basis stabil, mit Stärke im Pumpen-Nachmarkt, Steckern und Schienen, die durch eine geringere Nachfrage im Luft- und Raumfahrtsektor ausgeglichen wurde.
Das Unternehmen erzielte eine operativen Marge von 16,5% und eine angepasste operative Marge von 17,4%, mit einem Gewinn pro Aktie, der zwischen 1,29 und 1,35 Dollar prognostiziert wird, und einem angepassten EPS von 1,43 bis 1,45 Dollar. Der Netto-Cashflow aus dem operativen Geschäft wird zwischen 107 und 117 Millionen Dollar erwartet, mit einem freien Cashflow von 70 bis 80 Millionen Dollar.
Zusätzlich kündigte ITT Pläne an, bis zu 500 Millionen Dollar an Aktien im Rahmen seines bestehenden Genehmigungsplans von 1 Milliarde Dollar zurückzukaufen, während die Fähigkeit für zukünftige Akquisitionen und seine Investitionsgrad-Kreditwürdigkeit aufrechterhalten wird.
- Orders growth of 7% to $1.0 billion
- Strong performance in pumps aftermarket, connectors, and rail segments
- Healthy operating margin of 16.5% and adjusted margin of 17.4%
- $500 million share repurchase plan announced
- Lower aerospace demand impacting performance
- Flat revenue growth on both GAAP and organic basis
- Operating margins impacted by unfavorable foreign currency
Insights
ITT's preliminary Q1 2025 results present a mixed picture with encouraging order growth offset by flat revenue performance. The 7% increase in orders (2% organically) signals potential revenue acceleration in coming quarters, particularly in pump projects and connectors. However, current revenue remains flat year-over-year at approximately
The significant share repurchase plan of up to
Operating margins of
Most encouraging is management's statement that they maintain capacity for further acquisitions while preserving their investment grade credit rating, suggesting a strong balance sheet with significant financial flexibility. This balanced capital allocation approach—combining share repurchases with potential M&A—points to a company confident in its operational performance and strategic direction despite some near-term revenue challenges.
-
Orders of
$1.0 billion 7% or2% on an organic basis, driven by pump project and connectors awards -
Revenue of more than
$900 million -
Operating margin of
16.5% and adjusted operating margin of17.4% , impacted by unfavorable foreign currency -
Earnings per share (EPS) of
$1.29 $1.35 $1.43 $1.45 -
Net cash from operating activities of
$107 million $117 million $70 million $80 million
The company will discuss its full year outlook and further details on its first quarter financial results on an investor conference call on May 1 at 8:30 a.m. ET.
As previously announced in 2023, ITT’s Board of Directors approved an indefinite term
These preliminary financial results are based on a weighted average share count of 81.7 million shares and assume an expected effective tax rate of
2025 First Quarter Conference Call
The company will host a conference call at 8:30 a.m. Eastern Time on May 1 to discuss its full year outlook and first quarter financial results. To participate on the conference call, click here to register. After completing the online registration form, participants will receive the dial-in number and a unique PIN. Participants should join the call ten minutes before 8:30 a.m. ET on Thursday, May 1.
A real-time audio webcast of the presentation will also be available at https://investors.itt.com, where related materials will be available prior to the presentation. A replay of the webcast will be available beginning two hours after the call.
Reconciliations of non-GAAP financial performance metrics to their most comparable
About ITT
ITT is a diversified leading manufacturer of highly engineered critical components and customized technology solutions for the transportation, industrial, and energy markets. Building on its heritage of innovation, ITT partners with its customers to deliver enduring solutions to the key industries that underpin our modern way of life. ITT is headquartered in
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 and 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; -
the imposition of new or increased tariffs by the
U.S. government, particularly those targeting imports from specific countries, and the potential for retaliatory trade measures by affected countries, which could disrupt global supply chains, increase costs and reduce customer demand; - 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.
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
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. 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/Orders to Organic Revenue/Orders |
|||||||
|
|
Revenue |
|
Orders |
||||
|
Q1 2025 Revenue / Orders |
$ |
913.0 |
|
|
$ |
1,046.5 |
|
|
Less: Acquisitions |
|
57.5 |
|
|
|
103.1 |
|
|
Less: Foreign currency translation |
|
(16.0 |
) |
|
|
(16.3 |
) |
|
Q1 2025 Organic revenue / orders |
$ |
871.5 |
|
|
$ |
959.7 |
|
|
Q1 2024 Revenue / Orders |
$ |
910.6 |
|
|
$ |
976.2 |
|
|
Less: Divestitures |
|
39.5 |
|
|
|
39.5 |
|
|
Q1 2024 Organic revenue / orders |
$ |
871.1 |
|
|
$ |
936.7 |
|
|
Organic Revenue / Orders Growth - $ |
$ |
0.4 |
|
|
$ |
23.0 |
|
|
Organic Revenue / Orders Growth - % |
|
— |
% |
|
|
2.5 |
% |
|
|
|
|
|
||||
|
Reported Revenue / Orders Growth - $ |
$ |
2.4 |
|
|
$ |
70.3 |
|
|
Reported Revenue / Orders Growth - % |
|
0.3 |
% |
|
|
7.2 |
% |
|
|
|
|
|
||||
ITT Inc. Non-GAAP Reconciliation Statements (In millions; all amounts unaudited) |
|||
Reconciliation of Operating Income/Margin to Adjusted Operating Income/Margin |
|||
|
Q1 2025 |
||
Reported Operating Income |
$ |
150.9 |
|
Restructuring costs |
|
6.5 |
|
Other special items |
|
1.9 |
|
Adjusted Operating Income |
$ |
159.3 |
|
|
|
||
Reported Operating Margin |
|
16.5 |
% |
Impact of special item adjustments |
90 |
bps |
|
Adjusted Operating Margin |
|
17.4 |
% |
|
|
||
ITT Inc. Non-GAAP Reconciliation Statements (all amounts unaudited) |
|||
|
Reconciliation of Reported vs. Adjusted EPS |
||
|
|
|
Q1 2025 |
|
Reported |
|
|
|
Special Items Expense / (Income): |
|
|
|
Restructuring costs |
|
0.08 |
|
Other |
|
0.02 |
|
Net tax benefit of pre-tax special items |
|
(0.02) |
|
Tax-related special items |
|
0.02 - 0.06 |
|
Adjusted |
|
|
|
|
|
|
|
Per share amounts are based on diluted weighted average common shares outstanding. |
||
|
|
|
|
|
|
||
ITT Inc. Non-GAAP Reconciliation Statements (In millions; all amounts unaudited) |
|
Reconciliation of Cash from Operating Activities to Free Cash Flow |
|
|
Q1 2025 |
Net Cash - Operating Activities |
|
Less: Capital expenditures |
|
Free Cash Flow |
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250410385018/en/
Media:
Phil Terrigno
+1 914-641-2143
phil.terrigno@itt.com
Investors:
Mark Macaluso
+1 914-641-2064
mark.macaluso@itt.com
Source: ITT Inc.
FAQ
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