ITT (ITT) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue rose 8% year-over-year to $885.2M, with all segments contributing to organic growth and margin expansion, supported by the acquisitions of Svanehøj and K-SARIA and a $48M gain from the Wolverine divestiture.

• Adjusted EPS grew 7% to $1.46 (9% excluding Wolverine divestiture), while diluted EPS was $1.96, up 46% year-over-year.

• Record backlog reached $1.7B, up 34% year-over-year, driven by robust order growth and major project awards in key markets.

• Raised full-year adjusted EPS guidance midpoint to $5.83, with revenue and margin guidance also increased, reflecting continued operational strength.

• Over $1B in capital deployed year-to-date, including acquisitions and share repurchases, with $183M returned to shareholders.

Financial highlights

• Q3 2024 revenue was $885.2M, up 8% year-over-year, with organic growth of 6%.

• Adjusted operating income was $162M (18.3% margin), up from $146M (17.7%) in Q3 2023; gross profit rose 12% to $314.0M.

• Adjusted EPS for Q3 was $1.46, overcoming FX, higher interest expense, and divestiture impacts.

• Free cash flow for Q3 was $87M, with full-year guidance at ~$450M (~12% margin).

• Operating margin expanded by 610 bps to 23.5%, with adjusted margin up 60 bps to 18.3%.

Outlook and guidance

• Full-year 2024 revenue growth guidance raised to 10–12% (5–7% organic); adjusted EPS guidance increased to $5.80–$5.86.

• Margin expansion expected from volume growth, productivity, and favorable price/cost dynamics.

• Free cash flow for 2024 expected to be ~$450M, representing ~12% margin.

• Management expects sufficient liquidity to fund operations for at least the next 12 months and beyond.

• Q4 growth expected to be low double digits, with Svanehøj and K-SARIA offsetting divestiture impact; organic top-line growth in low single digits.