ITT (ITT) Q4 2024 earnings summary

Executive summary

• Achieved double-digit revenue and EPS growth in 2024, with Q4 revenue up 12% (6% organic) and adjusted EPS up 12% to $1.50; full-year adjusted EPS reached $5.86.

• Completed strategic portfolio transformation through the divestiture of Wolverine and acquisitions of Svanehøj and kSARIA, shifting focus to higher-growth, higher-margin segments.

• Maintained a record backlog of $1.6 billion, up 34% year-over-year, positioning for continued growth.

• Surpassed long-term margin targets ahead of plan, with continued focus on execution, innovation, and portfolio transformation.

• Deployed over $1 billion in capital in 2024, including $865 million for acquisitions and over $200 million returned to shareholders.

Financial highlights

• FY 2024 revenue: $3.63B (+11% total, +7% organic); Q4 revenue: $929M (+12% total, +6% organic); adjusted operating margin: 17.7% (+80 bps); Q4 margin: 17.5%.

• Adjusted EPS: $5.86 (+12% year-over-year); Q4 adjusted EPS: $1.50 (+12%).

• Free cash flow: $439M for 2024 (12.1% margin); Q4 free cash flow up 42% to $187M (20% margin).

• Operating income grew 16% in 2024; Q4 operating income up 35% to $160M.

• Quarterly dividend increased 10% to $0.351 per share, continuing a 16% CAGR since 2020.

Outlook and guidance

• 2025 revenue expected to exceed $3.7 billion, with 3–5% organic growth and total growth of 2–4%.

• Adjusted operating margin guidance: 18.0–19.0% (+40 to +130 bps); adjusted EPS: $6.10–$6.50 (+4–11%).

• Free cash flow projected at $450–$500 million (12–13% margin); >$0.20 EPS contribution from recent acquisitions.

• Q1 2025 expected to be soft, with EPS flat to slightly up, but growth ramping through the year.

• Segment outlook: CCT and IP mid-single-digit organic growth; MT low-single-digit growth due to softness in vehicle production.