- 7% orders growth (2% organic), driven by pump project and
connectors awards, including strong contributions from
acquisitions, surpassing $1.0 billion in orders for the
quarter
- Revenue of over $900 million, driven by defense connectors and
rail, offset by lower aerospace demand
- 16.5% operating margin (17.4% adjusted), driven by productivity
and pricing actions, offsetting unfavorable foreign currency
impact
- Net cash from operating activities of $113 million; free cash
flow of $77 million
May 1, 2025-- ITT Inc. (NYSE: ITT) today reported financial
results for the first quarter ended March 29, 2025, consistent with
the preliminary results announced on April 10. The company reported
revenue of $913 million, flat on both a GAAP and organic basis,
reflecting growth in parts, service and valves in Industrial
Process (IP), connectors in Connect & Control Technologies
(CCT) and rail in Motion Technologies (MT), offset by lower
automotive and aerospace demand.
First quarter operating income of $151 million increased 1%
versus prior year and increased 2% on an adjusted basis due to
benefits from productivity savings and pricing actions, partially
offset by temporary acquisition amortization and higher
restructuring, material and labor costs. Operating income margin
was flat versus prior year while adjusted operating margin
increased by 30 basis points.
EPS, impacted by higher interest and tax expenses, decreased 1%
for the first quarter versus prior year. Adjusted EPS of $1.45
increased 2% compared to prior year, driven by productivity and
pricing actions.
Net cash from operating activities for the first quarter of $113
million increased 96% versus prior year primarily driven by
favorable working capital and timing of customer payments. Free
cash flow for the quarter of $77 million increased $47 million, or
154% versus prior year.
Table 1. First Quarter Performance
Q1
2025
Q1
2024
Change
Revenue
$
913.0
$
910.6
0.3
%
Organic Growth
—
%
Operating Income
$
150.9
$
149.9
0.7
%
Operating Margin
16.5
%
16.5
%
—
bps
Adjusted Operating Income
$
159.3
$
155.7
2.3
%
Adjusted Operating Margin
17.4
%
17.1
%
30
bps
Earnings Per Share
$
1.33
$
1.35
(1.5
)
%
Adjusted Earnings Per Share
$
1.45
$
1.42
2.1
%
Net Cash from Operating Activities
$
113.4
$
57.8
96.2
%
Free Cash Flow
$
76.6
$
30.1
154.5
%
Note: all results unaudited;
dollars in millions except for per share amounts
Management Commentary
“ITT delivered a solid first quarter performance to begin 2025
with results in-line with our April pre-announcement, as expected.
We surpassed $1 billion of orders in a quarter for the first time
and entered Q2 with a $1.8 billion backlog, a 21% increase versus
last year and up 10% sequentially. We expanded adjusted margin 30
basis points, driven by continued operational improvements and
pricing and grew adjusted EPS 7% excluding the 2024 divestiture of
Wolverine.
Also, this quarter we launched VIDAR, a game-changing industrial
motor, enabling us to enter a $6 billion addressable market for
industrial motors. VIDAR delivers variable-speed technology for
industrial applications that drastically reduces costs and improves
energy efficiency for our customers. And, it is the only industrial
motor of its kind on the market.
Finally, we acted quickly to aggressively repurchase $400
million of ITT shares through April. Still, we have ample capacity
for M&A, which remains a key strategic priority for ITT. We
look forward to discussing all of this at our upcoming Capital
Markets Day on May 15,” said ITT’s Chief Executive Officer and
President Luca Savi.
Table 2. First Quarter Segment Results
Revenue
Operating Income
Operating Margin
Q1
2025
Reported
Change
Organic
Growth
Q1
2025
Reported
Change
Adjusted
Change
Q1
2025
Reported
Change
Adjusted
Change
Motion Technologies
346.1
(11.8
)%
0.5
%
67.6
(4.2
)%
(3.9
)%
19.5
%
150 bps
160 bps
Industrial Process
333.3
(0.2
)%
(1.0
)%
63.5
(1.6
)%
0.4
%
19.1
%
(20) bps
10 bps
Connect & Control
Technologies
234.7
26.8
%
1.4
%
36.0
10.1
%
13.1
%
15.3
%
(240) bps
(200) bps
Note: all results unaudited;
excludes intercompany eliminations of $1.1; comparisons to Q1
2024
Motion Technologies revenue decreased $46 million due to
the Wolverine divestiture in the prior year and unfavorable foreign
currency impacts. Organic revenue increased $2 million due to
strength in rail, offset by lower Friction original equipment and
aftermarket demand. Operating income decreased $3 million primarily
due to lower revenue from the divestiture of Wolverine, partially
offset by productivity actions.
Industrial Process revenue was flat with strength in
parts, service, valves and Svanehøj, offset by a decline in pump
projects and baseline pumps. Operating income decreased $1 million
primarily due to higher restructuring charges and increased
personnel costs, partially offset by benefits from pricing,
productivity actions and growth from Svanehøj.
Connect & Control Technologies revenue increased $50
million primarily driven by the kSARIA acquisition, which closed in
September 2024, pricing actions and growth in defense and
industrial connectors, partially offset by lower aerospace demand.
Operating income increased $3 million primarily due to pricing,
productivity actions and contributions from kSARIA, partially
offset by higher material, labor and overhead costs.
Quarterly Dividend
The company announced today a quarterly dividend of $0.351 per
share on its outstanding common stock. ITT’s Board of Directors
approved the cash dividend for the second quarter of 2025, which
will be payable on Monday, June 30, 2025 to shareholders of record
as of the close of business on Monday, June 2, 2025.
2025 Guidance
The company is updating its 2025 full year guidance on a GAAP
basis. We now expect revenue growth of 2% to 4%, operating margin
of 17.5% to 18.4% and EPS of $5.80 to $6.20. There is no change,
however, to our 2025 full year adjusted guidance. We continue to
expect organic revenue growth of 3% to 5%; adjusted operating
margin of 18.1% to 19.0%, up 40 to 130 bps; 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. The company’s full year guidance reflects known and
management-estimated tariff impacts as of the date of this release
and does not assume any additional impacts stemming from potential
changes in trade policy or broader macroeconomic conditions.
It is not possible, without unreasonable efforts, to estimate
the impacts of foreign currency fluctuations, acquisitions 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 segment
operating margin to the most directly comparable GAAP financial
measures without unreasonable efforts and accordingly 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, May 1, 2025 at 8:30 a.m. Eastern Time. The briefing can
be accessed live via a webcast which is available on the company’s
website: https://investors.itt.com. A replay of the webcast will be
available beginning 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;
- 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.
More information on factors that could cause actual results or
events to differ materially from those anticipated is included in
our Annual Report on Form 10-K for the year ended December 31, 2024
(particularly under the caption "Risk Factors"), our Quarterly
Reports on Form 10-Q and in other documents we file from time to
time with the SEC.
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 CONDENSED
STATEMENTS OF OPERATIONS (UNAUDITED)
(IN MILLIONS, EXCEPT PER SHARE
AMOUNTS)
Three Months Ended
March 29, 2025
March 30, 2024
Revenue
$
913.0
$
910.6
Cost of revenue
596.7
609.1
Gross profit
316.3
301.5
General and administrative expenses
85.3
71.5
Sales and marketing expenses
53.2
50.1
Research and development expenses
26.9
30.0
Operating income
150.9
149.9
Interest expense
9.3
7.7
Interest income
(1.7
)
(1.8
)
Other non-operating income, net
(1.0
)
(1.5
)
Income before income tax expense
144.3
145.5
Income tax expense
35.2
33.0
Net income
109.1
112.5
Less: Income attributable to
noncontrolling interests
0.7
1.0
Net income attributable to ITT Inc.
$
108.4
$
111.5
Earnings per share attributable to ITT
Inc.:
Basic
$
1.33
$
1.36
Diluted
$
1.33
$
1.35
Weighted average common shares – basic
81.3
82.2
Weighted average common shares –
diluted
81.7
82.7
CONSOLIDATED CONDENSED BALANCE
SHEETS (UNAUDITED)
(IN MILLIONS, EXCEPT PER SHARE
AMOUNTS)
As of the Period Ended
March 29, 2025
December 31, 2024
Assets
Current assets:
Cash and cash equivalents
$
439.8
$
439.3
Receivables, net
761.6
703.0
Inventories
638.5
612.3
Other current assets
124.5
131.2
Total current assets
1,964.4
1,885.8
Non-current assets:
Plant, property and equipment, net
588.7
577.2
Goodwill
1,454.3
1,430.1
Other intangible assets, net
446.8
454.1
Other non-current assets
379.5
384.1
Total non-current assets
2,869.3
2,845.5
Total assets
$
4,833.7
$
4,731.3
Liabilities and Shareholders’
Equity
Current liabilities:
Short-term borrowings
$
732.6
$
427.6
Accounts payable
473.7
458.4
Accrued and other current liabilities
449.6
447.2
Total current liabilities
1,655.9
1,333.2
Non-current liabilities:
Non-current portion of long-term debt
4.5
232.6
Postretirement benefits
120.4
119.0
Other non-current liabilities
267.1
260.7
Total non-current liabilities
392.0
612.3
Total liabilities
2,047.9
1,945.5
Shareholders’ equity:
Common stock:
Authorized – 250.0 shares, $1 par value
per share
Issued and outstanding – 81.0 shares and
81.5 shares, respectively
81.0
81.5
Retained earnings
3,090.5
3,115.6
Accumulated other comprehensive income
(loss):
Postretirement benefits
2.0
3.2
Cumulative translation adjustments
(394.2
)
(421.5
)
Total accumulated other comprehensive
loss
(392.2
)
(418.3
)
Total ITT Inc. shareholders’ equity
2,779.3
2,778.8
Noncontrolling interests
6.5
7.0
Total shareholders’ equity
2,785.8
2,785.8
Total liabilities and shareholders’
equity
$
4,833.7
$
4,731.3
CONSOLIDATED CONDENSED
STATEMENTS OF CASH FLOWS (UNAUDITED)
(IN MILLIONS)
For the Three Months Ended
March 29, 2025
March 30, 2024
Operating Activities
Income from continuing operations
attributable to ITT Inc.
$
108.4
$
111.5
Adjustments to income from continuing
operations:
Depreciation and amortization
37.2
33.6
Equity-based compensation
7.9
7.0
Other non-cash charges, net
6.3
8.1
Changes in assets and liabilities:
Change in receivables
(43.2
)
(67.7
)
Change in inventories
(5.6
)
(1.7
)
Change in contract assets
(6.6
)
(13.5
)
Change in contract liabilities
15.9
3.3
Change in accounts payable
16.5
15.0
Change in accrued expenses
(31.7
)
(44.5
)
Change in income taxes
11.8
10.3
Other, net
(3.5
)
(3.6
)
Net Cash – Operating Activities
113.4
57.8
Investing Activities
Capital expenditures
(36.8
)
(27.7
)
Acquisitions, net of cash acquired
(1.9
)
(407.6
)
Other, net
(2.0
)
—
Net Cash – Investing Activities
(40.7
)
(435.3
)
Financing Activities
Commercial paper, net borrowings
291.8
134.7
Long-term debt issued, net of debt
issuance costs
—
299.1
Long-term debt, repayments
(229.3
)
(70.5
)
Share repurchases under repurchase
plan
(100.0
)
—
Payments for taxes related to net share
settlement of stock incentive plans
(13.0
)
(12.5
)
Dividends paid
(28.7
)
(26.5
)
Other, net
(0.7
)
(0.9
)
Net Cash – Financing Activities
(79.9
)
323.4
Exchange rate effects on cash and cash
equivalents
7.9
(12.0
)
Net cash – operating activities of
discontinued operations
—
(0.1
)
Net change in cash and cash
equivalents
0.7
(66.2
)
Cash and cash equivalents – beginning of
year (includes restricted cash of $0.7 and $0.7, respectively)
440.0
489.9
Cash and Cash Equivalents – End of Period
(includes restricted cash of $0.9 and $0.7, respectively)
$
440.7
$
423.7
Supplemental Disclosures of Cash Flow
and Non-Cash Information:
Cash paid for Interest
$
9.1
$
3.7
Cash paid for Income taxes, net of refunds
received
$
17.6
$
16.3
Capital expenditures included in current
liabilities
$
13.9
$
17.5
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
First Quarter
MT
IP
CCT
Elim
Total
2025 Revenue
$
346.1
$
333.3
$
234.7
$
(1.1
)
$
913.0
Less: Acquisitions
—
9.4
48.1
—
57.5
Less: Foreign currency translation
(8.4
)
(6.5
)
(1.1
)
—
(16.0
)
2025 Organic revenue
$
354.5
$
330.4
$
187.7
$
(1.1
)
$
871.5
2024 Revenue
$
392.4
$
333.9
$
185.1
$
(0.8
)
$
910.6
Less: Divestitures
39.5
—
—
—
39.5
2024 Organic revenue
$
352.9
$
333.9
$
185.1
$
(0.8
)
$
871.1
Organic Revenue Growth - $
$
1.6
$
(3.5
)
$
2.6
$
0.4
Organic Revenue Growth - %
0.5
%
(1.0
)%
1.4
%
—
%
Reported Revenue Growth - $
$
(46.3
)
$
(0.6
)
$
49.6
$
2.4
Reported Revenue Growth - %
(11.8
)%
(0.2
)%
26.8
%
0.3
%
Reconciliation of Orders to
Organic Orders
First Quarter
MT
IP
CCT
Elim
Total
2025 Orders
$
347.9
$
404.6
$
295.5
$
(1.5
)
$
1,046.5
Less: Acquisitions
—
17.6
85.5
—
103.1
Less: Foreign currency translation
(9.1
)
(6.1
)
(1.1
)
—
(16.3
)
2025 Organic orders
$
357.0
$
393.1
$
211.1
$
(1.5
)
$
959.7
2024 Orders
$
410.5
$
354.0
$
212.8
$
(1.1
)
$
976.2
Less: Divestitures
39.5
—
—
—
39.5
2024 Organic orders
$
371.0
$
354.0
$
212.8
$
(1.1
)
$
936.7
Organic Orders Growth - $
$
(14.0
)
$
39.1
$
(1.7
)
$
23.0
Organic Orders Growth - %
(3.8
)%
11.0
%
(0.8
)%
2.5
%
Reported Orders Growth - $
$
(62.6
)
$
50.6
$
82.7
$
70.3
Reported Orders Growth - %
(15.2
)%
14.3
%
38.9
%
7.2
%
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
First Quarter 2025
First Quarter 2024 [a]
MT
IP
CCT
Corporate
ITT
MT
IP
CCT
Corporate
ITT
Reported Operating Income
$
67.6
$
63.5
$
36.0
$
(16.2
)
$
150.9
$
70.6
$
64.5
$
32.7
$
(17.9
)
$
149.9
Restructuring costs
0.2
4.2
2.1
—
6.5
0.5
0.5
0.9
—
1.9
Acquisition-related expenses
—
0.4
(0.1
)
—
0.3
—
3.7
—
—
3.7
Other special items
0.7
0.9
—
—
1.6
0.2
—
—
—
0.2
Adjusted Operating Income
$
68.5
$
69.0
$
38.0
$
(16.2
)
$
159.3
$
71.3
$
68.7
$
33.6
$
(17.9
)
$
155.7
Change in Operating Income
(4.2
)%
(1.6
)%
10.1
%
(9.5
)%
0.7
%
Change in Adjusted Operating Income
(3.9
)%
0.4
%
13.1
%
(9.5
)%
2.3
%
Reported Operating Margin
19.5
%
19.1
%
15.3
%
16.5
%
18.0
%
19.3
%
17.7
%
16.5
%
Impact of special item adjustments
30 bps
160 bps
90 bps
90 bps
20 bps
130 bps
50 bps
60 bps
Adjusted Operating Margin
19.8
%
20.7
%
16.2
%
17.4
%
18.2
%
20.6
%
18.2
%
17.1
%
Change in Operating Margin
150 bps
-20 bps
-240 bps
0 bps
Change in Adjusted Operating Margin
160 bps
10 bps
-200 bps
30 bps
Note: Immaterial differences due
to rounding.
[a] The first quarter 2024
includes a change in accounting principle adjustment increasing the
previously reported and adjusted operating income for IP and ITT by
$0.7 and margin by 10 basis points. Refer to the ITT Quarterly
Report on Form 10-Q for additional information pertaining to the
change in accounting principle.
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
Q1
2025
Q1 2024
[a]
%
Change
Q1
2025
Q1 2024
[a]
%
Change
Reported
$
108.4
$
111.5
(2.8
)%
$
1.33
$
1.35
(1.5
)%
Special Items Expense / (Income):
Restructuring costs
6.5
1.9
0.08
0.03
Acquisition-related costs
0.3
3.7
—
0.05
Net tax benefit of pre-tax special
items
(1.5
)
(1.3
)
(0.02
)
(0.03
)
Other tax-related special items [b]
3.4
1.7
0.04
0.02
Adjusted
$
118.7
$
117.7
0.8
%
$
1.45
$
1.42
2.1
%
Note: Amounts may not calculate
due to rounding.
Per share amounts are based on
diluted weighted average common shares outstanding.
[a]
The first quarter 2024 includes a
change in accounting principle adjustment increasing the previously
reported and adjusted income from continuing operations by $0.5M
and reported diluted earnings per share by $0.01. Refer to the ITT
Quarterly Report on Form 10-Q for additional information pertaining
to the change in accounting principle.
[b]
Q1 2025 includes tax on
undistributed foreign earnings ($2.5M) and other tax special items
($0.9M). Q1 2024 includes tax on undistributed foreign
earnings.
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
$
5.80
$
6.20
Estimated restructuring
0.29
0.29
Other special items
0.03
0.03
Tax on special items
(0.07
)
(0.07
)
Other tax-related special items
0.05
0.05
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, 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
FY 2025
Guidance
3/29/2025
3/30/2024
Low
High
Net Cash - Operating Activities
$
113.4
$
57.8
$
575.0
$
625.0
Less: Capital expenditures
36.8
27.7
125.0
125.0
Free Cash Flow
$
76.6
$
30.1
$
450.0
$
500.0
Revenue
$
913.0
$
910.6
$
3,720.0
$
3,720.0
[a]
Operating Cash Flow Margin
12.4
%
6.3
%
15
%
17
%
Free Cash Flow Margin
8.4
%
3.3
%
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/20250501213807/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
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