ITT Inc. (ITT) Bundle
A Brief History of ITT Inc.
ITT Inc. has a robust history, evolving significantly since its inception. Founded in 1920, the company initially focused on manufacturing electrical equipment. Over the decades, ITT expanded into various sectors, including defense, industrial products, and water management.
Company Evolution and Milestones
In the 1960s, ITT diversified further by acquiring several companies, which broadened its product offerings and market reach. The company's strategic acquisitions included:
- 1977: Acquisition of the Cannon Group, enhancing ITT's position in the telecommunications sector.
- 1980: Purchase of the aerospace company, contributing to ITT's defense capabilities.
- 2011: Spin-off of ITT's defense and water businesses into separate entities, focusing on core industrial operations.
Recent Developments and Financial Performance
As of September 28, 2024, ITT reported a revenue of $885.2 million for Q3 2024, which reflects a 7.7% increase from $822.1 million in Q3 2023. For the nine months ended September 28, 2024, total revenue reached $2.7017 billion, marking a 10.1% increase compared to $2.4539 billion in the same period of 2023.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenue | $885.2 million | $822.1 million | $2.7017 billion | $2.4539 billion |
| Gross Profit | $314.0 million | $279.4 million | $930.9 million | $821.3 million |
| Operating Income | $207.9 million | $143.1 million | $516.1 million | $409.4 million |
| Net Income | $161.1 million | $110.8 million | $391.3 million | $319.0 million |
In Q3 2024, ITT's operating income increased by 45.3% compared to Q3 2023, primarily driven by a gain of $47.8 million from the sale of the Wolverine business and improved productivity savings. The effective tax rate for Q3 2024 was 18.9%, a decrease from 21.1% in Q3 2023.
Stock Performance and Shareholder Returns
As of September 28, 2024, ITT had 81.5 million shares outstanding. The company declared dividends of $0.319 per share, amounting to $26.1 million in total dividends for the quarter. The company has a robust share repurchase program, having repurchased shares worth $25.0 million in Q3 2024.
| Stock Metric | Value |
|---|---|
| Shares Outstanding | 81.5 million |
| Dividends Declared | $0.319 per share |
| Total Dividends (Q3 2024) | $26.1 million |
| Share Repurchases (Q3 2024) | $25.0 million |
Overall, ITT Inc. continues to demonstrate strong financial performance and strategic growth, reinforcing its position as a leader in its industry.
A Who Owns ITT Inc. (ITT)
Shareholder Composition
As of 2024, ITT Inc. has a diversified ownership structure comprising institutional investors, mutual funds, and individual shareholders. The following table summarizes the top institutional shareholders of ITT Inc.:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 8,349,000 | 10.20% |
| The Vanguard Group, Inc. | 7,520,000 | 9.20% |
| State Street Corporation | 5,100,000 | 6.20% |
| Wellington Management Company, LLP | 4,200,000 | 5.10% |
| Invesco Ltd. | 3,800,000 | 4.60% |
| Other Institutional Investors | 20,000,000 | 24.40% |
| Individual Shareholders | 34,000,000 | 41.80% |
Recent Changes in Ownership
In recent months, ITT has seen notable transactions among its institutional investors. For instance, BlackRock increased its position by acquiring an additional 1.2 million shares in Q3 2024. Similarly, Vanguard's stake grew by 800,000 shares during the same period.
Share Performance and Financial Metrics
The share price of ITT Inc. as of September 28, 2024, was $136.76, reflecting a significant increase from $128.21 at the end of Q2 2024. The company's market capitalization stood at approximately $11.1 billion.
| Metric | Q3 2024 | Q2 2024 | Change (%) |
|---|---|---|---|
| Share Price | $136.76 | $128.21 | 6.49% |
| Market Capitalization | $11.1 billion | $10.5 billion | 5.71% |
| Net Income | $161.1 million | $110.8 million | 45.4% |
| EPS (Diluted) | $1.96 | $1.34 | 46.3% |
Dividends and Share Repurchase Programs
ITT Inc. declared a dividend of $0.319 per share in Q3 2024, which marked an increase from the previous quarter's dividend of $0.290. The company has also been active in share repurchase programs, with a total of 182,826 shares repurchased at an average price of $136.76 during the latest quarter.
| Period | Shares Repurchased | Average Price | Total Cost |
|---|---|---|---|
| Q3 2024 | 182,826 | $136.76 | $25.0 million |
| Q2 2024 | 1,323 | $128.21 | $0.2 million |
| Q1 2024 | 0.7 million | $60.5 | $60.5 million |
Outlook and Future Plans
ITT Inc. plans to continue its focus on strategic acquisitions and organic growth, with an emphasis on enhancing shareholder value. The company recently completed the acquisition of kSARIA and Svanehøj, which are expected to contribute significantly to revenue growth in the upcoming quarters.
| Acquisition | Date | Purchase Price | Expected Revenue Contribution |
|---|---|---|---|
| kSARIA | September 12, 2024 | $461.9 million | $175 million |
| Svanehøj | January 19, 2024 | $407.6 million | $148 million |
ITT Inc. (ITT) Mission Statement
Overview
ITT Inc. (ITT) aims to deliver innovative solutions across its diversified portfolio, focusing on enhancing customer value and operational excellence. The company is dedicated to sustainability and creating a positive impact on the communities it serves.
Mission Statement
As of 2024, ITT's mission statement emphasizes its commitment to providing advanced technology and high-quality products while promoting safety, sustainability, and integrity in operations. ITT seeks to leverage its extensive expertise to address global challenges through innovative engineering and cutting-edge solutions.
Financial Performance Indicators
The following table summarizes key financial metrics for ITT for the third quarter of 2024:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $885.2 million | $822.1 million | 7.7% |
| Gross Profit | $314.0 million | $279.4 million | 12.4% |
| Operating Income | $207.9 million | $143.1 million | 45.3% |
| Net Income | $161.1 million | $110.8 million | 45.4% |
| Adjusted EPS | $1.96 | $1.34 | 46.0% |
Segment Performance
The following table illustrates the operating income and margins by segment for ITT for the third quarter of 2024:
| Segment | Operating Income (in millions) | Operating Margin (%) |
|---|---|---|
| Motion Technologies | $110.0 | 31.9% |
| Industrial Process | $69.8 | 20.9% |
| Connect & Control Technologies | $38.1 | 18.4% |
| Corporate and Other | ($10.0) | N/A |
| Total | $207.9 | 23.5% |
Key Performance Highlights
- Organic revenue growth of 6.5% in the Motion Technologies segment.
- Adjusted operating income of $206.0 million for the nine months ended September 28, 2024.
- Effective tax rate decreased to 18.9% from 21.1% year-over-year.
Acquisitions and Growth Strategy
In early 2024, ITT completed the acquisition of Svanehøj, contributing significantly to revenue growth. The integration of kSARIA also enhanced ITT's capabilities in the market.
Market Presence
ITT operates across various sectors including aerospace, automotive, energy, and industrial markets. The company's diversified portfolio allows it to mitigate risks associated with market fluctuations.
Future Outlook
With a strong focus on innovation, ITT aims to continue expanding its market share while maintaining operational efficiency and financial stability. The company is committed to sustainable practices and aims to integrate these principles into its core business strategies.
How ITT Inc. (ITT) Works
Company Overview
ITT Inc. (NYSE: ITT) operates through three primary segments: Motion Technologies, Industrial Process, and Connect & Control Technologies. The company is engaged in the manufacture and sale of engineered components and systems for various sectors, including automotive, aerospace, and industrial markets.
Financial Performance
As of the third quarter of 2024, ITT reported the following financial highlights:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $885.2 million | $822.1 million | 7.7% |
| Gross Profit | $314.0 million | $279.4 million | 12.4% |
| Operating Income | $207.9 million | $143.1 million | 45.3% |
| Net Income | $161.1 million | $110.8 million | 45.4% |
| Adjusted EPS | $1.46 | $1.37 | 6.6% |
Segment Performance
Revenue breakdown by segment for Q3 2024 is as follows:
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | Change (%) |
|---|---|---|---|
| Motion Technologies | $344.9 million | $359.5 million | (4.1%) |
| Industrial Process | $333.8 million | $279.8 million | 19.3% |
| Connect & Control Technologies | $207.2 million | $184.0 million | 12.6% |
Operating Expenses
Operating expenses for Q3 2024 totaled $106.1 million, a decrease of 22.2% compared to $136.3 million in Q3 2023. This reduction was driven by improved operational efficiencies and cost management strategies.
Income Tax Expense
The income tax expense for Q3 2024 was $37.8 million, with an effective tax rate of 18.9%. This reflects a decrease from the previous year’s effective tax rate of 21.1%.
Cash Flow and Capital Expenditures
In the nine months ended September 28, 2024, ITT reported net cash from operating activities of $339.4 million. Capital expenditures during this period were $87.5 million, reflecting ongoing investments in business growth and efficiency improvements.
Balance Sheet Highlights
As of September 28, 2024, ITT's total assets were $4,944.5 million, with total liabilities of $2,188.8 million. Total shareholders' equity stood at $2,755.7 million.
Market Trends and Acquisitions
ITT has been actively pursuing acquisitions to enhance its market position. Notable acquisitions include Svanehøj, which contributed significantly to revenue growth in the Industrial Process segment during Q3 2024.
Dividends and Share Repurchase
In Q3 2024, ITT declared dividends amounting to $78.6 million, with a dividend per share of $0.957. The company also repurchased shares under its stock repurchase plan, totaling $104.0 million during the same period.
Outlook
For the remainder of 2024, ITT anticipates continued revenue growth driven by strong demand across its segments, particularly in Industrial Process and Connect & Control Technologies. The company expects to recognize approximately $640 to $660 million from unsatisfied performance obligations.
How ITT Inc. (ITT) Makes Money
Revenue Overview
As of September 28, 2024, ITT Inc. reported total revenue of $885.2 million for the third quarter, representing an increase of 7.7% compared to $822.1 million in the third quarter of 2023. For the nine months ended September 28, 2024, total revenue reached $2,701.7 million, a 10.1% increase from $2,453.9 million in the same period of 2023.
| Period | Revenue (in millions) | Change (%) |
|---|---|---|
| Q3 2024 | $885.2 | 7.7% |
| Q3 2023 | $822.1 | - |
| 9M 2024 | $2,701.7 | 10.1% |
| 9M 2023 | $2,453.9 | - |
Business Segments
ITT Inc. operates through three primary segments: Motion Technologies, Industrial Process, and Connect & Control Technologies. The revenue breakdown for these segments in Q3 2024 is as follows:
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Motion Technologies | $344.9 | $359.5 | (4.1%) |
| Industrial Process | $333.8 | $279.8 | 19.3% |
| Connect & Control Technologies | $207.2 | $184.0 | 12.6% |
| Total | $885.2 | $822.1 | 7.7% |
Key Revenue Drivers
The increase in revenue for ITT can be attributed to several factors:
- In Motion Technologies, the Friction aftermarket and KONI rail businesses showed growth of 9% and 32%, respectively.
- Industrial Process revenue growth was driven by the acquisition of Svanehøj, which added $40 million to revenue for Q3 2024.
- Connect & Control Technologies benefited from the acquisitions of kSARIA and Micro-Mode, contributing $15.3 million and $22.4 million respectively.
Operating Income and Margins
Operating income for ITT Inc. in Q3 2024 was $207.9 million, an increase of 45.3% from $143.1 million in Q3 2023. The operating margin improved to 23.5% from 17.4% year-over-year.
| Period | Operating Income (in millions) | Operating Margin (%) |
|---|---|---|
| Q3 2024 | $207.9 | 23.5% |
| Q3 2023 | $143.1 | 17.4% |
Net Income
Net income attributable to ITT Inc. for Q3 2024 was $161.1 million, compared to $110.8 million in Q3 2023, representing an increase of 45.4%. The earnings per share (EPS) for Q3 2024 were $1.97, up from $1.35 in the prior year.
| Period | Net Income (in millions) | EPS |
|---|---|---|
| Q3 2024 | $161.1 | $1.97 |
| Q3 2023 | $110.8 | $1.35 |
Cost Structure
For Q3 2024, ITT reported a cost of revenue of $571.2 million, which resulted in a gross profit of $314.0 million and a gross margin of 35.5%. Operating expenses were $106.1 million, leading to a reduction in the operating expense ratio to 12.0% from 16.6% in Q3 2023.
| Category | Q3 2024 Amount (in millions) | Q3 2023 Amount (in millions) |
|---|---|---|
| Cost of Revenue | $571.2 | $542.7 |
| Gross Profit | $314.0 | $279.4 |
| Operating Expenses | $106.1 | $136.3 |
Tax and Interest Expenses
ITT's income tax expense for Q3 2024 was $37.8 million, with an effective tax rate of 18.9%. Interest expenses increased significantly to $10.0 million from $4.2 million in Q3 2023.
| Category | Q3 2024 Amount (in millions) | Q3 2023 Amount (in millions) |
|---|---|---|
| Income Tax Expense | $37.8 | $29.9 |
| Interest Expense | $10.0 | $4.2 |
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Article updated on 8 Nov 2024
Resources:
- ITT Inc. (ITT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of ITT Inc. (ITT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View ITT Inc. (ITT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.