ITT Inc.’s ITT third-quarter 2024 adjusted earnings of $1.46 per share surpassed the Zacks Consensus Estimate of $1.43. The bottom line jumped 7% year over year, aided by an increase in sales across most of its segments. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Total revenues of $885.2 million beat the consensus estimate of $876 million. The top line increased 7.7% year over year. Organic sales rose approximately 5.5% year over year, buoyed by higher friction original equipment volume and rail demand in KONI in the Motion Technologies segment.

Also, short cycle demand in the Industrial Process segment and industrial connectors growth in the Connect & Control Technologies segment aided the results. The acquisitions of Svanehøj and kSARIA contributed 7% to the top line, while the divestiture of Wolverine business had an adverse impact of 4%.

ITT’s Segmental Results

Revenues from the Industrial Process segment totaled $333.8 million, up 19.3% year over year. Strength in pump projects, solid demand for aftermarket parts and services and the buyout of Svanehøj drove the segment’s performance. Organic sales increased 6.1% and adjusted operating income grew 7.1% on a year-over-year basis. Our estimate for segmental revenues was pinned at $321.6 million.

Revenues from the Motion Technologies segment amounted to $344.9 million, implying a year-over-year decrease of 4.1%. The lower sales were attributable to the divestiture of the Wolverine unit in July 2024. Higher sales volume in friction original equipment and rail demand in the KONI business aided the segmental performance. Organic revenues grew 4.7%. Adjusted operating income increased 2.1%. Our estimate for segmental revenues was pinned at $360.6 million.

Revenues from the Connect & Control Technologies segment of $207.2 million rose 12.6% year over year on a reported basis and 5.7% organically. Our estimate was $195.5 million. The results were driven by positive contribution from the buyout of kSARIA in September 2024. Favorable pricing actions and growth defense and industrial connectors also aided the segment’s performance. Adjusted operating income increased 17.9% year over year.

ITT Inc. Price, Consensus and EPS Surprise

ITT Inc. price-consensus-eps-surprise-chart | ITT Inc. Quote

ITT’s Margin Profile

ITT’s cost of revenues increased 5.3% year over year to $571.2 million. The gross profit jumped 12.4% to $314 million.

General and administrative expenses grew 11.8% year over year to $74.8 million. Sales and marketing expenses rose 13.7% to $50.5 million. Research and development expenses increased 14.4% year over year to $28.6 million.

Adjusted operating income climbed 11.1% year over year to $161.6 million. The margin expanded 60 basis points to 18.3%.