STAMFORD, Conn. - ITT Inc. (NYSE: NYSE:ITT) has reported a robust second quarter for the fiscal year 2024, with a 9% increase in revenue reaching $905.9 million, compared to $833.9 million in the same quarter the previous year.
This growth was primarily driven by higher sales volumes across all segments and the strategic acquisition of Svanehøj. The company's adjusted earnings per share (EPS) for the quarter stood at $1.49, surpassing the analyst estimate by $0.03.
The company's organic growth was reported at 6%, with the Svanehøj and Micro-Mode acquisitions contributing 4% to total revenue growth. However, foreign currency translation had a 1% negative impact. Operating income saw a 12% increase to $159 million, with an 11% rise in EPS to $1.45 compared to the previous year. Adjusted operating income improved by nearly 15% to $163.2 million, resulting in an adjusted operating margin expansion of 100 basis points to 18.0%.
ITT's CEO and President Luca Savi highlighted the company's strong performance, emphasizing the 60 basis points of margin expansion and significant sequential improvement in free cash flow, which increased by more than $100 million. Savi also noted the strategic portfolio reshaping with the acquisition of kSARIA, a provider of mission-critical connectivity solutions for defense and aerospace markets, and the divestiture of the Wolverine Advanced Materials business.
For the full year 2024, ITT maintains its revenue, margin, EPS, and free cash flow guidance despite a $0.15 impact from the divestiture. The company continues to expect revenue growth of 9% to 12%, with an adjusted operating margin of 17.1% to 17.7%. The EPS guidance is set at $5.65 to $5.90, reflecting an 8% to 13% increase for the year, including the impact from the Wolverine divestiture.
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