Q1 2024 ITT Inc Earnings Call Transcript
Key Points
- ITT Inc (ITT) reported a strong start to the year with revenue, margin, and EPS growth above expectations.
- The company achieved a 40% year-over-year reduction in recordable incidents, significantly improving safety performance.
- ITT Inc (ITT) saw a 7% organic orders growth and a total of 13%, with nearly $1 billion in orders leading to a book-to-bill of 1.07.
- All three business segments of ITT Inc (ITT) contributed to a 9% organic revenue growth, with total surpassing $900 million for the first time.
- Adjusted operating margin expanded by 120 basis points to 17%, with significant progress towards long-term targets.
- Despite overall strong performance, the company noted some areas of weakness, particularly in the chemical sector of the IP business.
- The connectors segment is not expected to fully recover until the second half of the year, indicating some ongoing challenges.
- While Svanehøj's integration is progressing well, it is still early days, and the full benefits and performance are yet to be fully realized.
- The company absorbed higher interest expenses and a slightly higher effective tax rate, which could impact net profitability.
- There are concerns about potential lumpiness in rail orders going forward, which could affect the predictability of future revenue.
Welcome to ITT's 2024 First Quarter Conference Call. Today is Thursday, May 2, 2024. Today's call is being recorded and will be available for replay beginning at 12:00 p.m. Eastern Time. (Operator Instructions).
It is now my pleasure to turn the floor to Mark Macaluso, Vice President, Investor Relations and Global Communications. Please, you may begin.
Thank you, Victor, and good morning. Joining me this morning in Stamford are Luca Savi, ITT's Chief Executive Officer and President; and Emmanuel Caprais, Chief Financial Officer. Today's call will cover ITT's financial results for the 3-month period ending March 30, 2024, which we announced this morning. Before we begin, please refer to Slide 2 of today's presentation, where we note that today's comments will include forward-looking statements that are based on our current expectations.
Actual results may differ materially due to several risks and uncertainties, including those described in our 2023 annual report on Form 10-K and
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