ITT Inc. (NYSE:ITT) reported second-quarter earnings on Thursday that topped Wall Street expectations and led the company to raise its full-year forecast, buoyed by solid performance in pump shipments and rising aerospace demand.
The industrial manufacturer posted adjusted earnings of $1.64 per share, slightly ahead of analysts’ consensus of $1.61. Revenue for the quarter came in at $972.4 million, surpassing projections of $948.2 million and marking a 7.3% year-over-year increase. Organic revenue grew 4.3%, supported by strength in pump projects, aerospace and industrial connectors, gains in automotive market share, and strategic pricing.
Shares of ITT rose 1.50% in pre-market trading following the release.
“ITT delivered a strong Q2, showcasing our differentiation through execution, innovation and M&A,” said CEO Luca Savi. “Once again, we surpassed $1 billion of orders and entered Q3 with nearly $2 billion in backlog.”
Operating income rose 10% to $175.1 million, with the operating margin improving by 40 basis points to 18.0%. On an adjusted basis, operating margin grew to 18.4%, up 30 basis points from the year-ago period, reflecting the impact of productivity gains, favorable pricing, and recent acquisitions, which helped mitigate rising input and labor costs.
Free cash flow totaled $137.3 million for the quarter, a 2.1% year-over-year increase and a 79% sequential jump from Q1.
On the back of the strong quarter, ITT raised its guidance for the full year. The company now projects revenue growth of 5% to 7% (reaffirmed) and expects adjusted earnings per share to fall between $6.35 and $6.55, up from the previous range of $6.20 to $6.45. Analysts had forecast $6.42.
The Industrial Process segment led the way with 7.6% revenue growth to $355.9 million and a 140-basis-point increase in operating margin to 21.5%. Meanwhile, the Connect & Control Technologies segment saw the largest revenue increase at 31.3% to $251.9 million. However, its operating margin dipped 70 basis points to 17.8%, primarily due to temporary amortization related to recent acquisitions.
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