Analyst Note| Joshua Aguilar |
Narrow-moat rated ITT had a very strong 2021 opening with its first quarter results. First quarter revenue rose to $698.4 million, good for a 5.3% year over year increase, or 1.5% on an organic basis. Furthermore, adjusted segment operating margins rose to 17.5%, increasing 300 basis points year over year (or 530 basis points on a reported basis), while adjusted EPS of $1.06 rose 32.% year over year. Finally, free cash flow rose to $54 million, up 71% year on year thanks to ITT’s exceptional execution on the margin front, as well as lower investments in property, plant and equipment.