- Although two of the three businesses at ITT were still in revenue contraction in Q1, ITT delivered stronger-than-expected margin leverage and very high incremental margins.
- The Friction business within Motion Technologies is performing exceptionally well, but this is a well-understood driver.
- Recoveries in aerospace, chemicals, and oil/gas have yet to take hold but should be on the way over the next 12-18 months, and ITT has meaningful M&A capacity.
- ITT shares look more like a good hold than a compelling buy in an industrial sector that doesn't offer a lot of bargains.
For further details see:
ITT Inc. Already Seeing Strong Incrementals Ahead Of A Full Revenue Recovery