ITT Inc Earnings Overview
ITT Inc., a leading manufacturer in varied sectors including aerospace, defense, and automotive, has reported robust financial results for the third quarter ended September 27, 2025. The company saw significant growth driven by strategic operations and sector-specific demand. With $999 million in revenue and a raised financial forecast, ITT Inc is setting a strong precedent for future quarters, largely supported by its differentiated positioning in the market.
ITT Inc Financial Results Summary
Below is a summary table of ITT's key financial metrics for the third quarter:
| Metric | Q3 2025 Results | YOY Change |
|---|---|---|
| Total Revenue | $999 million | +13% |
| EPS | $1.62 | -18% |
| Adjusted EPS | $1.78 | +21% |
| Operating Income | $180 million | -14% |
| Adjusted Operating Margin | 18.5% | +20 bps |
| Net Cash from Operating Activities | $174 million | +40% |
| Free Cash Flow | $154 million | +77% |
In-depth Financial Insights
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Revenue: The company's revenue stood at $999 million, representing a 13% increase year-over-year. Growth was primarily fueled by advancements in pump projects within its Industrial Process (IP) unit, aerospace and defense sectors, and strategic pricing actions.
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Earnings Per Share: The reported EPS declined by 18% from the previous year, mainly attributed to the prior year's gain from the sale of Wolverine Advanced Materials. However, the adjusted EPS, excluding this gain, increased by 21% year-over-year, underscoring improved operational efficiencies.
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Margins: The operating margin decreased to 18.0% from impacts like previous asset sales and restructuring actions. Notably, the adjusted operating margin improved to 18.5%, driven by strategic productivity measures and favorable pricing.
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Cash Flow: ITT reported a significant increase in net cash from operating activities and free cash flow, up by 40% and 77% respectively. These rises reflect diligent working capital management and enhanced operational profitability.
Revenue Breakdown by Segment
Below is a breakdown of ITT Inc's segment performance:
| Segment | Revenue Change | Operating Income Change | Highlights |
|---|---|---|---|
| Motion Technologies | +$11 million | -$40 million | Gains from foreign currency & new rail demand mitigated by the Wolverine sale impact |
| Industrial Process | +$50 million | +$12 million | Significant pump project strength and pricing strategies |
| Connect & Control Technologies | +$52 million | +$8 million | Direct benefits from acquisitions and aerospace component demand |
Segment Analysis
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Motion Technologies: This segment saw a nominal revenue gain of $11 million, largely due to higher volumes and favorable foreign exchange impacts, though offset by the Wolverine divestiture. However, adjusted operational income within the segment rose sharply due to productivity efficiencies.
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Industrial Process: With a remarkable $50 million rise, this segment capitalized on pump project completion and consistent pricing moves. The segment’s operational margin benefited from productivity actions, resulting in a 12 million dollar operating income increase.
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Connect & Control Technologies: Revenue growth of $52 million was largely propelled by the prior year’s acquisition of kSARIA. This segment also enjoyed organic growth from commercial aerospace segments, with improved pricing actions cushioning the costs from acquisition amortization.
Key Developments and Operational Highlights
ITT Inc continues to outperform through strategic acquisitions and significant market share gains in key verticals. Its ongoing productivity initiatives, coupled with strategic pricing, have bolstered its operational efficiency and effectiveness, as highlighted by the Chief Executive Officer and President Luca Savi.
“Our strong Q3 results align perfectly with our 2030 targets. The revenue achievements came from a powerful pump project execution, compounded by essential acquisitions like kSARIA and Svanehøj,” Savi commented. The statement projected optimism as ITT enters Q4 with a promising $2 billion pipeline, indicating robust growth prospects in 2026 and beyond.
Dividends and Share Repurchases
ITT's Board of Directors announced a quarterly dividend of $0.351 per share, payable on December 31, 2025, to shareholders on record as of December 1, 2025. This dividend reflects the company’s commitment to delivering shareholder value, a cornerstone of ITT's financial strategy.
ITT Inc Stock Forecast
Based on the current financial trajectory and business developments, ITT Inc's stock is expected to exhibit a stable growth outlook. The improved operational margins, ongoing demand in core segments, and robust cash flow generation position ITT favorably in the market.
- High Projection: $120, bolstered by continued market expansions and successful merger integrations.
- Low Projection: $95, accounting for potential market volatilities and unforeseen geopolitical or economic downturns.
Conclusion
ITT Inc's third-quarter performance reflects its strategic adeptness in navigating diverse market challenges while maintaining a growth trajectory. With robust revenue segments, strategic acquisitions, and sound operational management, the company has not only optimized its current market position but set the foundation for sustained future growth. As it enhances its guidance for FY 2025, ITT Inc remains well-poised to meet its long-term strategic goals.
