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ITT Beats Q2 Earnings Estimates, Raises 2025 EPS View

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Key Takeaways

  • ITT posted Q2 adjusted EPS of $1.64, up 10% YoY and ahead of the consensus estimate of $1.62.
  • Total revenues grew 7% to $972M, driven by strength in pumps, connectors and automotive and rail markets.
  • 2025 outlook raised with EPS of $6.35-$6.55 and free cash flow projected at $450M-$500M.

ITT Inc.’s (ITT - Free Report) second-quarter 2025 adjusted earnings of $1.64 per share surpassed the Zacks Consensus Estimate of $1.62. The bottom line jumped 10.1% year over year, aided by an increase in sales across the Connect & Control Technologies segment.

Total revenues of $972 million beat the consensus estimate of $947 million. The top line increased 7.3% year over year. Organic sales increased 4.3% year over year, driven by pump project shipments in the Industrial Process segment, an increase in aerospace and industrial connectors demand in the Connect & Control Technologies segment and share gains in automotive and rail in the Motion Technologies segment.

ITT’s Segmental Results

Revenues from the Industrial Process segment totaled $355.9 million, up 7.6% year over year. Strength in pump projects and pricing actions aided the segment’s performance. Organic sales increased 5.5% and adjusted operating income grew 12.6% on a year-over-year basis. Our estimate for segmental revenues was pinned at $345.8 million.

Revenues from the Motion Technologies segment amounted to $365.7 million, implying a year-over-year decrease of 4.9%. The lower sales were attributable to the Wolverine divestiture. However, organic revenues increased 3% year over year. Adjusted operating income increased 1.9%. Our estimate for segmental revenues was pinned at $383.2 million.

Revenues from the Connect & Control Technologies segment of $251.9 million rose 31.3% year over year on a reported basis and 4.5% organically. Our estimate was $217.6 million. The results were driven by favorable pricing actions. Adjusted operating income increased 24.9% year over year.

ITT Inc. Price, Consensus and EPS Surprise

ITT Inc. Price, Consensus and EPS Surprise

ITT Inc. price-consensus-eps-surprise-chart | ITT Inc. Quote

ITT’s Margin Profile

ITT’s cost of revenues increased 6.2% year over year to $625.6 million. The gross profit jumped 9.5% to $346.8 million.

General and administrative expenses increased 11.6% year over year to $85.7 million. Sales and marketing expenses rose 6.2% to $57.0 million. Research and development expenses decreased 2.4% year over year to $29.0 million.

Adjusted operating income rose 9.2% year over year to $179.0 million. The margin expanded 30 basis points to 18.4%.

ITT’s Balance Sheet and Cash Flow

Exiting the second quarter, ITT had cash and cash equivalents of $467.9 million compared with $439.3 million at the end of fourth-quarter 2024. The company’s short-term borrowings were $448.9 million compared with $427.6 million at the end of December 2024.

In the first six months of 2025, ITT generated net cash of $267.1 million from operating activities compared with $215.5 million in the year-ago period. Capital expenditure totaled $53.2 million in the same period, up 4.5% year over year. Free cash flow was $213.9 million compared with $164.6 million in the prior-year period.

During the first six months of 2025, ITT paid out dividends of $56.2 million, up 6.8% year over year. It repurchased shares worth $500.8 million in the quarter.

Dividend Update

ITT’s board of directors approved a quarterly cash dividend of 35.1 cents per share, payable to shareholders on Sept. 29, 2025, of record as of Sept. 2.

ITT's 2025 Outlook

ITT has updated its financial outlook for 2025. The company expects adjusted earnings to be in the range of $6.35-$6.55 per share compared with $6.10-$6.50 expected earlier. The guided range indicates an increase of 8-11% from the prior-year reported actual.

Management projects revenue growth to be in the band of 5-7% (3-5% organically). Adjusted operating margin is estimated to be between 18.1% and 18.7%. Free cash flow is predicted to be in the range of $450-$500 million. This indicates a free cash flow margin of 12-13%.

ITT’s Zacks Rank

The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies

Dover Corporation (DOV - Free Report) reported earnings of $2.44 per share in second-quarter 2025, beating the Zacks Consensus Estimate of $2.39. This compares with earnings of $2.36 per share a year ago.

Dover posted revenues of $2.05 billion in the quarter, surpassing the Zacks Consensus Estimate by 0.6%. This compares with year-ago revenues of $2.18 billion.

Teck Resources Limited (TECK - Free Report) came out with earnings of $0.27 per share in the second quarter of 2025, beating the Zacks Consensus Estimate of $0.2. This compares with earnings of $0.58 per share a year ago.

Teck Resources posted revenues of $1.46 billion in the quarter, missing the Zacks Consensus Estimate by 8.7%. This compares with year-ago revenues of $2.83 billion. 

Packaging Corporation of America (PKG - Free Report) reported earnings of $2.48 per share, beating the Zacks Consensus Estimate of $2.44. This compares with earnings of $2.2 per share a year ago.

Packaging Corp. posted revenues of $2.17 billion in the quarter, surpassing the Zacks Consensus Estimate by 0.5%. This compares with year-ago revenues of $2.08 billion.

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