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ITT's Q3 Earnings & Revenues Top Estimates, Increase Y/Y
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Key Takeaways
ITT's Q3 EPS rose 21.1% to $1.78, beating estimates on 12.9% higher revenue of $999.1 million.
Industrial Process and Connect & Control Technologies segments led with strong sales and margins.
ITT lifted 2025 EPS guidance to $6.62-$6.68, projecting 6-7% revenue growth and $500M free cash flow.
ITT Inc.’s (ITT - Free Report) third-quarter 2025 adjusted earnings of $1.78 per share surpassed the Zacks Consensus Estimate of $1.67. The bottom line jumped 21.1% year over year, aided by an increase in sales across the Connect & Control Technologies and Industrial Process segments.
Total revenues of $999.1 million beat the consensus estimate of $977 million. The top line increased 12.9% year over year. Organic sales increased 6.1% 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 $383.9 million, up 15% year over year. Strength in pump projects and pricing actions aided the segment’s performance. Organic sales increased 11.3% and adjusted operating income grew 18.7% on a year-over-year basis. Our estimate for segmental revenues was pinned at $371.2 million.
Revenues from the Motion Technologies segment amounted to $355.6 million, implying a year-over-year increase of 3.1%. The higher sales were attributable to solid momentum in Friction original equipment and KONI rail demand, partially offset by the impact of Wolverine divestiture. However, organic revenues increased 0.7% year over year. Adjusted operating income increased 15.4%. Our estimate for segmental revenues was pinned at $351.5 million.
Revenues from the Connect & Control Technologies segment of $259.2 million rose 25.1% year over year on a reported basis and 6.1% organically. Our estimate was $252.7 million. The results were driven by solid demand for commercial aerospace components and connectors and favorable pricing actions. Adjusted operating income increased 20.3% year over year.
ITT’s cost of revenues increased 12.9% year over year to $643.9 million. The gross profit jumped 12.9% to $355.2 million.
General and administrative expenses increased 20% year over year to $89.8 million. Sales and marketing expenses rose 13.9% to $57.5 million. Research and development expenses decreased 1.7% year over year to $28.1 million.
Adjusted operating income rose 13.8% year over year to $184.7 million. The margin expanded 20 basis points to 18.5%.
ITT’s Balance Sheet and Cash Flow
Exiting the third quarter, ITT had cash and cash equivalents of $516.4 million compared with $439.3 million at the end of fourth-quarter 2024. The company’s short-term borrowings were $418 million compared with $427.6 million at the end of December 2024.
In the first nine months of 2025, ITT generated net cash of $441 million from operating activities compared with $339.4 million in the year-ago period. Capital expenditure totaled $80.9 million in the same period, down 7.5% year over year. Free cash flow was $368 million compared with $251.9 million in the prior-year period.
During the first nine months of 2025, ITT paid out dividends of $83.5 million, up 6.1% year over year. It repurchased shares worth $500.9 million in the period.
Dividend Update
ITT’s board of directors approved a quarterly cash dividend of 35.1 cents per share, payable to shareholders on Dec. 31, 2025, of record as of Dec. 1.
ITT's 2025 Outlook
ITT has updated its financial outlook for 2025. The company expects adjusted earnings to be in the range of $6.62-$6.68 per share compared with $6.35-$6.55 expected earlier. The guided range indicates an increase of 13-14% from the prior-year reported actual.
Management projects revenue growth to be in the band of 6-7% (3-5% organically). Adjusted operating margin is estimated to be between 18.2% and 18.5%. Free cash flow is predicted to be $500 million. This indicates a free cash flow margin of 13%.
Trimble Inc. (TRMB - Free Report) presently carries a Zacks Rank of 2. TRMB’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 7.5%. In the past 60 days, the Zacks Consensus Estimate for Trimble’s 2025 earnings has been stable.
RBC Bearings Incorporated (RBC - Free Report) currently carries a Zacks Rank of 2. RBC has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, with an average surprise of 3.8%. In the past 60 days, the Zacks Consensus Estimate for RBC Bearings’ 2025 earnings has increased 0.4%.
Helios Technologies (HLIO - Free Report) currently carries a Zacks Rank of 2. HLIO has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, with an average surprise of 15.5%. In the past 60 days, the Zacks Consensus Estimate for Helios’ 2025 earnings has increased 1.6%.
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ITT's Q3 Earnings & Revenues Top Estimates, Increase Y/Y
Key Takeaways
ITT Inc.’s (ITT - Free Report) third-quarter 2025 adjusted earnings of $1.78 per share surpassed the Zacks Consensus Estimate of $1.67. The bottom line jumped 21.1% year over year, aided by an increase in sales across the Connect & Control Technologies and Industrial Process segments.
Total revenues of $999.1 million beat the consensus estimate of $977 million. The top line increased 12.9% year over year. Organic sales increased 6.1% 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 $383.9 million, up 15% year over year. Strength in pump projects and pricing actions aided the segment’s performance. Organic sales increased 11.3% and adjusted operating income grew 18.7% on a year-over-year basis. Our estimate for segmental revenues was pinned at $371.2 million.
Revenues from the Motion Technologies segment amounted to $355.6 million, implying a year-over-year increase of 3.1%. The higher sales were attributable to solid momentum in Friction original equipment and KONI rail demand, partially offset by the impact of Wolverine divestiture. However, organic revenues increased 0.7% year over year. Adjusted operating income increased 15.4%. Our estimate for segmental revenues was pinned at $351.5 million.
Revenues from the Connect & Control Technologies segment of $259.2 million rose 25.1% year over year on a reported basis and 6.1% organically. Our estimate was $252.7 million. The results were driven by solid demand for commercial aerospace components and connectors and favorable pricing actions. Adjusted operating income increased 20.3% year over year.
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 12.9% year over year to $643.9 million. The gross profit jumped 12.9% to $355.2 million.
General and administrative expenses increased 20% year over year to $89.8 million. Sales and marketing expenses rose 13.9% to $57.5 million. Research and development expenses decreased 1.7% year over year to $28.1 million.
Adjusted operating income rose 13.8% year over year to $184.7 million. The margin expanded 20 basis points to 18.5%.
ITT’s Balance Sheet and Cash Flow
Exiting the third quarter, ITT had cash and cash equivalents of $516.4 million compared with $439.3 million at the end of fourth-quarter 2024. The company’s short-term borrowings were $418 million compared with $427.6 million at the end of December 2024.
In the first nine months of 2025, ITT generated net cash of $441 million from operating activities compared with $339.4 million in the year-ago period. Capital expenditure totaled $80.9 million in the same period, down 7.5% year over year. Free cash flow was $368 million compared with $251.9 million in the prior-year period.
During the first nine months of 2025, ITT paid out dividends of $83.5 million, up 6.1% year over year. It repurchased shares worth $500.9 million in the period.
Dividend Update
ITT’s board of directors approved a quarterly cash dividend of 35.1 cents per share, payable to shareholders on Dec. 31, 2025, of record as of Dec. 1.
ITT's 2025 Outlook
ITT has updated its financial outlook for 2025. The company expects adjusted earnings to be in the range of $6.62-$6.68 per share compared with $6.35-$6.55 expected earlier. The guided range indicates an increase of 13-14% from the prior-year reported actual.
Management projects revenue growth to be in the band of 6-7% (3-5% organically). Adjusted operating margin is estimated to be between 18.2% and 18.5%. Free cash flow is predicted to be $500 million. This indicates a free cash flow margin of 13%.
ITT’s Zacks Rank & Other Key Picks
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.
Some other top-ranked stocks are discussed below:
Trimble Inc. (TRMB - Free Report) presently carries a Zacks Rank of 2. TRMB’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 7.5%. In the past 60 days, the Zacks Consensus Estimate for Trimble’s 2025 earnings has been stable.
RBC Bearings Incorporated (RBC - Free Report) currently carries a Zacks Rank of 2. RBC has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, with an average surprise of 3.8%. In the past 60 days, the Zacks Consensus Estimate for RBC Bearings’ 2025 earnings has increased 0.4%.
Helios Technologies (HLIO - Free Report) currently carries a Zacks Rank of 2. HLIO has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, with an average surprise of 15.5%. In the past 60 days, the Zacks Consensus Estimate for Helios’ 2025 earnings has increased 1.6%.