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ITT's Q4 Earnings & Revenues Top Estimates, Increase Y/Y
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Key Takeaways
ITT posted Q4 adjusted EPS of $1.85, beating estimates as revenues climbed 13.5% year over year.
ITT saw double-digit revenue growth across segments, led by strength in Industrial Process segment.
ITT expanded operating margins, boosted cash flow, raised dividends 10% and repurchased shares.
ITT Inc.’s (ITT - Free Report) fourth-quarter 2025 adjusted earnings of $1.85 per share surpassed the Zacks Consensus Estimate of $1.79. The bottom line jumped 23% year over year, aided by improved operational performance.
Total revenues of $1.1 billion beat the consensus estimate of $1 billion. The top line increased 13.5% year over year. Organic sales rose 8.6% year over year, driven by increased volume, pricing actions and contributions from the Svanehøj and kSARIA acquisitions.
In 2025, ITT reported net revenues of $3.94 billion, which increased 8.5% year over year. The company’s adjusted earnings were $6.72 per share, up 14.3% year over year.
ITT’s Segmental Results
Revenues from the Industrial Process segment totaled $423.1 million, up 16.7% 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 22.5% on a year-over-year basis. Our estimate for segmental revenues was pinned at $392.5 million.
Revenues from the Motion Technologies segment amounted to $360.8 million, implying a year-over-year increase of 10.7%. The higher sales were attributable to solid momentum in Friction original equipment and growth in aftermarket. Organic revenues increased 3.4% year over year. Adjusted operating income increased 12.9%. Our estimate for segmental revenues was pinned at $320.9 million.
Revenues from the Connect & Control Technologies segment of $271.2 million rose 12.5% year over year on a reported basis and 11.5% organically. Our estimate was $278.6 million. The results were driven by growth in aerospace and defense, and favorable pricing actions. Adjusted operating income increased 21.4% year over year.
ITT’s cost of revenues increased 11% year over year to $679.9 million. The gross profit jumped 18.2% to $374.1 million.
General and administrative expenses increased 45.4% year over year to $107.6 million. Sales and marketing expenses rose 11.9% to $61.0 million. Research and development expenses decreased 4.3% year over year to $26.8 million.
Adjusted operating income rose 19.2% year over year to $194.1 million. The margin expanded 90 basis points to 18.4%.
ITT’s Balance Sheet and Cash Flow
Exiting the fourth quarter, ITT had cash and cash equivalents of $1.74 billion compared with $439.3 million at the end of fourth-quarter 2024. The company’s short-term borrowings were $261.3 million compared with $427.6 million at the end of December 2024.
In 2025, ITT generated net cash of $668.8 million from operating activities compared with $562.6 million in the year-ago period. Capital expenditure totaled $121.3 million in the same period, down 2.1% year over year. Free cash flow was $555.4 million compared with $438.7 million in the prior-year period.
During 2025, ITT paid out dividends of $111.0 million, up 6% year over year. It repurchased shares worth $521 million in the period.
Dividend Update
ITT’s board announced an 10% hike in the quarterly dividend rate to 38.6 cents per share (annually: $1.54). The dividend will be paid to shareholders on April 6, of record as of March 6.
ITT's Outlook
ITT has issued its financial outlook for the first quarter of 2026. The company expects adjusted earnings to be in the range of $1.68-$1.72 per share.
Management projects revenue growth to be approximately 11% (5% organically). Operating margin is estimated to be more than 18%.
ITT’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold).
Graco Inc. (GGG - Free Report) posted quarterly earnings of 77 cents per share in the fourth quarter of 2025, in line with the Zacks Consensus Estimate. This compares with earnings of $0.64 per share a year ago.
Graco posted revenues of $593.2 million for the quarter, surpassing the Zacks Consensus Estimate by 1.39%. This compares with year-ago revenues of $548.67 million.
Baker Hughes Company (BKR - Free Report) reported fourth-quarter 2025 adjusted earnings of 78 cents per share, which beat the Zacks Consensus Estimate of 67 cents. The bottom line also increased from the year-ago level of 70 cents.
Total quarterly revenues of $7,386 million beat the Zacks Consensus Estimate of $7,056 million. The top line also increased from the year-ago quarter’s $7,364 million.
3M Company (MMM - Free Report) delivered adjusted earnings of $1.83 per share in the fourth quarter of 2025, which surpassed the Zacks Consensus Estimate of $1.82. The company reported earnings of $1.68 per share in the year-ago quarter.
MMM’s adjusted revenues of $6.00 billion missed the consensus estimate of $6.08 billion. On an adjusted basis, organic revenues increased 2.2% year over year.
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ITT's Q4 Earnings & Revenues Top Estimates, Increase Y/Y
Key Takeaways
ITT Inc.’s (ITT - Free Report) fourth-quarter 2025 adjusted earnings of $1.85 per share surpassed the Zacks Consensus Estimate of $1.79. The bottom line jumped 23% year over year, aided by improved operational performance.
Total revenues of $1.1 billion beat the consensus estimate of $1 billion. The top line increased 13.5% year over year. Organic sales rose 8.6% year over year, driven by increased volume, pricing actions and contributions from the Svanehøj and kSARIA acquisitions.
In 2025, ITT reported net revenues of $3.94 billion, which increased 8.5% year over year. The company’s adjusted earnings were $6.72 per share, up 14.3% year over year.
ITT’s Segmental Results
Revenues from the Industrial Process segment totaled $423.1 million, up 16.7% 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 22.5% on a year-over-year basis. Our estimate for segmental revenues was pinned at $392.5 million.
Revenues from the Motion Technologies segment amounted to $360.8 million, implying a year-over-year increase of 10.7%. The higher sales were attributable to solid momentum in Friction original equipment and growth in aftermarket. Organic revenues increased 3.4% year over year. Adjusted operating income increased 12.9%. Our estimate for segmental revenues was pinned at $320.9 million.
Revenues from the Connect & Control Technologies segment of $271.2 million rose 12.5% year over year on a reported basis and 11.5% organically. Our estimate was $278.6 million. The results were driven by growth in aerospace and defense, and favorable pricing actions. Adjusted operating income increased 21.4% 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 11% year over year to $679.9 million. The gross profit jumped 18.2% to $374.1 million.
General and administrative expenses increased 45.4% year over year to $107.6 million. Sales and marketing expenses rose 11.9% to $61.0 million. Research and development expenses decreased 4.3% year over year to $26.8 million.
Adjusted operating income rose 19.2% year over year to $194.1 million. The margin expanded 90 basis points to 18.4%.
ITT’s Balance Sheet and Cash Flow
Exiting the fourth quarter, ITT had cash and cash equivalents of $1.74 billion compared with $439.3 million at the end of fourth-quarter 2024. The company’s short-term borrowings were $261.3 million compared with $427.6 million at the end of December 2024.
In 2025, ITT generated net cash of $668.8 million from operating activities compared with $562.6 million in the year-ago period. Capital expenditure totaled $121.3 million in the same period, down 2.1% year over year. Free cash flow was $555.4 million compared with $438.7 million in the prior-year period.
During 2025, ITT paid out dividends of $111.0 million, up 6% year over year. It repurchased shares worth $521 million in the period.
Dividend Update
ITT’s board announced an 10% hike in the quarterly dividend rate to 38.6 cents per share (annually: $1.54). The dividend will be paid to shareholders on April 6, of record as of March 6.
ITT's Outlook
ITT has issued its financial outlook for the first quarter of 2026. The company expects adjusted earnings to be in the range of $1.68-$1.72 per share.
Management projects revenue growth to be approximately 11% (5% organically). Operating margin is estimated to be more than 18%.
ITT’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies
Graco Inc. (GGG - Free Report) posted quarterly earnings of 77 cents per share in the fourth quarter of 2025, in line with the Zacks Consensus Estimate. This compares with earnings of $0.64 per share a year ago.
Graco posted revenues of $593.2 million for the quarter, surpassing the Zacks Consensus Estimate by 1.39%. This compares with year-ago revenues of $548.67 million.
Baker Hughes Company (BKR - Free Report) reported fourth-quarter 2025 adjusted earnings of 78 cents per share, which beat the Zacks Consensus Estimate of 67 cents. The bottom line also increased from the year-ago level of 70 cents.
Total quarterly revenues of $7,386 million beat the Zacks Consensus Estimate of $7,056 million. The top line also increased from the year-ago quarter’s $7,364 million.
3M Company (MMM - Free Report) delivered adjusted earnings of $1.83 per share in the fourth quarter of 2025, which surpassed the Zacks Consensus Estimate of $1.82. The company reported earnings of $1.68 per share in the year-ago quarter.
MMM’s adjusted revenues of $6.00 billion missed the consensus estimate of $6.08 billion. On an adjusted basis, organic revenues increased 2.2% year over year.