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ITT Q1 EPS jumped 25.3% and beat estimates, while revenues surged 32.7% year over year.
ITT benefited from SPX FLOW, aerospace connectors, transportation and valve demand.
Adjusted operating margin expanded to 20.3% as operational performance improved.
ITT Inc.’s (ITT - Free Report) first-quarter 2026 adjusted earnings of $1.98 per share surpassed the Zacks Consensus Estimate of $1.77. The bottom line jumped 25.3% year over year, aided by improved operational performance.
Total revenues of $1.21 billion beat the consensus estimate of $1.12 billion. The top line increased 32.7% year over year. Organic sales rose 10.9% year over year, driven by solid momentum in connectors, projects including Svanehøj, transportation and valves.
ITT’s Segmental Results
In the first quarter of 2026, the company combined the Industrial Process segment with its SPX FLOW business to form the Flow Technologies segment.
Revenues from the Flow Technologies segment totaled $537.4 million, up 61.2% year over year. The increase was primarily driven by solid contributions from the SPX FLOW buyout, along with strength in the Svanehøj unit and valves execution. Organic sales increased 12.2% and adjusted operating income grew 67.9% on a year-over-year basis.
Revenues from the Motion Technologies segment amounted to $397.2 million, implying a year-over-year increase of 14.8%. The higher sales were attributable to solid momentum in Friction original equipment and KONI businesses. Organic revenues increased 5.3% year over year. Adjusted operating income increased 21.7%. Our estimate for segmental revenues was pinned at $372 million.
Revenues from the Connect & Control Technologies segment of $278.5 million rose 18.7% year over year on a reported basis and 17.5% organically. Our estimate was $269 million. The results were driven by growth in demand for commercial aerospace components and industrial connectors, and favorable pricing actions. Adjusted operating income increased 19.6% year over year.
ITT’s cost of revenues increased 32.8% year over year to $783.1 million. The gross profit jumped 32.7% to $428.8 million.
General and administrative expenses increased 81.1% year over year to $154.1 million. Sales and marketing expenses rose 53.9% to $73.7 million. Research and development expenses increased 30.8% year over year to $33.1 million.
Adjusted operating income rose 41.7% year over year to $245.6 million. The margin expanded 130 basis points to 20.3%.
ITT’s Balance Sheet and Cash Flow
Exiting the first quarter, ITT had cash and cash equivalents of $600.8 million compared with $1.74 billion at the end of fourth-quarter 2025. The company’s short-term borrowings were $477.3 million compared with $261.3 million at the end of December 2025.
In the first three months of 2026, ITT generated net cash of $39.9 million from operating activities compared with $113.4 million in the year-ago period. Capital expenditure totaled $26.1 million in the same period, down 29.1% year over year. Free cash flow was $13.8 million compared with $76.6 million in the prior-year period.
During the first three months of the year, ITT paid out dividends of $35 million, up 22% year over year. It repurchased shares worth $100 million in the period.
ITT's Outlook
For fiscal 2026, ITT expects adjusted earnings to be in the range of $7.70-$8.00 per share. Management projects revenue growth to be in the range of 36-38% (4-6% organically). Adjusted operating margin is estimated to be 19.7-20.6%. Free cash flow is projected in the band of $540-$580 million, indicating a free cash flow margin of 10-11%.
ITT’s Zacks Rank and Other Stocks to Consider
The company currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks are discussed below:
DXP Enterprises’ earnings surpassed the consensus estimate by 52.8% in the last reported quarter. In the past 60 days, the Zacks Consensus Estimate for DXPE’s 2026 earnings has increased 17.2%.
Kennametal (KMT - Free Report) presently sports a Zacks Rank of 1. Kennametal’s earnings surpassed the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 35.4%. In the past 60 days, the Zacks Consensus Estimate for Kennametal’s fiscal 2026 earnings has increased 9%.
Powell Industries (POWL - Free Report) currently carries a Zacks Rank of 2. Powell’s earnings topped the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 7.8%. In the past 60 days, the Zacks Consensus Estimate for Powell’s fiscal 2026 earnings has increased 4.7%.
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ITT's Q1 Earnings & Revenues Beat Estimates, Increase Y/Y
Key Takeaways
ITT Inc.’s (ITT - Free Report) first-quarter 2026 adjusted earnings of $1.98 per share surpassed the Zacks Consensus Estimate of $1.77. The bottom line jumped 25.3% year over year, aided by improved operational performance.
Total revenues of $1.21 billion beat the consensus estimate of $1.12 billion. The top line increased 32.7% year over year. Organic sales rose 10.9% year over year, driven by solid momentum in connectors, projects including Svanehøj, transportation and valves.
ITT’s Segmental Results
In the first quarter of 2026, the company combined the Industrial Process segment with its SPX FLOW business to form the Flow Technologies segment.
Revenues from the Flow Technologies segment totaled $537.4 million, up 61.2% year over year. The increase was primarily driven by solid contributions from the SPX FLOW buyout, along with strength in the Svanehøj unit and valves execution. Organic sales increased 12.2% and adjusted operating income grew 67.9% on a year-over-year basis.
Revenues from the Motion Technologies segment amounted to $397.2 million, implying a year-over-year increase of 14.8%. The higher sales were attributable to solid momentum in Friction original equipment and KONI businesses. Organic revenues increased 5.3% year over year. Adjusted operating income increased 21.7%. Our estimate for segmental revenues was pinned at $372 million.
Revenues from the Connect & Control Technologies segment of $278.5 million rose 18.7% year over year on a reported basis and 17.5% organically. Our estimate was $269 million. The results were driven by growth in demand for commercial aerospace components and industrial connectors, and favorable pricing actions. Adjusted operating income increased 19.6% 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 32.8% year over year to $783.1 million. The gross profit jumped 32.7% to $428.8 million.
General and administrative expenses increased 81.1% year over year to $154.1 million. Sales and marketing expenses rose 53.9% to $73.7 million. Research and development expenses increased 30.8% year over year to $33.1 million.
Adjusted operating income rose 41.7% year over year to $245.6 million. The margin expanded 130 basis points to 20.3%.
ITT’s Balance Sheet and Cash Flow
Exiting the first quarter, ITT had cash and cash equivalents of $600.8 million compared with $1.74 billion at the end of fourth-quarter 2025. The company’s short-term borrowings were $477.3 million compared with $261.3 million at the end of December 2025.
In the first three months of 2026, ITT generated net cash of $39.9 million from operating activities compared with $113.4 million in the year-ago period. Capital expenditure totaled $26.1 million in the same period, down 29.1% year over year. Free cash flow was $13.8 million compared with $76.6 million in the prior-year period.
During the first three months of the year, ITT paid out dividends of $35 million, up 22% year over year. It repurchased shares worth $100 million in the period.
ITT's Outlook
For fiscal 2026, ITT expects adjusted earnings to be in the range of $7.70-$8.00 per share. Management projects revenue growth to be in the range of 36-38% (4-6% organically). Adjusted operating margin is estimated to be 19.7-20.6%. Free cash flow is projected in the band of $540-$580 million, indicating a free cash flow margin of 10-11%.
ITT’s Zacks Rank and Other Stocks to Consider
The company currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks are discussed below:
DXP Enterprises (DXPE - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
DXP Enterprises’ earnings surpassed the consensus estimate by 52.8% in the last reported quarter. In the past 60 days, the Zacks Consensus Estimate for DXPE’s 2026 earnings has increased 17.2%.
Kennametal (KMT - Free Report) presently sports a Zacks Rank of 1. Kennametal’s earnings surpassed the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 35.4%. In the past 60 days, the Zacks Consensus Estimate for Kennametal’s fiscal 2026 earnings has increased 9%.
Powell Industries (POWL - Free Report) currently carries a Zacks Rank of 2. Powell’s earnings topped the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 7.8%. In the past 60 days, the Zacks Consensus Estimate for Powell’s fiscal 2026 earnings has increased 4.7%.