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Here's Why You Should Hold ITT Stock in Your Portfolio Now
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Key Takeaways
ITT's Flow Technologies and CCT segments grew on strong demand and market share gains.
ITT expanded through acquisitions, including Aerospace Contacts, to boost aerospace capabilities.
ITT returned capital through dividends and buybacks while facing higher costs and debt.
ITT Inc. (ITT - Free Report) is benefiting from strong sales volume and order growth. The company’s Flow Technologies segment is gaining from strength in the short-cycle business, driven by market share gains across all product categories. Solid demand for pumps, valves and aftermarket services is aiding the segment. The acquisition of Svanehøj also bodes well for the segment. The segment’s organic revenues were up 12.2% year over year in the first quarter of 2026.
Growth in flow control components and connector solution sales within the aerospace and defense markets is supporting the Connect and Control Technologies (CCT) segment. Also, the acquisition of kSARIA augurs well for the segment. Its organic revenues increased 17.5% year over year in the first quarter.
The company intends to strengthen and expand its businesses through acquisitions. Acquisitions contributed $151.4 million to the company’s sales in the first quarter of 2026. In June 2026, ITT inked a deal to acquire Aerospace Contacts LLC (Aerospace Contacts). The acquisition of Aerospace Contacts is expected to strengthen the company’s supply chain, enhance its aerospace and defense product offerings and boost its manufacturing and engineering capabilities.
ITT is committed to rewarding its shareholders through share buybacks and dividend payments. In the first three months of 2026, it paid out dividends of $35 million, up 22% year over year, and repurchased shares worth $100 million. It hiked the quarterly dividend rate by 10% in February 2026.
ITT’s Price Performance
Image Source: Zacks Investment Research
In the year-to-date period, this Zacks Rank #3 (Hold) company’s shares have gained 14% compared with the industry’s 9.4% growth.
Despite the positives, ITT has been dealing with escalating operating costs and expenses. In first-quarter 2026, its cost of sales increased 32.8% year over year, while sales and marketing expenses surged 53.9%. In the same quarter, the company’s general and administrative expenses skyrocketed 81.1% year over year due to higher acquisition-related expenses.
The company's high debt level remains another concern. Its total debt rose to $3.85 billion exiting the first quarter from $782.8 million at the end of 2025. The acquisition of SPX FLOW increased ITT’s debt burden. ITT’s interest expense also increased to $24.7 million in the first quarter from $9.3 million reported in the year-ago quarter. Considering its high debt level, the company’s cash and cash equivalents of $600.8 million do not look impressive.
Key Picks
Some better-ranked stocks from the same space are discussed below.
HLIO delivered a trailing four-quarter average earnings surprise of 15.7%. In the past 60 days, the Zacks Consensus Estimate for Helios Technologies’ 2026 earnings has increased 4.7%.
Griffon Corporation (GFF - Free Report) presently carries a Zacks Rank #2 (Buy). GFF delivered a trailing four-quarter average earnings surprise of 3.3%.
In the past 60 days, the consensus estimate for Griffon’s 2026 earnings has inched up 0.2%.
IDEX Corporation (IEX - Free Report) presently carries a Zacks Rank of 2. IEX delivered a trailing four-quarter average earnings surprise of 6%.
In the past 60 days, the consensus estimate for IDEX’s 2026 earnings has inched up 0.1%.
View the Zacks #1 Rank List
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Here's Why You Should Hold ITT Stock in Your Portfolio Now
Key Takeaways
ITT Inc. (ITT - Free Report) is benefiting from strong sales volume and order growth. The company’s Flow Technologies segment is gaining from strength in the short-cycle business, driven by market share gains across all product categories. Solid demand for pumps, valves and aftermarket services is aiding the segment. The acquisition of Svanehøj also bodes well for the segment. The segment’s organic revenues were up 12.2% year over year in the first quarter of 2026.
Growth in flow control components and connector solution sales within the aerospace and defense markets is supporting the Connect and Control Technologies (CCT) segment. Also, the acquisition of kSARIA augurs well for the segment. Its organic revenues increased 17.5% year over year in the first quarter.
The company intends to strengthen and expand its businesses through acquisitions. Acquisitions contributed $151.4 million to the company’s sales in the first quarter of 2026. In June 2026, ITT inked a deal to acquire Aerospace Contacts LLC (Aerospace Contacts). The acquisition of Aerospace Contacts is expected to strengthen the company’s supply chain, enhance its aerospace and defense product offerings and boost its manufacturing and engineering capabilities.
ITT is committed to rewarding its shareholders through share buybacks and dividend payments. In the first three months of 2026, it paid out dividends of $35 million, up 22% year over year, and repurchased shares worth $100 million. It hiked the quarterly dividend rate by 10% in February 2026.
ITT’s Price Performance
Image Source: Zacks Investment Research
In the year-to-date period, this Zacks Rank #3 (Hold) company’s shares have gained 14% compared with the industry’s 9.4% growth.
Despite the positives, ITT has been dealing with escalating operating costs and expenses. In first-quarter 2026, its cost of sales increased 32.8% year over year, while sales and marketing expenses surged 53.9%. In the same quarter, the company’s general and administrative expenses skyrocketed 81.1% year over year due to higher acquisition-related expenses.
The company's high debt level remains another concern. Its total debt rose to $3.85 billion exiting the first quarter from $782.8 million at the end of 2025. The acquisition of SPX FLOW increased ITT’s debt burden. ITT’s interest expense also increased to $24.7 million in the first quarter from $9.3 million reported in the year-ago quarter. Considering its high debt level, the company’s cash and cash equivalents of $600.8 million do not look impressive.
Key Picks
Some better-ranked stocks from the same space are discussed below.
Helios Technologies (HLIO - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
HLIO delivered a trailing four-quarter average earnings surprise of 15.7%. In the past 60 days, the Zacks Consensus Estimate for Helios Technologies’ 2026 earnings has increased 4.7%.
Griffon Corporation (GFF - Free Report) presently carries a Zacks Rank #2 (Buy). GFF delivered a trailing four-quarter average earnings surprise of 3.3%.
In the past 60 days, the consensus estimate for Griffon’s 2026 earnings has inched up 0.2%.
IDEX Corporation (IEX - Free Report) presently carries a Zacks Rank of 2. IEX delivered a trailing four-quarter average earnings surprise of 6%.
In the past 60 days, the consensus estimate for IDEX’s 2026 earnings has inched up 0.1%.