ITT Corporation ((ITT)) has held its Q2 earnings call. Read on for the main highlights of the call.
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ITT Corporation’s recent earnings call for Q2 2025 was marked by a positive sentiment, highlighting the company’s strong order growth, revenue increases, and margin expansion across its segments. Despite minor challenges from M&A amortization and FX impacts, ITT demonstrated robust performance and raised its full-year EPS outlook, underscoring the significant achievements reported during the call.
Record Orders and Revenue Growth
ITT Corporation reported a remarkable achievement with $1 billion in orders, reflecting a 16% total increase and a 13% organic rise. The company also generated a record quarterly revenue of more than $970 million, marking a 7% total and 4% organic growth. This impressive performance underscores ITT’s ability to capture market opportunities and drive growth.
Operating Margin Expansion
The company experienced a significant expansion in operating margins, with operating income growing more than twice the organic sales growth rate. Excluding M&A, the operating margin expanded over 100 basis points, showcasing ITT’s efficiency and effective cost management strategies.
Strong Performance in Industrial Process
ITT’s Industrial Process segment exhibited robust growth, increasing by 22%. This was driven by the strength in Goulds Pumps and Svanehøj, with the latter’s orders surpassing their full-year 2024 revenue within the first half of 2025, highlighting the segment’s strong market demand and execution.
Connect & Control Growth
The Connect & Control segment saw a 9% organic growth, fueled by defense and commercial aerospace awards. Total orders in this segment increased by 36%, reflecting ITT’s strategic positioning and competitive advantage in these industries.
Motion Technologies’ Outperformance
Motion Technologies’ Friction OE grew 7% organically, outperforming global auto production by over 500 basis points. This outperformance indicates ITT’s strong market position and ability to exceed industry benchmarks.
Increased Free Cash Flow and Share Repurchase
ITT reported an increase in free cash flow to $214 million year-to-date and repurchased $500 million of its shares, effectively lowering the weighted average share count by 3%. These actions demonstrate ITT’s commitment to returning value to shareholders and maintaining financial flexibility.
Raised Full Year EPS Outlook
ITT raised its full-year adjusted EPS outlook to $6.45 at the midpoint, indicating a 10% growth compared to the prior year. This upward revision reflects the company’s confidence in its ongoing growth trajectory and strategic initiatives.
Temporary M&A Amortization and FX Impact
The company faced some headwinds from temporary M&A amortization related to kSARIA and unfavorable foreign currency transaction impacts. However, these challenges were minor compared to the overall strong performance reported.
Mix Shift Towards Lower Margin Projects
ITT experienced a shift in its backlog mix towards projects, which typically have lower margins compared to short-cycle products. This mix shift presents a challenge in maintaining margin levels but is part of the company’s strategic project focus.
Forward-Looking Guidance
Looking ahead, ITT Corporation remains optimistic, having raised its full-year adjusted EPS outlook to a midpoint of $6.45, reflecting a 10% growth versus the prior year, or 13% growth excluding the Wolverine divestiture. The company anticipates continued robust performance, driven by its strategic pillars of organic growth, margin expansion, and M&A activity.
In conclusion, ITT Corporation’s Q2 2025 earnings call conveyed a strong positive sentiment, with the company reporting significant achievements in order growth, revenue, and margin expansion. Despite minor challenges, ITT’s raised EPS outlook and strategic initiatives position it well for continued success in the coming quarters.