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ITT Corp (ITT)
NYSE:ITT
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ITT (ITT) AI Stock Analysis

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ITT

ITT

(NYSE:ITT)

Rating:79Outperform
Price Target:
$195.00
▲(12.41% Upside)
ITT's overall stock score of 79 reflects its strong financial performance and positive earnings call results, which highlight record orders and revenue growth. The technical analysis indicates a positive trend, although the valuation suggests a premium price. The company's strategic achievements and increased EPS outlook further bolster its position.
Positive Factors
Business Strategy
Analyst recommends a Buy rating for ITT Corporation and raises the price objective to $170 due to improving business quality and strong execution.
Mergers and Acquisitions
All recent acquisitions by ITT have been accretive to growth, indicating effective investment and integration strategies.
Product Innovation
VIDAR is probably the most significant new product discussed at the event, with long-term potential of ~$600M annual revenues.
Negative Factors
Auto Market Weakness
Results remain attractive considering weakness in auto markets as momentum in process and connectors coupled with an emerging M&A capability continue to push ITT forward.

ITT (ITT) vs. SPDR S&P 500 ETF (SPY)

ITT Business Overview & Revenue Model

Company DescriptionITT Inc. is a diversified global manufacturing company that operates in three primary segments: Industrial Process, Motion Technologies, and Connect and Control Technologies. The company designs and manufactures a wide range of products, including pumps, valves, and connectors, which are used in various applications such as water and wastewater treatment, oil and gas, aerospace, and transportation. ITT is known for its engineering expertise and innovation, providing solutions that enhance efficiency and safety across multiple industries.
How the Company Makes MoneyITT generates revenue through the sale of its diverse range of products and solutions across its three business segments. The Industrial Process segment contributes significantly by providing pumps and valves for industrial applications, while the Motion Technologies segment focuses on hydraulic systems and other motion control products. The Connect and Control Technologies segment offers advanced connectors and sensors for critical applications. Key revenue streams include direct sales to end-users, partnerships with distributors, and contracts with large corporations and government entities. Additionally, ITT benefits from long-term contracts and repeat business, particularly in sectors like oil and gas and water management, which provide stable income. Strategic partnerships and a strong focus on innovation also play a crucial role in enhancing its competitive position and driving earnings growth.

ITT Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
ITT reported strong Q2 results with record orders and revenue growth, significant margin expansion, and robust cash flow, leading to an increased EPS outlook. However, there were some challenges with foreign currency impacts, temporary M&A costs, and slight project delays. Overall, the positive aspects of the quarter significantly outweighed the negatives.
Q2-2025 Updates
Positive Updates
Record Orders and Revenue Growth
In Q2 2025, ITT delivered $1 billion of orders, a 16% total increase and 13% organic growth, leading to record quarterly revenue of over $970 million, up 7% total and 4% organic.
Significant Margin Expansion
Operating margin expanded over 100 basis points excluding M&A. Adjusted EPS grew by 10%, or 16% excluding the Wolverine divestiture.
Strong Free Cash Flow and Share Repurchase
Free cash flow grew to $214 million year-to-date, with a free cash flow margin of 14% in Q2. ITT repurchased $500 million in shares year-to-date.
Orders and Growth in Industrial Process
Industrial Process orders grew 22%, driven by strengths in Goulds Pumps and Svanehøj, with Svanehøj orders surpassing their full-year 2024 revenue in the first 6 months of 2025.
Motion Technologies Wins
The friction team won 49 new electrified platform awards with leading OEMs in China, Europe, and North America.
Increased 2025 Outlook
ITT raised its full-year adjusted EPS outlook to $6.45 at the midpoint, indicating a 10% growth, or 13% excluding the Wolverine divestiture.
Negative Updates
Foreign Currency Transaction Costs
The operating margin was affected by unfavorable foreign currency transaction costs due to a weaker U.S. dollar.
Temporary M&A Costs
The operating margin faced headwinds from temporary M&A amortization costs, particularly from kSARIA.
Project Delays
Some projects faced delays, with a couple of orders shifting to a later date, although the impact was not considered significant.
Higher M&A-related Costs
There was an increase in M&A-related costs that slightly impacted the overall margin guidance.
Company Guidance
During ITT's 2025 Second Quarter Conference Call, the company reported strong financial metrics, reflecting significant growth and strategic achievements. ITT secured $1 billion in orders, marking a 16% total increase and 13% organic growth, driven by acquisitions like kSARIA and Svanehøj. Revenue hit a record quarterly high of over $970 million, up 7% total and 4% organic. Operating income outpaced organic sales growth, with margins expanding by over 100 basis points when excluding M&A. Adjusted EPS rose by 10% and 16% excluding the Wolverine divestiture, while free cash flow reached $214 million year-to-date, targeting nearly $0.5 billion for the year. The free cash flow margin stood at 14% for Q2. ITT also repurchased $500 million of its shares, reducing the weighted average share count by 3%. The company raised its full-year adjusted EPS outlook to $6.45 at the midpoint, representing 10% growth compared to the previous year.

ITT Financial Statement Overview

Summary
ITT shows strong financial performance with significant revenue growth, healthy profit margins, and effective cash flow management. The company maintains a low debt-to-equity ratio, indicating conservative financial leverage. While stockholders' equity has decreased slightly, overall financial health remains robust.
Income Statement
85
Very Positive
ITT demonstrates robust financial performance with a consistent revenue growth trajectory, evidenced by a 12.67% increase in revenue from 2023 to 2024 and further growth in TTM. Gross Profit and EBIT margins are healthy at 34.96% and 18.75% respectively for TTM, indicating efficient cost management and operational efficiency. The net profit margin remains strong at 13.99%, underscoring profitability. Overall, ITT's income statement reflects strong growth and profitability in the industrial machinery sector.
Balance Sheet
78
Positive
ITT's balance sheet is solid with an equity ratio of 50.97%, demonstrating a stable financial structure. The debt-to-equity ratio stands at 0.18, indicating conservative leverage. The return on equity is impressive at 20.24%, reflecting efficient use of equity. The company's assets are well managed, with liabilities under control. However, the substantial cash reserves and low net debt indicate a strong liquidity position, though stockholders' equity has slightly decreased, necessitating watchful monitoring.
Cash Flow
82
Very Positive
ITT's cash flow statement shows strong financial health with a free cash flow growth rate of 11.28% from 2024 to TTM. The operating cash flow to net income ratio is 1.19, indicating effective conversion of income to cash. Additionally, the free cash flow to net income ratio of 0.94 further supports the company's capability to generate cash. ITT's ability to maintain positive free cash flow while investing in capital expenditure highlights efficient cash management strategies.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.70B3.63B3.28B2.99B2.77B2.48B
Gross Profit1.29B1.25B1.11B922.30M899.50M782.20M
EBITDA805.40M821.50M639.10M554.50M545.60M455.00M
Net Income517.50M518.30M410.50M367.00M316.30M72.50M
Balance Sheet
Total Assets5.02B4.71B3.93B3.78B3.57B4.28B
Cash, Cash Equivalents and Short-Term Investments467.90M439.30M489.20M561.20M647.50M859.80M
Total Debt1.16B756.50M285.20M536.60M291.60M212.00M
Total Liabilities2.45B1.94B1.39B1.52B1.33B2.15B
Stockholders Equity2.56B2.76B2.53B2.25B2.23B2.13B
Cash Flow
Free Cash Flow487.60M438.20M430.10M173.90M-96.00M373.20M
Operating Cash Flow613.90M562.60M537.70M277.80M-7.60M436.90M
Investing Cash Flow-414.30M-817.90M-181.00M-255.10M-82.30M-65.80M
Financing Cash Flow-187.50M234.90M-432.30M-83.30M-99.80M-158.60M

ITT Technical Analysis

Technical Analysis Sentiment
Positive
Last Price173.47
Price Trends
50DMA
161.57
Positive
100DMA
151.25
Positive
200DMA
147.98
Positive
Market Momentum
MACD
2.78
Negative
RSI
64.64
Neutral
STOCH
86.41
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ITT, the sentiment is Positive. The current price of 173.47 is above the 20-day moving average (MA) of 167.68, above the 50-day MA of 161.57, and above the 200-day MA of 147.98, indicating a bullish trend. The MACD of 2.78 indicates Negative momentum. The RSI at 64.64 is Neutral, neither overbought nor oversold. The STOCH value of 86.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ITT.

ITT Risk Analysis

ITT disclosed 20 risk factors in its most recent earnings report. ITT reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

ITT Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$13.44B26.6820.17%0.77%6.69%21.44%
76
Outperform
$10.14B20.2327.60%1.88%-3.53%-7.46%
75
Outperform
$12.72B28.3815.59%1.38%4.49%-3.33%
72
Outperform
$11.26B36.2018.23%0.45%3.01%27.13%
71
Outperform
$12.50B26.7912.25%1.69%4.73%-19.15%
67
Neutral
$10.04B40.683.84%0.93%-7.88%
64
Neutral
$10.95B16.378.81%1.96%2.68%-15.33%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ITT
ITT
173.47
37.23
27.33%
IEX
IDEX
166.08
-36.24
-17.91%
NDSN
Nordson
225.67
-26.67
-10.57%
RRX
Regal Rexnord
152.72
-10.91
-6.67%
AOS
A. O. Smith Corporation
72.42
-8.10
-10.06%
CR
Crane Company
193.78
38.66
24.92%

ITT Corporate Events

Executive/Board ChangesShareholder Meetings
ITT Elects Mary Laschinger to Board of Directors
Neutral
May 22, 2025

On May 21, 2025, ITT Inc. announced the election of Mary Laschinger to its Board of Directors, following the annual meeting of shareholders. Laschinger, with her extensive experience in industrial companies and previous leadership roles, is expected to bring valuable expertise to ITT’s operations. Her appointment is part of ITT’s ongoing board refreshment strategy aimed at strengthening its leadership. Additionally, the company held its annual meeting where ten directors were elected, and key proposals, including the ratification of Deloitte & Touche LLP as the independent registered public accounting firm, were approved.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025