ITT Corp (ITT)
NYSE:ITT
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ITT
(NYSE:ITT)
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Rating:69Neutral
Price Target:
$226.00
▲(3.19% Upside)
Action:Downgraded
Date:05/09/26
The score is primarily supported by strong financial fundamentals (steady growth, solid profitability, and conservative balance sheet) and a positive earnings outlook with margin expansion and accretive acquisition synergies. These strengths are tempered by premium valuation (high P/E with low yield) and mixed near-term technical momentum despite longer-term trend support.
Positive Factors
Steady revenue and strong profitability
Multi-year revenue growth and persistent gross margins near 35% with double-digit net margins indicate durable pricing power and operational scale in engineered industrials. This profitability supports reinvestment in product development, aftermarket services and maintains attractive returns without reliance on leverage.
Negative Factors
Higher leverage and interest burden
The acquisition-financed debt raising leverage to roughly 2.7x increases fixed financing costs (management cited ~+$30M per quarter) and reduces free cash flow available for discretionary uses. Elevated leverage raises sensitivity to cyclical demand and constrains capital allocation until deleveraging occurs.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady revenue and strong profitability
Multi-year revenue growth and persistent gross margins near 35% with double-digit net margins indicate durable pricing power and operational scale in engineered industrials. This profitability supports reinvestment in product development, aftermarket services and maintains attractive returns without reliance on leverage.
Read all positive factors
ITT Key Performance Indicators (KPIs)
Any
Revenue By Segment
Breaks down revenue by different business units, highlighting which segments are driving growth and which may be underperforming, offering insight into the company's strategic focus and market dynamics.
Breaks down revenue by different business units, highlighting which segments are driving growth and which may be underperforming, offering insight into the company's strategic focus and market dynamics.
Data provided by:
The Fly
The FlyITT (ITT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.39B
Dividend Yield0.79%
Average Volume (3M)953.01K
Price to Earnings (P/E)54.0
Beta (1Y)1.31
Revenue Growth16.63%
EPS Growth-9.75%
CountryUS
Employees11,700
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)5.70
Shares Outstanding89,400,000
10 Day Avg. Volume665,273
30 Day Avg. Volume953,015
Financial Highlights & Ratios
PEG Ratio-9.42
Price to Book (P/B)3.37
Price to Sales (P/S)3.50
P/FCF Ratio25.16
Enterprise Value/Market Cap1.20
Enterprise Value/Revenue4.91
Enterprise Value/Gross Profit14.07
Enterprise Value/Ebitda22.51
Forecast
1Y Price Target
$250.22Price Target Upside14.25% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)7.75
Revenue Forecast (FY)$5.40B
ITT Business Overview & Revenue Model
Company Description
ITT Inc. manufactures and sells engineered critical components and customized technology solutions for the transportation, industrial, and energy markets worldwide. The company operates through three segments: Motion Technologies, Industrial Proce...
How the Company Makes Money
ITT makes money primarily by manufacturing and selling engineered industrial products and components to OEMs and industrial customers. Its revenue model is largely product-based: customers purchase ITT’s components and equipment either for integra...
ITT Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial quarter with broad-based revenue and orders growth, margin expansion, meaningful adjusted EPS acceleration and an early, accretive contribution from the SPX FLOW acquisition. Management provided constructive full-year guidance and a clear synergy plan while also disclosing near-term headwinds: one-time acquisition costs that depressed free cash flow, higher interest expense and tax rate from acquisition financing, integration and cadence risks (SPX FLOW margin phasing), and exposure to automotive, tariffs and geopolitical disruptions. On balance, the positive growth, margin progress and accretive M&A execution outweighed the short-term financing and integration challenges.Positive Updates
Strong top-line growth
Q1 revenue of $1.2B, up 33% year-over-year (11% organic). Orders grew 26% (8% organic) and book-to-bill was 1.09. Management reports backlog has nearly doubled over the past 3 years.
Negative Updates
Near-term cash flow and one-time acquisition costs
Reported free cash flow was only $14M in Q1, negatively impacted by $71M of one-time acquisition-related expenses tied to SPX FLOW integration.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong top-line growth
Q1 revenue of $1.2B, up 33% year-over-year (11% organic). Orders grew 26% (8% organic) and book-to-bill was 1.09. Management reports backlog has nearly doubled over the past 3 years.
Read all positive updates
Company Guidance
ITT initiated 2026 guidance for adjusted EPS of $7.70–$8.00 (≈+9% at the midpoint) and total revenue growth of 37% (≈5% organic at the midpoint) with a book‑to‑bill above 1; management expects Flow Technologies/SPX FLOW to deliver high‑single‑digit revenue growth and low‑teens net adjusted EPS accretion (~$15M of SPX cost synergies in 2026 toward an $80M total target, ~1/3 to be captured in year 1). The company expects roughly +70 basis points of full‑year margin expansion to about 20% at the midpoint (Q2 margin ~+50 bps to ~20%), Q2 EPS up high‑single digits, meaningful higher interest expense from the ~$2.9B March debt, a combined tax rate of ~24.9%, an expected share count of ~90M over the next three quarters, and free cash flow around $560M (10–11% FCF margin); post‑close leverage sits at ~2.7x.ITT Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
86
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.24B | 3.94B | 3.63B | 3.28B | 2.99B | 2.77B |
| Gross Profit | 1.48B | 1.39B | 1.25B | 1.11B | 922.30M | 899.50M |
| EBITDA | 924.00M | 842.80M | 821.50M | 647.90M | 580.10M | 521.60M |
| Net Income | 457.60M | 488.00M | 518.30M | 410.50M | 367.00M | 316.30M |
Balance Sheet | ||||||
| Total Assets | 11.13B | 6.31B | 4.71B | 3.93B | 3.78B | 3.57B |
| Cash, Cash Equivalents and Short-Term Investments | 600.80M | 1.74B | 439.30M | 489.20M | 561.20M | 647.50M |
| Total Debt | 3.96B | 927.20M | 756.50M | 285.20M | 536.60M | 291.60M |
| Total Liabilities | 6.39B | 2.22B | 1.94B | 1.39B | 1.52B | 1.33B |
| Stockholders Equity | 4.74B | 4.08B | 2.76B | 2.53B | 2.25B | 2.23B |
Cash Flow | ||||||
| Free Cash Flow | 484.70M | 547.50M | 438.20M | 430.10M | 173.90M | -96.00M |
| Operating Cash Flow | 595.30M | 668.80M | 562.60M | 537.70M | 277.80M | -7.60M |
| Investing Cash Flow | -3.64B | -119.80M | -817.90M | -181.00M | -255.10M | -82.30M |
| Financing Cash Flow | 3.19B | 728.90M | 234.90M | -432.30M | -83.30M | -99.80M |
ITT Technical Analysis
Negative
219.02
Price Trends
202.19
Negative
195.62
Negative
185.59
Positive
Market Momentum
-1.33
Positive
34.27
Neutral
5.15
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ITT, the sentiment is Negative. The current price of 219.02 is above the 20-day moving average (MA) of 211.26, above the 50-day MA of 202.19, and above the 200-day MA of 185.59, indicating a neutral trend. The MACD of -1.33 indicates Positive momentum. The RSI at 34.27 is Neutral, neither overbought nor oversold. The STOCH value of 5.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ITT.
ITT Risk Analysis
ITT disclosed 28 risk factors in its most recent earnings report. ITT reported the most risks in the "Finance & Corporate" 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $15.37B | 29.34 | 12.61% | 1.56% | 7.54% | 7.09% | |
74 Outperform | $15.33B | 28.71 | 17.30% | 1.64% | 6.50% | 17.62% | |
70 Outperform | $9.93B | 36.76 | 16.30% | 0.49% | 7.18% | 5.22% | |
69 Neutral | $17.39B | 54.00 | 13.03% | 0.79% | 16.63% | -9.75% | |
68 Neutral | $15.52B | 38.94 | 7.18% | ― | -0.51% | -44.42% | |
67 Neutral | $12.57B | 29.23 | 19.65% | 1.32% | 4.61% | 7.87% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
ITT
ITT
194.98
42.94
28.25%
GNRC
Generac Holdings
253.05
124.10
96.24%
GGG
Graco
76.17
-9.69
-11.29%
IEX
IDEX
208.63
20.92
11.15%
NDSN
Nordson
276.76
75.13
37.26%
CR
Crane Company
170.77
-6.28
-3.54%
ITT Corporate Events
Executive/Board Changes
ITT Appoints Interim CFO Following Emmanuel Caprais Departure
Neutral
May 7, 2026
On May 6, 2026, ITT Inc. announced that Chief Financial Officer Emmanuel Caprais will leave the company for personal reasons, effective May 8, 2026, after almost 14 years of service, and will remain as a business advisor reporting to the CEO throu...
Business Operations and StrategyM&A Transactions
ITT Completes Transformative Acquisition of SPX FLOW Business
Positive
Mar 2, 2026
On March 2, 2026, ITT completed its acquisition of SPX FLOW, Inc., a global provider of highly engineered process technologies used in industrial, chemical, energy, nutrition and personal care markets. SPX FLOW generated more than $1.3 billion in ...
Regulatory Filings and Compliance
ITT Updates Disclosure on Existing Material Agreement Obligations
Neutral
Feb 18, 2026
ITT filed a brief regulatory disclosure indicating that information previously described under Item 1.01, concerning entry into a material definitive agreement, is being formally incorporated by reference into another section of its filing. The no...
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.