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ITT
(NYSE:ITT)
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Rating:72Outperform
Price Target:
$214.00
▼(-2.29% Downside)
Action:Upgraded
Date:06/30/26
The score is driven primarily by strong financial performance (solid growth, profitability, and conservative leverage in TTM) and a positive earnings outlook with margin expansion and SPX FLOW synergy potential. Offsetting these are a relatively expensive valuation (high P/E and low yield) and muted/neutral technical momentum (negative MACD and trading below key mid-term moving averages).
Positive Factors
Revenue and margin track record
Consistent multi-year revenue growth with healthy gross (~35%) and double-digit net margins indicates durable pricing power, efficient manufacturing and favorable product mix. This margin base supports reinvestment, R&D and aftermarket expansion, underpinning stable earnings over a 2–6 month horizon and beyond.
Negative Factors
Higher post‑deal leverage and interest expense
Elevated debt taken to fund SPX FLOW increases interest costs and reduces free cash flow availability for buybacks, dividends or reinvestment. Higher leverage heightens sensitivity to margin or demand shocks and constrains strategic optionality until deleveraging progress is achieved over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and margin track record
Consistent multi-year revenue growth with healthy gross (~35%) and double-digit net margins indicates durable pricing power, efficient manufacturing and favorable product mix. This margin base supports reinvestment, R&D and aftermarket expansion, underpinning stable earnings over a 2–6 month horizon and beyond.
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
$17.68B
Dividend Yield0.79%
Average Volume (3M)953.01K
Price to Earnings (P/E)34.4
Beta (1Y)1.30
Revenue Growth16.63%
EPS Growth-9.75%
CountryUS
Employees11,367
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-9.41
Price to Book (P/B)3.37
Price to Sales (P/S)3.50
P/FCF Ratio25.16
Enterprise Value/Market Cap1.16
Enterprise Value/Revenue4.83
Enterprise Value/Gross Profit13.83
Enterprise Value/Ebitda23.78
Forecast
1Y Price Target
$247.75Price Target Upside13.12% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)7.82
Revenue Forecast (FY)$5.41B
ITT Business Overview & Revenue Model
Company Description
ITT Inc., together with its subsidiaries, manufactures and sells engineered critical components and customized technology solutions for the transportation, industrial, and energy markets. The company operates three segments: Motion Technologies, I...
How the Company Makes Money
ITT makes money primarily by selling engineered products and systems to original equipment manufacturers (OEMs), distributors, and end users across its three operating segments, with revenue recognized from product shipments and, where applicable,...
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 | 859.70M | 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
Positive
219.02
Price Trends
200.28
Negative
199.11
Negative
189.02
Positive
Market Momentum
-0.56
Negative
52.78
Neutral
33.83
Neutral
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 219.02 is above the 20-day moving average (MA) of 192.97, above the 50-day MA of 200.28, and above the 200-day MA of 189.02, indicating a neutral trend. The MACD of -0.56 indicates Negative momentum. The RSI at 52.78 is Neutral, neither overbought nor oversold. The STOCH value of 33.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $16.80B | 33.55 | 12.61% | 1.56% | 7.54% | 7.09% | |
75 Outperform | $16.81B | 32.14 | 17.12% | 1.64% | 7.37% | 20.50% | |
72 Outperform | $17.68B | 34.44 | 13.03% | 0.79% | 16.63% | -9.75% | |
71 Outperform | $12.55B | 24.27 | 19.65% | 1.32% | 4.61% | 7.87% | |
70 Outperform | $12.88B | 40.17 | 16.30% | 0.49% | 7.18% | 5.22% | |
68 Neutral | $17.24B | 90.96 | 7.18% | ― | -0.51% | -44.42% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
ITT
ITT
197.76
38.87
24.46%
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IEX
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NDSN
Nordson
301.69
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CR
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223.07
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16.52%
ITT Corporate Events
Executive/Board Changes
ITT Appoints Bertrand Loy and Kevin Wheeler to Board
Positive
Jun 29, 2026
On June 29, 2026, ITT Inc. announced that its board of directors has elected Bertrand Loy and Kevin Wheeler as new directors, with their appointments effective August 1, 2026, expanding the board from ten to twelve members. The board determined th...
Executive/Board ChangesShareholder Meetings
ITT shareholders endorse board, auditor and executive pay
Positive
May 26, 2026
On May 21, 2026, ITT held its Annual Meeting of shareholders, with 79,595,414 shares represented, about 89.03% of those entitled to vote, and elected ten directors, including CEO Luca Savi, to serve until the 2027 annual meeting or until their suc...
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...
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.