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ITT beats Q3 estimates, raises guidance (NYSE:ITT)
Seeking Alpha· 2025-10-29 10:36
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ITT (ITT) - 2025 Q3 - Quarterly Results
2025-10-29 10:35
Financial Performance - ITT reported Q3 2025 revenue of $999 million, a 13% increase (6% organic) compared to the prior year, driven by strength in pump projects and aerospace and defense[2]. - Operating income for Q3 2025 was $180 million, a 14% decrease year-over-year, while adjusted operating income increased by 14% to $184.7 million[3][4]. - Q3 2025 EPS was $1.62, down 18% from the previous year, but adjusted EPS rose 21% to $1.78 due to operational improvements and acquisitions[4]. - Revenue for the three months ended September 27, 2025, was $999.1 million, a 12.9% increase from $885.2 million in the same period of 2024[26]. - Operating income decreased to $179.8 million from $208.6 million, indicating a decline of 13.8% year-over-year[26]. - Net income attributable to ITT Inc. was $126.9 million, down from $161.6 million, representing a 21.4% decrease[26]. - Basic earnings per share decreased to $1.63 from $1.98, a decline of 17.7%[26]. - Revenue for the nine months ended September 27, 2025, was $2,884.5 million, compared to $2,701.7 million for the same period in 2024, indicating a growth of 6.8%[48]. Cash Flow and Assets - Net cash from operating activities increased by 40% to $174 million, and free cash flow surged 77% to $154 million compared to Q3 2024[5][6]. - Cash and cash equivalents rose to $516.4 million from $439.3 million, reflecting a 17.6% increase[27]. - Free cash flow for the nine months ended September 27, 2025, was $441.0 million, compared to $339.4 million in the prior year[28]. - Free cash flow for Q3 2025 was $154.1 million, with a free cash flow margin of 15.4%, up from 9.9% in Q3 2024[48]. - The company reported a net cash from operating activities of $173.9 million for Q3 2025, compared to $123.9 million in Q3 2024[48]. Guidance and Outlook - The company is raising its full-year guidance, expecting total revenue growth of 6% to 7% and adjusted EPS growth of 13% to 14% for 2025[14]. - The company provided full-year 2025 EPS guidance from continuing operations at $6.16 to $6.22, with adjusted EPS expected between $6.62 and $6.68[45]. Segment Performance - The Motion Technologies segment reported revenue of $355.6 million, a 3.1% increase, while Industrial Process revenue rose 15% to $383.9 million[10][11]. - Connect & Control Technologies revenue increased by 25.1% to $259.2 million, primarily driven by the kSARIA acquisition[12]. - Organic revenue growth was reported at 6.1% for the third quarter of 2025[34]. - Organic orders in Q3 2025 showed a decline of 2.2% in MT, 9.9% in IP, and a growth of 5.5% in CCT compared to Q3 2024[36]. Backlog and Orders - ITT's backlog stands at approximately $2 billion, indicating further growth opportunities in core markets and from acquisitions[9]. - In Q3 2025, total orders reached $991.0 million, with organic orders at $923.6 million, reflecting a decline of 3.6% year-over-year[36]. Margins and Profitability - Adjusted operating margin for Q3 2025 was 18.5%, an increase of 20 basis points compared to the prior year[3][7]. - Reported operating margin for Q3 2025 was 18.0%, down from 23.6% in Q3 2024, while adjusted operating margin was 18.5%[38]. - Gross profit increased to $355.2 million, up from $314.7 million, reflecting a gross margin improvement[26]. - Adjusted income from continuing operations per diluted share was not specified but is considered a key performance indicator for evaluating ongoing profitability[32]. Dividends - The company announced a quarterly dividend of $0.351 per share, payable on December 31, 2025[13].
ITT Reports 2025 Third Quarter Earnings Per Share (EPS) of $1.62, Adjusted EPS of $1.78; Raising Full Year Guidance
Businesswire· 2025-10-29 10:30
STAMFORD, Conn.--(BUSINESS WIRE)--ITT reports 2025 third quarter earnings per share (EPS) of $1.62, Adjusted EPS of $1.78; Raising full year guidance. ...
SSUMY vs. ITT: Which Stock Should Value Investors Buy Now?
ZACKS· 2025-10-22 16:41
Core Insights - Investors are evaluating Sumitomo Corp. (SSUMY) and ITT (ITT) as potential undervalued stocks in the Diversified Operations sector [1] Valuation Metrics - Both SSUMY and ITT currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3] - SSUMY has a forward P/E ratio of 9.61, significantly lower than ITT's forward P/E of 26.82 [5] - The PEG ratio for SSUMY is 1.90, while ITT's PEG ratio is 2.15, suggesting SSUMY may be more favorably valued considering expected earnings growth [5] - SSUMY's P/B ratio is 1.07, compared to ITT's P/B of 5.31, further indicating that SSUMY is undervalued relative to its book value [6] - Based on these valuation metrics, SSUMY has earned a Value grade of A, while ITT has a Value grade of D [6] Investment Recommendation - Despite both companies having solid earnings outlooks, SSUMY is identified as the superior value option based on the discussed valuation figures [7]
ITT Inc.: Excellent Execution, But The Stock Is Fully Priced (NYSE:ITT)
Seeking Alpha· 2025-10-20 15:11
Core Insights - Crude Value Insights provides an investment service and community focused on the oil and natural gas sector, emphasizing cash flow and the companies that generate it, which leads to value and growth prospects with real potential [1] Company Offerings - Subscribers gain access to a model account with over 50 stocks, in-depth cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [1] Promotional Offer - A two-week free trial is available for new subscribers, allowing them to explore the services related to oil and gas investments [2]
ITT: Excellent Execution, But The Stock Is Fully Priced
Seeking Alpha· 2025-10-20 15:11
Group 1 - Crude Value Insights provides an investment service and community focused on the oil and natural gas sector, emphasizing cash flow and companies that generate it [1] - The service offers subscribers access to a model account with over 50 stocks, detailed cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [1] Group 2 - A two-week free trial is available for new subscribers, promoting engagement with oil and gas investment opportunities [2]
ITT's KONI Recognized as 2025 Railsponsible Supplier Award Winner for Sustainable Product Lifecycle Extension
Businesswire· 2025-10-15 10:30
Core Insights - ITT Inc.'s KONI business has been awarded the 2025 Railsponsible Supplier Award, highlighting its commitment to sustainability and responsible sourcing in the rail industry [1] Company Summary - The recognition of KONI as the 2025 Railsponsible Supplier Award winner underscores the company's efforts in promoting sustainable practices within its operations [1]
3 Diversified Operations Stocks to Gain on Promising Industry Trends
ZACKS· 2025-10-14 14:31
Core Insights - The Zacks Diversified Operations industry is benefiting from strong performance in aerospace, defense, and oil & gas sectors, driven by growth in commercial aviation and demand in home and building products [1][4] - Challenges such as manufacturing sector weakness and supply-chain disruptions are impacting industry performance [2][6][7] - The industry is ranked 88 in the Zacks Industry Rank, indicating solid prospects with a positive earnings outlook [8][10] Industry Overview - The Zacks Diversified Operations industry encompasses companies in various sectors including oil & gas, industrial, electronics, aviation, and healthcare, providing a wide range of equipment and solutions [3] - Companies in this industry have a global presence, with operations in the U.S., Japan, India, China, and Canada [3] Major Trends - Strength in aerospace and defense markets is a key driver, with robust demand expected to continue due to air travel and government support [4] - Investments in innovation and technology are crucial for growth, with companies focusing on digitization to enhance operational efficiency [5] Challenges - The manufacturing sector has shown persistent weakness, with the Manufacturing Purchasing Manager's Index at 49.1% in September, indicating contraction [6] - Supply-chain disruptions, particularly in electrical and electronic components, are a concern for industry participants [7] Performance Metrics - The Zacks Diversified Operations industry has underperformed the S&P 500, declining 6.7% over the past year compared to the S&P 500's 16.5% increase [12] - The industry is currently trading at a forward P/E of 11.15X, significantly lower than the S&P 500's 23.29X [15] Notable Companies - **3M Company (MMM)**: Gained 11.3% in the past year, with strong momentum in safety and industrial segments [17][18] - **ITT Inc. (ITT)**: Shares increased by 11.7% in the past year, benefiting from demand in energy and industrial markets [21][22] - **Star Equity Holdings, Inc. (STRR)**: Expected to benefit from its Building Solutions division, with a significant earnings estimate increase of 154.5% over the past 60 days [25][26]
ITT (ITT) is a Great Momentum Stock: Should You Buy?
ZACKS· 2025-10-07 17:01
Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: ITT - ITT currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating strong potential for outperformance [3][4] - The company supplies parts and services across various industries, positioning it as a solid momentum pick [4] Price Performance - ITT shares have increased by 2.45% over the past week, outperforming the Zacks Diversified Operations industry, which rose by 1.19% [6] - Over the last month, ITT's stock price has changed by 4.51%, significantly better than the industry's 0.69% [6] - In the longer term, ITT shares have gained 14.44% over the past quarter and 21.41% over the last year, compared to the S&P 500's increases of 7.76% and 18.58%, respectively [7] Trading Volume - ITT's average 20-day trading volume is 449,988 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - Recent earnings estimate revisions show positive momentum, with 2 estimates moving higher for the full year and none lower, raising the consensus estimate from $6.48 to $6.50 [10] - For the next fiscal year, 1 estimate has increased, with no downward revisions during the same period [10] Conclusion - Given the positive price trends, strong earnings outlook, and favorable momentum indicators, ITT is positioned as a promising investment opportunity [11][12]
ITT to Release Third Quarter 2025 Results on Wednesday, Oct. 29
Businesswire· 2025-10-07 10:30
Core Viewpoint - ITT Inc. is scheduled to release its third quarter 2025 financial results before the opening of the New York Stock Exchange on Wednesday, October 29 [1] Company Summary - ITT Inc. will announce its financial performance for the third quarter of 2025 [1] - The announcement will take place prior to the market opening on October 29 [1] - The financial results will be made public through a press release [1]