ITT (US:ITT)2025-10-29 10:35Financial 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].