ITT (US:ITT)2026-03-02 13:44Financial Performance - Fourth quarter revenue increased by 13% year-over-year to $1,054 million, with organic growth of 9% driven by higher volume and acquisitions[2][7] - Operating income for the fourth quarter was $179 million, a 12% increase compared to the prior year, with adjusted operating income rising 19% to $194 million[3][4] - Fourth quarter earnings per share (EPS) were $1.64, up 6% year-over-year, while adjusted EPS increased by 23% to $1.85[4][6] - Full year revenue reached $3,938.5 million, an 8.5% increase, with organic growth of 4.8%[14] - Full year operating cash flow was $669 million, up 19%, with a margin of 17%[5][14] - The company reported a backlog of $1.9 billion, positioning it for continued growth in the upcoming year[10] - Reported revenue growth for 2025 was 13.5%, with specific segments showing growth rates of 10.7% for MT, 16.7% for IP, and 12.5% for CCT[37] - The company reported a total of $3,938.5 million in revenue for the full year 2025, with organic revenue growth of 4.8%[37] Cash Flow and Dividends - Operating cash flow for the fourth quarter was $228 million, a 2% increase, resulting in an operating cash flow margin of 22%[5][6] - Cash and cash equivalents increased significantly to $1,742.9 million as of December 31, 2025, from $439.3 million in 2024[29] - The company reported a net cash from operating activities of $668.8 million for the year ended December 31, 2025, compared to $562.6 million in 2024, an increase of 18.8%[30] - Free Cash Flow for 2025 is projected at $1,054.0 million, with a Free Cash Flow Margin of approximately 26.7%[35] - In Q4 2025, the company reported net cash from operating activities of $227.8 million, with a free cash flow of $187.4 million[48] - The company announced a 10% increase in its quarterly dividend to $0.386 per share, continuing a trend of annual dividend growth[16] Acquisitions and Future Growth - The acquisition of SPX FLOW is expected to enhance the company's portfolio towards higher-growth, higher-margin businesses, with a closing anticipated in Q1 2026[9][17] - For Q1 2026, the company expects revenue growth of approximately 11%, with adjusted EPS guidance of $1.68 to $1.72[17] - The company plans to focus on market expansion and new product development to drive future growth[35] - Acquisition-related costs for 2025 include $2.1 million of interest-related costs associated with the agreement to acquire SPX FLOW[13] Profitability Metrics - Gross profit for the twelve months ended December 31, 2025, was $1,392.4 million, up from $1,249.4 million in 2024, reflecting an increase of 11.4%[28] - Operating income for the twelve months ended December 31, 2025, was $684.5 million, slightly up from $678.1 million in 2024, an increase of 0.6%[28] - Full Year 2025 Reported Operating Income totaled $275.9 million, down 12.3% from $315.1 million in 2024[40] - Full Year 2025 Adjusted Operating Income was $285.2 million, representing a 6.1% increase compared to $268.9 million in 2024[43] - The Adjusted Operating Margin for Q4 2025 was 19.7%, compared to 18.4% in Q4 2024, an increase of 40 basis points[40] - The Reported Operating Margin for Full Year 2025 was 19.3%, down from 21.1% in 2024, a decrease of 240 basis points[43] Earnings and Taxation - Diluted Earnings per Share for Q4 2025 was $1.64, a 5.8% increase from $1.55 in Q4 2024[43] - Full Year 2025 Diluted Earnings per Share was $6.11, a decrease of 3.3% from $6.32 in 2024[43] - For the full year 2025, tax expenses on distributions of non-U.S. income totaled $12.6 million, and tax expenses on undistributed foreign earnings amounted to $4.9 million[13] Liabilities and Assets - Total assets rose to $6,310.4 million as of December 31, 2025, compared to $4,731.3 million in 2024, marking a growth of 33.3%[29] - Total liabilities increased to $2,219.1 million as of December 31, 2025, from $1,945.5 million in 2024, a rise of 14.1%[29]