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ITT's Q3 Earnings & Revenues Top Estimates, Increase Y/Y
ZACKS· 2025-10-30 18:06
Core Insights - ITT Inc. reported third-quarter 2025 adjusted earnings of $1.78 per share, exceeding the Zacks Consensus Estimate of $1.67, marking a 21.1% year-over-year increase driven by sales growth in the Connect & Control Technologies and Industrial Process segments [1][9] Revenue Performance - Total revenues reached $999.1 million, surpassing the consensus estimate of $977 million, reflecting a 12.9% year-over-year increase. Organic sales grew by 6.1%, supported by pump project shipments in the Industrial Process segment and increased demand in aerospace and industrial connectors [2] Segmental Results - **Industrial Process Segment**: Revenues totaled $383.9 million, up 15% year over year, with organic sales increasing 11.3% and adjusted operating income growing 18.7% [3] - **Motion Technologies Segment**: Revenues amounted to $355.6 million, a 3.1% year-over-year increase, with organic revenues rising 0.7%. Adjusted operating income increased by 15.4% [4] - **Connect & Control Technologies Segment**: Revenues of $259.2 million rose 25.1% year over year, with organic growth of 6.1%. Adjusted operating income increased by 20.3% [5] Margin Profile - Cost of revenues increased by 12.9% year over year to $643.9 million, while gross profit also rose by 12.9% to $355.2 million. Adjusted operating income increased by 13.8% to $184.7 million, with a margin expansion of 20 basis points to 18.5% [6] Balance Sheet and Cash Flow - At the end of Q3, ITT had cash and cash equivalents of $516.4 million, up from $439.3 million at the end of Q4 2024. Short-term borrowings decreased to $418 million from $427.6 million [7] - In the first nine months of 2025, net cash generated from operating activities was $441 million, compared to $339.4 million in the previous year. Free cash flow reached $368 million, up from $251.9 million [8] 2025 Outlook - ITT updated its 2025 adjusted earnings guidance to a range of $6.62-$6.68 per share, indicating a 13-14% increase from the prior year. Revenue growth is projected at 6-7%, with an adjusted operating margin between 18.2% and 18.5% [12][13]