Core Insights - ITT Inc. reported fourth-quarter 2025 adjusted earnings of $1.85 per share, exceeding the Zacks Consensus Estimate of $1.79, marking a 23% year-over-year increase driven by improved operational performance [1] - Total revenues reached $1.1 billion, surpassing the consensus estimate of $1 billion, with a year-over-year growth of 13.5% [1] - Organic sales increased by 8.6% year over year, supported by higher volume, pricing actions, and contributions from acquisitions [1] Financial Performance - In 2025, ITT's net revenues were $3.94 billion, reflecting an 8.5% year-over-year increase, while adjusted earnings rose to $6.72 per share, up 14.3% year over year [2] - The Industrial Process segment generated revenues of $423.1 million, a 16.7% increase year over year, with organic sales up 11.3% and adjusted operating income growing by 22.5% [3] - The Motion Technologies segment reported revenues of $360.8 million, a 10.7% year-over-year increase, with organic revenues rising 3.4% and adjusted operating income increasing by 12.9% [4] - The Connect & Control Technologies segment achieved revenues of $271.2 million, up 12.5% year over year, with organic growth of 11.5% and adjusted operating income increasing by 21.4% [5] Margin and Cost Analysis - ITT's cost of revenues increased by 11% year over year to $679.9 million, while gross profit rose by 18.2% to $374.1 million [6] - General and administrative expenses surged by 45.4% year over year to $107.6 million, while sales and marketing expenses increased by 11.9% to $61.0 million [6] - Adjusted operating income grew by 19.2% year over year to $194.1 million, with the operating margin expanding by 90 basis points to 18.4% [6] Balance Sheet and Cash Flow - At the end of the fourth quarter, ITT had cash and cash equivalents of $1.74 billion, a significant increase from $439.3 million at the end of the fourth quarter of 2024 [7] - Short-term borrowings decreased to $261.3 million from $427.6 million at the end of December 2024 [7] - ITT generated net cash of $668.8 million from operating activities in 2025, compared to $562.6 million in the previous year, with free cash flow reaching $555.4 million [8] Dividend and Share Repurchase - ITT paid out dividends totaling $111.0 million in 2025, reflecting a 6% year-over-year increase, and repurchased shares worth $521 million during the same period [10] - The board announced a 10% increase in the quarterly dividend rate to 38.6 cents per share, payable on April 6, with a record date of March 6 [11] Future Outlook - For the first quarter of 2026, ITT expects adjusted earnings to be in the range of $1.68 to $1.72 per share, with projected revenue growth of approximately 11% (5% organically) and an operating margin estimated to exceed 18% [12]