ITT Inc. (ITT) | Investment Case

1. Company Snapshot

1.a. Company Description

ITT Inc.manufactures and sells engineered critical components and customized technology solutions for the transportation, industrial, and energy markets worldwide.The company operates through three segments: Motion Technologies, Industrial Process, and Connect & Control Technologies.

The Motion Technologies segment manufactures brake pads, shims, shock absorbers, and energy absorption components; and sealing technologies primarily for the transportation industry, including passenger cars, trucks, light- and heavy-duty commercial and military vehicles, buses, and trains.The Industrial Process segment designs and manufactures industrial pumps, valves, and plant optimization and remote monitoring systems and services; and centrifugal and twin screw positive displacement pumps, as well as aftermarket solutions, such as replacement parts and services.It serves various customers in industries, such as chemical, energy, mining, and other industrial process markets.

The Connect & Control Technologies segment designs and manufactures a range of engineered connectors and specialized control components for critical applications supporting various markets, including aerospace and defense, industrial, transportation, medical, and energy.This segment's connector product portfolio includes electrical connectors, such as circular, rectangular, radio frequency, fiber optic, D-sub miniature, micro-miniature, and cable assemblies, as well as control products consist of actuators, valves, and pumps and switches for flow control applications; rate controls, seat recline locks, and elastomer isolators for aircraft interiors; elastomeric bearings for rotorcraft vibration isolation; heaters, hoses, and composite ducting for environmental control systems; and advanced composites for engine applications.ITT Inc.

was incorporated in 1920 and is headquartered in White Plains, New York.

Show Full description

1.b. Last Insights on ITT

Breaking News: ITT Inc. reported Q4 earnings with EPS of $1.64 and adjusted EPS of $1.85, beating estimates of $1.79 per share. This represents a year-over-year increase from $1.5 per share. Full-year EPS was $6.11, with an adjusted EPS of $6.72. The company's quarterly earnings and revenues surpassed estimates. ITT's Q4 2025 earnings call transcript is available. Analysts recommend a hold, according to recent research reports. ITT's management team hosted a conference call to discuss these results.

1.c. Company Highlights

Last Price	200.88
Change Percentage	-2.90%
Open	207.41
Previous Close	206.87
Market Cap ( Millions)	17284
Volume	1558203
Year High	207.98
Year Low	105.64
M A 50	180.61
M A 200	168.88

FCF Yield	3.17%
Dividend Yield	0.70%
ROE	16.15%
Debt / Equity	19.17%
Net Debt / EBIDTA	-113.92%
Price To Book	3.92
Price Earnings Ratio	32.85
Price To FCF	31.57
Price To sales	4.39
EV / EBITDA	19.37

2. ITT Inc. Delivers Strong 2025 Financial Results, Sets Stage for Future Growth

ITT Inc. reported robust 2025 financial results, with revenue growth of 8% and 5% organically, and EPS growth of 14% or 18% excluding the impact of the Wolverine divestiture and the equity offering related to the SPX Flow acquisition. Operating income grew 11% and expanded margin by 40 basis points to 18.2%. The company achieved a significant milestone with orders and revenue both exceeding $1 billion in the fourth quarter. Free cash flow grew to over $550 million, up 27%, and free cash flow margin was up 200 basis points.

Publication Date: Feb -08

                                    📋 Highlights
                                    Revenue & Organic Growth::
                                                Total revenue grew 8% (5% organic) in 2025, with Q4 revenue exceeding $1B, up 13% overall and 9% organically.
EPS & Earnings Momentum::
                                                EPS increased 23% to $1.85 in 2025 (26% excluding equity offering dilution), with Q1 2026 guidance at $1.70 (29% growth ex-equity impact).
Free Cash Flow Expansion::
                                                Free cash flow surged 27% to $550M in 2025, with margin improvement of 200 basis points, reflecting strong operational performance.
Acquisition & Synergies::
                                                SPX Flow acquisition expected to close in March 2026, driving single-digit EPS accretion in 2026 and long-term revenue synergies beyond 2026.
Segment Performance::
                                                Industrial Process (IP) grew 11% organically, Connect & Control Technologies (CCT) 11% organically, and KONI Defense (MT segment) 13%, driven by defense and biopharma demand.

                                

Segment Performance

The company delivered strong performance across its segments, with IP growing over 11% organically, CCT growing 11% organically, and MT growing with KONI Defense up 13%. The company highlighted its growth platforms, including Flow, Latin America, biopharma, defense, and transportation. Luca Savi, CEO, noted that the funnel is slightly down versus the prior year but stable versus Q3, with growth in the Middle East and Asia Pacific, and expected low to mid-single-digit growth across all end markets in 2026.

Acquisition of SPX Flow

The acquisition of SPX Flow is expected to be a significant accelerator for the company, with total orders growing in the mid-teens for the full year, driven by strength in the Nutrition and Health segment and in mixers. The company has secured many key leaders from SPX Flow ahead of closing and is preparing for day one readiness. The acquisition is expected to be accretive, with high single-digit accretion in the first year, excluding any revenue synergies.

Outlook and Valuation

ITT Inc. expects to grow organic revenue mid-single digits and deliver at least 50 basis points of margin expansion in 2026. The company's EPS is expected to land at $1.70 for Q1, up 29% when excluding the impact of the December equity offer. With a P/E Ratio of 33.83 and an EV/EBITDA of 19.98, the market is pricing in significant growth expectations. The company's ROIC of 9.79% and ROE of 16.15% indicate a strong ability to generate returns on capital and equity.

Growth Prospects

The company has seen accelerating organic growth, from flat to 4% to 6% to 10%, and ended the year on a strong note. The growth was driven by Industrial Process and Connect and Control Technologies, with significant contributions from aerospace and defense, aftermarket aero, and pump projects. The biopharma valves business has been growing rapidly, with a $20 million opportunity growing into more than $50 million, and a recurring aftermarket for diaphragm valve replacements.

3. NewsRoom

ITT Inc. $ITT Stock Position Raised by Alps Advisors Inc.

Feb -09

Source: defenseworld.net

ITT Q4 Earnings Call Highlights

Feb -08

Source: defenseworld.net

ITT Inc. $ITT Shares Sold by Principal Financial Group Inc.

Feb -07

Source: defenseworld.net

ITT's Q4 Earnings & Revenues Top Estimates, Increase Y/Y

Feb -06

Source: zacks.com

ITT (NYSE:ITT) Hits New 52-Week High Following Strong Earnings

Feb -06

Source: defenseworld.net

ITT Inc. (ITT) Q4 2025 Earnings Call Transcript

Feb -05

Source: seekingalpha.com

Compared to Estimates, ITT (ITT) Q4 Earnings: A Look at Key Metrics

Feb -05

Source: zacks.com

ITT (ITT) Q4 Earnings and Revenues Surpass Estimates

Feb -05

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.75%)

6. Segments

Motion Technologies

Expected Growth: 6.5%

Motion Technologies from ITT Inc. achieves 6.5% growth driven by increasing demand for industrial automation, electrification of transportation, and growth in aerospace and defense markets. Additionally, the company's focus on innovation, strategic acquisitions, and expansion into emerging markets contribute to its growth momentum.

Industrial Process

Expected Growth: 6.8%

ITT Inc.'s Industrial Process segment growth of 6.8% is driven by increasing demand for energy-efficient solutions, expansion in emerging markets, and strategic acquisitions. Additionally, the segment benefits from a strong aftermarket presence, with a large installed base of pumps and valves, and a growing focus on digitalization and IoT solutions.

Connect & Control Technologies

Expected Growth: 7.2%

ITT Inc.'s Connect & Control Technologies segment growth of 7.2% is driven by increasing demand for industrial automation, electrification of transportation, and growth in commercial aerospace. Additionally, the segment benefits from its diversified portfolio, strong aftermarket presence, and strategic acquisitions, enabling it to capitalize on emerging trends and technologies.

Eliminations/Other Corporate Costs

Expected Growth: 5.8%

ITT Inc.'s 5.8% growth in Eliminations/Other Corporate Costs is driven by increased investments in digital transformation, higher IT infrastructure expenses, and rising corporate overheads. Additionally, the company's strategic acquisitions and divestitures have led to one-time integration costs, contributing to the growth.

7. Detailed Products

Pumps and Systems

ITT Inc.'s pumps and systems are designed for industrial processes, oil and gas, and mining applications, providing reliable and efficient fluid handling solutions.

Valves and Actuation

ITT Inc.'s valves and actuation products are designed for industrial, oil and gas, and power generation applications, providing precise control and reliability.

Heat Management

ITT Inc.'s heat management products are designed for industrial, aerospace, and automotive applications, providing thermal management solutions.

Connect and Control Technologies

ITT Inc.'s connect and control technologies are designed for industrial, aerospace, and defense applications, providing connectivity and control solutions.

Aerospace and Defense

ITT Inc.'s aerospace and defense products are designed for military and commercial aerospace applications, providing critical components and systems.

8. ITT Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

ITT Inc. operates in a industry where substitutes are available, but they are not a major threat. The company's products and services are differentiated, which reduces the threat of substitutes.

Bargaining Power Of Customers

ITT Inc. has a diverse customer base, which reduces the bargaining power of individual customers. The company's products and services are also customized, which makes it difficult for customers to switch to competitors.

Bargaining Power Of Suppliers

ITT Inc. has a moderate level of dependence on its suppliers. While the company has a diverse supplier base, some suppliers have a higher bargaining power due to their size and importance.

Threat Of New Entrants

The threat of new entrants is low in ITT Inc.'s industry due to high barriers to entry, such as high capital requirements and regulatory hurdles. The company's established brand and customer relationships also make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The intensity of rivalry in ITT Inc.'s industry is high due to the presence of several established players. The company competes with other industry leaders, which leads to a high level of competition and pricing pressure.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	7.77%
Debt Cost	4.57%
Equity Weight	92.23%
Equity Cost	11.10%
WACC	10.59%
Leverage	8.42%

11. Quality Control: ITT Inc. passed 7 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Watts Water Technologies

A-Score: 6.0/10

Value: 2.7

Growth: 6.9

Quality: 8.0

Yield: 1.0

Momentum: 8.5

Volatility: 8.7

1-Year Total Return ->

Donaldson

A-Score: 5.6/10

Value: 2.7

Growth: 5.8

Quality: 6.8

Yield: 2.0

Momentum: 7.0

Volatility: 9.3

1-Year Total Return ->

ITT

A-Score: 5.6/10

Value: 2.7

Growth: 6.7

Quality: 6.7

Yield: 2.0

Momentum: 8.0

Volatility: 7.3

1-Year Total Return ->

Flowserve

A-Score: 5.1/10

Value: 4.4

Growth: 4.6

Quality: 6.7

Yield: 3.0

Momentum: 7.5

Volatility: 4.7

1-Year Total Return ->

Nordson

A-Score: 5.1/10

Value: 2.5

Growth: 5.8

Quality: 7.1

Yield: 2.0

Momentum: 4.0

Volatility: 9.0

1-Year Total Return ->

IDEX

A-Score: 4.7/10

Value: 2.9

Growth: 4.9

Quality: 7.0

Yield: 3.0

Momentum: 2.0

Volatility: 8.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

15.42%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

10.59%

ITT Inc. - US45073V1089

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on ITT

1.c. Company Highlights

Better Quality

Expensive

Less Volatile

Earnings Beats

Revenues Beats

Medium Volatility

Revenues Miss

Fairly Valued

Average Quality

2. ITT Inc. Delivers Strong 2025 Financial Results, Sets Stage for Future Growth

Segment Performance

Acquisition of SPX Flow

Outlook and Valuation

Growth Prospects

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.75%)

6. Segments

Motion Technologies

Expected Growth: 6.5%

Industrial Process

Expected Growth: 6.8%

Connect & Control Technologies

Expected Growth: 7.2%

Eliminations/Other Corporate Costs

Expected Growth: 5.8%

7. Detailed Products

Pumps and Systems

Valves and Actuation

Heat Management

Connect and Control Technologies

Aerospace and Defense

8. ITT Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: ITT Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

200.88$

Current Price

200.88$

Potential

0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA