ITT Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.30%.
Did ITT Beat Earnings? Q2 2025 Results
ITT delivered a clean beat to open the back half of 2025, with second-quarter adjusted EPS of $1.64 clearing the $1.61 consensus by 1.79% and revenue of $972.40 million topping estimates by 2.52% while growing 7.3% year over year. The standout driver was broad-based order momentum, as ITT crossed $1.00 billion in orders for the second consecutive quarter, with total orders reaching $1.07 billion on 16% reported growth and backlog approaching $2.00 billion entering Q3. Industrial Process led the way with 7.6% revenue growth and 140 basis points of margin expansion, while Connect & Control Technologies surged on the kSARIA acquisition and Motion Technologies delivered 3.0% organic growth despite the Wolverine divestiture headwind. Adjusted operating margin expanded 30 basis points to 18.4%, and free cash flow climbed 30% year to date to $213.90 million. Encouraged by execution and a more stable demand environment, management raised full-year adjusted EPS guidance to $6.35 to $6.55, representing 8% to 11% growth, and lifted free cash flow expectations to $450 million to $500 million.
- Pump project shipments in Industrial Process segment
- Aerospace and industrial connectors demand in CCT
- Share gains in automotive and rail in Motion Technologies
- Pricing actions across segments
- Productivity savings driving operating income growth over twice the rate of sales growth
- kSARIA acquisition contributing to CCT revenue growth
- Friction original equipment and KONI rail demand driving MT organic growth
- Orders surpassed $1 billion for second consecutive quarter with 16% growth (13% organic)
“On the heels of our 2025 Capital Markets Day, ITT delivered a strong Q2, well aligned to the pillars of value creation we outlined in May, showcasing our differentiation through execution, innovation and M&A. Once again, we surpassed $1 billion of orders and entered Q3 with nearly $2 billion in backlog. All segments grew revenues organically whilst operating income grew over twice the rate of sales growth. Cash generation accelerated, growing over 30% year-to-date, enabling us to both invest in our businesses and deploy over half a billion dollars of capital, nearly three times our free cash flow. Finally, our acquisitions continue to perform with large awards and strong profitable growth in the energy transition and on coveted defense platforms. All of this resulted in adjusted EPS growth of 10% for the quarter or 16% excluding the Wolverine divestiture. On the strength of this performance and a less volatile outlook, we are raising our revenue and EPS guidance for 2025. We are confident in ITT's ability to deliver on our commitments this year and over the long term.”
ITT CEO, on the earnings call
Forward Guidance & Outlook
ITT raised its full-year 2025 guidance, reflecting strong year-to-date performance and a more stable demand outlook for the second half. The company now expects total revenue growth of 5% to 7% and organic revenue growth of 3% to 5% (unchanged); operating margin of 17.5% to 18.1% and adjusted operating margin of 18.1% to 18.7%, an increase of 30 to 90 basis points; GAAP EPS of $5.95 to $6.15 and adjusted EPS of $6.35 to $6.55, representing growth of 8% to 11% for the full year; and free cash flow of $450 million to $500 million, representing free cash flow margin of 12% to 13%.
ITT YoY Financials
ITT Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.