ITT Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.04%.
Did ITT Beat Earnings? Q3 2025 Results
ITT delivered a standout Q3 2025, posting adjusted EPS of $1.78 and beating the $1.67 consensus by 6.68%, while revenue of $999.10 million topped estimates by 2.55% and climbed 12.9% year over year. The quarter's momentum was fueled by broad-based execution across all three business segments, with the kSARIA and Svanehøj acquisitions providing meaningful lift in Connect & Control Technologies, which saw revenue surge 25%, and Industrial Process converting its pump project backlog at scale to deliver 15% revenue growth and a 21.4% operating margin. Adjusted operating income rose 14% to $184.70 million, with margin expanding 20 basis points to 18.5%, reflecting pricing discipline and productivity gains. Free cash flow of $154.10 million jumped 77% in the quarter, a particularly sharp result driven by favorable working capital dynamics. Building on the strength, ITT raised its full-year 2025 outlook, now guiding for adjusted EPS of $6.62 to $6.68, representing 13% to 14% growth, and free cash flow of approximately $500 million, underpinned by a roughly $2 billion backlog heading into Q4.
- Pump project backlog execution in Industrial Process
- Aerospace and defense demand in Connect & Control Technologies
- Automotive share gains in Motion Technologies (Friction OE)
- Productivity savings and pricing actions across segments
- Contributions from kSARIA and Svanehøj acquisitions
- Favorable foreign currency impacts in Motion Technologies
- KONI rail demand strength
- Favorable working capital from accounts receivable collections and vendor payments
“Our results in Q3 are another step towards our 2030 targets shared at our Capital Markets Day in May. Once again, it was ITT's differentiation that drove our share gains and continued margin expansion, furthered by our acquisitions. We generated $999 million in revenue powered by the execution of our large pump project backlog, growth in aerospace and defense and compounded by our kSARIA and Svanehøj acquisitions. Adjusted operating income grew nearly twice the rate of organic sales growth thanks to productivity actions and pricing, leading to adjusted earnings growth of over twenty percent. And most importantly, we generated nearly 50% free cash flow growth year to date, well on our way to over a half billion dollars in 2025.”
ITT CEO, on the earnings call
Forward Guidance & Outlook
ITT raised its full-year 2025 guidance: total revenue growth of 6% to 7% (organic revenue growth unchanged at 3% to 5%); operating margin of 17.7% to 18.0% (adjusted 18.2% to 18.5%, up 40-70 bps); GAAP EPS of $6.16 to $6.22; adjusted EPS of $6.62 to $6.68, representing 13% to 14% growth; and free cash flow of approximately $500 million (~13% free cash flow margin). The company enters Q4 with a ~$2 billion backlog and expects ramping value creation from recent acquisitions.
ITT YoY Financials
ITT Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.