Key Factors
Earnings per share (Non-GAAP) surpassed estimates at $1.64, up 10.1% year-over-year.
Income (GAAP) reached $972.4 million, exceeding GAAP expectations by $23.9 million and rising 7.3%.
Orders exceeded $1 billion for the second straight quarter, with a report backlog of practically $2 billion coming into Q3.
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ITT (NYSE:ITT), a diversified industrial engineering firm, reported its monetary outcomes on July 31, 2025. The headline information: adjusted earnings per share reached $1.64, topping the $1.61 analyst forecast (non-GAAP), and income (GAAP) hit $972.4 million, exceeding the consensus GAAP estimate of $948.47 million. Orders once more surpassed $1 billion, pushing the backlog to just about $2 billion on the finish of the quarter. General, the quarter outperformed Wall Road expectations, with broad-based income development and improved profitability, though margin enlargement remained modest in some segments.
MetricQ2 2025Q2 2025 EstimateQ2 2024Y/Y ChangeEPS (Non-GAAP)$1.64$1.61$1.4910.1percentRevenue$972.4 million$948.47 million$905.9 million7.3percentOperating Margin18.0percent17.6percent0.4 ppFree Money Circulate (Non-GAAP)$137.3 million$134.5 million2.1%
Supply: Analyst estimates offered by FactSet. Administration expectations primarily based on administration’s steering, as offered in Q1 2025 earnings report.
What ITT Does and The place It Wins
ITT operates within the industrial sector, specializing in engineering options and parts for transportation, industrial course of, and aerospace markets. Its fundamental segments are Movement Applied sciences (MT), which focuses on brakes and shock absorbers for automobiles and rail; Industrial Course of (IP), masking pumps and valves for fluid dealing with; and Join & Management Applied sciences (CCT), which offers parts and connectors for aerospace, protection, and industrial purposes. By serving a variety of sectors, ITT goals to easy out fluctuations in any single market and preserve development.
The corporate’s present focus is on international diversification, increasing in high-growth markets, and constant funding in analysis and improvement (R&D). Latest years have emphasised innovation–such as energy-saving industrial motor drives–and focused acquisitions to reinforce publicity to aerospace and sustainability-linked markets. Success relies on integrating new companies, rising its high-margin portfolio, and sustaining operational self-discipline.
Efficiency Evaluation: Quarter Highlights and Phase Developments
Throughout the interval, ITT exceeded expectations on each revenue and gross sales. Adjusted EPS grew 10.1% from the prior 12 months, outpacing the 7.3% income improve. CEO Luca Savi famous, “As soon as once more, we surpassed $1 billion of orders and entered Q3 with practically $2 billion in backlog. Each top-line positive factors and profitability enhancements mirrored development throughout all main segments and optimistic results from previous acquisitions.
By section, Movement Applied sciences reported $365.7 million in sales–a reported drop of 4.9% however natural development of three.0%. The damaging headline quantity primarily mirrored the sale of the Wolverine Superior Supplies enterprise final 12 months, whereas the underlying natural development benefited from robust demand for Friction unique tools merchandise and elevated exercise in European rail. Industrial Course of delivered $355.9 million in income, up 7.6% reported (5.5% organically) with giant challenge shipments and continued pricing positive factors, particularly in marine pumps by way of the Svanehøj acquisition. Join & Management Applied sciences noticed gross sales bounce 31.3% to $251.9 million, though most of this got here from the kSARIA acquisition; Natural development was 4.5%, pushed by each new product momentum and worth will increase.
Profitability superior, although erratically. Firm-wide working earnings rose practically 10%, and the working margin (GAAP) improved to 18.0%. The Movement Applied sciences section’s adjusted working margin was 20.2%, whereas Industrial Course of reached an adjusted working margin of 21.8%. CCT, nevertheless, skilled a margin drop to 17.9% on an adjusted basis–a decline attributed to “short-term acquisition amortization” from integrating kSARIA. Throughout ITT, worth will increase and productiveness measures helped offset rising materials and labor prices, although value inflation stays a watch-point for upcoming quarters.
Orders remained strong. Complete orders grew 16% 12 months over 12 months and 13% natural orders development, maintaining book-to-bill above 1 (that means incoming orders continued to outpace income). The influx pushed ITT’s backlog to about $2 billion, a report excessive coming into Q3 and giving visibility to future gross sales. Administration reported energy in key sectors, highlighting robust demand for brand spanking new vitality and protection merchandise, and continued innovation in areas like VIDAR, its new energy-saving embedded motor drive–a product geared toward saving industrial vitality and slicing greenhouse emissions. The corporate famous that the kSARIA and Svanehøj acquisitions are contributing “double-digit development,” and challenge execution margins are operating above initially booked ranges.
ITT’s capital allocation included $400 million in share repurchases year-to-date. Free money stream edged as much as $137.3 million–up 2.1% from a 12 months in the past. The corporate declared a quarterly dividend of $0.351 per share, in line with its ongoing capital return strategy.
Trying Ahead: Steering and What to Watch
ITT administration raised its full-year steering alongside this earnings launch. Income is now anticipated to rise 5–7% (natural development 3–5%), with adjusted working margin focused between 18.1% and 18.7%–a 30 to 90 basis-point improve over final 12 months. Adjusted EPS is now anticipated at $6.35–6.55, representing year-over-year development of 8–11%. Free money stream is projected within the $450–500 million vary, or 12–13% of income. Forecasts for the second half of the 12 months account for about $50–60 million in tariff value exposures, which administration expects to offset with pricing actions and provide chain changes.
Traders watching ITT within the coming quarters ought to monitor progress in elevating segment-level margins, particularly in Join & Management Applied sciences as acquisition integration continues. Different key areas embody monitoring order tendencies in giant initiatives, ongoing value inflation, the last word impact of tariff-related value will increase, and the ramp-up of latest improvements like VIDAR energy-saving industrial motors. Administration’s raised outlook alerts confidence in changing the report backlog into gross sales, however the firm additionally famous warning on potential demand shifts and worth sensitivity as additional worth will increase are carried out in response to tariffs and price pressures.
The quarterly dividend was $0.351 per share for Q3.
Income and web earnings offered utilizing U.S. typically accepted accounting rules (GAAP) until in any other case famous.
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