ITT (NYSE:ITT) Announces Earnings Results, Beats Expectations By $0.06 EPS

ITT (NYSE:ITT) issued its quarterly earnings results on Thursday. The conglomerate reported $1.85 EPS for the quarter, topping the consensus estimate of $1.79 by $0.06, FiscalAI reports. The firm had revenue of $1.05 billion during the quarter, compared to analyst estimates of $1.01 billion. ITT had a net margin of 12.39% and a return on equity of 17.74%. ITT’s revenue for the quarter was up 13.5% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.50 earnings per share. ITT updated its Q1 2026 guidance to 1.680-1.72 EPS.

Here are the key takeaways from ITT’s conference call:

• ITT reported a strong 2025 — revenue +8% (5% organic), EPS up mid-teens (18% ex-divestiture/equity raise), operating margin 18.2%, backlog of $1.9 billion, and > $550 million free cash flow with Q4 revenue and orders topping $1 billion.
• The SPX FLOW acquisition is expected to close in March and management forecasts net single?digit EPS accretion in 2026 plus roughly $80 million of synergies over three years (G&A, procurement, footprint), with teams already working on day?one readiness.
• Strong end?market momentum — Q4 CCT orders rose an organic 40%, IP and CCT each grew >11% organically in Q4, and a high?double?digit Boeing contract price adjustment should materially boost aerospace profitability.
• Robust cash and capital deployment — free cash flow conversion >100% enabled early?2025 share repurchases of about $500 million while management continues to fund M&A and productivity investments.
• Near?term dilution and execution risks — Q1 guidance already includes dilution from the December equity offering ( ~$0.03 EPS impact) and the Wolverine divestiture trimmed EPS by $0.16; SPX integration, acquisition accounting changes (amortization exclusion post?close) and lumpy orders (e.g., Svanehøj) could add variability.

ITT Trading Up 2.6%

NYSE ITT opened at $207.23 on Friday. The stock has a market cap of $17.83 billion, a P/E ratio of 33.92, a PEG ratio of 1.82 and a beta of 1.37. The company’s fifty day simple moving average is $180.19 and its 200-day simple moving average is $176.92. The company has a current ratio of 2.58, a quick ratio of 1.05 and a debt-to-equity ratio of 0.13. ITT has a 52 week low of $105.64 and a 52 week high of $207.86.

ITT Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, April 6th. Stockholders of record on Friday, March 6th will be paid a dividend of $0.386 per share. This is an increase from ITT’s previous quarterly dividend of $0.35. This represents a $1.54 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date is Friday, March 6th. ITT’s payout ratio is 23.26%.

Institutional Investors Weigh In On ITT

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. CIBC Private Wealth Group LLC boosted its position in ITT by 45.7% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 1,269 shares of the conglomerate’s stock valued at $227,000 after buying an additional 398 shares during the last quarter. CIBC Bancorp USA Inc. acquired a new position in shares of ITT in the third quarter worth about $470,000. Danske Bank A S purchased a new position in ITT in the third quarter valued at about $1,242,000. Advisory Services Network LLC acquired a new stake in ITT during the 3rd quarter valued at approximately $164,000. Finally, Morningstar Investment Management LLC purchased a new stake in ITT during the 3rd quarter worth approximately $529,000. Hedge funds and other institutional investors own 91.59% of the company’s stock.

Key Stories Impacting ITT

Here are the key news stories impacting ITT this week:

• Positive Sentiment: Q4 results beat and raised near?term guidance — ITT posted adjusted EPS of $1.85 and revenue of ~$1.05B (sales +13.5% Y/Y), beating estimates; the company set Q1 FY2026 EPS guidance above consensus, supporting earnings momentum and the valuation. Business Wire: ITT Reports Fourth Quarter Earnings
• Positive Sentiment: Margin expansion and SPX FLOW synergies — Management highlighted at least 50 bps of margin expansion for 2026 and ongoing integration benefits from the SPX FLOW acquisition, which supports operating leverage and longer?term profit upside. Seeking Alpha: Margin Expansion & SPX FLOW Synergies
• Positive Sentiment: 10% quarterly dividend increase — ITT raised the quarterly payout to $0.386 (annualized yield ~0.8%), which strengthens the income case and signals confidence in free cash flow. MarketWatch: ITT Raises Quarterly Dividend
• Positive Sentiment: Analyst support reinforced — DA Davidson reaffirmed a Buy rating with a $215 target (adds incremental analyst backing near current price levels), and recent analyst coverage shows several buy/overweight ratings and targets above the mid?$200s in some cases. Benzinga: DA Davidson Reaffirms Buy
• Neutral Sentiment: Technical/relative?strength improvement — ITT cleared key RS benchmarks (80+ RS rating) and received a relative strength rating upgrade, which can attract momentum investors but is not a fundamental driver. Investor’s Business Daily: RS Rating Upgrade
• Neutral Sentiment: Full earnings materials published — The earnings call transcript, slide deck and detailed call highlights are available for investors to validate assumptions and management commentary. Useful for due diligence but routine. Yahoo Finance: Q4 2025 Earnings Call Transcript
• Negative Sentiment: Recent insider selling — Filings show multiple insider sales (including CEO) over the past six months, which some investors view as a cautionary signal on near?term insider conviction. Quiver Quantitative: Q4 Release & Insider Activity

Analyst Ratings Changes

A number of brokerages recently weighed in on ITT. Weiss Ratings reiterated a “buy (b)” rating on shares of ITT in a report on Thursday, January 22nd. Stifel Nicolaus lifted their price objective on ITT from $218.00 to $228.00 and gave the company a “buy” rating in a research note on Friday. DA Davidson reiterated a “buy” rating and set a $215.00 target price on shares of ITT in a report on Friday. Citigroup raised their price target on shares of ITT from $207.00 to $225.00 and gave the company a “buy” rating in a report on Thursday, October 30th. Finally, Robert W. Baird set a $222.00 price target on shares of ITT in a research report on Friday. Nine analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the company has a consensus rating of “Buy” and an average price target of $210.78.

ITT Company Profile

ITT Inc is a diversified industrial manufacturing company that designs, manufactures and services mission-critical components and systems for global markets. Its engineered solutions support applications in aerospace, defense, transportation, energy and industrial automation. The company focuses on delivering high-performance products that enable reliable fluid handling, precision motion control and robust connectivity in demanding environments.

The company’s operations are organized into three segments: Motion Technologies, which provides precision components and aftermarket repair services for aircraft engines and industrial turbines; Connect & Control Technologies, which offers specialty valves, couplings, seals and proximity sensors for fuel, hydraulics and environmental control systems; and Fluid & Motion Control, which delivers pumps, heat exchangers and fluid management solutions for oil and gas, chemical processing and power generation.