ITT Inc (NYSE:ITT) Beats Q3 2025 Earnings and Revenue Estimates, Raises Full-Year Guidance

ITT Inc (NYSE:ITT) reported financial results for the third quarter of 2025 that surpassed analyst expectations, driven by strong performance across its industrial segments and strategic acquisitions. The engineered components manufacturer also raised its full-year guidance, signaling confidence in its ongoing operational momentum.

Earnings and Revenue Overview

The company posted revenue of $999.1 million for the quarter, a 12.9% increase compared to the prior year period. This top-line figure exceeded the analyst consensus estimate of approximately $983.7 million. The growth was fueled by several key factors:

• Total Revenue: $999.1 million (reported) vs. ~$983.7 million (estimated)
• Organic Growth: 6.1%, indicating solid underlying business performance
• Primary Drivers: Strength in large pump projects within Industrial Process, growth in aerospace and defense, and pricing actions across the Connect & Control Technologies and Motion Technologies segments.

On the bottom line, ITT reported an adjusted earnings per share (EPS) of $1.78. This result handily beat the analyst forecast of $1.68 per share, representing a 21% increase over the adjusted EPS from the third quarter of 2024.

• Adjusted EPS: $1.78 (reported) vs. $1.68 (estimated)

Market Reaction and Price Action

Despite the earnings and revenue beat, the market reaction in pre-market trading was slightly negative, with shares down approximately 1.1%. This muted response could be attributed to a mix of profit-taking following recent strength or a "sell-the-news" event after the stock's positive performance over the preceding two weeks. It is important to note that short-term price movements can be influenced by factors beyond the core fundamentals presented in an earnings report.

Operational and Segment Performance

A deeper look into the results reveals robust operational execution. While a one-time gain on the sale of a business in the prior year caused reported operating income to decline, the adjusted figures tell a more accurate story of ongoing profitability.

• Adjusted Operating Income: Increased 13.8% to $184.7 million.
• Adjusted Operating Margin: Expanded by 20 basis points to 18.5%.
• Cash Flow: Net cash from operating activities surged 40% to $174 million, and free cash flow saw a significant 77% increase to $154 million.

Segment performance was broadly positive:

• Industrial Process: Revenue grew 15%, with operating income up 16.5%, driven by pump projects and pricing.
• Connect & Control Technologies: Revenue surged 25.1%, largely due to the kSARIA acquisition, with operating income up 21.3%.
• Motion Technologies: Reported modest revenue growth of 3.1%, but adjusted operating income increased 15.4%.

Updated 2025 Guidance

Bolstered by its strong year-to-date results, ITT raised its full-year outlook. The company now expects:

• Adjusted EPS: $6.62 to $6.68, representing growth of 13% to 14% for the full year.
• Revenue Growth: 6% to 7% total growth, with organic growth outlook unchanged at 3% to 5%.
• Free Cash Flow: Now expected to be approximately $500 million.

This updated guidance appears to align with or potentially exceed the broader analyst expectations for the full year, reinforcing management's positive outlook.

Conclusion

ITT's third-quarter results demonstrate a company executing effectively on its strategic goals, with top and bottom-line beats, healthy organic growth, and robust cash generation. The decision to raise full-year guidance underscores the management's confidence in the company's trajectory. While the immediate market reaction was tepid, the fundamental performance provides a solid foundation for the stock. Investors will likely watch for continued execution against the raised guidance and the conversion of the company's substantial $2 billion backlog into future revenue.

For a more detailed look at past and estimated future earnings, you can view the earnings and estimates page for ITT Inc here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, nor does it recommend buying or selling any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.