ITT Inc. (NYSE: ITT) reported fourth‑quarter and full‑year 2025 results that exceeded analyst expectations. Revenue rose 13.5% to $1.054 billion, while adjusted earnings per share climbed to $1.85, beating the consensus estimate of $1.78 by $0.07 (a 3.9% beat). The company’s fourth‑quarter earnings per share of $1.64 also outpaced the $1.58 estimate, a $0.06 (3.8%) beat.
Revenue growth was driven by a mix of higher volumes and pricing actions across all three operating segments. The Industrial Process segment, which includes pump projects, contributed the largest share of the increase, while the Connect & Control Technologies segment benefited from aerospace and defense contracts. Compared with the same quarter in 2024, Q4 revenue of $929 million grew by $125 million, and adjusted EPS of $1.50 rose to $1.64, underscoring a strong acceleration in top‑line performance.
Operating income for the quarter reached $179 million, a 12% year‑over‑year gain, reflecting both higher revenue and improved operating leverage. Adjusted operating margin expanded to 18.4% from 18.0% in the prior year, driven by pricing power and cost discipline. Free cash flow held steady at $187 million, flat versus the prior year, and supported a 14.1% free‑cash‑flow margin for the full year, matching the 2030 target set at the company’s Capital Markets Day.
The results were further buoyed by the contributions of the Svanehøj and kSARIA acquisitions, which added new product lines and customer bases. Management also announced a 10% increase in the quarterly dividend to $0.386 per share, effective April 6 2026, signaling confidence in cash‑flow generation. Guidance for fiscal 2026 calls for revenue growth of 6%‑7% and an adjusted operating margin expansion of more than 100 basis points, reflecting expectations of continued momentum across all segments.
CEO Luca Savi highlighted the company’s “exceptional cash flow and outstanding profitable growth” and noted that the SPX FLOW acquisition would accelerate the shift toward higher‑growth, higher‑margin businesses. He added that free cash flow grew 27% and that the 14% free‑cash‑flow margin already meets the 2030 target. Savi emphasized that the company remains focused on cost discipline while investing in strategic acquisitions to strengthen its portfolio.
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