ITT (NYSE:ITT) Issues Quarterly Earnings Results, Beats Estimates By $0.16 EPS

ITT (NYSE:ITT) posted its quarterly earnings results on Thursday. The conglomerate reported $2.08 EPS for the quarter, beating the consensus estimate of $1.92 by $0.16, FiscalAI reports. The firm had revenue of $1.47 billion during the quarter, compared to analysts’ expectations of $1.39 billion. ITT had a return on equity of 16.83% and a net margin of 10.80%.The company’s revenue for the quarter was up 51.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.64 EPS. ITT updated its FY 2026 guidance to 8.120-8.320 EPS.

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

• Record Q2 performance: Revenue rose 51% year over year, or 13% organically, while adjusted EPS increased 18% to $2.08. Orders grew 53% overall and 13% organically, with a 1.1 book-to-bill ratio.
• Strong aerospace and defense momentum: CCT orders increased 59% organically, led by KSARIA’s 168% order growth and record July bookings. Management cited market-share gains, long-term defense-program visibility and no current KSARIA capacity constraints.
• 2026 outlook raised: ITT increased its full-year organic revenue growth guidance to 5%-8%, adjusted EPS guidance to a midpoint of $8.22, and free cash flow guidance to $565 million. The company expects adjusted operating margin of approximately 20.5% at the midpoint.
• SPX FLOW integration is progressing: SPX FLOW orders grew 9% in Q2, year-to-date revenue rose 9%, and cost synergies are ahead of plan. ITT also reduced debt by $124 million in Q2, bringing leverage to 2.5 times, ahead of schedule.
• Some near-term pressure remains: Flow Technologies’ margin was diluted by the full-quarter SPX FLOW contribution, although management expects sequential improvement from synergies and productivity actions. Deferred Middle East orders and tougher second-half comparisons are also expected to moderate growth in coming quarters.

ITT Price Performance

ITT traded up $9.75 during midday trading on Thursday, hitting $213.83. The company had a trading volume of 2,630,037 shares, compared to its average volume of 983,331. The company has a debt-to-equity ratio of 0.71, a quick ratio of 1.01 and a current ratio of 1.53. The company has a market capitalization of $19.12 billion, a PE ratio of 37.71, a P/E/G ratio of 1.92 and a beta of 1.27. The firm’s 50-day simple moving average is $193.78 and its 200-day simple moving average is $196.90. ITT has a twelve month low of $164.00 and a twelve month high of $230.32.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on ITT shares. Wall Street Zen downgraded shares of ITT from a “buy” rating to a “hold” rating in a research note on Saturday, May 9th. Citigroup increased their price objective on shares of ITT from $252.00 to $254.00 and gave the company a “buy” rating in a research note on Thursday, May 7th. KeyCorp raised their price objective on shares of ITT from $230.00 to $250.00 and gave the stock an “overweight” rating in a report on Thursday, May 7th. Weiss Ratings lowered shares of ITT from a “buy (b)” rating to a “buy (b-)” rating in a research report on Wednesday, May 13th. Finally, Stifel Nicolaus increased their price target on shares of ITT from $246.00 to $250.00 and gave the stock a “buy” rating in a research report on Monday, July 20th. Eleven analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $234.75.

Insider Buying and Selling at ITT

In other news, insider Lori B. Marino sold 7,123 shares of the business’s stock in a transaction on Friday, May 8th. The stock was sold at an average price of $208.27, for a total transaction of $1,483,507.21. Following the completion of the sale, the insider owned 8,729 shares in the company, valued at $1,817,988.83. The trade was a 44.93% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 0.88% of the stock is currently owned by insiders.

Institutional Investors Weigh In On ITT

Institutional investors and hedge funds have recently modified their holdings of the business. Findlay Park Partners LLP boosted its stake in ITT by 63.2% during the 4th quarter. Findlay Park Partners LLP now owns 1,230,902 shares of the conglomerate’s stock worth $213,574,000 after acquiring an additional 476,702 shares during the last quarter. Ghisallo Capital Management LLC bought a new stake in ITT in the fourth quarter valued at approximately $78,080,000. Burkehill Global Management LP bought a new stake in ITT in the fourth quarter valued at approximately $60,728,000. Soros Fund Management LLC acquired a new stake in ITT in the fourth quarter worth $57,152,000. Finally, AQR Capital Management LLC raised its holdings in ITT by 52.9% in the fourth quarter. AQR Capital Management LLC now owns 925,931 shares of the conglomerate’s stock worth $160,658,000 after purchasing an additional 320,493 shares during the period. 91.59% of the stock is owned by institutional investors.

ITT News Summary

Here are the key news stories impacting ITT this week:

• Positive Sentiment: Q2 earnings beat estimates. Adjusted EPS rose 18% year over year to $2.08, exceeding analysts’ expectations of approximately $1.92-$1.93. Revenue increased 51.5% to $1.47 billion, ahead of the $1.39 billion consensus estimate. ITT Reports Second-Quarter Earnings
• Positive Sentiment: Full-year guidance was raised. ITT now expects 2026 adjusted EPS of $8.12-$8.32, or $8.22 at the midpoint, versus its prior range of $7.70-$8.00 and analyst consensus near $7.92. The company also increased its organic revenue growth outlook to 5%-8% from 4%-6%. ITT Raises 2026 Guidance
• Positive Sentiment: Demand and profitability trends were strong. Total orders grew 53%, including 13% organic growth, supported by aerospace and defense, commercial aerospace, rail and industrial pump demand. Adjusted operating margin reached 20%, while management said SPX FLOW integration and cost synergies are progressing ahead of plan.
• Positive Sentiment: Deleveraging and cash expectations improved. ITT said debt repayment is lowering leverage faster than previously targeted and raised its full-year outlook for revenue, margins, earnings and cash. The company also declared a quarterly dividend of $0.386 per share, payable October 5.
• Neutral Sentiment: GAAP results were mixed. Reported EPS was $0.95, down from $1.54 a year earlier, but this was more than offset in investor sentiment by the adjusted EPS beat and acquisition-related growth.
• Negative Sentiment: Insider selling remains a cautionary signal. QuiverQuant data shows CEO Luca Savi sold approximately 63,450 shares across six transactions during the past six months, with no reported open-market purchases. This does not negate the earnings strength but may temper enthusiasm at an elevated valuation.

About ITT

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.