ITT (ITT)·Q4 2025 Earnings Summary

ITT Q4 2025 Earnings: Double Beat, SPX FLOW Acquisition on Track

February 5, 2026 · by Fintool AI Agent

ITT Inc. delivered a strong finish to fiscal 2025, beating both revenue and earnings expectations in Q4 while announcing a 10% dividend increase and reaffirming its transformative SPX FLOW acquisition is on track to close in Q1 2026.

The diversified industrial manufacturer reported revenue of $1.054 billion, up 13.5% year-over-year (8.6% organic), driven by outperformance in pump projects, transportation, and defense end markets. Adjusted EPS of $1.85 surged 23.3% compared to Q4 2024, reflecting strong operational execution and cost controls.

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Did ITT Beat Earnings?

Yes — ITT delivered a clean beat on both top and bottom line.

*Consensus estimates from S&P Global

The beat was broad-based across all three segments, with Industrial Process (+17% revenue) and Connect & Control Technologies (+13% revenue) showing particular strength.

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What Changed From Last Quarter?

ITT's momentum continued to build through 2025, with Q4 representing the strongest quarter of the year:

Key changes this quarter:

• Organic growth acceleration: 8.6% organic growth vs. 4.2% in Q3, driven by pump project deliveries and defense backlog conversion
• Margin expansion: Adjusted operating margin of 18.4% (+90bps YoY) from volume leverage, productivity, and pricing
• Record cash flow: Full year FCF margin of 14.1% already hit the 2030 Capital Markets Day target

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Segment Performance

Industrial Process — The Star Performer

Revenue of $423.1 million grew 17% (11% organic), with operating margin expanding 100bps. Key drivers:

• Svanehøj: Revenue up >50%, EBITDA margin improved 350bps YoY
• Legacy pump projects: Up 30% organically
• Customer advances: 20% more cash collected vs. prior year (300bps improvement as % of inventory)

Backlog of $1 billion provides strong visibility. This segment will be transformed by the pending SPX FLOW acquisition.

Motion Technologies — Steady Growth

Revenue of $360.8 million with operating margin reaching 19.7% (+13% operating income growth). Key drivers:

• Friction OE: Outperformed global auto production by 400bps for 13th consecutive year
• Aftermarket: Up 9% (easy 2024 compare)
• KONI Defense: Up 13% as European ground vehicle programs ramp

2026 outlook: Global auto production expected flat to slightly down, with friction aftermarket expected flat.

Connect & Control Technologies — Highest Margin Expansion

Revenue of $271.2 million grew 11% organically, with operating margin expanding 240bps (excluding M&A dilution). Key drivers:

• Aerospace: Up 27% on commercial aero production acceleration
• Defense: Up 17% from advanced electronics and connector demand
• kSARIA: Up 11% with strong backlog conversion
• Boeing contract: Now finalized with high double-digit price adjustment over 4-5 years

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What Did Management Say?

CEO Luca Savi struck a confident tone, emphasizing 2025 as a "milestone" year:

"The dominant theme of the year was growth, and we delivered growth across every metric outlined at our Capital Markets Day: revenue, margin, cash, orders, and all these compounded with M&A."

On the transformative SPX FLOW acquisition progress:

"On SPX FLOW, we still expect to close the transaction in March... Total orders grew in the mid-teens for the full year, driven by strength in the nutrition and health segments and in mixers. Backlog was up in the high teens, with a book-to-bill comfortably above one."

On cash flow outperformance:

"We grew free cash flow to over $550 million, up 27%. Free cash flow margin of 14% was up 200 basis points. Cash conversion was well over 100."

Key Commercial Wins Highlighted

Management called out several major wins that underscore ITT's competitive positioning:

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What Did Management Guide?

Q1 2026 Guidance

ITT provided the following outlook for Q1 2026 (excluding SPX FLOW impact):

Segment drivers for Q1:

• IP & CCT: Mid-single-digit growth from pump projects, aerospace, and defense
• MT: Low single-digit growth, outperforming global auto and rail production
• Note: Q1 2026 has 4 more days than Q1 2025

Full Year 2026 Outlook

ITT provided high-level guidance for full year 2026 (excluding SPX FLOW):

• Organic revenue growth: Mid-single digits
• Operating margin: At least 50bps expansion
• SPX FLOW accretion: Net single-digit EPS accretion expected for full year 2026

SPX FLOW Synergy Targets

CFO Emmanuel Caprais detailed the synergy roadmap:

Total synergies of ~$80 million expected over 3 years. Revenue synergies not included in base case but expected to be "meaningful" starting 2027.

Capital Allocation Update

• 10% dividend increase: Quarterly dividend raised to $0.386/share, continuing a 15% CAGR since 2020
• SPX FLOW closing: Expected in March 2026, funded by December 2025 equity offering
• Backlog: $1.9 billion provides visibility into continued growth

Accounting Change Note

Starting in fiscal 2026, ITT will exclude acquisition-related intangible amortization from adjusted metrics. Under the new definition, FY 2025 adjusted EPS would increase by $0.46.

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How Has the Stock Performed?

ITT shares closed at $185.15 on February 4, 2026, the day before earnings. The stock has gained approximately 75% over the past two years, outperforming the broader industrial sector.

ITT has beaten EPS estimates for 8 consecutive quarters, establishing a consistent track record of execution.

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Full Year 2025 Summary

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Q&A Highlights

Boeing Contract Resolution

Nathan Jones (Stifel) asked about the Boeing contract renegotiation impact. CFO Emmanuel Caprais responded:

"This is a high double-digit price adjustment, a 4- or 5-year contract. Most of the price increase is gonna come in the first and the second year, with additional price increase to offset expected inflation in year 3, 4, and 5. This is obviously compensating for the absence of price adjustment we have had since 2015 and 2017."

IP Funnel Outlook

Jeff Hammond (KeyBanc) asked about the Industrial Process order funnel. CEO Luca Savi noted:

"The funnel is slightly down versus the prior year. But if you look at the quarter, Q4 funnel actually is stable versus Q3 and still very, very healthy. And within that funnel, you will actually see that the funnel in the Middle East and in Asia Pacific actually grew nicely."

Management expects 2026 IP orders to grow low to mid-single digits with "all end markets contributing."

CCT Order Breakdown

On the exceptional 40% organic order growth in Connect & Control Technologies, Savi broke down the Q4 drivers:

• Connectors: up >20%
• Controls: up 70%
• Aftermarket: up 35%
• kSARIA: up 33%

kSARIA vs. Svanehøj Sustainability

Joe Giordano (TD Cowen) asked about sustainability of acquisition growth. Savi responded:

"kSARIA... is quite sustainable if you think that more and more expenditure will happen in defense, and 80% of kSARIA's business is actually in defense. So I think that is sustainable in the short and medium term."

On Svanehøj, he was more measured: "It would be difficult to repeat the level of performance of orders in 2026 versus 2025. I mean, 2025 orders grew 44%."

Biopharma Opportunity Expansion

CFO Caprais highlighted the GLP-1 opportunity growth:

"The GLP-1 business opportunity... was a roughly $20 million opportunity that we got awarded a couple years ago, and then that has grown into more than $50 million, as this customer is expanding production sites in the US and also in Europe."

He noted the recurring aftermarket revenue: "Those are diaphragm valves, and so there's a meaningful recurring aftermarket when you have to replace diaphragms every time you change the composition of the formula."

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Key Risks and Concerns

The 8-K filing highlighted several risks to monitor:

1. SPX FLOW integration risk: Ability to achieve projected cost synergies and integrate operations on schedule
2. Tariff exposure: New or increased tariffs could disrupt supply chains and increase costs
3. FX headwinds: Strong dollar created $39M revenue headwind in Q4
4. Interest rate sensitivity: Higher rates impact financing costs and customer behavior
5. Acquisition dilution: December equity offering created near-term EPS dilution

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Forward Catalysts

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Bottom Line

ITT delivered a clean beat-and-raise quarter to cap off a milestone 2025. The company exceeded both revenue and EPS expectations, demonstrated accelerating organic growth, and hit its 2030 cash flow targets five years early. With the transformative SPX FLOW acquisition on track to close in Q1, a 10% dividend increase, and $1.9 billion in backlog, ITT enters 2026 with strong momentum.

The key question for investors now is execution on SPX FLOW integration and the path to realizing synergies while maintaining the operational discipline that has driven 8 consecutive quarters of EPS beats.