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.
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.
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
Segment Performance
Industrial Process — The Star Performer
Revenue of $423.1 million grew 17% (11% organic), with operating margin expanding 80bps to 22.0%. Strength came from pump projects, Svanehøj contributions, and pricing actions. This segment will be transformed by the pending SPX FLOW acquisition.
Motion Technologies — Steady Growth
Revenue of $360.8 million grew 11% (3% organic), though operating margin contracted 60bps to 18.7%. Friction OE outperformance and aftermarket growth drove results, partially offset by unfavorable FX.
Connect & Control Technologies — Highest Margin Expansion
Revenue of $271.2 million grew 13% (12% organic), with operating margin expanding 220bps to 18.8%. Aerospace and defense demand and pricing actions were the primary drivers.
What Did Management Say?
CEO Luca Savi struck a confident tone, emphasizing 2025 as a "milestone" year:
"2025 was a milestone. We delivered exceptional cash flow and outstanding profitable growth, all in all a strong start to the next ITT chapter as outlined at Capital Markets Day. We grew orders 10% and revenue 8% whilst continuing to expand margin."
On the transformative SPX FLOW acquisition:
"The announced acquisition of SPX FLOW accelerates the strategic shift of our portfolio towards higher-growth, higher-margin businesses. SPX FLOW's leading brands and strong engineering capabilities will strengthen our Industrial Process business, creating a world-class flow platform."
On cash flow outperformance:
"Thanks to the ITT team's hard work, we grew free cash flow 27% and delivered 14% free cash flow margin for the year, already at the level of performance we targeted for 2030 at Capital Markets Day."
Ask Fintool AI AgentWhat Did Management Guide?
Q1 2026 Guidance
ITT provided the following outlook for Q1 2026 (excluding SPX FLOW impact):
Capital Allocation Update
- 10% dividend increase: Quarterly dividend raised to $0.386/share, continuing a 15% CAGR since 2020
- SPX FLOW closing: Expected in Q1 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.
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.
Full Year 2025 Summary
Key Risks and Concerns
The 8-K filing highlighted several risks to monitor:
- SPX FLOW integration risk: Ability to achieve projected cost synergies and integrate operations on schedule
- Tariff exposure: New or increased tariffs could disrupt supply chains and increase costs
- FX headwinds: Strong dollar created $39M revenue headwind in Q4
- Interest rate sensitivity: Higher rates impact financing costs and customer behavior
- Acquisition dilution: December equity offering created near-term EPS dilution
Forward Catalysts
Ask Fintool AI AgentBottom 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.