ITT 2025 Q2 Earnings Strong Performance as Net Income Rises 0.7%

ITT Inc. reported its fiscal 2025 Q2 earnings on July 31st, 2025, showing a revenue increase of 7.3% to $972.40 million compared to the previous year. ITT exceeded expectations by raising its revenue and EPS guidance for 2025, buoyed by strong demand across segments. The company expects continued benefits from productivity improvements and pricing actions. With nearly $2 billion in backlog as they enter Q3, ITT remains optimistic about its strategic priorities and growth trajectory.

Revenue

In the second quarter of 2025, ITT achieved a total revenue of $972.40 million, reflecting a notable 7.3% increase from the previous year. The Motion Technologies segment generated $365.70 million, while the Industrial Process segment contributed $355.90 million. Meanwhile, Connect & Control Technologies added $251.90 million to the company's revenue. The corporate and other segments had no revenue, and eliminations accounted for a negative $1.10 million. Overall, the company demonstrated robust revenue growth across its major segments.

Earnings/Net Income

ITT's earnings per share rose by 4.8% to $1.53, up from $1.46 in the same quarter of the previous year. The company's net income also increased slightly to $121.70 million, representing a 0.7% growth from $120.90 million in 2024 Q2. This steady performance underscores ITT's long-standing operational resilience and robust earnings capability.

Price Action

The stock price of ITT climbed 7.18% during the latest trading day, rose 6.91% over the most recent trading week, and increased by 8.37% month-to-date.

Post-Earnings Price Action Review

The strategy of purchasing ITT shares following a quarter-over-quarter revenue increase on the financial report release date and holding for 30 days has yielded substantial returns over the past three years. This strategy delivered an impressive overall return of 161.88%, significantly outperforming the benchmark return of 85.57% by a margin of 76.31%. With a compound annual growth rate of 21.40% and a maximum drawdown of 0.00%, the strategy demonstrated strong performance in both returns and risk management. The compelling returns highlight the efficacy of this approach, especially given the company's consistent growth trajectory and strategic initiatives. Investors who employed this strategy benefited from ITT's robust financial performance and market positioning.

CEO Commentary

ITT delivered a strong Q2, showcasing differentiation through execution, innovation, and M&A, as stated by CEO Luca Savi. Revenue growth was driven by pump projects, aerospace demand, and pricing actions across segments. The company surpassed $1 billion in orders and entered Q3 with nearly $2 billion in backlog. Operating income grew over twice the rate of sales growth, and cash generation accelerated, allowing substantial capital deployment. Despite challenges from the Wolverine divestiture, adjusted EPS increased by 10%, reflecting confidence in ITT's ability to meet commitments both this year and in the long term.

Guidance

ITT is raising its revenue and EPS guidance for 2025 based on strong performance and a less volatile outlook. The company expects to continue benefiting from productivity improvements and pricing actions, with an optimistic tone regarding its ability to deliver on commitments throughout the year. CEO Luca Savi emphasized confidence in the company's strategic priorities and growth trajectory moving forward.

Additional News

Recently, ITT Inc. has been active in strategic corporate developments. The company announced an increase in its quarterly dividend by 10% to $0.351 per share, reflecting its strong financial position and commitment to returning value to shareholders. Additionally, ITT has made noteworthy leadership changes, including appointing Michael Guhde as President of the Connect & Control Technologies (CCT) Business, which is expected to enhance the segment's growth and innovation capabilities. These developments are part of ITT's broader strategy to strengthen its market position and drive long-term shareholder value. Furthermore, ITT continues to focus on strategic mergers and acquisitions, aiming to expand its portfolio and enhance its competitive edge in key industries.