ITT 2025 Q1 Earnings Marginal Growth as Net Income Declines 3%

ITT Inc. (ITT) reported its fiscal 2025 Q1 earnings on May 1, 2025. The company experienced a marginal increase in total revenue, reaching $913 million, a 0.3% rise from the previous year. Despite this, ITT's net income fell by 3.0% to $109.10 million. The company's earnings per share (EPS) also saw a decline, dropping by 2.2% from the prior year. ITT has maintained profitability over the last two decades in this fiscal quarter, showcasing its operational resilience.

ITT's first-quarter results aligned with its previous estimates, showing a solid performance despite a slight decline in net income. The company provided an in-line guidance adjustment reflecting its strategic plans for the year. ITT's new initiatives and growing order backlog position the company for continued growth in the upcoming quarters.

Revenue
In the first quarter of 2025, ITT reported a total revenue of $913 million, which marks a slight increase from $910.60 million in the previous year. The revenue from Motion Technologies stood at $346.10 million, while the Industrial Process segment contributed $333.30 million. Connect & Control Technologies recorded $234.70 million in revenue. The corporate and other segments showed no revenue contribution, and eliminations accounted for a reduction of $1.10 million, leading to the total revenue figure of $913 million.

Earnings/Net Income
ITT's earnings per share (EPS) decreased by 2.2% to $1.33 in Q1 2025 from $1.36 in the same quarter of 2024. The company’s net income also declined by 3.0%, reaching $109.10 million, down from $112.50 million in the previous year. Despite these reductions, ITT has consistently maintained profitability for over two decades in this fiscal quarter, demonstrating strong operational resilience. Based on the statistics, the EPS performance was weaker compared to the previous year.

Post-Earnings Price Action Review
Following ITT's earnings report, the stock displayed generally positive performance, with a maximum return of 9.78% observed over a 30-day period post-release. Revenue-related earnings reports showed a three-day win rate of 57.14% and a ten-day win rate of 61.90%, suggesting a higher probability of short-term positive returns. The maximum return for revenue reports was 9.78% over a 30-day period, indicating significant potential for medium-term price appreciation. Net income-related reports had a 52.38% three-day win rate and a 61.90% ten-day win rate, with the same maximum return of 9.78% over 30 days, showing slightly lower short-term momentum compared to revenue reports. For EPS reports, a three-day win rate of 61.90% and a ten-day win rate of 52.38% were recorded, with a maximum return of 1.93% over 30 days, reflecting moderate medium-term price appreciation. Overall, earnings report metrics tend to positively impact ITT’s stock price, with revenue reports showing the highest short-term momentum.

CEO Commentary
ITT delivered a solid first quarter performance to begin 2025, exceeding $1 billion in orders for the first time and entering Q2 with a $1.8 billion backlog, a 21% year-over-year increase. Adjusted margin expanded by 30 basis points due to operational improvements and pricing, while adjusted EPS grew 7% excluding the 2024 divestiture of Wolverine. The launch of VIDAR, an innovative industrial motor, opens a $6 billion addressable market, enhancing ITT's market positioning. Additionally, $400 million in share repurchases reflects strong financial management, with M&A remaining a strategic priority, as stated by ITT’s Chief Executive Officer and President, Luca Savi.

Guidance
ITT expects to continue its growth trajectory, driven by a robust backlog and operational efficiencies. The company anticipates maintaining momentum in orders and revenue, with a focus on capitalizing on new market opportunities, particularly with the introduction of VIDAR. ITT remains optimistic about its strategic investments, including M&A activities, which are integral to its long-term growth strategy. The upcoming Capital Markets Day on May 15 will further outline these expectations and initiatives.

Additional News
Within the last three weeks, ITT Inc. has announced significant M&A activities, reflecting its strategic focus on expanding its market presence. The company has been actively pursuing acquisitions to enhance its portfolio in high-growth areas. Furthermore, ITT has engaged in substantial share repurchase activities, with $400 million repurchased recently, underscoring its commitment to returning value to shareholders. These buybacks are part of a broader strategy to optimize the company's capital structure. Additionally, the company announced a quarterly dividend of $0.35 per share