ITT's Q2 2025 Earnings Call: Unpacking Contradictions on Tariffs, CCT Growth, and Margin Guidance

Tariff exposure mitigation, CCT orders and market share growth, order funnel health and project execution, margin performance and guidance are the key contradictions discussed in ITT's latest 2025Q2 earnings call.



Strong Financial Performance:
- ITT Inc. reported record revenue of more than $970 million for Q2 2025, up 7% total and 4% organically.
- The growth was driven by a 16% increase in orders, bolstered by acquisitions, and strong margin expansion.

Order Growth and Acquisitions:
- Industrial Process orders grew 22%, with Bornemann winning large awards in oil and gas projects, while Connect & Control orders rose 36%.
- The growth was attributed to the strong performance of recent acquisitions, including Svanehøj and kSARIA, and strategic market share gains.

Margin Expansion and Profitability:
- ITT's operating margin expanded by over 100 basis points, excluding M&A, with Industrial Process margin increasing by 100 basis points to nearly 22%.
- Margin expansion was driven by operational improvements, productivity, and strategic pricing actions.

Capital Deployment and Share Repurchase:
- ITT repurchased $500 million of ITT shares year-to-date, reducing the weighted average share count by 3%.
- The repurchase was a result of confidence in the company's long-term outlook, supported by significant cash performance.