ITT raises FY23 revenue, EPS guidance after 7% Q2 revenue growth.

• ITT reports Q2 EPS of $1.52, adjusted EPS of $1.64. • 16% orders growth, driven by pump projects, aerospace and defense awards, rail. • 7% revenue growth, driven by pump projects, aerospace, industrial connectors, automotive, rail, and pricing. • 18.0% operating margin (18.4% adjusted), driven by productivity, higher volumes, and pricing. • Net cash from operating activities of $154 million, up 36% sequentially. • Free cash flow of $137 million, up 79% sequentially.

ITT Inc. (NYSE: ITT) has reported its financial results for the second quarter ended June 28, 2025, showcasing robust performance across various segments. The company reported revenue of $972 million, a 7% increase (4% organic) compared to the same period last year, driven by pump project shipments in Industrial Process (IP), aerospace and industrial connectors demand, and share gains in automotive and rail in Motion Technologies (MT). The company's operating income increased by 10% to $175 million, while operating margins stood at 18.0% (adjusted 18.4%), reflecting productivity gains, higher volumes, and pricing actions.

ITT's earnings per share (EPS) for the second quarter were $1.52, up 5% year-over-year, driven by higher operating income and a lower weighted-average share count, partially offset by the loss from the Wolverine divestiture and higher tax expenses. The adjusted EPS of $1.64 increased by 10% compared to the same period last year, reflecting productivity savings and pricing actions.

The company's net cash from operating activities for the second quarter was $154 million, up 36% sequentially, driven primarily by the timing of vendor payments and offset by higher operating income and customer advance payments. Free cash flow for the quarter was $137 million, up 79% sequentially, due to the timing of capital expenditures.

ITT's Chief Executive Officer and President, Luca Savi, commented, "On the heels of our 2025 Capital Markets Day, ITT delivered a strong Q2, well aligned to the pillars of value creation we outlined in May, showcasing our differentiation through execution, innovation and M&A." He further noted that the company surpassed $1 billion in orders and entered Q3 with nearly $2 billion in backlog, with all segments growing revenues organically while operating income grew over twice the rate of sales growth.

The company also announced a quarterly dividend of $0.351 per share, payable on September 29, 2025, to shareholders of record as of September 2, 2025. Additionally, ITT is raising its full-year revenue and EPS guidance for 2025, reflecting its strong year-to-date performance and a more stable demand outlook for the second half of the year. The company expects total revenue growth of 5% to 7% and organic revenue growth of 3% to 5%, with operating margins of 17.5% to 18.1% and adjusted operating margins of 18.1% to 18.7%. The EPS guidance for 2025 is now $5.95 to $6.15, with adjusted EPS of $6.35 to $6.55, representing growth of 8% to 11% for the full year. Free cash flow is expected to be $450 million to $500 million for 2025.

ITT will host an investor conference call on July 31, 2025, at 8:30 a.m. Eastern Time, to discuss the results in more detail. The webcast will be available on the company’s website.

References:

[1] https://www.businesswire.com/news/home/20250731443929/en/ITT-Reports-2025-Second-Quarter-Earnings-Per-Share-EPS-of-%241.52-Adjusted-EPS-of-%241.64-Raising-Full-Year-Revenue-and-EPS-Guidance