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- **Revenue Surge**: 13% total growth (6% organic), driven by IP (11%), CCT (25%), and MT (4%).
- **Acquisition Success**: Svanehøj orders +59%, kSARIA +58%, with VIDAR securing 3 U.S. energy contracts.
- **Profit Expansion**: 110bps margin growth to 18.5%, with IP at 22% and MT >20%.
- **Cash Flow Strength**: $368M free cash flow year-to-date, targeting $0.5B (15% margin).
- **EPS Raise**: Full-year EPS midpoint up $0.20 to $6.65, fueled by margin gains and acquisitions.
- **2026 Vision**: Book-to-bill >1, $150M VIDAR sales target, and 30-35% incremental margins.

**【CEO Summary】**
- **Revenue Growth**: Total revenue up 13% year-over-year (YoY), with 6% organic growth driven by Industrial Process (IP) and Connect & Control (CCT) segments. IP grew 11% organically, CCT 25% total (6% organic), and Motion Technologies (MT) 4% organically.
- **Acquisition Impact**: Svanehøj and kSARIA contributed significantly, with Svanehøj orders up 59% YoY and kSARIA orders 58% YoY. VIDAR technology secured 3 major energy contracts in the U.S.
- **Profitability**: Operating margin expanded 110 basis points (bps) to 18.5%, with IP margins at 22% and MT above 20% for the second consecutive quarter.
- **Cash Flow**: Free cash flow reached $368 million year-to-date, targeting $0.5 billion for the year (15% margin), up 46% YoY.
- **Guidance Update**: Raised full-year EPS midpoint by $0.20 to $6.65, driven by margin expansion, acquisitions, and lower tax rate.

**【CFO Financial Commentary】**
- **Earnings**: Adjusted EPS of $1.78, up 21% YoY, benefiting from $500 million in share buybacks and lower tax rate (21.5% vs. 23%).
- **Segment Performance**: IP grew 11% organically, CCT 25% total (6% organic), MT 4% organically. CCT margins expanded 270bps YoY, excluding kSARIA dilution.
- **Cost Management**: Operating expenses controlled, with $0.07 EPS benefit from FX and tax optimizations.
- **Q4 Outlook**: EPS growth ~20%, driven by strong IP project execution, CCT pricing, and MT outperformance.

**【Q&A Highlights】**
- **Auto Market**: Global auto production expected flat to low-single-digit growth in 2026, with ITT outperforming by 360bps in MT OE. China market share up to 34%.
- **M&A Strategy**: $1.9 billion deployed in 2024-2025 for M&A, targeting low-double-digit growth in 2026. Funnel rich in pumps, valves, and aero/defense opportunities.
- **VIDAR Progress**: 3 U.S. energy contracts secured; targeting $150 million in sales by 2030 with 10% market share in $6 billion industrial motor market.
- **Margins**: Excluding M&A, 2025 margin expansion >100bps; 2026 incremental margins ~30-35% as kSARIA amortization ends.
- **2026 Outlook**: Book-to-bill >1, backlog up 13% YoY to $2 billion, with 2/3 growth from volume (vs. 1/3 pricing).

ITT Inc. (ITT) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

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