ITT (NYSE:ITT) Issues Earnings Results

Key Points

• ITT beat Q1 estimates with adjusted EPS of $1.98 vs. $1.77 consensus and revenue up ~33% YoY, and management initiated FY2026 guidance of $7.70–$8.00 EPS with ~37% total revenue growth and roughly $560M of free cash flow.
• The SPX Flow acquisition closed, creating a ~$3B Flow Technologies segment and expected ~$80M of cost synergies with early earnings and cash accretion; however, the deal adds roughly $2.9B of debt, higher interest (~+$30M/quarter) and a higher tax rate, which will temper near‑term EPS contribution.
• ITT raised its quarterly dividend to $0.386 (annualized $1.54), yielding ~0.7% with a payout ratio around 25%.

ITT (NYSE:ITT - Get Free Report) issued its quarterly earnings results on Wednesday. The conglomerate reported $1.98 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.77 by $0.21, Zacks reports. ITT had a return on equity of 17.74% and a net margin of 12.39%.The business's quarterly revenue was up 32.7% on a year-over-year basis. During the same quarter last year, the company earned $1.45 earnings per share. ITT updated its FY 2026 guidance to 7.700-8.000 EPS.

Here are the key takeaways from ITT's conference call:

• ITT reported a strong Q1 with orders +26% (8% organic), revenue +33% (11% organic), 130 bps of margin expansion, and adjusted EPS +25%, with book-to-bill of 1.09.
• The SPX Flow acquisition closed on March 2 and created the new Flow Technologies segment (~$3B revenue); management says SPX produced immediate net earnings, early cash accretion and is on track for the planned $80M cost synergies (about one-third in year one).
• Management initiated FY adjusted EPS guidance of $7.70–$8.00 (midpoint +9%) with total revenue growth guided to 37% (5% organic) and free cash flow of roughly $560M (10–11% margin).
• The SPX deal added leverage and near-term financial headwinds—~$2.9B of debt, higher interest expense (management cited roughly +$30M/quarter) plus a higher combined tax rate (~24.9%) and dilution from equity consideration, which will temper SPX’s net EPS contribution in the near term.
• CFO Emmanuel Caprais will depart (advisory role through June) with an interim CFO appointed, a leadership change that management says will be supported to ensure a smooth transition.

ITT Trading Up 3.3%

ITT traded up $6.97 during trading on Wednesday, hitting $219.66. 683,591 shares of the stock traded hands, compared to its average volume of 930,849. The firm has a market capitalization of $19.64 billion, a P/E ratio of 35.94, a price-to-earnings-growth ratio of 1.97 and a beta of 1.32. ITT has a 12-month low of $140.43 and a 12-month high of $225.26. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.58 and a quick ratio of 2.07. The firm has a 50-day moving average of $200.94 and a 200 day moving average of $189.57.

ITT Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, April 6th. Shareholders of record on Friday, March 6th were given a dividend of $0.386 per share. This represents a $1.54 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend was Friday, March 6th. This is an increase from ITT's previous quarterly dividend of $0.35. ITT's dividend payout ratio is currently 25.20%.

Key Headlines Impacting ITT

Here are the key news stories impacting ITT this week:

• Positive Sentiment: Q1 beat on EPS and revenue — ITT reported adjusted EPS of $1.98 vs. consensus ~ $1.77 and revenue of ~$1.212B, a ~33% year‑over‑year increase. The beat and strong top‑line growth support multiple expansion and investor confidence. ITT NYSE: ITT Beats Q1 CY2026 Sales Expectations
• Positive Sentiment: Company introduces FY2026 outlook after closing SPX FLOW — management provided an EPS range of $7.70–$8.00 and tied results to the SPX FLOW acquisition; investors are pricing in expected forward earnings accretion from the deal. ITT Reports 2026 First Quarter Earnings … Introducing Full Year Outlook
• Positive Sentiment: Analyst and market writeups highlight the beat — quick coverage from Zacks, Quiver and MarketBeat confirms the upside to consensus and draws attention to margin and ROE metrics that support re‑rating. ITT (ITT) Q1 Earnings and Revenues Beat Estimates
• Neutral Sentiment: FY guidance is roughly in line with Street expectations — ITT set FY26 EPS guidance of $7.70–$8.00 vs. a consensus of ~7.78; range contains the consensus but leaves limited upside surprise visibility. MarketBeat: ITT stock summary and guidance
• Neutral Sentiment: Materials for investors available — company released a press deck and replay of the call (useful for modeling but not an immediate catalyst). Q1 press release / slide deck
• Negative Sentiment: Recent insider selling — filings show CEO and other insiders sold shares in the past six months, which can be interpreted negatively by some investors even if for diversification or liquidity reasons. Quiver: ITT Releases Q1 2026 Earnings (insider activity noted)

Insider Activity

In other news, CEO Luca Savi sold 63,450 shares of the company's stock in a transaction dated Thursday, March 5th. The shares were sold at an average price of $190.69, for a total transaction of $12,099,280.50. Following the completion of the transaction, the chief executive officer directly owned 262,354 shares of the company's stock, valued at approximately $50,028,284.26. This represents a 19.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 0.88% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Findlay Park Partners LLP increased its stake in shares of ITT by 63.2% during the fourth quarter. Findlay Park Partners LLP now owns 1,230,902 shares of the conglomerate's stock valued at $213,574,000 after buying an additional 476,702 shares during the period. Ghisallo Capital Management LLC purchased a new stake in ITT in the fourth quarter worth $78,080,000. Burkehill Global Management LP bought a new stake in ITT in the fourth quarter valued at $60,728,000. Soros Fund Management LLC purchased a new position in ITT during the 4th quarter valued at $57,152,000. Finally, AQR Capital Management LLC raised its holdings in ITT by 52.9% in the 4th quarter. AQR Capital Management LLC now owns 925,931 shares of the conglomerate's stock worth $160,658,000 after purchasing an additional 320,493 shares in the last quarter. Institutional investors own 91.59% of the company's stock.

Wall Street Analyst Weigh In

ITT has been the topic of a number of recent research reports. Citigroup increased their price target on shares of ITT from $225.00 to $243.00 and gave the company a "buy" rating in a research report on Monday, February 9th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of ITT in a research note on Tuesday, April 21st. Stifel Nicolaus lifted their target price on shares of ITT from $218.00 to $228.00 and gave the stock a "buy" rating in a research report on Friday, February 6th. Robert W. Baird set a $222.00 price target on shares of ITT in a research note on Friday, February 6th. Finally, Wall Street Zen upgraded shares of ITT from a "hold" rating to a "buy" rating in a research report on Monday, March 2nd. Ten investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $225.55.

About ITT

ITT Inc is a diversified industrial manufacturing company that designs, manufactures and services mission-critical components and systems for global markets. Its engineered solutions support applications in aerospace, defense, transportation, energy and industrial automation. The company focuses on delivering high-performance products that enable reliable fluid handling, precision motion control and robust connectivity in demanding environments.

The company's operations are organized into three segments: Motion Technologies, which provides precision components and aftermarket repair services for aircraft engines and industrial turbines; Connect & Control Technologies, which offers specialty valves, couplings, seals and proximity sensors for fuel, hydraulics and environmental control systems; and Fluid & Motion Control, which delivers pumps, heat exchangers and fluid management solutions for oil and gas, chemical processing and power generation.

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