ITT (ITT) Q4 2025 earnings summary

Executive summary

• Achieved record 2025 growth: revenue up 8% (5% organic), Q4 revenue up 13% (9% organic), and adjusted EPS up 14% for the year and 23% in Q4.

• Free cash flow reached $555 million, up 27%, with a 14% margin and 114% conversion.

• Orders and revenue exceeded $1 billion in Q4 for the first time; orders grew 15% (9% organic).

• Announced $4.8B SPX FLOW acquisition to expand the flow platform, expected to close in Q1 2026.

• Major contract wins in aerospace, defense, biopharma, and marine energy transition.

Financial highlights

• FY 2025 revenue: $3,939M (+8% total, +5% organic); Q4 revenue: $1,054M (+13% total, +9% organic).

• Adjusted operating income: $717M (+11% year-over-year); Q4 adjusted operating income: $194M (+19%).

• Adjusted EPS: $6.72 (+14% year-over-year); Q4 adjusted EPS: $1.85 (+23%).

• Free cash flow margin improved to 14% for FY 2025 (+200 bps year-over-year).

• Dividend increased 10% to $0.386 per share; 15% CAGR since 2020.

Outlook and guidance

• Q1 2026 revenue expected to grow ~11% (5% organic), with adjusted operating margin >18% (~100 bps expansion).

• Q1 2026 adjusted EPS guidance: $1.68–$1.72 (~17% growth at midpoint).

• Full-year 2026 organic revenue expected to grow mid-single digits, with at least 50 bps margin expansion.

• SPX FLOW acquisition expected to be net single-digit EPS accretive in 2026.

• Guidance excludes impact of pending SPX FLOW acquisition, expected to close in Q1 2026.