ITT (ITT) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 orders exceeding $1 billion, with 7% total and up to 11% organic growth in Industrial Process and 39% total growth in Connect & Control Technologies, driving a 1.15 book-to-bill and $1.8 billion backlog, up 21% year-over-year and 10% sequentially.

• Q1 2025 revenue was $913 million, flat year-over-year, with organic revenue also flat; acquisitions offset divestitures and FX headwinds.

• Adjusted EPS rose 7% to $1.45, overcoming Wolverine divestiture and FX headwinds; free cash flow reached a record $77 million, up over 150%.

• Repurchased $400 million in shares through April, reducing share count by 4%, while maintaining M&A capacity.

• Launched VIDAR, a new industrial motor technology targeting a $6 billion addressable market, offering up to 50% energy savings and significant cost savings for customers.

Financial highlights

• Revenue was $913 million, flat year-over-year, with organic growth in Defense (+13%), Rail (+15%), and Chemical (+16%), offset by shipment timing and Wolverine divestiture.

• Adjusted operating income rose to $159 million, with margin expanding to 17.4% (+30 bps); adjusted EPS increased to $1.45 (+2.1%).

• Free cash flow was $77 million, up from $30 million, driven by strong AR collections and inventory optimization.

• Gross margin improved to 34.6% from 33.1% year-over-year, reflecting pricing actions and productivity savings.

• Net income attributable to ITT Inc. was $108.4 million, down from $111.5 million in Q1 2024.

Outlook and guidance

• Maintaining full-year 2025 adjusted guidance: organic revenue growth 3–5%, adjusted operating margin 18.1–19.0%, adjusted EPS $6.10–$6.50, and free cash flow $450–$500 million (margin 12–13%).

• Tariff headwinds of $50–$60 million expected for the remainder of 2025, with mitigation actions in place and no net EPS impact anticipated.

• Guidance reflects known tariff impacts and does not assume further macroeconomic or trade policy changes.