ITT (ITT) Q4 2025 earnings summary

Executive summary

• Achieved 8% full-year revenue growth and 13% Q4 growth, surpassing $1B in quarterly revenue for the first time, with adjusted EPS up 14% for the year and 23% in Q4.

• Free cash flow reached $555 million, up 27%, with a 14% margin and cash conversion well over 100%.

• Announced $4.8B SPX FLOW acquisition to expand the flow platform, with integration planning underway and expected closing in March/Q1 2026.

• Completed $500 million share repurchase and raised equity in December to fund the SPX FLOW acquisition.

• 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).

• Orders grew 10% to $4 billion for the year; backlog ended at $1.9 billion, up 18% year-over-year.

Outlook and guidance

• Q1 2026 revenue expected to grow ~11% (5% organic), with all segments expanding margins and over 100 basis points of EBIT margin growth.

• Q1 2026 adjusted EPS guidance: $1.68–$1.72, up 17% at midpoint, with margin >18%.

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

• SPX FLOW acquisition expected to close in Q1 2026 and generate net single-digit EPS accretion in 2026.

• Guidance excludes impact of pending SPX FLOW acquisition; adjusted definitions to exclude acquisition-related amortization from 2026.