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ITT Inc.’s ITT first-quarter 2025 adjusted earnings of $1.45 per share surpassed the Zacks Consensus Estimate of $1.44. The bottom line jumped 2.1% year over year, aided by an increase in sales across the Connect & Control Technologies segment.
Total revenues of $913 million matched the consensus estimate. The top line increased 0.3% year over year. Organic sales were flat year over year, driven by growth in parts, service and valves in the Industrial Process segment, connectors in the Connect & Control Technologies segment and rail in the Motion Technologies segment. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
ITT’s Segmental Results
Revenues from the Industrial Process segment totaled $333.3 million, down 0.2% year over year. Unfavorable pump project shipment timing hampered the segment’s performance. Organic sales decreased 1% and adjusted operating income grew 0.4% on a year-over-year basis. Our estimate for segmental revenues was pinned at $339.5 million.
Revenues from the Motion Technologies segment amounted to $346.1 million, implying a year-over-year decrease of 11.8%. The lower sales were attributable to decreased auto production in Europe and North America. Organic revenues increased 0.5% year over year. Adjusted operating income decreased 3.9%. Our estimate for segmental revenues was pinned at $382.2 million.
Revenues from the Connect & Control Technologies segment of $234.7 million rose 26.8% year over year on a reported basis and 1.4% organically. Our estimate was $188.6 million. The results were driven by favorable pricing actions and growth in defense and industrial connectors. Adjusted operating income increased 13.1% year over year.
ITT Inc. Price, Consensus and EPS Surprise
ITT Inc. price-consensus-eps-surprise-chart | ITT Inc. Quote
ITT’s Margin Profile
ITT’s cost of revenues decreased 2% year over year to $596.7 million. The gross profit jumped 4.9% to $316.3 million.
General and administrative expenses increased 19.3% year over year to $85.3 million. Sales and marketing expenses rose 6.2% to $53.2 million. Research and development expenses decreased 10.3% year over year to $26.9 million.
Adjusted operating income climbed 2.3% year over year to $159.3 million. The margin expanded 30 basis points to 17.4%.
ITT’s Balance Sheet and Cash Flow
Exiting the first quarter, ITT had cash and cash equivalents of $439.8 million compared with $439.3 million at the end of fourth-quarter 2024. The company’s short-term borrowings were $732.6 million compared with $427.6 million at the end of December 2024.
In the first three months of 2025, ITT generated net cash of $113.4 million from operating activities compared with $57.8 million in the year-ago period. Capital expenditure totaled $36.8 million in the same period, up 32.9% year over year. Free cash flow was $76.6 million compared with $30.1 million in the prior-year period.
During the first three months of 2025, ITT paid out dividends of $28.7 million, up 8.3% year over year. It repurchased shares worth $100.0 million in the quarter.