ITT Q2 adjusted EPS beats expectations, raises guidance

Overview

• ITT Q2 2025 revenue rises 7% yr/yr, driven by pump projects and aerospace demand

• Adjusted EPS of $1.64 beats analyst expectations, per LSEG data

• Co raises full-year revenue and EPS guidance, citing strong performance

Outlook

• ITT raises 2025 revenue growth guidance to 5%-7%

• Company expects 2025 EPS of $5.95 to $6.15

• ITT forecasts 2025 adjusted EPS of $6.35 to $6.55

• Company projects 2025 free cash flow of $450 mln to $500 mln

Result Drivers

• ORDERS GROWTH - 16% orders growth driven by pump projects, aerospace and defense awards, and rail

• REVENUE DRIVERS - 7% revenue growth fueled by pump projects, aerospace, industrial connectors, and pricing actions

• OPERATING MARGIN - 18.0% operating margin driven by productivity, higher volumes, and pricing

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

• Wall Street's median 12-month price target for ITT Inc is $174.50, about 8.5% above its July 30 closing price of $159.61

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: ID:nBw9VSJyVa