ITT beats Q4 adjusted EPS estimates, hikes dividend

Overview

• Diversified industrial firm's Q4 revenue grew 13%, driven by pump projects and acquisitions

• Adjusted EPS for Q4 beat analyst expectations

• Company announced 10% increase in quarterly dividend

Outlook

• ITT expects Q1 2026 revenue growth of roughly 11%

• Company forecasts Q1 2026 EPS between $1.67 and $1.71

• ITT plans to revise adjusted EPS starting fiscal 2026 to exclude acquisition-related intangible amortization expense

Result Drivers

• PUMP PROJECTS - Revenue growth in Q4 was primarily driven by strong performance in pump projects

• ACQUISITIONS - Contributions from the Svanehøj and kSARIA acquisitions supported revenue growth

• COST CONTROLS - Improved operational performance and cost controls drove 23% increase in adjusted EPS

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "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 $208.50, about 12.6% above its February 4 closing price of $185.15

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 25 three months ago

Press Release: ID:nBw9Mls1Za

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