ITT delivered notable results in Q3, as the market responded positively to outperformance in both revenue and profit relative to Wall Street expectations. Management highlighted organic growth across all core segments, with Industrial Process and Connect & Control Technologies leading gains due to robust project execution and healthy demand in aerospace and defense. CEO Luca Savi credited share gains in China’s automotive market and strong execution in the company’s newly acquired businesses as key contributors. Savi also pointed to significant progress in product innovation and operational efficiency, particularly the expansion of the VIDAR motor line and improved productivity across manufacturing sites.
Is now the time to buy ITT? Find out in our full research report (it’s free for active Edge members).
ITT (ITT) Q3 CY2025 Highlights:
- Revenue: $999.1 million vs analyst estimates of $974.1 million (12.9% year-on-year growth, 2.6% beat)
- Adjusted EPS: $1.78 vs analyst estimates of $1.67 (6.7% beat)
- Adjusted EBITDA: $219.9 million vs analyst estimates of $214.4 million (22% margin, 2.5% beat)
- Management raised its full-year Adjusted EPS guidance to $6.65 at the midpoint, a 3.1% increase
- Operating Margin: 18%, down from 23.6% in the same quarter last year
- Organic Revenue rose 6.1% year on year vs analyst estimates of 3.9% growth (221.3 basis point beat)
- Market Capitalization: $14.49 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From ITT’s Q3 Earnings Call
- Michael Halloran (Baird) asked about global auto production trends and ITT's ability to continue outperforming in the next year. CEO Luca Savi responded that China remains the key growth driver, with expectations to maintain market share gains even as overall production growth moderates.
- Jeffrey Hammond (KeyBanc Capital Markets Inc.) sought details behind the raised EPS guidance, questioning the impact of profitability, acquisitions, and tax rates. CFO Emmanuel Caprais clarified that improved margins, acquisition contributions, and a lower tax rate all played a role, with Q4 expected to benefit from continued revenue and margin gains.
- Vladimir Bystricky (Citi) inquired about sustainability of short-cycle order growth in Industrial Process, particularly by region and end market. Caprais highlighted strong activity in parts and valves, with medical and weight-loss drug applications providing incremental demand, and noted sequential improvement in the project funnel.
- Matt Summerville (D.A. Davidson) asked about the geographic concentration and future growth of the automotive aftermarket and progress with the VIDAR motor line. Savi confirmed the aftermarket focus remains in Europe, while high-performance and VIDAR products are seeing positive uptake and are key to future expansion.
- Damian Karas (UBS) pressed on potential project deferrals in process markets and implications for IP segment demand. Savi emphasized that active project funnels are up, and no material deferrals are being seen, supporting confidence in ongoing project execution.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) the pace of backlog conversion, especially in Industrial Process and Connect & Control Technologies, (2) the integration and performance of recent acquisitions like Svanehøj and kSARIA, and (3) margin sustainability as inflation and competitive pressures persist. Additionally, we will track progress on innovation milestones, such as new product launches and the ability to capture share in high-growth energy and defense markets.
ITT currently trades at $185.82, up from $176.10 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).
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