ITT Inc. Posts Strong Q2 2025 Results, Raises Full-Year Guidance Amid Broad-Based Growth and Solid Execution
ITT Inc. has reported a solid performance for the second quarter ended June 28, 2025, showcasing strong revenue growth, margin expansion, and a significant rise in free cash flow. The industrial technology company posted second-quarter revenue of $972 million, reflecting a 7% year-over-year increase, or 4% on an organic basis. Growth was underpinned by robust project shipments within its Industrial Process segment, heightened demand for aerospace and industrial connectors in the Connect & Control Technologies (CCT) division, and notable share gains in both the automotive and rail sectors within Motion Technologies (MT).
Operating income for the quarter reached $175 million, marking a 10% increase compared to the same period in 2024. This growth was attributed to multiple drivers, including improved productivity, effective pricing strategies, and contributions from recent acquisitions. These positive developments were partially offset by increased input costs—specifically in materials and labor. The company’s operating income margin improved by 40 basis points to 18.0%. On an adjusted basis, operating margin stood at 18.4%, up by 30 basis points year-over-year.
Earnings per share (EPS) came in at $1.52, reflecting a 5% increase from the prior year. This improvement was largely driven by the uptick in operating income and a reduced weighted-average share count. However, EPS growth was partially tempered by the absence of earnings from the Wolverine divestiture, which occurred in 2024, along with higher tax-related expenses and rising interest costs. Adjusted EPS stood at $1.64 for the quarter, marking a 10% increase, primarily powered by productivity gains and favorable pricing actions.
From a cash flow perspective, ITT generated $154 million in net cash from operating activities during the quarter, a slight decline of 3% year-over-year. This dip was mainly attributed to the timing of vendor payments. However, this was offset by stronger operating performance and increased customer advance payments. Free cash flow reached $137 million, a 2% increase from the prior year, aided by the timing of capital expenditures. On a year-to-date basis, net cash from operations surged 24% to $267 million, while free cash flow rose by 30% to $214 million—demonstrating significant improvement in capital efficiency.
Segment Performance Highlights
- Motion Technologies (MT): Revenue in the MT segment declined by $19 million. The primary driver of this decline was the absence of revenue from the divested Wolverine business. However, on an organic basis, revenue rose by $10 million, thanks to increased demand for Friction original equipment and KONI rail solutions. Operating income remained flat, with gains from productivity initiatives and higher volumes offsetting foreign currency transaction losses and the Wolverine impact. Operating margin improved to 19.5%, up 100 basis points from the prior year.
- Industrial Process (IP): This segment recorded a $25 million revenue increase, fueled by strength in pump project execution, including contributions from Svanehøj, as well as pricing actions. Operating income rose by $10 million, supported by volume growth, better pricing, and productivity. As a result, the segment’s operating margin expanded by 140 basis points to 21.5%.
- Connect & Control Technologies (CCT): The CCT division experienced a $60 million increase in revenue, largely due to the acquisition of kSARIA in September 2024. Excluding the acquisition, organic revenue still rose by $9 million, reflecting pricing gains. Operating income increased by $10 million, with contributions from kSARIA, along with efficiency improvements. These were partially offset by higher labor and material costs, and investment in strategic initiatives. Operating margin stood at 17.8%, down 70 basis points due to temporary acquisition-related amortization.
CEO Commentary and Strategic Update
Luca Savi, ITT’s President and CEO, emphasized the company’s momentum in the wake of its recent Capital Markets Day. “ITT delivered a strong second quarter that reflects our execution across multiple fronts—organic growth, M&A integration, and capital deployment,” Savi noted. “All segments achieved organic growth, and operating income outpaced revenue growth by more than 2x. Year-to-date free cash flow grew over 30%, giving us the flexibility to invest in innovation while deploying over $500 million in capital—nearly three times our free cash flow.”
He also highlighted that the company’s acquisitions, particularly in the energy transition and defense sectors, continue to outperform with robust award activity and profitable growth. Notably, adjusted EPS grew 10% for the quarter, or 16% when excluding the impact of the Wolverine divestiture.
Quarterly Dividend
ITT’s Board of Directors declared a quarterly dividend of $0.351 per share, payable on September 29, 2025, to shareholders on record as of September 2, 2025. This dividend underscores the company’s commitment to returning value to shareholders while maintaining flexibility for reinvestment.
Upgraded 2025 Full-Year Outlook
In light of the strong first-half performance and improved visibility for the remainder of the year, ITT has raised its full-year 2025 guidance. The company now expects:
- Total revenue growth between 5% and 7%, with organic revenue growth unchanged at 3% to 5%
- Operating margin of 17.5% to 18.1%, and adjusted operating margin of 18.1% to 18.7% (up 30 to 90 bps)
- EPS in the range of $5.95 to $6.15, and adjusted EPS between $6.35 and $6.55 (8% to 11% growth)
- Free cash flow between $450 million and $500 million, with a margin of 12% to 13%
ITT noted that it is not reasonably possible to estimate the full impact of foreign exchange fluctuations, acquisitions, or other special items for 2025. As such, reconciliations for forward-looking non-GAAP metrics were not provided.
