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ITT
(NYSE:ITT)
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Rating:75Outperform
Price Target:
$230.00
▲(17.43% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by solid financial execution (growth plus strong free cash flow) and a very constructive earnings update (raised guidance, margin expansion outlook, and deleveraging progress). Technicals are supportive with positive momentum, while the main constraint is valuation (high P/E and modest yield) alongside financial-risk watch items from higher leverage and acquisition integration/margin phasing.
Positive Factors
Strong free cash flow generation
ITT's cash generation is a structural strength: operating and free cash flow have been consistently positive since 2022 and FCF runs at roughly 80%+ of net income. That high cash conversion supports reinvestment, bolt-on M&A, the $124M debt paydown and the raised FCF midpoint, enhancing financial optionality.
Negative Factors
Material leverage increase
Leverage has stepped up materially, reducing balance-sheet flexibility and increasing interest-rate sensitivity. Though management accelerated a $124M paydown and targets ~2.3x leverage by year-end, the TTM rise to ~0.84 D/E and higher interest expense can constrain capital allocation and make earnings volatility more impactful on credit metrics.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
ITT's cash generation is a structural strength: operating and free cash flow have been consistently positive since 2022 and FCF runs at roughly 80%+ of net income. That high cash conversion supports reinvestment, bolt-on M&A, the $124M debt paydown and the raised FCF midpoint, enhancing financial optionality.
Read all positive factors
ITT Key Performance Indicators (KPIs)
Any
Revenue By Segment
Breaks down revenue by different business units, highlighting which segments are driving growth and which may be underperforming, offering insight into the company's strategic focus and market dynamics.
Breaks down revenue by different business units, highlighting which segments are driving growth and which may be underperforming, offering insight into the company's strategic focus and market dynamics.
Data provided by:
The Fly
The FlyITT (ITT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$19.09B
Dividend Yield0.71%
Average Volume (3M)1.01M
Price to Earnings (P/E)40.7
Beta (1Y)1.36
Revenue Growth28.07%
EPS Growth-19.95%
CountryUS
Employees11,600
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)5.12
Shares Outstanding89,400,000
10 Day Avg. Volume895,495
30 Day Avg. Volume1,006,794
Financial Highlights & Ratios
PEG Ratio-9.41
Price to Book (P/B)3.37
Price to Sales (P/S)3.50
P/FCF Ratio25.19
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$260.20Price Target Upside32.85% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)8.24
Revenue Forecast (FY)$5.51B
ITT Business Overview & Revenue Model
Company Description
ITT Inc., together with its subsidiaries, manufactures and sells engineered critical components and customized technology solutions for the transportation, industrial, and energy markets. The company operates three segments: Motion Technologies, I...
How the Company Makes Money
ITT makes money primarily by selling engineered products and systems to original equipment manufacturers (OEMs), distributors, and end users across its three operating segments, with revenue recognized from product shipments and, where applicable,...
ITT Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call presented a strong set of operational and financial results: very large order and revenue growth, margin improvement in key legacy businesses, strong free cash flow generation (adjusted for one-time acquisition costs), faster-than-expected deleveraging, raised guidance, and early signs that acquisitions (SPX FLOW, Svanehøj, kSARIA) are contributing to growth and synergies. Weaknesses were mostly integration work remaining at SPX FLOW, near-term headwinds from Middle East order timing, some dilution to Flow margins from acquisition mix, and one-time acquisition expenses that weighed on reported cash. Overall the positives (substantial organic growth, record revenue, margin expansion, cash/debt progress, and upgraded guidance) materially outweigh the listed lowlights.Positive Updates
Strong Top-Line Growth and Book-to-Bill
Orders increased 53% year-over-year (13% organically) and revenue grew 51% year-over-year (13% organically). Reported Q2 revenue was $1.5 billion and overall book-to-bill for the quarter was ~1.1 (SPX FLOW book-to-bill 1.13).
Negative Updates
Flow Technologies Organic Orders and Margin Dilution
While Flow Technologies reported large total order growth (91%), organic orders declined ~3% year-over-year. Management reported total Flow margin was diluted by the full-quarter contribution of SPX FLOW and called out a Flow margin decline of ~160 basis points driven by that mix/impact.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line Growth and Book-to-Bill
Orders increased 53% year-over-year (13% organically) and revenue grew 51% year-over-year (13% organically). Reported Q2 revenue was $1.5 billion and overall book-to-bill for the quarter was ~1.1 (SPX FLOW book-to-bill 1.13).
Read all positive updates
Company Guidance
ITT raised its 2026 outlook, increasing full‑year organic revenue guidance to 5%–8%, forecasting adjusted operating margin to expand by more than 100 basis points to about 20.5% at the midpoint, and raising adjusted EPS to $8.22 at the midpoint (a $0.37 increase, ~14% growth at the midpoint, with the low end of the new range above the prior high); management also raised the free cash flow midpoint to $565 million (implying a 10%–11% FCF margin) and is targeting ~2.3x leverage by year‑end after a $124 million Q2 paydown that reduced leverage to 2.5x, while maintaining SPX FLOW EPS accretion at $0.10–$0.14 for the year and noting SPX FLOW H1 orders +7% and revenue +9% year‑to‑date (Q2 book‑to‑bill 1.13, YTD B/B 1.05); the revised guidance excludes any tariff refunds beyond the $0.5 million recorded in Q2.ITT Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
67
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.74B | 3.94B | 3.63B | 3.28B | 2.99B | 2.77B |
| Gross Profit | 1.64B | 1.39B | 1.25B | 1.11B | 922.30M | 899.50M |
| EBITDA | 894.90M | 842.80M | 821.50M | 647.90M | 580.10M | 521.60M |
| Net Income | 421.50M | 488.00M | 518.30M | 410.50M | 367.00M | 316.30M |
Balance Sheet | ||||||
| Total Assets | 11.04B | 6.31B | 4.71B | 3.93B | 3.78B | 3.57B |
| Cash, Cash Equivalents and Short-Term Investments | 590.80M | 1.74B | 439.30M | 489.20M | 561.20M | 647.50M |
| Total Debt | 3.83B | 927.20M | 756.50M | 285.20M | 536.60M | 291.60M |
| Total Liabilities | 6.23B | 2.22B | 1.94B | 1.39B | 1.52B | 1.33B |
| Stockholders Equity | 4.80B | 4.08B | 2.76B | 2.53B | 2.25B | 2.23B |
Cash Flow | ||||||
| Free Cash Flow | 508.80M | 547.00M | 438.20M | 430.10M | 173.90M | -96.00M |
| Operating Cash Flow | 632.10M | 668.30M | 562.60M | 537.70M | 277.80M | -7.60M |
| Investing Cash Flow | -3.66B | -119.80M | -817.90M | -181.00M | -255.10M | -82.30M |
| Financing Cash Flow | 3.16B | 728.90M | 234.90M | -432.30M | -83.30M | -99.80M |
ITT Technical Analysis
Positive
195.86
Price Trends
198.38
Positive
201.02
Positive
193.27
Positive
Market Momentum
5.34
Positive
52.15
Neutral
20.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ITT, the sentiment is Positive. The current price of 195.86 is below the 20-day moving average (MA) of 207.39, below the 50-day MA of 198.38, and above the 200-day MA of 193.27, indicating a bullish trend. The MACD of 5.34 indicates Positive momentum. The RSI at 52.15 is Neutral, neither overbought nor oversold. The STOCH value of 20.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ITT.
ITT Risk Analysis
ITT disclosed 28 risk factors in its most recent earnings report. ITT reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ITT Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $17.27B | 33.71 | 17.59% | 1.11% | 7.02% | 24.24% | |
76 Outperform | $13.39B | 25.30 | 20.27% | 1.46% | 4.58% | 12.51% | |
75 Outperform | $19.09B | 40.65 | 10.35% | 0.75% | 28.07% | -19.95% | |
75 Outperform | $17.28B | 33.54 | 12.91% | 1.29% | 7.32% | 12.36% | |
66 Neutral | $12.08B | 35.66 | 16.19% | 0.43% | 13.85% | 8.45% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $12.44B | 46.88 | 9.54% | ― | 0.61% | -27.77% |
* Industrials Sector Average
ITT
ITT
208.15
44.57
27.24%
GNRC
Generac Holdings
206.75
16.20
8.50%
GGG
Graco
81.71
-1.79
-2.14%
IEX
IDEX
233.75
73.75
46.09%
NDSN
Nordson
334.70
117.62
54.18%
CR
Crane Company
206.50
18.76
9.99%
ITT Corporate Events
Executive/Board Changes
ITT Appoints Bertrand Loy and Kevin Wheeler to Board
Positive
Jun 29, 2026
On June 29, 2026, ITT Inc. announced that its board of directors has elected Bertrand Loy and Kevin Wheeler as new directors, with their appointments effective August 1, 2026, expanding the board from ten to twelve members. The board determined th...
Executive/Board ChangesShareholder Meetings
ITT shareholders endorse board, auditor and executive pay
Positive
May 26, 2026
On May 21, 2026, ITT held its Annual Meeting of shareholders, with 79,595,414 shares represented, about 89.03% of those entitled to vote, and elected ten directors, including CEO Luca Savi, to serve until the 2027 annual meeting or until their suc...
Executive/Board Changes
ITT Appoints Interim CFO Following Emmanuel Caprais Departure
Neutral
May 7, 2026
On May 6, 2026, ITT Inc. announced that Chief Financial Officer Emmanuel Caprais will leave the company for personal reasons, effective May 8, 2026, after almost 14 years of service, and will remain as a business advisor reporting to the CEO throu...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.