ITT (2II) AI Stock Analysis

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ITT

(Frankfurt:2II)

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Action:N/A

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Positive Factors

Backlog and Market-Share GainsA materially larger backlog provides forward revenue visibility and supports continued capacity planning across aerospace, defense and connector programs. Combined with reported market-share gains, it can reinforce customer embeddedness and sustain growth beyond a single reporting period.

Negative Factors

TTM Profitability CompressionRecent margin compression shows that strong revenue growth has not fully translated into bottom-line improvement. Lower profitability can reduce internal funding capacity and leave results more exposed to unfavorable product mix, cost pressure or execution setbacks during the next few quarters.

ITT (2II) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 19.18B
Dividend Yield: 0.67%
Average Volume (3M): 23
Price to Earnings (P/E): 44.1
Beta (1Y): 0.54
Revenue Growth: 29.24%
EPS Growth: -23.22%
Country: Germany
Employees: 11,600
Sector: Industrials
Sector Strength: 63
Industry: Industrial - Machinery

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, Indu...

ITT Earnings Call Summary

Earnings Call Date:Nov 04, 2026(Q3-2026)|% Change Since:6.80%|Next Earnings Date:Feb 11, 2027

Earnings Call SentimentPositive

The call was strongly positive. Highlights significantly outweighed the lowlights, with record or expanding margins, strong order and backlog growth, raised revenue, EPS and free cash flow guidance, robust cash generation, accelerating SPX FLOW synergies and favorable aerospace, defense and Flow Technologies trends. The main challenges were Middle East cost and order timing issues, negative Flow Technologies mix and acquisition dilution, automotive and calendar headwinds, and ongoing customer pricing pressure in Motion Technologies.

Positive Updates

Strong Third-Quarter Financial Performance

ITT grew orders 58%, including 20% organically, and revenue 44%, including 8% organically, with a quarterly book-to-bill of 1.08. Operating margin expanded 140 basis points to 21% for the first time, adjusted EPS increased 20% year-over-year to $2.26, and year-to-date free cash flow reached $464 million, up 26% from the prior year.

Negative Updates

Middle East Operating Margin Pressure

Habonim in Israel is performing exceptionally well and growing orders and revenue, but management said operating margin is being affected by higher operating inefficiency and transportation costs, with margins in the high teens versus the 20s.

Company Guidance

For 2026, ITT raised its full year organic revenue guidance range to 7% to 9% growth, expects adjusted operating margin expansion of over 100 basis points to approximately 20.6% at the midpoint, and raised adjusted EPS outlook to $8.58 at the midpoint, a $0.36 increase and 19% growth year-over-year; the effective tax rate is 23.75% as of Q3, SPX FLOW’s net contributing is expected to be over $0.20, free cash flow guidance was raised to a $610 million midpoint with a free cash flow margin of approximately 11%, and the year-end leverage ratio is expected to be approximately 2.1x. SPX FLOW is expected to deliver high single-digit growth for the full year in 2026, with savings of over $20 million by year-end and an annual run rate greater than $30 million.

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

1 New Risk

1.The ongoing conflict in the Middle East and related geopolitical instability may adversely affect our business.Q2, 2026

ITT Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

DE:2II against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IR	85Outperform	$32.97B	23.83	13.53%	0.09%	7.96%	161.68%
IEX	79Outperform	$17.40B	33.23	13.31%	1.21%	6.93%	14.08%
DOV	77Outperform	$28.20B	24.61	15.43%	0.98%	8.24%	-47.25%
CR	69Neutral	$12.11B	36.37	15.90%	0.47%	21.54%	5.62%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FLS	63Neutral	$10.86B	42.60	11.35%	1.02%	0.21%	-42.26%

* Industrials Sector Average

Performance Comparison

DE:2II and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:2II	ITT Corporation	193.30	31.57	19.52%
DOV	Dover Corporation	212.43	32.30	17.93%
FLS	Flowserve	85.20	18.00	26.78%
IEX	Idex Corporation	239.96	75.17	45.61%
IR	Ingersoll Rand Inc.	85.08	8.94	11.74%
CR	Crane Company	213.15	28.39	15.37%

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.

ITT AI Stock Analysis