ITT

ITT is a diversified, highly-engineered components manufacturer across three segments (Motion Technologies, Industrial Process, Connect & Control) serving transportation, industrial and energy markets. FY2025 revenue grew 8.5% to $3.94B with growth in all three segments — pump projects in IP, aerospace/defense connectors in CCT, and automotive share gains plus rail strength in MT. Headline net income fell 6.1% to $488M and GAAP diluted EPS dipped 3.3% to $6.11, but management is explicit that this reflects the prior-year $47.8M gain on the Wolverine divestiture, a higher tax rate and higher interest expense; on an organic/adjusted basis the business accelerated, with 4.8% organic revenue growth, 11.2% adjusted operating income growth and 14.3% adjusted EPS growth to $6.72.

The quality profile is solid: 35.4% gross margin, 17.4% operating margin, 11.9% ROE and a conservatively geared balance sheet at 0.54x liabilities/equity. Operating cash flow grew 18.9% to $669M against modest $121M capex. The dramatic balance-sheet moves — cash up 296.7% to $1.74B, equity up 47.0%, and current assets up 77.9% — are tied to the December 4, 2025 agreement to acquire SPX FLOW for $4,775M, to be funded through a combination of cash and equity; long-term debt also more than doubled to $522M. Capital return remained active with $521M of buybacks (up 398.6%) and a 10% dividend increase.