ITT Inc. reported fourth-quarter EPS of $1.64 (adjusted EPS $1.85) and full-year EPS of $6.11 (adjusted EPS $6.72).

ITT Inc. (NYSE: ITT) today reported financial results for the fourth quarter and full year ended December 31, 2025. For the fourth quarter, the company reported a year-over-year revenue growth of 13%, up 9% on an organic basis, primarily driven by higher volume, pricing actions and contributions from the Svanehøj and kSARIA acquisitions.

Fourth quarter operating income of $179 million increased 12% compared to prior year and on an adjusted basis, operating income of $194 million increased 19%. This is mainly due to higher volume, productivity and pricing actions.

Earnings per share for the fourth quarter of $1.64 increased 6% versus prior year primarily due to higher operating income, partially offset by a higher tax rate and dilution related to the December 2025 equity offering. On an adjusted basis, earnings per share of $1.85 increased 23% compared to prior year due primarily to improved operational performance.

Operating cash flow for the fourth quarter of $228 million increased 2% versus prior year primarily driven by higher operating income and working capital improvements, resulting in operating cash flow margin of 22%. Free cash flow for the fourth quarter of $187 million was flat versus prior year, resulting in free cash flow margin of 18%. For the full year, operating cash flow of $669 million increased 19%, with operating cash flow margin of 17%. Free cash flow of $555 million increased 27%, with free cash flow margin of 14.1%.

Management Commentary

"2025 was a milestone. We delivered exceptional cash flow and outstanding profitable growth, all in all a strong start to the next ITT chapter as outlined at Capital Markets Day. We grew orders 10% and revenue 8% whilst continuing to expand margin. Our teams furthered ITT's differentiation in the market thanks to their disciplined execution across all three segments as well as the investments we made in innovation that powered new product introductions.

In addition to this strong performance, the announced acquisition of SPX FLOW accelerates the strategic shift of our portfolio towards higher-growth, higher-margin businesses. SPX FLOW's leading brands and strong engineering capabilities will strengthen our Industrial Process business, creating a world-class flow platform.

Thanks to the ITT team's hard work, we grew free cash flow 27% and delivered 14% free cash flow margin for the year, already at the level of performance we targeted for 2030 at Capital Markets Day. With a $1.9 billion backlog, our share gain momentum and the expected addition of SPX FLOW later in the first quarter, we are positioned for another solid year and well on our way to deliver our 2030 targets," said Luca Savi, ITT's Chief Executive Officer and President.

Motion Technologies revenue increased 11% due to Friction OE outperformance and growth in aftermarket. Operating income of $67 million increased 7% due to productivity, including supply chain savings, and higher volume, partially offset by unfavorable foreign currency impacts.

Industrial Process revenue increased 17%, primarily due to strength in pump projects, Svanehøj contributions and pricing. Operating income of $93 million increased 21% driven by volume, pricing and productivity actions.

Connect & Control Technologies revenue increased 13%, primarily due to growth in aerospace and defense and pricing actions. Operating income of $51 million increased 28% primarily due to benefits of pricing actions and volume, partially offset by higher strategic investments.

Quarterly Dividend Increase

The company announced today an increase in its quarterly dividend of 10% to $0.386 per share on the company's outstanding common stock. ITT's Board of Directors approved the cash dividend for the first quarter of 2026, which will be payable on April 6, 2026 to shareholders of record as of the close of business on March 6, 2026. The 10% increase in the quarterly dividend announced today follows increases of 10% in both 2024 and 2025. Including the increase in 2026, the company's dividend has grown at a 15% compounded annual growth rate since 2020.

Q1 2026 Guidance

The following outlook does not reflect the impact of the pending SPX FLOW acquisition, which was announced on December 5, 2025, and is expected to close in the first quarter of 2026.

We expect revenue growth of roughly 11%, up 5% on an organic basis; operating margin of approximately 18%, and adjusted operating margin greater than 18%, up approximately 100 bps; EPS of $1.67 to $1.71, and adjusted EPS of $1.68 to $1.72.

Starting in fiscal 2026, and following the expected close of the SPX FLOW acquisition, ITT will revise adjusted operating income and adjusted income from continuing operations to exclude acquisition-related intangible amortization expense in addition to previously excluded special items. This change reflects ITT's ongoing portfolio transformation and is intended to provide a clearer view of core operating earnings while enhancing comparability with peers. Under the new definitions, fiscal 2025 adjusted operating income would increase by $47.3 million and adjusted EPS would increase by $0.46.

It is not possible, without unreasonable efforts, to estimate the impacts of foreign currency fluctuations, acquisitions, divestitures, and certain other special items that may occur in 2026 as these items are inherently uncertain and difficult to predict. As a result, we are unable to quantify certain amounts that would be included in a reconciliation of organic revenue growth and adjusted operating margin to the most directly comparable GAAP financial measures without unreasonable efforts and we have not provided reconciliations for these forward-looking non-GAAP financial measures.

Investor Conference Call Details

ITT's management will host a conference call for investors on Thursday, February 5, 2026 at 8:30 a.m. Eastern Time.

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