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what it is
ITT makes specialized industrial parts used in pumps, brakes, connectors, and other systems across energy, transport, electronics, and aerospace.
how it gets paid
Last year Itt made $3.9B in revenue. transportation was the main engine at $1.08B, or 30% of sales.
what just happened
ITT just printed $1.85 in EPS, ahead of the $1.78 estimate, while gross margin held at 35.3%.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
95/100 earnings predictability — you can trust these numbers
26.7x trailing p/e — priced about right
0.9% dividend yield — cash in your pocket every quarter
22.0% return on capital — every dollar works hard here
xvary composite: 70/100 — average
What they do
ITT makes specialized industrial parts used in pumps, brakes, connectors, and other systems across energy, transport, electronics, and aerospace.
ITT wins by selling parts your customers do not want failing in the field. Return on capital (money earned on every dollar invested) → 22.0% → so what: this is a quality manufacturer, not a commodity parts bin. You also get global reach, with 58% of 2024 sales outside the U.S., which matters when one region slows.
How they make money
$3.9B
annual revenue
transportation
$1.08B
energy infrastructure
$0.90B
electronics
$0.81B
aerospace
$0.81B
The products that matter
engineered systems for energy infrastructure
Energy infrastructure exposure
part of a $3.9B revenue base
energy infrastructure is one of the end markets ITT sells into. The exact contribution isn’t broken out here, which matters if you’re trying to see what drives the cycle.
end-market exposure
precision components for electronics
Electronics exposure
22.9% operating margin
electronics is another major destination for ITT’s engineered parts. The margin profile suggests these are not generic low-value components.
niche engineering
parts sold into aerospace and transportation
Aerospace + transportation
95 / 100 predictability
these end markets help diversify demand across the company. What this snapshot can’t tell you is which one is carrying growth right now, so you should treat the diversification story with some humility.
diversified demand
Key numbers
22.9%
operating margin
Operating margin → profit left after running the business → so what: ITT keeps almost $0.23 of every sales dollar before interest and taxes.
22.0%
return on capital
Return on capital → profit earned on money invested → so what: management is turning industrial assets into cash at a rate most manufacturers would love.
26.7x
trailing p/e
P/E → price divided by annual earnings → so what: you are paying a premium for execution that now has less room for error.
58%
foreign sales
More than half of 2024 revenue came from outside the U.S., which diversifies demand but also imports global industrial risk into your portfolio.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 75 / 100
- long-term debt $578M (4% of capital)
- net profit margin 15.3% — keeps 15 cents of every dollar in revenue
- return on equity 23% — $0.23 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in ITT 3 years ago → it's now worth $22,960.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
ITT just printed $1.85 in EPS, ahead of the $1.78 estimate, while gross margin held at 35.3%.
The company also raised its 2025 outlook after a strong September quarter. Management now targets 2025 adjusted EPS of $6.62 to $6.68, with revenue growth of 6% to 7% and organic growth of 3% to 5%.
$2.9B
revenue
$4.46
eps
35.3%
gross margin
the number that mattered
The key number was the 3.93% EPS beat versus the $1.78 estimate, because this stock already trades at 26.7x earnings and needs clean execution.
-
itt posted another strong showing in the september quarter.sales came in $30 million ahead of the consensus call at $999.1 million, and earnings of $1.78 a share were a dime higher than our call. aerospace and defense receipts continued to show strength, more clients turned to the company for their pump projects and automotive needs, and pricing remained favorable. on the earnings line, the credit was given to operational improvements, and the positive effect of acquisitions.
-
management was quick to raise its full-year outlook for 2025.
-
the top line is apt to grow by between 6% and 7% with organic growth pitching in 3% to 5% of that figure.
-
too, earnings per share are now targeted from $6.62 to $6.68 on an adjusted basis.therefore, we are boosting our estimates to $3.88 billion and $6.65, which reflect increases of $30 million and $0.15, respectively.
-
our 2026 headline numbers are up by similar amounts.
source: company earnings report, 2026
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What could go wrong
the #1 risk is executing from a $3.9B revenue base toward the $6B fy2028 target without losing margin.
high
growth promise outruns reality
The fy2028 revenue estimate is $6B versus $3.9B today. If growth undershoots, the market stops treating ITT like a premium industrial.
26.7x trailing earnings doesn’t leave much room for a slower story.
med
multiple compression
At 26.7x trailing earnings and a $177.33 share price, you already pay for quality. Even a good business can be a mediocre stock if expectations get ahead of the numbers.
A premium multiple works until the next quarter looks ordinary.
med
industrial demand slows across multiple end markets
ITT sells into energy infrastructure, electronics, aerospace, and transportation. Diversified is good. Insulated is different. If several end markets soften together, the 22.9% operating margin gets tested.
Pressure on margin would ripple through the full $3.9B revenue base.
med
dec. 8, 2025 prospectus supplement
A prospectus supplement is the one explicit filing surfaced in this snapshot. The signal is real. The detail here is thin.
When disclosure is thin, uncertainty itself becomes part of the risk.
Miss the $6B growth path, lose the 22.9% operating margin, or disappoint a market paying 26.7x earnings, and this can rerate fast.
source: institutional data · regulatory filings · risk analysis
Pay attention to
the metric
margin discipline
22.9% operating margin and 15.3% net margin are the whole premium-quality argument. If those slip, the stock story changes fast.
the trend
revenue path to $6B
$3.9B today versus a $6B fy2028 estimate. That gap is where the upside lives — or dies.
the risk
valuation tolerance
26.7x trailing p/e works when the 95/100 predictability score stays earned. One messy quarter and investors will suddenly rediscover arithmetic.
next up
the next report
When the next quarter lands, focus less on the headline and more on whether margins, predictability, and institutional support still hold.
Analyst rankings
earnings predictability
95 / 100
in human-speak, analysts think management usually does what it says.
risk rank
3
middle-of-the-pack safety. Safer than half the market, but not a bunker stock.
price stability
75 / 100
the chart has been steadier than the average cyclical industrial. That helps if you hate drama.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 271 buyers vs. 228 sellers in 3q2025. total institutional holdings: 73.8M shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$141
$268
$177
current price
$205
target midpoint · +16% from current · 3-5yr high: $245 (+40% · 10% ann'l return)
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