Financial Performance - Fourth quarter revenue increased by 13% year-over-year to $1,054 million, with organic growth of 9% driven by higher volume and acquisitions[2][7] - Operating income for the fourth quarter was $179 million, a 12% increase compared to the prior year, with adjusted operating income rising 19% to $194 million[3][4] - Fourth quarter earnings per share (EPS) were $1.64, up 6% year-over-year, while adjusted EPS increased by 23% to $1.85[4][6] - Full year revenue reached $3,938.5 million, an 8.5% increase, with organic growth of 4.8%[14] - Full year operating cash flow was $669 million, up 19%, with a margin of 17%[5][14] - The company reported a backlog of $1.9 billion, positioning it for continued growth in the upcoming year[10] - Reported revenue growth for 2025 was 13.5%, with specific segments showing growth rates of 10.7% for MT, 16.7% for IP, and 12.5% for CCT[37] - The company reported a total of $3,938.5 million in revenue for the full year 2025, with organic revenue growth of 4.8%[37] Cash Flow and Dividends - Operating cash flow for the fourth quarter was $228 million, a 2% increase, resulting in an operating cash flow margin of 22%[5][6] - Cash and cash equivalents increased significantly to $1,742.9 million as of December 31, 2025, from $439.3 million in 2024[29] - The company reported a net cash from operating activities of $668.8 million for the year ended December 31, 2025, compared to $562.6 million in 2024, an increase of 18.8%[30] - Free Cash Flow for 2025 is projected at $1,054.0 million, with a Free Cash Flow Margin of approximately 26.7%[35] - In Q4 2025, the company reported net cash from operating activities of $227.8 million, with a free cash flow of $187.4 million[48] - The company announced a 10% increase in its quarterly dividend to $0.386 per share, continuing a trend of annual dividend growth[16] Acquisitions and Future Growth - The acquisition of SPX FLOW is expected to enhance the company's portfolio towards higher-growth, higher-margin businesses, with a closing anticipated in Q1 2026[9][17] - For Q1 2026, the company expects revenue growth of approximately 11%, with adjusted EPS guidance of $1.68 to $1.72[17] - The company plans to focus on market expansion and new product development to drive future growth[35] - Acquisition-related costs for 2025 include $2.1 million of interest-related costs associated with the agreement to acquire SPX FLOW[13] Profitability Metrics - Gross profit for the twelve months ended December 31, 2025, was $1,392.4 million, up from $1,249.4 million in 2024, reflecting an increase of 11.4%[28] - Operating income for the twelve months ended December 31, 2025, was $684.5 million, slightly up from $678.1 million in 2024, an increase of 0.6%[28] - Full Year 2025 Reported Operating Income totaled $275.9 million, down 12.3% from $315.1 million in 2024[40] - Full Year 2025 Adjusted Operating Income was $285.2 million, representing a 6.1% increase compared to $268.9 million in 2024[43] - The Adjusted Operating Margin for Q4 2025 was 19.7%, compared to 18.4% in Q4 2024, an increase of 40 basis points[40] - The Reported Operating Margin for Full Year 2025 was 19.3%, down from 21.1% in 2024, a decrease of 240 basis points[43] Earnings and Taxation - Diluted Earnings per Share for Q4 2025 was $1.64, a 5.8% increase from $1.55 in Q4 2024[43] - Full Year 2025 Diluted Earnings per Share was $6.11, a decrease of 3.3% from $6.32 in 2024[43] - For the full year 2025, tax expenses on distributions of non-U.S. income totaled $12.6 million, and tax expenses on undistributed foreign earnings amounted to $4.9 million[13] Liabilities and Assets - Total assets rose to $6,310.4 million as of December 31, 2025, compared to $4,731.3 million in 2024, marking a growth of 33.3%[29] - Total liabilities increased to $2,219.1 million as of December 31, 2025, from $1,945.5 million in 2024, a rise of 14.1%[29]

Core Insights - ITT Inc. reported its financial results for the fourth quarter and the full year ended December 31, 2025, indicating a significant performance overview for the company [1] Financial Performance - The company disclosed its earnings for the fourth quarter, highlighting key metrics that reflect its operational efficiency and market position [1] - Full-year results were also presented, showcasing overall growth and financial health [1]

Core Viewpoint - ITT is expected to report quarterly earnings of $1.79 per share, a 19.3% increase year-over-year, with revenues projected at $1 billion, reflecting an 8% year-over-year growth [1]. Earnings Estimates - The consensus EPS estimate has been revised down by 0.6% in the last 30 days, indicating a reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts estimate 'Revenue- Motion Technologies (MT)' at $344.02 million, a 5.5% increase from the previous year [5]. - 'Revenue- Connect & Control Technologies (CCT)' is projected at $263.90 million, indicating a 9.5% year-over-year change [5]. - 'Revenue- Industrial Process (IP)' is expected to reach $395.60 million, reflecting a 9.1% increase compared to the same quarter last year [5]. Adjusted Operating Income - 'Adjusted Operating Income- Connect & Control Technologies (CCT)' is forecasted to be $48.22 million, up from $42.10 million in the same quarter last year [6]. - 'Adjusted Operating Income- Motion Technologies (MT)' is expected to be $72.33 million, compared to $62.90 million reported in the same quarter last year [6]. - 'Adjusted Operating Income- Industrial Process (IP)' is projected at $88.13 million, an increase from $77.50 million in the same quarter last year [7]. Stock Performance - ITT shares have returned +3.3% over the past month, outperforming the Zacks S&P 500 composite, which saw a +0.9% change [7].

Group 1 - Gabelli Funds, LLC will host the 36th Annual Pump, Valve, & Water Systems Symposium on February 26, 2026, in New York, NY [1] - The symposium will focus on discussions related to critical infrastructure, aerospace and defense, machine tools, and the oil and gas industry [2] - Attendees will have opportunities for one-on-one meetings with management from participating companies [2] Group 2 - Participating companies include AMETEK, Graco, Badger Meter, ITT, Crane, Landis+Gyr, Enpro, Mueller Water Products, Flowserve, Oil States International, Franklin Electric, and Watts Water Technologies [2] - A lunch presentation will be given by Robert Powelson, President & CEO of the National Association of Water Companies [3]

Core Viewpoint - ITT Inc. is set to release its fourth quarter and full year 2025 financial results along with its 2026 outlook on February 5, 2026, before the New York Stock Exchange opens [1]. Group 1: Financial Results and Outlook - The financial results for the fourth quarter and full year 2025 will be discussed in a conference call scheduled for 8:30 a.m. ET on February 5, 2026 [1]. - A real-time audio webcast of the presentation will be available, along with related materials prior to the presentation [2]. Group 2: Company Overview - ITT is a diversified manufacturer specializing in highly engineered critical components and customized technology solutions for the transportation, industrial, and energy markets [3]. - The company is headquartered in Stamford, Connecticut, and operates in over 35 countries with sales in approximately 125 countries [3].

Core Viewpoint - Investors are evaluating which stock between Grupo Cibest (CIB) and ITT (ITT) offers better value for investment, with CIB currently showing stronger potential based on various financial metrics [1]. Group 1: Zacks Rank and Earnings Outlook - Grupo Cibest has a Zacks Rank of 1 (Strong Buy), indicating a more favorable earnings outlook compared to ITT, which has a Zacks Rank of 3 (Hold) [3]. - The Zacks Rank is based on positive estimate revision trends, suggesting that CIB has experienced a stronger improvement in its earnings outlook than ITT [2][3]. Group 2: Valuation Metrics - CIB has a forward P/E ratio of 8.29, significantly lower than ITT's forward P/E of 26.62, indicating that CIB may be undervalued relative to ITT [5]. - The PEG ratio for CIB is 0.83, while ITT's PEG ratio is 2.11, suggesting that CIB's stock price is more favorable when considering expected earnings growth [5]. - CIB's P/B ratio is 1.79, compared to ITT's P/B of 5.18, further highlighting CIB's relative undervaluation [6]. Group 3: Value Grades - Based on various valuation metrics, CIB holds a Value grade of B, while ITT has a Value grade of D, indicating that CIB is perceived as a better investment option for value investors [6].

Core Viewpoint - ITT Inc. has received reaffirmation of its investment grade credit ratings from major ratings agencies following its agreement to acquire SPX FLOW and the completion of a $1.31 billion public offering of common stock [1][2]. Group 1: Credit Ratings Reaffirmation - Moody's affirmed ITT's senior unsecured rating at Baa1 and commercial paper rating at Prime-2, both with a stable outlook, citing ITT's diversified operating model, consistent earnings, and strong cash generation [4]. - S&P Global Ratings affirmed its BBB issuer credit rating and A-2 short-term rating for ITT, noting that ITT's history of prudent capital management supports the stable outlook despite a near-term rise in leverage [4]. - Fitch Ratings affirmed ITT's BBB+ long-term Issuer Default Rating and F1 short-term rating, both with a stable outlook, highlighting ITT's conservative capital structure, strong free cash flow, and commitment to reducing leverage below 2x within two years post-acquisition [4]. Group 2: Financial Strategy and Position - ITT has successfully completed a $1.31 billion equity offering, strengthening its balance sheet to fund the SPX FLOW acquisition [2]. - The company is committed to deleveraging quickly by implementing a synergy plan and enabling SPX FLOW's growth to maintain its investment grade ratings [2]. - ITT's strong financial position and focus on execution are positioned for long-term value creation [2]. Group 3: Company Overview - ITT is a diversified leading manufacturer of highly engineered critical components and customized technology solutions for the transportation, industrial, and energy markets [3]. - The company is headquartered in Stamford, Connecticut, with employees in more than 35 countries and sales in approximately 125 countries [3].

Core Viewpoint - The BBH Select Series - Mid Cap Fund experienced a decline in Q3 2025, underperforming the Russell Midcap Index, which indicates challenges in the mid-cap investment space during this period [1]. Fund Performance - The fund decreased by -0.9% on a total return basis in Q3 2025, while the Russell Midcap Index returned 5.3% [1]. - Year-to-date, the fund has a total return of -1.8%, compared to a 10.4% return for the Index [1]. - The third quarter saw a continuation of a low-quality rally that began late last year, gaining momentum throughout 2025 [1]. Company Focus: ITT Inc. - ITT Inc. (NYSE:ITT) was highlighted as a key stock in the fund's Q3 2025 investor letter [2]. - The one-month return for ITT Inc. was -6.97%, but it gained 12.95% over the last 52 weeks [2]. - As of December 10, 2025, ITT Inc. closed at $171.87 per share, with a market capitalization of $14.607 billion [2]. Investment Decisions - The fund initiated two new positions in Q3 2025: ITT Inc. and BJ's Wholesale Club Holdings Inc. [3]. - The fund exited positions in Globant, Bruker, and Bright Horizons Family Solutions Inc. during the same quarter [3].

Core Viewpoint - ITT Inc. has successfully closed a public offering of 8,050,000 shares of common stock, raising approximately $1.31 billion in net proceeds, which will primarily fund the acquisition of SPX FLOW, Inc. [1][2] Group 1: Offering Details - The public offering price was set at $167.00 per share, including the full exercise of the underwriters' option to purchase an additional 1,050,000 shares [1] - Goldman Sachs & Co. LLC and UBS Investment Bank served as lead book-running managers for the offering, with several other banks acting as additional bookrunners and co-managers [3] Group 2: Use of Proceeds - The net proceeds from the offering are intended to fund a portion of the acquisition of SPX FLOW, Inc. If the acquisition does not proceed, the funds will be allocated for general corporate purposes [2] Group 3: Company Overview - ITT is a diversified manufacturer specializing in critical components and customized technology solutions for transportation, industrial, and energy markets, with a global presence in over 35 countries [6]

Core Viewpoint - ITT Inc (NYSE: ITT) offers a modest dividend that may not attract income investors focused on high yields, but the underlying financial metrics indicate a strong level of safety [1] Financial Performance - The company’s dividend, while not high, reflects a stable financial position, suggesting that it is well-managed and capable of sustaining its payouts [1] Investment Considerations - The safety of the dividend is underscored by the company's financial health, making it a potentially attractive option for conservative investors [1]