Core Insights - ITT reported quarterly earnings of $1.78 per share, exceeding the Zacks Consensus Estimate of $1.67 per share, and up from $1.46 per share a year ago [1] - The earnings surprise was +6.59%, and the company has surpassed consensus EPS estimates in all four of the last quarters [2] - Revenues for the quarter reached $999.1 million, surpassing the Zacks Consensus Estimate by 2.23%, and up from $885.2 million year-over-year [3] Earnings Performance - ITT's earnings surprise of +6.59% indicates strong performance relative to expectations [2] - The company has consistently exceeded earnings estimates, achieving this in four consecutive quarters [2] Revenue Analysis - The reported revenue of $999.1 million reflects a significant increase from the previous year's $885.2 million [3] - ITT has also topped consensus revenue estimates in three of the last four quarters [3] Stock Performance - ITT shares have increased by approximately 23.1% since the beginning of the year, outperforming the S&P 500's gain of 17.2% [4] - The future price movement of ITT's stock will largely depend on management's commentary during the earnings call [4] Future Outlook - Current consensus EPS estimate for the upcoming quarter is $1.75 on $1 billion in revenues, and for the current fiscal year, it is $6.51 on $3.87 billion in revenues [8] - The Zacks Rank for ITT is 2 (Buy), indicating expectations for the stock to outperform the market in the near future [7] Industry Context - The Diversified Operations industry, to which ITT belongs, is currently ranked in the top 30% of over 250 Zacks industries, suggesting a favorable outlook [9] - Historical data indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than a factor of 2 to 1 [9]

Financial Performance Highlights - Total revenue grew by 13% to $999 million in Q3 2025[7, 16] - Organic growth reached 6% in Q3 2025[7, 8] - Adjusted EPS grew by 21% to $1.78 in Q3 2025[8, 19] - Free cash flow increased by 77% in Q3 2025[8] - Year-to-date free cash flow reached $368 million, a 46% increase[20] Segment Performance - Industrial Process (IP) organic revenue grew by 11%[9, 31] - Connect & Control Technologies (CCT) organic revenue grew by 6%[9, 31] - Motion Technologies (MT) adjusted operating margin reached 20.2%, a 210 bps increase[9, 31] Orders and Backlog - Orders grew by 19% in total[11] - Svanehøj orders increased by 59% year-to-date[13] - kSARIA orders increased by 58% year-to-date[13] Guidance - The company is raising its full-year adjusted EPS range to $6.62 - $6.68[7, 25] - The company expects approximately $500 million in free cash flow for the full year[9, 25]

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Financial Performance - ITT reported Q3 2025 revenue of $999 million, a 13% increase (6% organic) compared to the prior year, driven by strength in pump projects and aerospace and defense[2]. - Operating income for Q3 2025 was $180 million, a 14% decrease year-over-year, while adjusted operating income increased by 14% to $184.7 million[3][4]. - Q3 2025 EPS was $1.62, down 18% from the previous year, but adjusted EPS rose 21% to $1.78 due to operational improvements and acquisitions[4]. - Revenue for the three months ended September 27, 2025, was $999.1 million, a 12.9% increase from $885.2 million in the same period of 2024[26]. - Operating income decreased to $179.8 million from $208.6 million, indicating a decline of 13.8% year-over-year[26]. - Net income attributable to ITT Inc. was $126.9 million, down from $161.6 million, representing a 21.4% decrease[26]. - Basic earnings per share decreased to $1.63 from $1.98, a decline of 17.7%[26]. - Revenue for the nine months ended September 27, 2025, was $2,884.5 million, compared to $2,701.7 million for the same period in 2024, indicating a growth of 6.8%[48]. Cash Flow and Assets - Net cash from operating activities increased by 40% to $174 million, and free cash flow surged 77% to $154 million compared to Q3 2024[5][6]. - Cash and cash equivalents rose to $516.4 million from $439.3 million, reflecting a 17.6% increase[27]. - Free cash flow for the nine months ended September 27, 2025, was $441.0 million, compared to $339.4 million in the prior year[28]. - Free cash flow for Q3 2025 was $154.1 million, with a free cash flow margin of 15.4%, up from 9.9% in Q3 2024[48]. - The company reported a net cash from operating activities of $173.9 million for Q3 2025, compared to $123.9 million in Q3 2024[48]. Guidance and Outlook - The company is raising its full-year guidance, expecting total revenue growth of 6% to 7% and adjusted EPS growth of 13% to 14% for 2025[14]. - The company provided full-year 2025 EPS guidance from continuing operations at $6.16 to $6.22, with adjusted EPS expected between $6.62 and $6.68[45]. Segment Performance - The Motion Technologies segment reported revenue of $355.6 million, a 3.1% increase, while Industrial Process revenue rose 15% to $383.9 million[10][11]. - Connect & Control Technologies revenue increased by 25.1% to $259.2 million, primarily driven by the kSARIA acquisition[12]. - Organic revenue growth was reported at 6.1% for the third quarter of 2025[34]. - Organic orders in Q3 2025 showed a decline of 2.2% in MT, 9.9% in IP, and a growth of 5.5% in CCT compared to Q3 2024[36]. Backlog and Orders - ITT's backlog stands at approximately $2 billion, indicating further growth opportunities in core markets and from acquisitions[9]. - In Q3 2025, total orders reached $991.0 million, with organic orders at $923.6 million, reflecting a decline of 3.6% year-over-year[36]. Margins and Profitability - Adjusted operating margin for Q3 2025 was 18.5%, an increase of 20 basis points compared to the prior year[3][7]. - Reported operating margin for Q3 2025 was 18.0%, down from 23.6% in Q3 2024, while adjusted operating margin was 18.5%[38]. - Gross profit increased to $355.2 million, up from $314.7 million, reflecting a gross margin improvement[26]. - Adjusted income from continuing operations per diluted share was not specified but is considered a key performance indicator for evaluating ongoing profitability[32]. Dividends - The company announced a quarterly dividend of $0.351 per share, payable on December 31, 2025[13].

Core Viewpoint - ITT reported third quarter earnings per share (EPS) of $1.62 for 2025, with an adjusted EPS of $1.78, and has raised its full year guidance [1] Financial Performance - The reported EPS of $1.62 indicates a strong performance in the third quarter of 2025 [1] - The adjusted EPS of $1.78 reflects the company's operational efficiency and profitability [1] Guidance Update - The company has raised its full year guidance, suggesting confidence in continued growth and performance for the remainder of the year [1]

Core Insights - Investors are evaluating Sumitomo Corp. (SSUMY) and ITT (ITT) as potential undervalued stocks in the Diversified Operations sector [1] Valuation Metrics - Both SSUMY and ITT currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3] - SSUMY has a forward P/E ratio of 9.61, significantly lower than ITT's forward P/E of 26.82 [5] - The PEG ratio for SSUMY is 1.90, while ITT's PEG ratio is 2.15, suggesting SSUMY may be more favorably valued considering expected earnings growth [5] - SSUMY's P/B ratio is 1.07, compared to ITT's P/B of 5.31, further indicating that SSUMY is undervalued relative to its book value [6] - Based on these valuation metrics, SSUMY has earned a Value grade of A, while ITT has a Value grade of D [6] Investment Recommendation - Despite both companies having solid earnings outlooks, SSUMY is identified as the superior value option based on the discussed valuation figures [7]

Core Insights - Crude Value Insights provides an investment service and community focused on the oil and natural gas sector, emphasizing cash flow and the companies that generate it, which leads to value and growth prospects with real potential [1] Company Offerings - Subscribers gain access to a model account with over 50 stocks, in-depth cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [1] Promotional Offer - A two-week free trial is available for new subscribers, allowing them to explore the services related to oil and gas investments [2]

Group 1 - Crude Value Insights provides an investment service and community focused on the oil and natural gas sector, emphasizing cash flow and companies that generate it [1] - The service offers subscribers access to a model account with over 50 stocks, detailed cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [1] Group 2 - A two-week free trial is available for new subscribers, promoting engagement with oil and gas investment opportunities [2]

Core Insights - ITT Inc.'s KONI business has been awarded the 2025 Railsponsible Supplier Award, highlighting its commitment to sustainability and responsible sourcing in the rail industry [1] Company Summary - The recognition of KONI as the 2025 Railsponsible Supplier Award winner underscores the company's efforts in promoting sustainable practices within its operations [1]

Core Insights - The Zacks Diversified Operations industry is benefiting from strong performance in aerospace, defense, and oil & gas sectors, driven by growth in commercial aviation and demand in home and building products [1][4] - Challenges such as manufacturing sector weakness and supply-chain disruptions are impacting industry performance [2][6][7] - The industry is ranked 88 in the Zacks Industry Rank, indicating solid prospects with a positive earnings outlook [8][10] Industry Overview - The Zacks Diversified Operations industry encompasses companies in various sectors including oil & gas, industrial, electronics, aviation, and healthcare, providing a wide range of equipment and solutions [3] - Companies in this industry have a global presence, with operations in the U.S., Japan, India, China, and Canada [3] Major Trends - Strength in aerospace and defense markets is a key driver, with robust demand expected to continue due to air travel and government support [4] - Investments in innovation and technology are crucial for growth, with companies focusing on digitization to enhance operational efficiency [5] Challenges - The manufacturing sector has shown persistent weakness, with the Manufacturing Purchasing Manager's Index at 49.1% in September, indicating contraction [6] - Supply-chain disruptions, particularly in electrical and electronic components, are a concern for industry participants [7] Performance Metrics - The Zacks Diversified Operations industry has underperformed the S&P 500, declining 6.7% over the past year compared to the S&P 500's 16.5% increase [12] - The industry is currently trading at a forward P/E of 11.15X, significantly lower than the S&P 500's 23.29X [15] Notable Companies - **3M Company (MMM)**: Gained 11.3% in the past year, with strong momentum in safety and industrial segments [17][18] - **ITT Inc. (ITT)**: Shares increased by 11.7% in the past year, benefiting from demand in energy and industrial markets [21][22] - **Star Equity Holdings, Inc. (STRR)**: Expected to benefit from its Building Solutions division, with a significant earnings estimate increase of 154.5% over the past 60 days [25][26]