NYSE:ITT
ITT INC.
A resilient industrial player delivering steady revenue growth through diversified thermal management and fluid handling segments with strong free cash flow generation.
Key Metrics
Investment Thesis
Bull Case
Investors may favor ITT for its consistent top-line growth trajectory, diversified revenue streams that mitigate single-sector downturns, and a healthy balance sheet with $1.74B in cash providing flexibility for strategic M&A or share buybacks to support shareholder returns.
Bear Case
Concerns include the recent slight contraction in net profit despite rising revenues which may indicate margin compression, significant accumulated other comprehensive losses of -$302.5M affecting equity metrics, and elevated long-term debt obligations relative to current earnings capabilities.
About ITT INC.
ITT Inc. operates as a diversified industrial holding company primarily focused on thermal management solutions, fluid handling systems, and aftermarket services across automotive, aerospace, and commercial vehicle markets.
Analysis
Management Discussion
The company demonstrated robust operational execution with revenue climbing 31% over five years to $3.94B in 2025, while net income remained resilient at $491.3M despite a slight dip from the prior year's peak, supported by strong operating cash flows of $668.3M that exceed reported net profit.
Industry Overview
The industrial thermal management and fluid handling sector is essential for modern transportation efficiency and industrial process cooling, characterized by steady demand from electric vehicle transitions and infrastructure upgrades, though it faces intense competition requiring continuous innovation in energy-efficient technologies.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $2.99B | $3.28B | $3.63B | $3.94B |
| Cost of Revenue | $2.07B | $2.18B | $2.38B | $2.55B |
| Gross Profit | $922.3M | $1.11B | $1.25B | $1.39B |
| Operating Expenses | $454.3M | $579.1M | $571.3M | $707.9M |
| Operating Income | $468.0M | $528.2M | $676.0M | $684.5M |
| R&D | $96.5M | $102.6M | $116.3M | $110.8M |
| G&A | $211.6M | $302.6M | $296.6M | $368.4M |
| Marketing | $156.9M | $174.0M | $205.7M | $228.7M |
| Stock-Based Comp | $18.1M | $20.2M | $25.9M | $36.2M |
| D&A | $107.4M | $109.2M | $137.3M | $143.2M |
| Depreciation | $80.7M | $84.2M | $88.2M | $92.2M |
| Amortization | $20.8M | $19.1M | $42.1M | $47.3M |
| Other OpEx | $-10.7M | $-100.0K | $-47.3M | $0 |
| Non-Operating Income | $-6.2M | $-8.7M | $-28.4M | $-33.0M |
| Interest Income | — | — | $6.6M | $10.7M |
| Pre-Tax Income | $461.8M | $519.5M | $647.6M | $651.5M |
| Income Tax | $91.1M | $104.8M | $125.8M | $160.1M |
| Continuing Ops | $370.7M | $414.7M | $521.8M | $491.4M |
| Discontinued Ops | $-1.3M | $-900.0K | $-100.0K | $-100.0K |
| Net Income | $369.4M | $413.8M | $521.7M | $491.3M |
| Minority Interest | $2.4M | $3.3M | $3.4M | $3.3M |
| Net to Common | $367.0M | $410.5M | $518.3M | $488.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $1.84B | $1.86B | $1.86B | $3.35B |
| Cash & Equivalents | $561.2M | $489.2M | $439.3M | $1.74B |
| Marketable Securities | $0 | $0 | $0 | $0 |
| Inventory | $533.9M | $575.4M | $591.2M | $671.9M |
| Other Current Assets | $741.7M | $793.1M | $834.2M | $939.5M |
| Long-Term Assets | $1.94B | $2.07B | $2.85B | $2.96B |
| PP&E (Net) | $526.8M | $561.0M | $577.2M | $627.0M |
| Intangibles | $112.8M | $116.6M | $454.1M | $432.6M |
| Goodwill | $964.8M | $1.02B | $1.43B | $1.51B |
| Operating Leases | $73.8M | $87.4M | $92.2M | $80.4M |
| Other LT Assets | $222.4M | $247.0M | $243.9M | $263.9M |
| Total Assets | $3.78B | $3.93B | $4.71B | $6.31B |
| Current Liabilities | $1.19B | $1.04B | $1.33B | $1.30B |
| Accounts Payable | $401.1M | $437.0M | $458.4M | $465.0M |
| Current Debt | $2.2M | $2.3M | $2.6M | $2.8M |
| Current Leases | $19.0M | $19.5M | $22.6M | $24.4M |
| Deferred Revenue | $70.2M | $95.9M | $119.3M | $175.7M |
| Taxes Payable | $27.1M | $30.7M | $38.5M | $46.4M |
| Other Current Liab | $332.5M | $39.3M | $244.6M | $12.0M |
| Long-Term Liabilities | $337.4M | $355.7M | $607.9M | $920.8M |
| Long-Term Debt | $7.7M | $5.7M | $232.6M | $521.5M |
| LT Operating Leases | $58.9M | $72.3M | $73.7M | $60.0M |
| Other LT Liab | $-181.9M | $88.3M | $-127.3M | $76.6M |
| Total Liabilities | $1.52B | $1.39B | $1.94B | $2.22B |
| Shareholders' Equity | $2.26B | $2.54B | $2.77B | $4.09B |
| Retained Earnings | $2.51B | $2.78B | $3.10B | $2.99B |
| AOCI | $-344.3M | $-331.9M | $-418.3M | $-302.5M |
| Total L&E | $3.78B | $3.93B | $4.71B | $6.31B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $369.4M | $413.8M | $521.7M | $491.3M |
| Non-Cash Adjustments | $-337.2M | $-93.1M | $-17.2M | $13.0M |
| Working Capital Changes | $245.6M | $217.0M | $57.6M | $164.0M |
| Cash from Operations | $277.8M | $537.7M | $562.1M | $668.3M |
| Cash from Investing | $-255.1M | $-181.0M | $-817.9M | $-119.8M |
| Debt Issuances | $0 | — | $763.9M | $749.0M |
| Debt Repayments | $2.1M | $2.2M | $537.4M | $462.0M |
| Share Buybacks | $245.3M | $60.0M | $104.5M | $521.0M |
| Dividends Paid | $87.9M | $95.8M | $104.7M | $111.0M |
| Cash from Financing | $-83.3M | $-432.3M | $234.9M | $728.9M |
| FX Effect | $-25.8M | $3.6M | $-29.0M | $26.3M |
| Net Change in Cash | $-86.4M | $-72.0M | $-49.9M | $1.30B |
| Beginning Cash | $648.3M | $561.9M | $489.9M | $440.0M |
| Ending Cash | $561.9M | $489.9M | $440.0M | $1.74B |
Frequently Asked Questions
How does ITT INC. make money?
The company's revenue is driven by its core thermal management business serving the automotive and transportation industries, alongside significant contributions from fluid handling systems used in industrial and commercial applications, supported by a robust aftermarket parts division that generates recurring service revenue.
What are the main risks for ITT?
Exposure to cyclical automotive demand fluctuations, potential supply chain disruptions affecting raw material costs like copper and aluminum, competitive pricing pressures from rivals in the industrial fluid handling space, and integration risks associated with past or future M&A activities.
What is ITT's competitive advantage?
ITT leverages a global manufacturing footprint with high barriers to entry in specialized thermal exchange technologies, benefits from strong brand recognition in the aftermarket sector, and maintains cost efficiency through its diversified product portfolio across multiple end-markets.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.