ITT Inc. (ITT) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

ITT Inc. (ITT) Industrial Operations Profile

ITT Inc. is a global manufacturer of engineered critical components and customized technology solutions, serving diverse sectors like transportation, industrial, and energy. With a focus on innovation and aftermarket services, ITT operates through three segments, leveraging its engineering expertise to deliver value to customers worldwide.

What Is the Investment Thesis for ITT?

ITT Inc. presents a notable research candidate due to its diversified business model and exposure to growing end markets. The company's focus on engineered components and aftermarket services provides a stable revenue stream, while its strategic investments in innovation and technology position it for long-term growth. With a current P/E ratio of 38.33 and a profit margin of 10.8%, ITT demonstrates solid financial performance. Upcoming catalysts include continued expansion in the aerospace and defense sectors and increased demand for industrial automation solutions. However, investors should be aware of potential risks such as economic cyclicality and raw material price fluctuations. The company's beta of 1.32 indicates higher volatility compared to the market.

Based on FMP financials and quantitative analysis

ITT Key Highlights

Market Cap of $17.5B reflects ITT's significant presence in the industrial sector.

• P/E ratio of 38.33 indicates investor expectations for future earnings growth.
• Gross Margin of 35.5% demonstrates ITT's ability to maintain profitability in a competitive market.
• Dividend Yield of 0.70% provides a modest income stream for investors.
• Beta of 1.32 suggests that ITT's stock price is more volatile than the overall market.

Who Are ITT's Competitors?

ITT is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are ITT's Key Strengths?

Diversified business model across multiple industries.

• Strong engineering capabilities and technological innovation.
• Established global presence and distribution network.
• Recurring revenue from aftermarket services.

What Are ITT's Weaknesses?

Exposure to cyclical industries and economic downturns.

• Dependence on raw material prices and supply chain stability.
• Competition from larger and more specialized players.
• High P/E ratio may indicate overvaluation.

What Could Drive ITT Stock Higher?

Increased demand for engineered components in the aerospace and defense sectors.

• Expansion of aftermarket services through digital technologies and data analytics.
• Growth in the electric vehicle market driving demand for Motion Technologies products.
• Potential acquisitions to expand product portfolio and market reach.

What Are the Key Risks for ITT?

Rich valuation — a P/E of 38.33 runs well above the Industrials sector’s ~28.00x, leaving little room for a miss.

• Economic slowdown and reduced industrial production impacting demand.
• Rising raw material costs and supply chain disruptions affecting profitability.
• Technological obsolescence and disruptive innovations in the industry.
• Increased competition from new entrants and existing players.

What Are the Growth Opportunities for ITT?

• Expansion in Aerospace and Defense: ITT's Connect & Control Technologies segment is well-positioned to capitalize on growth in the aerospace and defense markets. Increasing demand for advanced connectors and control components in military and commercial aircraft presents a significant opportunity. The global aerospace and defense market is projected to reach $1 trillion by 2028, offering substantial growth potential for ITT. This expansion can be achieved through strategic partnerships and product innovation.
• Industrial Automation Solutions: The Industrial Process segment can benefit from the increasing adoption of automation in industries like chemical, energy, and mining. Demand for industrial pumps, valves, and plant optimization systems is expected to rise as companies seek to improve efficiency and reduce costs. The industrial automation market is estimated to reach $300 billion by 2027, providing a large addressable market for ITT. Focus on remote monitoring and predictive maintenance solutions will be key.
• Aftermarket Services: ITT's focus on aftermarket services, such as replacement parts and maintenance, provides a stable revenue stream and enhances customer loyalty. The company can expand its aftermarket offerings by leveraging digital technologies and data analytics to provide predictive maintenance and remote monitoring solutions. The global aftermarket services market is estimated to be worth $400 billion annually, offering significant growth potential for ITT.
• Electrification of Transportation: The Motion Technologies segment is poised to benefit from the increasing electrification of the transportation industry. Demand for brake pads, shock absorbers, and sealing technologies in electric vehicles is expected to rise as EV adoption accelerates. The global electric vehicle market is projected to reach $800 billion by 2027, creating new opportunities for ITT. Investing in R&D to develop solutions tailored for EVs will be crucial.
• Strategic Acquisitions: ITT can pursue strategic acquisitions to expand its product portfolio, enter new markets, and enhance its technological capabilities. The company has a history of successful acquisitions, and further acquisitions can drive growth and create synergies. Identifying targets with complementary technologies and strong market positions will be essential. ITT has the financial capacity to pursue acquisitions in the $100 million to $500 million range.

What Are ITT's Competitive Advantages?

• Engineering expertise and technological innovation.
• Strong relationships with key customers in diverse industries.
• Global presence and established distribution network.
• Aftermarket services providing recurring revenue and customer loyalty.

What Does ITT Do?

ITT Inc., originally founded as International Telephone & Telegraph in 1920, has evolved into a diversified industrial manufacturer. Initially focused on telecommunications, the company underwent significant restructuring in the late 20th century to concentrate on its core industrial businesses. Today, ITT operates through three primary segments: Motion Technologies, Industrial Process, and Connect & Control Technologies. The Motion Technologies segment produces brake pads, shock absorbers, and sealing technologies for the transportation industry. The Industrial Process segment designs and manufactures industrial pumps, valves, and plant optimization systems for industries like chemical, energy, and mining. The Connect & Control Technologies segment provides engineered connectors and specialized control components for aerospace, defense, industrial, transportation, medical, and energy applications. ITT's global presence allows it to serve a wide range of customers with customized solutions and aftermarket services, emphasizing innovation and operational excellence. Headquartered in Stamford, Connecticut, ITT continues to build on its legacy of engineering expertise to drive growth and create value for its stakeholders.

What Products and Services Does ITT Offer?

• Manufactures brake pads and shock absorbers for the transportation industry.
• Designs and produces industrial pumps and valves for various industrial sectors.
• Offers plant optimization and remote monitoring systems.
• Creates engineered connectors for aerospace and defense applications.
• Develops specialized control components for critical applications.
• Provides aftermarket solutions, including replacement parts and services.

How Does ITT Make Money?

• ITT generates revenue through the sale of engineered components and technology solutions.
• The company operates through three segments: Motion Technologies, Industrial Process, and Connect & Control Technologies.
• ITT provides aftermarket services, including replacement parts and maintenance, generating recurring revenue.
• The company focuses on customized solutions tailored to specific customer needs.

What Industry Does ITT Operate In?

ITT Inc. operates within the industrial machinery sector, which is characterized by cyclical demand and technological advancements. The industry is influenced by macroeconomic factors, such as GDP growth and industrial production, as well as trends like automation, electrification, and sustainability. ITT competes with companies like J.B. Hunt Transport Services, Inc. (JBHT), IDEX Corporation (IEX), Nordson Corporation (NDSN), Generac Holdings Inc. (GNRC), and Lincoln Electric Holdings, Inc. (LECO), each with its own strengths and market focus. ITT's diversified portfolio and focus on engineered solutions differentiate it within this competitive landscape.

Who Are ITT's Key Customers?

• Automotive manufacturers in the transportation industry.
• Companies in the chemical, energy, and mining sectors.
• Aerospace and defense contractors.
• Industrial companies requiring pumps, valves, and control systems.

ITT Inc. (ITT) Valuation Context

Valued at $17.5B, ITT is classified as a large-cap stock. Analyst price targets span from $229.00 to $273.00, with a consensus of $250.86. At the current price of $196.23, that implies approximately 28% upside potential. Relative to its peer group, ITT's quantitative score of 58/100 is roughly in line with the peer average of 67/100.

ITT Revenue & Earnings Trend

In Q2 FY2026, ITT generated $1.47B in top-line revenue, marking a sequential increase of 21.6%. The company recorded net income of $84.9M, with diluted EPS of $0.95. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this large-cap Industrials company. Across the four most recent quarters, ITT averaged $1.27 in diluted EPS.

Company Profile

ITT Inc. operates in the Industrial - Machinery industry within the Industrials sector. It is headquartered in Stamford, US. The company is led by CEO Luca Savi. ITT has traded publicly since 1995.

Return on equity for ITT Inc. stands at 13.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 4.1%, showing how much profit it generates from its asset base. ITT trades at a trailing price-to-earnings ratio of 38.33, above the Industrials sector average of ~28.00x. Its free cash flow yield is 2.7%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.53 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 2.7%, the inverse of the P/E and a quick read on earnings relative to price.

ITT Inc.'s Piotroski F-Score is 4/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 2.80 places it in the grey zone, a middle ground that warrants monitoring.

ITT Inc. has beaten Wall Street's EPS estimate in 7 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 4.8% above estimates on average.

Over the past six months, ITT Inc. insiders filed 31 SEC Form 4 transactions — 9 sales and 22 purchases. On net that is roughly 16K shares acquired (about $934K) — insiders putting money in tends to read as conviction.

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ITT Inc. Industrials Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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