# ITT (ITT) Sector: Industrial machinery: pumps, valves, connectors and brake components | Field | Value | |---|---| | Price | $214.59 | | Market cap | $19B | | Intrinsic value source | Analysts | | Data as of | 2026-11-13 | | Next earnings | 2027-02-04 (estimate) | Analysts: Very bullish Picks: Research only Discount category: Far above intrinsic value ## In short The market weighs the strong orders of ITT against the new debt from the SPX FLOW deal, and steady growth with lower debt through 2027 can lift its value. ## Themes and gap - Themes: High debt (leverage), Tariffs and trade (trade-tariffs) - Gap type: Can close (closable) - Why: The Q4 2026 report with 2027 guidance, expected in early February 2027, and the first 2027 quarters show whether SPX FLOW adds the planned earnings and cash. ## About ITT Inc. (ITT) is based in Stamford, Connecticut. It makes engineered equipment and parts in three segments. Flow Technologies makes pumps, valves, mixers and process equipment for chemical, energy, marine, mining and nutrition and health customers. It includes SPX FLOW, which ITT bought on March 2, 2026. Motion Technologies makes brake components, shock absorbers and damping products, mainly for cars and trains. Connect & Control Technologies makes connectors, cable assemblies and other components for aerospace and defense, industrial, medical and energy customers. Revenue was $1,440.6 million in Q3 2026. The common stock trades on the NYSE in US dollars. ITT files 10-K and 10-Q reports. ## Thesis The price of ITT depends on whether it can grow the earnings of SPX FLOW and of its connectors business fast enough to pay down the debt from the acquisition. ITT bought SPX FLOW on March 2, 2026 for a purchase price of $4,306 million, and total debt rose to $3,513.4 million at October 3, 2026, from $782.8 million at the end of 2025. ITT guides 2026 adjusted EPS of $8.54 to $8.62 and free cash flow of $600 million to $620 million. Orders grew 58% in Q3 2026, and 20% organic. For the price to rise, three things must be true. SPX FLOW must keep its growth and deliver the cost synergies. Demand for pump projects, aerospace and defense connectors and biopharma equipment must stay strong. Free cash flow must reduce the commercial paper and the term loans. The Q4 2026 report with 2027 guidance, expected in early February 2027, is the next test. If industrial demand slows, the new debt can weigh on the price. ## Checkpoints - Feb 4, 2027 (estimate): Q4 2026 results and 2027 guidance. Status: Pending. Watch: 2026 adjusted EPS is in the guided range of $8.54 to $8.62 and the 2027 guidance shows growth, and this passes; a result below $8.54 or 2027 guidance below the 2026 result fails. - May 2027 (estimate): Q1 2027 results. Status: Pending. Watch: Organic orders grow and debt falls from October 2026, and this passes; falling orders or higher debt fail. ## Balance sheet - Cash: $558M - Debt: $3.5B - Net debt: $3.0B - Debt due within 12 months: $707M At October 3, 2026, ITT had cash and cash equivalents of $558.1 million. Total debt was $3,513.4 million: commercial paper of $702.2 million, other short-term borrowings of $5.1 million and non-current long-term debt of $2,806.1 million. The long-term debt includes the term loans and the 8.75% senior notes of SPX FLOW of $500 million due in April 2030. Total debt was $782.8 million at December 31, 2025. ITT shareholders' equity was $4,761.4 million. Free cash flow was $288.4 million in Q3 2026. As of 2026-10-03. Sources: - https://www.sec.gov/Archives/edgar/data/216228/000021622826000076/itt-20261003.htm - https://www.sec.gov/Archives/edgar/data/216228/000021622826000072/earningsrelease2026q3.htm ## Dividends - Dividend yield: 0.7% (last 12 months, at the current price) - Paid per share, last 12 months: $1.509 (4 payments) - Current annual rate: $1.544 ($0.386 x 4 a year) - Payout ratio: 23% of the earnings of the last fiscal year (the year ended 2025-12-31) - Latest ex-dividend date: 2026-09-08, $0.386 per share - Growth from 2020 to 2025: 15.7% a year - Growth from 2015 to 2025: 11.5% a year Dividends per share by year: 2016: $0.496, 2017: $0.512, 2018: $0.536, 2019: $0.588, 2020: $0.676, 2021: $0.88, 2022: $1.056, 2023: $1.16, 2024: $1.276, 2025: $1.404. Source: company filings and market data, read on 2026-11-12. ## Recent events - 2026-11-04: ITT reported Q3 2026 results. Revenue grew 44% to $1,440.6 million, with organic growth of 8%. EPS was $1.38 and adjusted EPS was $2.26. It raised its 2026 guidance to adjusted EPS of $8.54 to $8.62. Davide Barbon, the head of Motion Technologies, now also leads Connect & Control Technologies. - 2026-11-04: ITT declared a quarterly dividend of $0.386 per share, payable on December 31, 2026. - 2026-06-29: The Board elected Bertrand Loy and Kevin Wheeler as directors from August 1, 2026. - 2026-03-02: ITT completed the acquisition of SPX FLOW, a maker of process equipment with 2025 revenue of more than $1.3 billion. It renamed its Industrial Process segment Flow Technologies. ## Latest news and filings - Last earnings: 2026-11-04 (8-K: https://www.sec.gov/Archives/edgar/data/216228/000021622826000072/) - Next earnings: 2027-02-04 (expected; the company has not confirmed it) | Filed | Form | Headline | Period end | XBRL document | Link | | --- | --- | --- | --- | --- | --- | | 2026-11-05 | 10-Q | Quarterly report for the period ended Oct 3, 2026 | 2026-10-03 | itt-20261003 | https://www.sec.gov/Archives/edgar/data/216228/000021622826000076/itt-20261003.htm | | 2026-11-04 | 8-K | Earnings release | | itt-20261104 | https://www.sec.gov/Archives/edgar/data/216228/000021622826000072/ | | 2026-08-06 | 10-Q | Quarterly report for the period ended Jul 4, 2026 | 2026-07-04 | itt-20260704 | https://www.sec.gov/Archives/edgar/data/216228/000021622826000065/itt-20260704.htm | | 2026-08-06 | 8-K | Earnings release | | itt-20260806 | https://www.sec.gov/Archives/edgar/data/216228/000021622826000061/ | | 2026-06-29 | 8-K | Change of directors or officers | | itt-20260629 | https://www.sec.gov/Archives/edgar/data/216228/000021622826000055/itt-20260629.htm | | 2026-05-26 | 8-K | Shareholder vote results | | itt-20260521 | https://www.sec.gov/Archives/edgar/data/216228/000021622826000043/itt-20260521.htm | | 2026-05-07 | 8-K | Change of directors or officers | | itt-20260502 | https://www.sec.gov/Archives/edgar/data/216228/000021622826000039/itt-20260502.htm | | 2026-05-06 | 10-Q | Quarterly report for the period ended Apr 4, 2026 | 2026-04-04 | itt-20260404 | https://www.sec.gov/Archives/edgar/data/216228/000021622826000036/itt-20260404.htm | | 2026-05-06 | 8-K | Earnings release | | itt-20260506 | https://www.sec.gov/Archives/edgar/data/216228/000021622826000034/ | | 2026-03-02 | 8-K | New material agreement and Acquisition or sale completed | | itt-20260302 | https://www.sec.gov/Archives/edgar/data/216228/000021622826000020/ | Every filing on SEC EDGAR (CIK 216228): https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000216228&type=&dateb=&owner=include&count=40 ## Risks - Medium: Debt rose after the SPX FLOW acquisition. Total debt was $3,513.4 million at October 3, 2026, including commercial paper of $702.2 million, and cash was $558.1 million. - Medium: The integration of SPX FLOW can take longer or cost more than planned. Acquisition costs and intangible amortization reduce GAAP EPS, which was $1.38 in Q3 2026, against adjusted EPS of $2.26. - Medium: Tariffs can change demand, sourcing and input costs. ITT says that trade policy uncertainty stayed high in Q3 2026. - Medium: Motion Technologies depends on car and rail production, which can fall in a weak economy. Its revenue grew 2.3% in Q3 2026. - Low: Material and labor costs are higher. If price increases do not cover them, margins can fall. ## Links - Page: https://picks.utilarium.app/company/ITT/ - History of changes: https://picks.utilarium.app/company/ITT/history/ - JSON with full history: https://picks.utilarium.app/data/company/ITT.json > Picks is a personal record of stock picks. 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