ITT Stock Exhibits Strong Prospects Despite Persisting Headwinds

ITT Corporation ITT has been witnessing solid momentum across its segments. Its Industrial Process (IP) segment is benefiting from strength in the short-cycle business within the energy and industrial markets. Growth in demand for parts, pumps, services and valves is aiding the segment as well.

Increase in component and connector sales within the defense and industrial markets is driving the Connect and Control Technologies segment. Also, the acquisition of kSARIA augurs well for it. Robust demand for ITT’s brake components and specialized sealing solutions, shock absorbers and damping technologies in OEM and rail transportation markets is likely to aid the Motion Technologies segment’s performance in the near term.

ITT solidified its product portfolio and leveraged business opportunities through asset additions. Acquisitions contributed 6% to the company’s sales in second-quarter 2025. In September 2024, it acquired kSARIA Parent, Inc. which enhanced the company’s portfolio of connectivity solutions for the defense and aerospace end markets, technological capabilities and market reach. The January 2024 acquisition of privately held Svanehøj Group A/S (Svanehøj) expanded ITT’s offerings, particularly in the marine pumps market.

ITT is committed to rewarding its shareholders through dividends and share repurchases. During the first six months of 2025, the company paid out dividends of $56.2 million (up 6.8% year over year) and repurchased shares worth $500.8 million. It is worth noting that, ITT’s quarterly dividend rate was hiked 10% in February 2025.

Some Near-Term Headwinds

The company has been dealing with the adverse impacts of high operating costs and expenses. In the first six months of 2025, ITT’s cost of sales increased 2% year over year. Its sales and marketing expenses also rose 9.4% year over year in the same period due to the costs incurred for the acquisition of kSARIA and higher selling expenses. In the first six months of 2025, ITT’s general and administrative expenses increased 15.3% year over year due to higher incentive-based compensation.

Given its substantial international operations, foreign-currency woes are also likely to hurt its top line in the quarters ahead. For instance, in the first six months of 2025, foreign currency translation reduced the IP segment’s revenues by $3.9 million.

ITT, which belongs to the Diversified Operations industry, faces stiff competition from peers like Federal Signal Corporation FSS, 3M Company MMM and Griffon Corporation GFF.

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