ITT Inc. Reports Flat Revenue of $913 Million in Q1 2025 Amid Strategic Acquisitions

ITT Inc. reported its financial results for the first quarter of 2025, revealing a total revenue of $913 million, which remained flat compared to the same period in 2024. The company attributed this stability to a $57.5 million contribution from acquisitions, particularly the kSARIA acquisition, which was offset by the divestiture of the Wolverine business and adverse foreign currency translation effects. Operating income for the quarter was $150.9 million, reflecting a slight increase of $1 million, primarily driven by pricing actions and productivity improvements, although this was partially countered by rising material and labor costs.

In terms of profitability, ITT's income from continuing operations was reported at $1.33 per diluted share, a decrease of $0.02 from the previous year, largely due to increased interest and tax expenses. However, adjusted income from continuing operations rose to $1.45 per diluted share, marking a $0.03 increase year-over-year. The company’s gross profit increased to $316.3 million, resulting in a gross margin of 34.6%, up from 33.1% in the prior year, driven by effective pricing strategies and productivity gains.

Strategically, ITT has made significant moves in its operational structure, including the acquisition of kSARIA for $460.1 million in September 2024, which has been integrated into its Connect & Control Technologies segment. Additionally, the company acquired Svanehøj Group A/S for $407.6 million in January 2024, enhancing its Industrial Process segment. These acquisitions are expected to bolster ITT's market position, particularly in the aerospace, defense, and industrial sectors. The company also divested its Wolverine Advanced Materials business in July 2024, which has allowed it to streamline operations and focus on core competencies.

Operationally, ITT's segments showed varied performance. The Motion Technologies segment experienced a revenue decline of $46.3 million, primarily due to the Wolverine divestiture and unfavorable currency impacts, while the Industrial Process segment saw a slight revenue decrease of $0.6 million, despite contributions from acquisitions. Conversely, the Connect & Control Technologies segment reported a revenue increase of $49.6 million, largely attributed to the kSARIA acquisition and growth in defense and industrial connectors. The company’s total employee headcount remains stable, reflecting its focus on maintaining operational efficiency amid ongoing market challenges.

Looking ahead, ITT Inc. anticipates continued challenges from global macroeconomic conditions, including inflationary pressures and tariff uncertainties. The company is actively evaluating its strategies to mitigate these impacts, including potential adjustments to its supply chain and pricing strategies. ITT remains committed to leveraging its engineering capabilities and customer relationships to drive growth and enhance shareholder value in the coming quarters.