ITT’s second quarter results were met with a positive market reaction, reflecting strong execution in both organic growth and recent acquisitions. Management credited broad-based demand across industrial, aerospace, and defense end markets, as well as robust order intake—especially in the Industrial Process and Connect & Control segments. CEO Luca Savi highlighted successful integration of acquired businesses like Svanehøj and kSARIA, and noted that “all our businesses delivered a strong order intake.” The company’s focus on operational improvements and strategic pricing actions, particularly in the face of competitive pricing and foreign exchange pressures, underpinned margin stability and earnings growth.

Is now the time to buy ITT? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From ITT’s Q2 Earnings Call

• Michael Patrick Halloran (Baird) asked about any pauses in capital equipment orders and customer behavior. CEO Luca Savi said orders remained strong, with only minor project delays, and emphasized continued market share gains.
• Adam Michael Farley (Stifel) questioned the mix of share gains versus market growth in Connect & Control orders. CFO Emmanuel Caprais responded that defense and aerospace awards—particularly for kSARIA—were key, with ongoing share gains on major platforms.
• Joseph Alfred Ritchie (Goldman Sachs) probed the sustainability of Svanehøj’s growth and project execution. Savi attributed the performance to R&D-driven product differentiation and highlighted continued cash generation and backlog strength.
• Vladimir Benjamin Bystricky (Citi) inquired about margins on new project bookings versus segment margins in Industrial Process. Savi explained that while mix is a headwind, execution improvements are driving higher margins on delivered projects versus initial bookings.
• Sabrina Lee Abrams (Bank of America) asked about the narrowing of margin guidance and drivers of strong incrementals in Connect & Control. Caprais cited higher M&A costs and mix shift as reasons for margin guidance adjustments, and pointed to strategic pricing and automation as supporting incremental margin gains.

Catalysts in Upcoming Quarters

In the months ahead, our analyst team will monitor (1) the pace of backlog conversion into revenue, particularly for large project wins in Industrial Process, (2) further margin improvements and cost efficiencies from automation and productivity programs, and (3) the ongoing integration and financial impact of Svanehøj and kSARIA. Progress on new product commercialization and resilience to competitive pricing in key end markets will also be important signposts.

ITT currently trades at $169.99, up from $159.54 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).

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