On December 9, 2025, industrial manufacturer ITT Inc. (NYSE: ITT) sits at the center of investor attention thanks to a rare mix of big M&A, fresh equity issuance, strong operating momentum and unusually low dividend risk.
The stock last traded around $171 per share, up roughly 1% on the day, giving ITT a market capitalization in the $13–14 billion range. [1] That bounce comes after the shares slid more than 6% on December 8 when the company launched a sizable stock offering to help fund its planned $4.8 billion acquisition of SPX FLOW. [2]
Below is a detailed, news-ready look at everything that matters for ITT stock as of December 9, 2025 – including the new share sale, the SPX FLOW deal, 2025 guidance, dividend quality, analyst forecasts and key risks.
Key takeaways for ITT stock today
- Equity raise priced: ITT has priced an underwritten public offering of 7 million shares at $167, with an option for underwriters to buy 1.05 million more, targeting about $1.14 billion in net proceeds. [3]
- Funding a transformational acquisition: Proceeds will help finance the ~$4.8 billion purchase of SPX FLOW from Lone Star Funds, paid with $4.075 billion in cash plus ~3.84 million ITT shares and targeting $80 million in annual cost synergies by year three post‑close. [4]
- Strong 2025 performance: Q3 2025 revenue hit $999.1 million (+12.9% YoY), with adjusted EPS of $1.78 (+21% YoY) and organic growth of 6.1%, prompting ITT to raise full‑year EPS guidance to $6.62–$6.68 and free cash flow guidance to about $500 million. [5]
- Dividend looks “very safe”: ITT has raised its dividend for 14+ consecutive years, with an annualized payout around $1.40 per share (~0.75–0.8% yield) and payout ratios near 23% of earnings and free cash flow, leading 24/7 Wall St. to rate the dividend “Very Safe.” [6]
- Analysts remain bullish: Across major platforms, 11 Wall Street analysts rate ITT a “Moderate Buy”, with an average 12‑month price target around $207, implying roughly 20% upside from current levels. [7]
ITT stock price snapshot on December 9, 2025
According to real‑time market data, ITT shares trade near $171.20, modestly higher on the day and not far from the $171.89 “fair market value” quote shown by MarketBeat’s data feed. [8]
Key trading and valuation metrics:
- Latest price: ~$171–172
- 52‑week range:$105.64 low to $197.07 high [9]
- Market capitalization: about $13.2–13.4 billion [10]
- P/E ratio: ~28x trailing earnings
- PEG ratio: ~2.2x
- Beta: ~1.37 (moderately more volatile than the market)
- Balance sheet liquidity:current ratio 1.52, quick ratio 1.05; debt‑to‑equity ~0.22 [11]
On December 8, when ITT announced that it had commenced the equity offering, the stock fell about 6.3% in afternoon trading – a typical reaction to new share issuance and expected dilution. [12] Even after that pullback, the shares are still up roughly 20% year‑to‑date, versus closer to +28% YTD just before the SPX FLOW deal and capital raise were announced. [13]
Institutional ownership is high: MarketBeat reports that institutional investors hold about 91.6% of ITT’s shares, with funds like Invesco increasing their stakes during 2025. [14]
SPX FLOW: a $4.8 billion bet on industrial and process markets
The biggest strategic news around ITT is its planned acquisition of SPX FLOW, a major provider of pumps, valves, mixers and other flow and process technologies.
Deal structure and strategic rationale
- Purchase price: roughly $4.8 billion
- $4.075 billion in cash
- About 3.84 million ITT shares valued near $700 million at signing [15]
- Target profile:
- $1.3 billion in annual revenue
- Roughly 3,800 employees
- Strong brands including Waukesha Cherry‑Burrell, Lightnin, and Bran+Luebbe [16]
- Integration: SPX FLOW will join ITT’s Industrial Process segment, which generated about $1.4 billion of revenue in 2024, creating a significantly larger pump and process‑equipment platform. [17]
- Markets: Enhances ITT’s presence in industrial, chemical, energy, mining, nutrition, and personal care end markets. [18]
- Synergies and timing: ITT targets about $80 million in annual cost synergies by year three after closing, with completion expected by late Q1 2026 (around March) pending customary approvals. [19]
The Wall Street Journal notes that ITT intends to finance the cash portion with a mix of debt and equity while maintaining its investment‑grade credit rating and pursuing “fast deleveraging.” [20]
Given that ITT’s total 2024 revenue was roughly $3.63 billion, adding SPX FLOW’s $1.3 billion in sales would increase the company’s top line by more than a third once the deal is integrated. [21]
New equity offering: what it means for dilution and balance sheet
To fund part of the SPX FLOW transaction, ITT has turned to equity markets.
Terms of the offering
On December 9, 2025, ITT announced it had priced an underwritten public offering of 7,000,000 common shares at $167 each. [22]
Key details:
- Primary issuance: 7,000,000 new shares
- Greenshoe (underwriters’ option): right to buy up to 1,050,000 additional shares at the same price within 30 days
- Expected net proceeds: about $1.14 billion, after underwriting discounts and expenses [23]
- Use of proceeds: primarily to fund a portion of the SPX FLOW acquisition; if the deal does not close, funds will go to general corporate purposes. [24]
Dilution math (approximate)
As of October 27, 2025, ITT reported about 78.0 million shares outstanding. [25]
If we compare that to the new share issuance and SPX FLOW share component:
- New offering: +7.0 million shares
- SPX FLOW stock consideration: ~+3.84 million shares
- Potential greenshoe: +1.05 million shares
Using those figures:
- Without the greenshoe, share count could rise from 78.0M to ~88.8M – ~14% dilution.
- If the greenshoe is fully exercised, shares could climb to roughly 89.9M, implying ~15% dilution versus the current base.
That level of dilution is meaningful but not unusual for a deal of this size – especially given management’s assertion that SPX FLOW should generate significant cost synergies and strengthen ITT’s market position in attractive flow‑control niches. [26]
Stock‑market reaction so far reflects the trade‑off: a sharp one‑day drop on the offering announcement, followed by a partial rebound as investors digest the growth potential versus dilution and higher leverage. [27]
2025 performance: Q3 nearly hits $1 billion in sales
Operationally, ITT is entering this deal from a position of strength.
Q3 2025 headline numbers
For the quarter ended late September 2025, ITT posted: [28]
- Revenue:$999.1 million, up 12.9% year‑on‑year
- Organic growth:6.1% (excluding currency, acquisitions, and divestitures)
- GAAP EPS:$1.62, down 18% YoY due to a prior‑year gain on a business sale
- Adjusted EPS:$1.78, up 21% YoY, and above consensus expectations (~$1.67–1.68)
- Adjusted operating income:$184.7 million, with margin expanding to 18.5% (+20 bps)
- Cash generation:
- Net cash from operations: $174 million (+40% YoY)
- Free cash flow: $154 million (+77% YoY)
Segment trends were broadly positive:
- Industrial Process: revenue +15%, driven by large pump projects and pricing.
- Connect & Control Technologies: revenue +25% helped by the kSARIA acquisition and strength in aerospace and defense. [29]
- Motion Technologies: modest top‑line growth (~3%) but double‑digit growth in adjusted operating income as margins improved. [30]
Raised 2025 guidance
On the back of this performance, ITT raised its full‑year 2025 outlook: [31]
- Adjusted EPS: now $6.62–$6.68, up from prior guidance around $6.16–$6.22
- Revenue growth:6–7% total, with 3–5% organic
- Free cash flow: about $500 million expected for 2025
Independent outlets like Zacks, ChartMill and MarketBeat highlight the quarter as a beat on both EPS and revenue and note that ITT has now delivered two consecutive quarters of accelerating earnings and top‑line growth, reinforcing the narrative of operating momentum ahead of the SPX FLOW integration. [32]
Dividend: small yield, very strong safety
ITT isn’t a high‑yield stock, but its dividend profile is unusually robust.
Current dividend and history
- Quarterly dividend:$0.351 per share, raised by 10% in early 2025. [33]
- Annualized payout: roughly $1.404 per share. [34]
- Yield: about 0.75–0.8% at current prices. [35]
- Track record:14+ consecutive years of dividend increases, with a 5‑year CAGR around 19%. [36]
Payout ratios and balance sheet strength
A deep dive by 24/7 Wall St. describes ITT as retaining about 77% of its profits, with: [37]
- Earnings payout ratio: ~22.9% (TTM EPS $5.99 vs. dividend $1.372)
- Free cash flow payout ratio: ~23.9% (2024 FCF $438.2M vs. $104.7M in dividends)
- Debt metrics:
- Debt‑to‑equity: ~0.41x
- Interest coverage:>22x
- Cash on hand: about $516 million
The report concludes that ITT could “double the dividend and still be safe,” thanks to the low payout ratios and strong cash generation, and assigns a “Very Safe” dividend safety rating. [38]
Independent dividend trackers such as Dividend.com, Investing.com and FullRatio likewise show a payout ratio of roughly 22–23%, well below the average for industrial peers, underscoring the company’s conservative approach to shareholder payouts. [39]
Growth investments beyond SPX FLOW
While SPX FLOW is the headline deal, ITT has been steadily investing in organic and bolt‑on growth.
Middle East expansion
On November 17, 2025, ITT announced the completion of the second phase of a roughly $25 million expansion of its engineering and manufacturing site in Saudi Arabia, effectively doubling capacity to serve the Middle East through its Industrial Process business. [40]
This expansion is aimed at supporting regional demand for pumps and flow solutions, shortening lead times, and strengthening ITT’s position in energy and industrial projects across the Gulf.
Svanehøj acquires KOHO
On November 18, 2025, ITT’s Svanehøj business – a specialist in cryogenic pumps for LNG and other gas applications – agreed to acquire KOHO, a compressor technology company, expanding its portfolio of cryogenic pumps and compressors for marine and energy markets. [41]
The transaction positions ITT to capture long‑term demand associated with LNG, clean fuels and gas‑handling infrastructure, and complements the larger SPX FLOW platform in flow control and process technologies.
Sustainability and governance
In early November, ITT released its 2025 Sustainability Update, highlighting: [42]
- Progress toward emissions‑reduction targets
- Board refreshment, with an emphasis on diversity and governance
- Continued “best‑in‑class” safety performance across global operations
These initiatives are increasingly important for institutional investors who integrate ESG factors into their valuation and risk models.
How Wall Street sees ITT: ratings, targets and technicals
Analyst ratings and price targets
MarketBeat’s latest compilation of Wall Street research shows: [43]
- Consensus rating:“Moderate Buy”
- Coverage:11 analysts
- 10 Buy ratings
- 1 Hold
- Average 12‑month price target:$207.13
- High target:$225
- Low target:$177
- Implied upside: about 20–21% from ~$171–172
Recent actions include:
- DA Davidson: reiterating Buy with a $215 target. [44]
- Stifel Nicolaus: setting a $225 target. [45]
- Citigroup, KeyCorp, UBS, TD Cowen and others: lifting targets into the $200–225 range after Q3 results. [46]
StockAnalysis likewise reports a “Strong Buy” consensus with an average target around $203–204, broadly consistent with the MarketBeat figures. [47]
Technical strength and RS rating
Investor’s Business Daily recently highlighted ITT as a market leader:
- The stock’s Relative Strength (RS) Rating was upgraded from 75 to 86, putting it among the top ~14% of stocks for price performance over the past year. [48]
- After Q3 earnings, ITT surged over 11% to a record high near $195.92, briefly trading well above its $185.57 breakout point before becoming extended from its buy zone. [49]
IBD assigns high scores across EPS (92) and Composite Rating (95) metrics, reflecting strong earnings growth, margins and returns on equity, though institutional accumulation is described as more neutral. [50]
Inside ownership and institutional flows
MarketBeat’s December 9 alerts show both increases and decreases among institutional holders: [51]
- Invesco Ltd. increased its stake by 14.2% in Q2, to more than 1.09 million shares, now owning about 1.4% of ITT. [52]
- XTX Topco Ltd cut its position by 81.4%, leaving 1,751 shares. [53]
- Smaller institutions and wealth managers have been adding modest positions.
Corporate insiders collectively own about 0.47% of the stock, with recent Form 4 filings showing small sales by the CFO and chief accounting officer at prices around $183–185; these transactions appear more like portfolio rebalancing than a shift in fundamental outlook. [54]
Valuation and investment case: bull vs. bear arguments
This section is informational and does not constitute investment advice.
Bullish case for ITT
- Secular and cyclical tailwinds
ITT sells engineered components and systems into transportation, energy, industrial and aerospace/defense markets — all benefitting from infrastructure spending, reshoring trends and ongoing capex in energy and process industries. [55] - Operational momentum and backlog
In Q3 2025, ITT delivered double‑digit revenue growth, 21% adjusted EPS growth, and expanding margins, while management highlighted a backlog approaching ~$2 billion as it looks toward 2026. [56] - SPX FLOW synergy potential
The SPX FLOW deal could significantly scale ITT’s Industrial Process platform, deepen its aftermarket mix and offer $80 million in targeted cost synergies, with additional opportunity for cross‑selling and margin uplift. [57] - Very strong balance sheet and dividend safety
With low leverage, high interest coverage and sub‑25% payout ratios, ITT has ample flexibility to fund capex, pursue M&A and still grow the dividend. [58] - Supportive analyst and technical backdrop
A broad “Moderate Buy / Strong Buy” consensus, price targets around $200–225, and a high RS Rating suggest both Wall Street and momentum screens view ITT favorably. [59]
Bearish and risk considerations
- Dilution and financing risk
The combination of the 7M‑share offering, potential greenshoe, and 3.84M SPX FLOW consideration shares will likely increase the share count by roughly mid‑teens percent, diluting EPS in the near term even before synergies are realized. [60] - Integration execution
Integrating SPX FLOW’s global operations, culture and systems is a multi‑year task. Any delay in achieving the $80 million synergy target or unexpected restructuring costs could pressure margins and cash flow. [61] - Industrial cyclicality
ITT remains tied to capital spending cycles in transportation, industrial and energy markets. A slowdown in global growth, lower infrastructure spending, or delays in large projects could weigh on order intake and backlog conversion. - Valuation is no longer cheap
At roughly 28x trailing earnings and ~2.2x PEG, ITT trades at a premium to many industrial peers, leaving less margin of safety if growth were to slow or if integration challenges arise. [62] - Rising leverage post‑deal
While management intends to keep an investment‑grade profile, the additional debt for SPX FLOW, combined with equity dilution, alters ITT’s capital structure and could constrain future capital allocation options if macro conditions worsen. [63]
What to watch next for ITT investors
Looking beyond December 9, 2025, several catalysts could move ITT stock:
- Completion of the equity offering
The offering is expected to close around December 10, 2025, subject to customary conditions. Final size (including any greenshoe exercise) will determine the degree of dilution. [64] - Regulatory approvals and closing of SPX FLOW
Watch for regulatory updates and closing conditions for the SPX FLOW transaction, currently targeted for Q1 2026. Any change in timeline or deal terms would be closely scrutinized. [65] - Q4 2025 and full‑year results
Investors will look for confirmation that ITT can hit its raised 2025 guidance and maintain strong free‑cash‑flow conversion as it ramps capex and integration planning. [66] - Order trends in industrial and energy markets
New orders for pumps, valves, mixers, cryogenic systems and motion products will be key signals for 2026 growth, especially given ITT’s expanded presence in the Middle East and LNG‑related infrastructure. [67] - Updates on dividend and capital allocation
With the dividend well covered and a strong cash‑flow outlook, any moves on buybacks, further dividend increases or additional M&A will shape the long‑term equity story. [68]
Bottom line
As of December 9, 2025, ITT Inc. is transitioning from a high‑quality mid‑cap industrial into a larger, more global flow‑control and engineered systems platform, anchored by the SPX FLOW acquisition and supported by solid organic growth, a strong balance sheet and a very conservative dividend policy.
The stock is no longer undiscovered, and investors must weigh valuation and dilution against synergies, secular growth drivers and management’s execution track record. But based on current earnings momentum, backlog, and analyst forecasts, ITT remains firmly on Wall Street’s radar as a high‑quality industrial compounder with a multi‑year integration story ahead.
This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Investors should do their own research or consult a licensed financial professional before making investment decisions.
References
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