ITT Inc. ITT is gaining from strength across its segments. It is benefiting from strong sales volume and order growth. Strength in the short-cycle business, driven by market share gains across all product categories, is aiding the Flow Technologies segment. Growth in demand for pumps, aftermarket services and valves also bodes well. Growth in flow control components and connector solution sales within the aerospace and defense markets is supporting the CCT segment. Also, the acquisition of kSARIA augurs well for the segment.

ITT solidified its product portfolio and leveraged business opportunities through asset additions. Acquisitions contributed $151.4 million to the company’s sales in the first quarter of 2026. In June 2026, ITT inked a deal to acquire Aerospace Contacts LLC (Aerospace Contacts). The acquisition of Aerospace Contacts is expected to strengthen the company’s supply chain, enhance its aerospace and defense product offerings and boost its manufacturing and engineering capabilities. ITT will integrate Aerospace Contacts into its CIT segment. The deal is expected to close in the third quarter of 2026, subject to customary closing conditions. ITT acquired SPX FLOW in March 2026. The acquisition enhances the company’s capabilities in mixing, fluid handling and thermal solutions. SPX FLOW has been added to the Flow Technologies segment.

The company is committed to rewarding its shareholders handsomely through dividend payments and share buybacks. During the first three months of 2026, ITT paid out dividends of $35 million, up 22% year over year, and repurchased shares worth $100 million. The quarterly dividend rate was hiked 10% in February 2026.

Price Performance of ITT

In the past six months, this Zacks Rank #3 (Hold) company’s shares have risen 4.1% against the industry’s 7.5% decline.

However, ITT has been dealing with the negative impact of high operating costs and expenses over time. In the first quarter of 2026, the company’s cost of sales surged 32.8% year over year. ITT’s sales and marketing expenses rose 53.9% year over year in the same period due to the costs incurred for the acquisition of SPX FLOW and higher personnel and commissions expenses. In the same quarter, the company’s general and administrative expenses surged 81.1% year over year due to higher acquisition-related expenses. High raw material costs may affect margins and profitability in 2026.

ITT's international presence keeps the company exposed to the risk of adverse currency fluctuations. This is because a strengthening U.S. dollar is likely to require the company to either raise prices or contract profit margins in locations outside the United States. Thus, adverse currency movements are a worry.

Stocks to Consider

Better-ranked companies are discussed below.

GPGI, Inc. GPGI currently carries a Zacks Rank #2 (Buy). GPGI delivered a trailing four-quarter average earnings surprise of 25.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 60 days, the Zacks Consensus Estimate for GPGI’s 2026 earnings has increased 20.3%.

Griffon Corporation GFF presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 3.3%.

The Zacks Consensus Estimate for GFF’s 2026 earnings has increased 2.6% in the past 60 days.

Public Policy Holding Company, Inc. PPHC presently carries a Zacks Rank of 2. PPHC delivered a trailing two-quarter average earnings surprise of 2.1%.

In the past 60 days, the consensus estimate for Public Policy Holding’s 2026 earnings has increased remained steady.

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