Cash conversion efficiency has weakened significantly, with the operating cash flow to net income ratio falling to 0.51 in 2026Q1, largely driven by a $113.2 million working capital outflow.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 595.3M | 668.8M | 562.1M | 537.7M | 277.8M | -7.6M | 436.9M | 358.6M | 367.6M | 245M | 252.7M | 228.4M | 239M | 210.3M | 241.4M | 177M | 1.24B | 1.27B | 1.11B | 781.9M | 860.9M | 681.7M | 528.6M | 586.8M | 611.3M | 458.2M | 414.6M | 58.8M | -436.2M | 783.1M | 472.9M |
| Operating CF Margin % | - | 16.98% | 15.48% | 16.38% | 9.3% | -0.27% | 17.63% | 12.6% | 13.39% | 9.48% | 10.51% | 9.19% | 9% | 8.42% | 10.84% | 8.35% | 11.29% | 11.64% | 9.5% | 8.68% | 11.03% | 9.18% | 7.81% | 10.43% | 12.26% | 9.8% | 8.58% | 1.27% | -9.71% | 8.92% | 5.42% |
| Operating CF Growth % | -24.94% | 18.98% | 4.54% | 93.56% | 3755.26% | -101.74% | 21.83% | -2.45% | 50.04% | -3.05% | 10.64% | -4.44% | 13.65% | -12.88% | 36.38% | -85.74% | -2.26% | 14.34% | 42.03% | -9.18% | 26.29% | 28.96% | -9.92% | -4.01% | 33.41% | 10.52% | 605.1% | 113.48% | -155.7% | 65.6% | 127.36% |
| Net Income | 457.6M | 488M | 518.4M | 411.4M | 368.3M | 314.8M | 68.5M | 323.4M | 332.4M | 115M | 181.9M | 312.4M | 188.4M | 487.7M | 109.5M | -578M | 654M | 650.7M | 775.2M | 742.1M | 581.1M | 314.4M | 437.5M | 390.9M | 379.9M | 276.7M | 264.5M | 232.9M | 1.53B | 113.7M | 222.6M |
| Depreciation & Amortization | 124.9M | 143.2M | 137.3M | 109.2M | 107.4M | 113.1M | 112.2M | 113.4M | 109.4M | 105.3M | 102M | 90M | 88.3M | 86.9M | 71.1M | 74M | 297M | 292.6M | 278.3M | 185.4M | 194.5M | 196.6M | 198.6M | 188M | 171.4M | 212.9M | 201.8M | 181.1M | 195.6M | 436.4M | 433M |
| Stock-Based Compensation | 19.5M | 36.2M | 25.9M | 20.2M | 18.1M | 16.5M | 13.4M | 15.7M | 21.6M | 18.1M | 12.6M | 15.7M | 14M | 13.1M | 12.4M | 12M | 30M | 31.3M | 30.8M | 34.6M | 22.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 4.6M | 4.6M | 0 | -27.6M | 2.9M | 115.7M | -43.9M | 30.9M | -14.7M | 147M | 20.9M | 25.6M | -200K | -364M | 34.1M | 303M | -115M | -2.6M | 68.4M | -211.4M | -67.5M | 0 | 0 | 0 | 125.2M | 27.3M | 44.2M | 43.4M | -136.4M | -69.4M | 0 |
| Other Non-Cash Items | 333.3M | 34.2M | -37.9M | 36.7M | 2.1M | -475.7M | 235.8M | -24M | -92M | -112.6M | -64.1M | -135.9M | -18.3M | -25.7M | -80.2M | 474M | 431M | 237.5M | -58M | 100.7M | 51.7M | 175.6M | -9.6M | 20.3M | 9.8M | 2M | -43.1M | -349M | -66M | -66.4M | -182.7M |
| Working Capital Changes | -104.2M | -37.4M | -81.6M | -12.2M | -221M | -92M | 50.9M | -100.8M | 10.9M | -27.8M | -600K | -79.4M | -33.2M | 12.3M | 94.5M | -108M | -56M | 60.2M | 15.8M | -69.5M | 78.2M | -4.9M | -97.9M | -12.4M | -55.8M | -52.9M | -26.9M | -49.6M | -137.6M | 129.8M | 0 |
| Change in Receivables | -57.6M | -26M | -51.1M | -39.5M | -90.7M | -62.2M | 83.3M | -40.6M | -2.7M | -59.3M | 22.5M | -72M | -45.1M | -60.7M | -17.7M | -21M | -291M | 181M | 0 | -270.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -67.1M | -24.6M | 2M | -34.4M | -99.5M | -82.7M | 36.5M | -600K | -13.3M | 14.2M | -7.2M | 31.5M | -3.1M | -10.7M | -8.7M | -38M | 50M | 20.9M | 70.4M | 111.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 19.6M | -18.8M | 1.8M | 26.3M | 39.4M | 77.6M | -34.7M | -1.9M | -4.2M | 16.8M | 700K | 11M | -5.8M | 4.5M | -4.3M | 4M | 174M | 29.9M | 0 | 137.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -3.64B | -119.8M | -817.9M | -181M | -255.1M | -82.3M | -65.8M | -203.4M | -52.3M | -223.2M | -54.4M | -485.5M | -14.5M | -188.8M | -274.7M | -574M | -1.12B | -285.1M | -504.8M | -1.96B | -55.6M | -228.7M | -1.14B | -141.3M | -304M | -220M | -326.3M | -660.5M | 3.46B | -1.4B | -222.6M |
| Capital Expenditures | -110.6M | -121.3M | -123.9M | -107.6M | -103.9M | -88.4M | -63.7M | -91.4M | -95.5M | -113.3M | -111.4M | -86.7M | -118.8M | -122.9M | -83.8M | -103M | -328M | -271.6M | -248.7M | -239.3M | -177.1M | -179.2M | -165.1M | -153.6M | -153.2M | -174M | -180.6M | -772.7M | -292.5M | -459.7M | -406.3M |
| CapEx % of Revenue | 2.61% | 3.08% | 3.41% | 3.28% | 3.48% | 3.2% | 2.57% | 3.21% | 3.48% | 4.38% | 4.63% | 3.49% | 4.48% | 4.92% | 3.76% | 4.86% | 2.98% | 2.49% | 2.13% | 2.66% | 2.27% | 2.41% | 2.44% | 2.73% | 3.07% | 3.72% | 3.74% | 16.68% | 6.51% | 5.24% | 4.66% |
| Acquisitions | -3.54B | -6.8M | -689.5M | -70.3M | -172.5M | 8M | -4.7M | -113.1M | 0 | -113.7M | -5.8M | -351M | -2.8M | 700K | -193.2M | -5M | -784M | -13.7M | -275.7M | -2.01B | -89.5M | -69M | -1.01B | -46.2M | -159.2M | -90.9M | -192M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 11.3M | 8.3M | -4.5M | -3.1M | 21.3M | -1.9M | 2.6M | 1.1M | 43.2M | 3.8M | -100K | 13.8M | 3.5M | 5.4M | -43.3M | -466M | -5M | 200K | 19.6M | 286.4M | 211M | 19.5M | 200K | -2M | 8.4M | 44.9M | 46.3M | 112.2M | 3.75B | -939.6M | 183.7M |
| Cash from Financing | 3.19B | 728.9M | 234.9M | -432.3M | -83.3M | -99.8M | -158.6M | -101.5M | -128.8M | -112.5M | -141.9M | 120.4M | -116.6M | -58.3M | -108M | 883M | -290M | -771.9M | -1.41B | 1.98B | -369.8M | -239.8M | 461M | -268.9M | -231.7M | -201.8M | -144M | -83M | -2.33B | 697.4M | -210.5M |
| Debt Issued (Net) | 2.55B | 74.7M | 466M | -268.2M | 257.6M | 93M | -16.8M | -22.3M | -31.3M | -45.4M | -32.7M | 240.9M | -39.7M | -6.4M | -24.5M | -1.32B | -134.7M | -639.8M | -1.25B | 2.3B | -168.4M | 10M | 605.8M | -186.5M | -238.4M | -103.2M | -63.7M | 345.3M | -1.47B | 800.3M | -176.8M |
| Equity Issued (Net) | 793.1M | 793.1M | -104.5M | -60M | -245.3M | -115.3M | -84.2M | -41.4M | -50.3M | -21.7M | -77.8M | -84M | -45.1M | -87.9M | -58.8M | 53.4M | 27.5M | 15M | -40.6M | -233.6M | -141M | -182.5M | -82.8M | -24.4M | 61M | -46.6M | -54M | -402.6M | -830.8M | -67.8M | -11.4M |
| Dividends Paid | -117.3M | -111M | -104.7M | -95.8M | -87.9M | -75.8M | -59M | -52.1M | -47.3M | -45.4M | -44.6M | -42.8M | -40.7M | -36.4M | -34.2M | -193M | -176M | -147.9M | -120.9M | -96.6M | -77.6M | -65.6M | -61.8M | -58M | -54.3M | -52.9M | -52.9M | -55.5M | -70.5M | -71.1M | -53.4M |
| Share Repurchases | -521M | -521M | -104.5M | -60M | -245.3M | -116.5M | -84.2M | -41.4M | -56.1M | -32.9M | -77.8M | -84M | -60.2M | -87.9M | -116.8M | -6.6M | -6M | 0 | -75M | -299M | -210M | -334.4M | -159.6M | -69.7M | -32.3M | -150.9M | -54M | -402.6M | -830.8M | -67.8M | -11.4M |
| Other Financing | -36M | -27.9M | -21.9M | -8.3M | -7.7M | -1.7M | 1.4M | 14.3M | 100K | 0 | 13.2M | 6.3M | 8.9M | 72.4M | 9.5M | 2.34B | 531.7M | 800K | 5.8M | 14.1M | 16.8M | -100K | -400K | 0 | 0 | 900K | 26.6M | 29.8M | 39.5M | 36M | 31.1M |
| Net Change in Cash | 161.2M | 1.3B | -49.9M | -72M | -86.4M | -212.3M | 247.7M | 50.7M | 171.2M | -70.9M | 45M | -168.3M | 76.7M | -37.2M | -145.3M | 484M | -184M | 250.7M | -875.1M | 902.9M | 486.1M | 188.1M | -135.4M | 212M | 80.9M | 32.6M | -83.7M | -699.2M | 688.7M | 70.3M | 27.7M |
| Free Cash Flow | 484.7M | 547.5M | 438.2M | 430.1M | 173.9M | -96M | 373.2M | 267.2M | 272.1M | 131.7M | 141.3M | 141.7M | 120.2M | 87.4M | 157.6M | 74M | 913M | 998.1M | 861.8M | 542.6M | 683.8M | 502.5M | 363.5M | 433.2M | 458.1M | 284.2M | 234M | -713.9M | -728.7M | 323.4M | 66.6M |
| FCF Margin % | 11.44% | 13.9% | 12.07% | 13.1% | 5.82% | -3.47% | 15.06% | 9.39% | 9.91% | 5.09% | 5.87% | 5.7% | 4.53% | 3.5% | 7.07% | 3.49% | 8.3% | 9.15% | 7.37% | 6.03% | 8.76% | 6.77% | 5.37% | 7.7% | 9.19% | 6.08% | 4.85% | -15.41% | -16.22% | 3.68% | 0.76% |
| FCF Growth % | -0.02% | 24.94% | 1.88% | 147.33% | 281.15% | -125.72% | 39.67% | -1.8% | 106.61% | -6.79% | -0.28% | 17.89% | 37.53% | -44.54% | 112.97% | -91.89% | -8.53% | 15.82% | 58.83% | -20.65% | 36.08% | 38.24% | -16.09% | -5.44% | 61.19% | 21.45% | 132.78% | 2.03% | -325.32% | 385.59% | 127.52% |
| FCF per Share | 5.52 | 6.85 | 5.32 | 5.20 | 2.08 | -1.11 | 4.27 | 3.02 | 3.07 | 1.48 | 1.57 | 1.56 | 1.30 | 0.95 | 1.67 | 0.80 | 9.85 | 10.85 | 9.40 | 5.90 | 7.30 | 5.33 | 3.85 | 4.61 | 4.89 | 3.14 | 2.60 | -7.76 | -6.44 | 2.66 | 0.55 |
| FCF Conversion (FCF/Net Income) | 1.06x | 1.37x | 1.08x | 1.31x | 0.76x | -0.02x | 6.03x | 1.10x | 1.10x | 2.16x | 1.36x | 0.65x | 1.30x | 0.43x | 1.93x | -1.36x | 1.56x | 1.97x | 1.40x | 1.05x | 1.48x | 1.90x | 1.22x | 1.45x | 1.61x | 1.66x | 1.57x | 0.25x | -0.28x | 7.24x | 2.12x |
| Interest Paid | 22.3M | 0 | 33.4M | 15.7M | 10.8M | 3.3M | 3.3M | 2.5M | 3.3M | 3.8M | 4.5M | 4.3M | 1.1M | 900K | 2.3M | 80.2M | 91.7M | 90M | 135.5M | 96M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 98.3M | 0 | 128.6M | 113.1M | 92.7M | 61.3M | 61.1M | 63.4M | 53.5M | 62M | 56.1M | 48.5M | 70M | 21.9M | 0 | 140M | 342.6M | 181M | 281.6M | 313.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Working capital volatility
As reported in recent financial statements, ITT's operating cash flow to net income ratio fluctuated significantly, reaching a low of 0.51 in 2026Q1, which suggests that accounting earnings are not consistently translating into cash generation during periods of aggressive capital deployment or inventory accumulation.
The divergence between net income and operating cash flow in 2026Q1 indicates that non-cash items and working capital swings are exerting substantial pressure on cash conversion. Investors should monitor whether this trend represents a structural shift in earnings quality or merely a temporary timing mismatch related to the company's recent acquisition activity.
Based on the provided cash flow data, ITT's free cash flow margin has demonstrated extreme variance, collapsing to 1.1% in 2026Q1 from a peak of 20.1% in 2024Q4, highlighting the sensitivity of cash generation to the company's lumpy investment and acquisition cycles.
The sharp contraction in free cash flow margins suggests that the company's ability to generate surplus cash is currently constrained by heavy capital outflows. This volatility warrants further investigation into whether the recent decline in cash efficiency is a byproduct of strategic growth investments or a sign of weakening operational cash flow.
According to historical cash flow filings, ITT experienced a significant working capital outflow of $113.2 million in 2026Q1, which appears to be a primary driver of the recent cash flow shortfall and suggests potential inefficiencies in inventory management or receivables collection cycles.
The erratic nature of working capital changes, which swung from a $67.0 million inflow in 2024Q4 to a $113.2 million outflow in 2026Q1, implies that the company's cash position is highly susceptible to operational timing. Analysts should assess if these fluctuations are indicative of supply chain disruptions or a deliberate build-up of inventory to support future project-based revenue.
As evidenced by the $3.5 billion net acquisition outflow in 2026Q1, ITT has shifted its capital deployment toward aggressive inorganic growth, a marked departure from the more conservative share repurchase and dividend-focused strategy observed in previous quarters, according to the provided financial data.
The massive capital outlay for acquisitions in the most recent quarter suggests a pivot in management's capital allocation priorities, potentially prioritizing long-term market expansion over immediate shareholder returns. This strategy may impact the company's liquidity profile and warrants close scrutiny regarding the expected return on these substantial investments.
Quick answers to the most common questions about buying ITT stock.
ITT Inc. (ITT) generated $668.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
ITT Inc. (ITT) generated $547.5M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
ITT Inc. (ITT) spent $121.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, ITT Inc. (ITT) returned $111.0M to shareholders via cash dividends and spent $521.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.