How ITT's Saudi Facility Expansion Could Shape Long-Term Growth and Orders for ITT (ITT) Investors

• ITT Inc. recently completed the second phase of a US$25 million expansion at its Industrial Process manufacturing facility in Dammam, Saudi Arabia, doubling its capacity and reinforcing its presence within the Middle East market.
• This move aims to capture rising demand in the region, as the site has secured US$160 million in orders in 2024 and set ambitious growth targets for 2030.
• We’ll assess how the facility expansion and resulting capacity increase may influence ITT’s long-term order pipeline and revenue outlook.

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ITT Investment Narrative Recap

To own ITT shares, you need confidence that the company can sustain order growth and margin improvement despite its larger project-based backlog, which still brings volatility risks. The recent Dammam facility expansion may support future revenue streams by increasing capacity and providing better access to the fast-growing Middle East market, but does not in itself fully offset the earnings volatility risk from project delays or cancellations, which remains significant in the short term.

Among recent announcements, ITT’s October 2025 guidance update is highly relevant; management projected 6% to 7% revenue growth and higher EPS, citing a robust backlog and execution momentum. This guidance raises the stakes for the Middle East expansion, as growing project revenues and timely order delivery will be crucial for ITT to hit these targets and address investor concerns about order visibility.

However, even with strong booked orders, the unpredictability of large-scale projects, especially if market conditions change, means that investors should be mindful of...

Read the full narrative on ITT (it's free!)

ITT's narrative projects $4.4 billion revenue and $651.2 million earnings by 2028. This requires 6.3% yearly revenue growth and a $134.7 million earnings increase from $516.5 million.

Uncover how ITT's forecasts yield a $208.91 fair value, a 14% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members shared three fair value estimates for ITT ranging from US$59.46 to US$208.91. As you compare these diverse opinions, remember that increasing reliance on project-based revenue can heighten volatility in earnings and business outcomes.

Explore 3 other fair value estimates on ITT - why the stock might be worth less than half the current price!

Build Your Own ITT Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your ITT research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.
• Our free ITT research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate ITT's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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