ITT

ITT Inc.

HALAL

Score: 85/100

stock

Is ITT Halal?

Diversified industrial manufacturer of engineered components and flow technologies — permissible industrial-manufacturing business with manageable financial-screen profile.

What You Should Know

ITT Inc. is a publicly-traded diversified manufacturer of highly-engineered critical components and customized technology solutions for the transportation, industrial, and energy markets, organized into three reporting segments: Motion Technologies (the largest segment — friction-brake-pads, shock-absorbers, and sealing-and-damping technologies for the global automotive, rail, and industrial markets, including the Friction Technologies brake-pad franchise and the KONI and Axtone shock-absorber-and-energy-absorption franchises), Industrial Process (industrial pumps, valves, and aftermarket-parts-and-services for the chemical, energy, mining, and general-industrial process markets, including the Goulds Pumps centrifugal-pump franchise), and Connect & Control Technologies (connectors, switches, and specialized industrial-and-aerospace components, including the Cannon and VEAM connector franchises). ITT also operates the recently-acquired Svanehoj cryogenic-marine-pump and the Micro-Mode connector franchises. Industrial-component-manufacturing, friction-and-braking-technology manufacturing, industrial-pump-and-valve manufacturing, and connector-and-control-component manufacturing are unambiguously permissible at the activity level under standard Sharia methodology — these are general-purpose industrial-manufacturing activities. The financial screen passes with manageable leverage: ITT operates an investment-grade balance sheet with low-to-moderate net leverage and strong free-cash-flow conversion; the debt-to-market-cap ratio sits comfortably below the 33% Sharia threshold. Most major Sharia advisory boards classify ITT as permissible with purification of small interest-income components.

⚠️ Concerns

•Minor interest income on cash and short-term investment balances — purification of a small portion of dividends may be advisable
•The Connect & Control Technologies segment includes connectors-and-components sold into aerospace-and-defense end-markets — defense-and-military end-use is a minority component within a broadly commercial-and-industrial connector franchise; under standard Sharia screening methodology, the relevant industry classification is general-purpose industrial-component-manufacturing, but investors with strict defense-revenue avoidance preferences should verify the current defense-revenue share
•Debt-to-market-cap ratio should be re-verified against the 33% Sharia threshold at the time of investment, particularly following debt-funded acquisition activity (for example the Svanehoj and other bolt-on acquisitions)
•The Motion Technologies friction-brake business serves the global automotive market — automotive-component manufacturing is permissible at the activity level; automotive-cycle volatility is a business-cycle consideration rather than a Sharia screen concern
•ITT carries historic asbestos-related legal-liability reserves from legacy operations — verify the current asbestos-indemnification-and-reserve status at the time of investment; this is a legacy-liability consideration
•Industrial-and-energy-process-cycle volatility can affect the Industrial Process segment — this is a business-cycle consideration rather than a Sharia screen concern