ITT Inc.

What they do

ITT manufactures components that are integral to the operation of systems and manufacturing processes in key markets, with products enabling functionality where reliability and performance are critical. The company operates through three reportable segments: Flow Technologies (FT, formerly Industrial Process), Motion Technologies (MT), and Connect & Control Technologies (CCT). Its model centers on applied engineering and customer intimacy, generating recurring revenue, aftermarket opportunities, and long-lived OEM platforms.

Revenue drivers

• Flow Technologies (FT) — Q2 2026 revenue was $792.5M, up 122.7% reported with 20.7% organic growth, driven by the SPX FLOW acquisition and pump projects; it is the largest segment.
• Motion Technologies (MT) — Grew through continued share gains, with strength in Friction products cited by management as outperforming.
• Connect & Control Technologies (CCT) — Growth driven by aerospace and defense programs, including connectors, with select programs benefiting from sustained defense, security, and national infrastructure investments.
• SPX FLOW acquisition — Contributed to 51% total revenue growth and 53% order growth in Q2 2026, with strength in Nutrition and Health and Mixers driving a book-to-bill above 1.1x.

Recent performance

Q2 2026 revenue was $1,473.1M, up 51.5% reported and 12.7% organic versus prior year, driven by SPX FLOW, aerospace and defense in CCT, continued share gains in MT, and 21% organic growth in FT. Operating income was $180.3M, up 3.0%, with operating margin down 580 bps to 12.2% due to acquisition-related intangible amortization and costs; adjusted operating income rose 54.9% to $295.2M and adjusted operating margin was 20.0%, up 40 bps. EPS was $0.95, down 37.5%, while adjusted EPS was $2.08, up 18.2%. Net cash from operating activities was $191.1M, up 24.3%, and free cash flow was $162.0M.

Strategy

ITT is integrating the SPX FLOW acquisition, which expanded Flow Technologies and added scale and capabilities, with integration progressing ahead of plan. The company is investing in commercial and operational execution across legacy businesses, driving volume, pricing, and productivity benefits. It is pursuing recovery opportunities related to tariffs where appropriate and continues to monitor global trade policy. Management is leveraging a diversified portfolio and global operating footprint to respond to changing market conditions and support long-term value creation.

Risks

• SPX FLOW integration and acquisition risk — Potential delays in consummating the acquisition, failure to realize anticipated benefits and synergies, or events that could terminate the purchase agreement could materially affect results.
• Global macroeconomic and capital markets — Unfavorable conditions including geopolitical tensions, inflation, tariffs, tighter credit, and higher interest rates can negatively impact customer confidence, demand, and collectability.
• Raw material and supply chain — ITT relies on third-party suppliers for raw materials, components, and contract manufacturing, and is exposed to price volatility and supplier inability to meet quality and delivery requirements.
• Geopolitical and energy market volatility — Disruptions such as those affecting the Strait of Hormuz and regional energy infrastructure contributed to volatility in oil, natural gas, and shipping markets, with energy prices and logistics costs remaining sensitive to escalation.

Outlook

Management raised full-year 2026 guidance on revenue, margin, EPS, and cash. Full year EPS is expected to be $4.47 to $4.67, down 25% versus prior year at the midpoint due to acquisition-related impacts, while adjusted EPS guidance was raised to $8.12 to $8.32, up 14% at the midpoint. For the remainder of 2026, the company expects demand to remain generally resilient, though the outlook remains influenced by geopolitical developments, trade policy actions, and energy market volatility.