ITT INC. (ITT): Results of Operations and Financial Condition
ITT INC. (ITT) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 ITT REPORTS 2026 SECOND QUARTER EARNINGS PER SHARE (EPS) OF $0.95, ADJUSTED EPS OF $2.08 RAISING FULL YEAR GUIDANCE ON REVENUE, MARGIN, EPS AND CASH • 53% order growth, 13% organic, driven by SPX FLOW acquisition and continuous strength across aerospace and defense ▪
How this was made
The 30-second read
Why it matters
The key tradable items are the raised full-year ranges for organic revenue growth, operating margin, adjusted EPS, and free cash flow, alongside segment-level momentum and integration progress.
Market read
A same-day guidance raise with quantified EPS and FCF ranges is a direct input for earnings models and near-term positioning.
What to watch
Free cash flow growth is partly supported by higher interest and tax payments and SPX FLOW contribution; traders should watch whether margin and cash conversion sustain beyond integration.
ITT REPORTS 2026 SECOND QUARTER EARNINGS PER SHARE (EPS) OF $0.95, ADJUSTED EPS OF $2.08 RAISING FULL YEAR GUIDANCE ON REVENUE, MARGIN, EPS AND CASH
Record revenue, double-digit organic growth, adjusted operating income growth, adjusted EPS growth, operating cash flow growth and increased full-year guidance reflected strong commercial and operational performance, despite lower GAAP operating margin and GAAP EPS from SPX FLOW acquisition-related impacts.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $1,473.1 million | – | 51.5% |
| Organic Growthother | 12.7% | – | – |
| Order growthother | 53% | – | – |
| Organic order growthother | 13% | – | – |
| Operating IncomeGAAP | $180.3 million | – | 3.0% |
| Operating MarginGAAP | 12.2% | – | (580) bps |
| Adjusted Operating Incomenon-GAAP | $295.2 million | – | 54.9% |
| Adjusted Operating Marginnon-GAAP | 20.0% | – | 40 bps |
| Earnings Per ShareGAAP | $0.95 | – | (37.5)% |
| Adjusted Earnings Per Sharenon-GAAP | $2.08 | – | 18.2% |
| Net Cash from Operating ActivitiesGAAP | $191.1 million | – | 24.3% |
| Free Cash Flownon-GAAP | $162.0 million | – | 18.0% |
| Flow Technologies Operating IncomeGAAP | $62.9 million | – | (17.9)% |
| Flow Technologies Adjusted Operating Income Changenon-GAAP | 107.8% | – | – |
| Flow Technologies Operating MarginGAAP | 7.9% | – | (1,360) bps |
| Flow Technologies Adjusted Operating Margin Changenon-GAAP | (160) bps | – | – |
| Motion Technologies Operating IncomeGAAP | $82.1 million | – | 15.3% |
| Motion Technologies Adjusted Operating Income Changenon-GAAP | 10.0% | – | – |
| Motion Technologies Operating MarginGAAP | 21.3% | – | 180 bps |
| Motion Technologies Adjusted Operating Margin Changenon-GAAP | 90 bps | – | – |
| Connect & Control Technologies Operating IncomeGAAP | $60.8 million | – | 35.4% |
| Connect & Control Technologies Adjusted Operating Income Changenon-GAAP | 23.0% | – | – |
| Connect & Control Technologies Operating MarginGAAP | 20.6% | – | 280 bps |
| Connect & Control Technologies Adjusted Operating Margin Changenon-GAAP | 100 bps | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Flow TechnologiesOrganic revenue increased 21%, primarily driven by strength from pump projects within the energy transition market and continued strength in valves. Revenue increased $437 million reflecting the first full quarter of activity from SPX FLOW. | $792.5 million | – | 122.7% |
| Motion TechnologiesHigher volumes from market share gains and favorable foreign exchange impacts were partially offset by pricing. Organic revenue increased 2% due to strength in Friction aftermarket and KONI defense. | $386.0 million | – | 5.6% |
| Connect & Control TechnologiesRevenue increased $44 million driven by wins in defense and industrial connectors and aerospace components, as well as pricing actions. | $295.7 million | – | 17.4% |
full year 2026 outlook
- Revenueorganic revenue growth of 5% to 8%, up 38% to 41% in total
- NoteOperating margin is expected to be between 12.8% and 13.7%.
- NoteAdjusted operating margin of 20.0% to 20.9%, an increase of 60 to 150 bps versus prior year.
- NoteEPS is expected to be $4.47 to $4.67.
- NoteAdjusted EPS of $8.12 to $8.32, representing growth of 13% to 16% for the full year.
- NoteFree cash flow to be between $550 million and $580 million.
- NoteFree cash flow margin of 10% to 11% for the full year.
Capital returns
- Quarterly dividend of $0.386 per share on outstanding common stock.
- The cash dividend for the third quarter of 2026 will be payable on Monday, October 5, 2026 to shareholders of record as of the close of business on Tuesday, September 8, 2026.
What drove it
- Aerospace and defense in Connect & Control Technologies, continued share gains in Motion Technologies, and Flow Technologies organic revenue growth coupled with the SPX FLOW contribution drove revenue.
- Incremental volume, pricing and productivity actions across the legacy portfolio and the full-quarter contribution of SPX FLOW drove adjusted operating income growth.
- Flow Technologies pump projects within the energy transition market and continued strength in valves supported organic revenue growth.
- Motion Technologies benefited from Friction aftermarket, KONI defense, market share gains and favorable foreign exchange.
- Connect & Control Technologies benefited from defense and industrial connector wins, aerospace components and pricing actions.
Concerns
- Operating margin decreased 580 basis points to 12.2% mainly due to acquisition-related intangible amortization and costs.
- EPS decreased 38% versus prior year due to acquisition-related costs.
- Flow Technologies operating income decreased $14 million due to increased amortization of intangibles and inventory step-up related to SPX FLOW.
- Flow Technologies organic orders declined 3% due to a strong prior year performance in energy transition and oil and gas projects.
- Higher interest expense, effective tax rate and weighted-average share count resulting from the SPX FLOW acquisition partially offset adjusted EPS growth.
What to watch
- SPX FLOW integration, which management said continues to progress ahead of plan.
- Whether SPX FLOW sustains its book-to-bill above 1.1x.
- Flow Technologies organic orders following the 3% decline.
- Execution against full-year organic revenue growth of 5% to 8% and total revenue growth of 38% to 41%.
- The extent of acquisition-related intangible amortization and costs affecting GAAP operating margin and EPS.
Balance sheet and cash flow
- Net cash from operating activities for the second quarter was $191.1 million, compared with $153.7 million in Q2 2025.
- Free cash flow for the second quarter was $162.0 million, compared with $137.3 million in Q2 2025.
- Full-year free cash flow is expected to be between $550 million and $580 million.
Analysis
ITT reported record second-quarter revenue of $1,473.1 million, up 51.5%, including 12.7% organic growth. Management attributed the result to aerospace and defense in Connect & Control Technologies, continued share gains in Motion Technologies, Flow Technologies organic growth and the full-quarter SPX FLOW contribution. Orders grew 53%, including 13% organic growth, while management highlighted a book-to-bill above 1.1x at SPX FLOW.
Reported profitability reflected the acquisition accounting and transaction effects. GAAP operating income rose 3.0% to $180.3 million, but operating margin decreased 580 basis points to 12.2%. GAAP EPS decreased 37.5% to $0.95. In contrast, adjusted operating income increased 54.9% to $295.2 million, adjusted operating margin expanded 40 basis points to 20.0%, and adjusted EPS increased 18.2% to $2.08. ITT identified volume, pricing and productivity in legacy businesses and SPX FLOW's full-quarter contribution as drivers, partially offset by higher interest expense, effective tax rate and weighted-average share count from the acquisition.
Flow Technologies accounted for the largest revenue contribution at $792.5 million, up 122.7%, with 20.7% organic growth. Its reported operating margin was 7.9%, down 1,360 basis points, as increased intangible amortization and inventory step-up tied to SPX FLOW reduced GAAP profitability. Motion Technologies generated $386.0 million of revenue and a 21.3% operating margin, while Connect & Control Technologies generated $295.7 million and a 20.6% operating margin. Both businesses increased reported operating income, supported by volume, productivity, foreign exchange, defense, connectors, aerospace and pricing.
Cash generation improved alongside earnings. Net cash from operating activities increased 24.3% to $191.1 million, and free cash flow increased 18.0% to $162.0 million. The board approved a quarterly dividend of $0.386 per share. The release did not report share repurchases, cash balances or debt balances.
Management raised full-year expectations on revenue, margin, EPS and cash. ITT now expects organic revenue growth of 5% to 8% and total revenue growth of 38% to 41%, operating margin of 12.8% to 13.7%, adjusted operating margin of 20.0% to 20.9%, EPS of $4.47 to $4.67, adjusted EPS of $8.12 to $8.32, and free cash flow of $550 million to $580 million. The key reported tension is that robust adjusted results and higher guidance coexist with acquisition-related pressure on GAAP margin and GAAP EPS, as well as a 3% decline in Flow Technologies organic orders.
Management, verbatim
ITT delivered another record quarter, reflecting the exceptional execution of our ITTers. Our legacy businesses continue to fire on all cylinders, and in Q2 generated double digit organic orders and double digit revenue growth. Defense programs in CCT are gaining momentum and contributing to significant growth in the quarter and beyond. SPX FLOW delivered a strong first full quarter, wit h strength in Nutrition and Health and Mixers driving top-line and orders growth resulting in a book-to-bill above 1.1x, whilst the integration continues to progress ahead of plan. Our strategy is working and our ITTers are relentlessly executing it, driving profitable growth and productivity in our legacy businesses and SPX FLOW.
Luca Savi, Chief Executive Officer and President
Not in the filing
stated, not guessed- GAAP net income
- Gross profit and gross margin
- Prior-quarter comparisons for revenue, operating income, operating margin, EPS, operating cash flow and free cash flow
- Segment prior-year revenue values
- Segment adjusted operating income values
- Segment adjusted operating margin values
- Cash balance
- Debt balance
- Share repurchases
- Prior outlook guidance for comparison
- Full-year guidance for gross margin, operating expenses and tax rate
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K with ITT’s Q2 2026 results and updated full-year guidance, including the impact of the SPX FLOW acquisition.
Ticker impact
ITT reported Q2 results and raised full-year guidance, including adjusted EPS $8.12 to $8.32 and free cash flow $550M to $580M.
Likely positive near-term bias as traders reprice full-year adjusted EPS and FCF expectations, while monitoring margin pressure from SPX FLOW intangibles.
The filing discloses specific Q2 performance metrics and explicit full-year guidance ranges, which are direct inputs to valuation and positioning.
Market effects
Signals strength in aerospace and defense demand within industrials, and continued integration progress for SPX FLOW within ITT’s portfolio.
Primarily US-listed industrials sentiment; limited direct regional spillover beyond industrial earnings complex.
Affects global industrial supply-chain expectations tied to aerospace/defense and process/flow equipment demand.
Counterpoint
Reported operating margin fell to 12.2% due to acquisition-related intangible amortization and costs, which could cap upside if investors focus on GAAP profitability.
Key entities
- public_companyITT Inc.
Reported Q2 2026 results and raised full-year guidance; announced a quarterly dividend.
- corporate_eventSPX FLOW acquisition
Integration and acquisition-related intangible amortization/costs are cited as drivers of margin and EPS differences.
- executiveLuca Savi
CEO and President quoted on legacy business momentum and SPX FLOW integration progress.
