ITT (NYSE:ITT) reported record second-quarter results for 2026, citing organic growth across its portfolio, contributions from acquisitions and continued margin expansion. The company raised its full-year outlook for organic revenue, adjusted earnings per share and free cash flow after reporting 51% revenue growth and 18% adjusted EPS growth for the quarter ended July 4.
Chief Executive Officer and President Luca Savi said ITT grew orders 53% from a year earlier, including 13% organic growth, while revenue rose 51%, also including 13% organic growth. The company reported a quarterly book-to-bill ratio of 1.1x, adjusted EPS of $2.08 and year-to-date free cash flow of $176 million.
Segment Results and Order Trends
Connect & Control Technologies, or CCT, was a major contributor to the quarter. Organic orders increased 59%, driven in part by large defense awards at kSARIA. Savi said kSARIA’s orders increased 168% during the quarter, reflecting multiyear bookings for advanced night-vision applications and fighter-jet programs. CCT also recorded organic revenue growth of 17%, supported by commercial aerospace, defense and industrial connectors.
Commercial aerospace revenue rose 14%, while defense revenue increased 16%. kSARIA revenue grew 28%, and industrial connectors revenue rose 24%, led by Europe and Asia, according to management. CCT ended the quarter with a 1.4x book-to-bill ratio and an operating margin of 21.7%, up 100 basis points year over year.
Motion Technologies reported revenue growth of 6%, including 2% organic growth, led by friction aftermarket demand, performance above global vehicle-production levels and strength in China Rail. KONI orders grew 9%, supported primarily by China Rail and defense demand. The segment’s operating margin rose 90 basis points to 21.1%, which Interim Chief Financial Officer Mike Savinelli attributed to net productivity.
Flow Technologies recorded 123% total revenue growth and 21% organic growth. Management said legacy Flow revenue benefited from higher pump-project shipments in marine energy transition, oil and gas markets, as well as 19% valve growth tied to biopharma demand. The segment’s total operating margin was 21.4%, down 160 basis points due to the full-quarter impact of SPX FLOW, which ITT acquired on March 2.
Excluding SPX FLOW, Flow Technologies expanded margins by 70 basis points, according to Savi. Management expects the segment’s margins to improve through the rest of 2026 as it realizes integration cost synergies and executes other productivity measures.
SPX FLOW Integration and Acquisition Contributions
SPX FLOW reported 9% order growth in the second quarter compared with its prior-year results and 5% revenue growth. Year-to-date revenue rose 9%, which management said was in line with its full-year expectation for high-single-digit growth. SPX FLOW’s second-quarter book-to-bill ratio was 1.13x.
Savi said demand was particularly strong in mixers, where orders rose 23% across North America and China. Waukesha Cherry-Burrell orders increased 10%, while Nutrition and Health orders rose 8%, supported by European systems orders. He said the opportunity funnel was growing in North America and Europe.
During the question-and-answer session, Savi described SPX FLOW’s manufacturing sites as generally well-run with capable teams, but said ITT sees opportunities to further embed lean practices at the production-cell level and improve material flow. He also cited potential revenue synergies, including selling SPX FLOW valves and mixers to biopharma customers served by ITT’s Lancaster valve operation.
Management also highlighted the potential for Waukesha Cherry-Burrell’s hygienic distribution channels to support sales of Bornemann hygienic pumps in the U.S.
Beyond SPX FLOW, Savi said the company’s prior acquisitions of Svanehøj and kSARIA continued to contribute to growth. He said Svanehøj is expected to generate average annual revenue growth of 32% from its acquisition through the end of 2026, while kSARIA is projected to increase backlog 180% from acquisition through the end of 2026.
Cash Flow, Debt Reduction and Outlook
ITT paid down $124 million of debt in the second quarter, reducing its leverage ratio to 2.5x, six months earlier than its original commitment, according to Savi. The company is targeting leverage of approximately 2.3x by year-end.
Year-to-date free cash flow of $176 million included $71 million of one-time acquisition-related expenses. Excluding those expenses, free cash flow increased 15% year over year, Savinelli said. Second-quarter free cash flow margin was 11%.
The company raised its full-year organic revenue growth outlook to a range of 5% to 8%. Savinelli said the increase reflects stronger CCT bookings, continued strength in Flow Technologies projects and short-cycle demand, friction original-equipment outperformance and better-than-expected operational performance.
- Adjusted operating margin is expected to expand by more than 100 basis points, to approximately 20.5% at the midpoint.
- Adjusted EPS guidance was raised to $8.22 at the midpoint, a $0.37 increase from the prior midpoint and representing 14% growth.
- Free cash flow guidance was raised to a midpoint of $565 million, with a projected free cash flow margin of 10% to 11%.
Savinelli said the revised outlook does not include additional net benefits from tariff refunds beyond the $500,000 impact recorded in the second quarter. Management described the tariff-refund impact in the quarter as immaterial.
Looking ahead, Savi said the company expects CCT revenue and margins in the second half to remain broadly consistent with second-quarter levels. He said Motion Technologies faces normal second-half seasonality but is expected to sustain stable margins, while Flow Technologies is expected to show sequential margin improvement from SPX FLOW synergies.
Management noted that delayed orders in the Middle East could affect regional growth in coming quarters, despite strong first-half revenue from previously won backlog. Savi said the company has begun to see some orders move to engineering, procurement and construction firms and that its Middle East opportunity funnel increased year over year.
About ITT (NYSE:ITT)
ITT Inc is a diversified industrial manufacturing company that designs, manufactures and services mission-critical components and systems for global markets. Its engineered solutions support applications in aerospace, defense, transportation, energy and industrial automation. The company focuses on delivering high-performance products that enable reliable fluid handling, precision motion control and robust connectivity in demanding environments.
The company’s operations are organized into three segments: Motion Technologies, which provides precision components and aftermarket repair services for aircraft engines and industrial turbines; Connect & Control Technologies, which offers specialty valves, couplings, seals and proximity sensors for fuel, hydraulics and environmental control systems; and Fluid & Motion Control, which delivers pumps, heat exchangers and fluid management solutions for oil and gas, chemical processing and power generation.
