ITT (ITT) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $1.5 billion, up 51% year-over-year (13% organic), driven by the SPX FLOW acquisition and strong growth in all segments, especially aerospace, defense, connectors, and pump projects.

• Adjusted EPS rose 18% to $2.08, while reported EPS declined 38% to $0.95 due to acquisition-related costs; adjusted operating income surged 55% to $295 million.

• All business segments contributed to organic growth, with notable strength in defense, commercial aerospace, and pump projects.

• Integration of SPX FLOW and other acquisitions is progressing well, driving operational and financial benefits.

• Raised full-year guidance for revenue, margin, adjusted EPS, and cash flow, reflecting robust commercial and operational execution.

Financial highlights

• Revenue reached $1.5 billion, up 51% (13% organic) compared to Q2 2025; gross profit increased 45% to $510 million, with gross margin at 34.6%.

• Adjusted operating income was $295 million (up 55%), adjusted operating margin improved to 20.0% (up 40 bps), while reported margin fell to 12.2% due to acquisition costs.

• Free cash flow for Q2 was $162 million (up 18%), with year-to-date free cash flow at $176 million; margin for Q2 was 11%.

• Net income attributable to shareholders was $84.9 million, down 30% year-over-year, impacted by higher amortization and acquisition costs.

• Interest expense rose to $49.7 million, reflecting higher debt from the SPX FLOW acquisition.

Outlook and guidance

• Full-year organic revenue growth guidance raised to 5–8%, with total revenue expected up 38–41%.

• Adjusted operating margin forecasted at 20.0–20.9%; reported margin at 12.8–13.7%.

• Adjusted EPS guidance raised to $8.12–$8.32 (up 14% at midpoint); reported EPS expected at $4.47–$4.67, down 25% at midpoint due to acquisition impacts.

• Free cash flow guidance set at $550–$580 million, with a margin of 10–11%.

• Leverage ratio target improved to 2.3x by year-end 2026.