ITT Raises Full-Year Guidance on Strong Q2 Performance
Event summary
- ITT reported Q2 2026 revenue of $1.5 billion, up 51% YoY, driven by aerospace and defense growth in Connect & Control Technologies (CCT), share gains in Motion Technologies (MT), and a full quarter contribution from SPX FLOW.
- Adjusted EPS increased 18% to $2.08, while operating margin decreased 580 basis points to 12.2% due to acquisition-related costs.
- ITT raised full-year guidance for revenue, margin, EPS, and cash flow, expecting organic revenue growth of 5-8% and adjusted EPS of $8.12-$8.32.
- Free cash flow increased 18% to $162 million, reflecting strong operating performance and the addition of SPX FLOW.
The big picture
ITT's strong Q2 performance reflects the strategic benefits of its SPX FLOW acquisition, particularly in high-growth sectors like aerospace and defense. The company's raised guidance underscores confidence in its operational execution and market positioning, though integration risks remain a key focus.
What we're watching
- Integration Success
- The pace at which ITT integrates SPX FLOW will determine the sustainability of its adjusted operating margin and revenue growth.
- Defense Sector Momentum
- Whether ITT can maintain its strong performance in aerospace and defense programs, particularly within CCT.
- Cost Management
- How effectively ITT manages acquisition-related costs and intangible amortization to improve operating margins.