ITT raises full-year profit guidance as revenue growth accelerates
The industrial manufacturer raised its 2026 adjusted earnings per share guidance to a range of $8.12–$8.32.
ITT (ITT), the industrial manufacturer, reported second-quarter revenue of $1.47 billion, a 51.5% increase from the prior year. The growth rate accelerated from the 32.7% increase recorded in the first quarter.
The results reflect the first full quarter of contribution from the acquisition of SPX FLOW. Organic revenue growth for the quarter rose to 12.7%, up from 10.9% in the previous quarter.
Adjusted earnings per share grew 18.2% year-over-year to $2.08, though this growth slowed from the 25.3% increase seen in the first quarter. Reported earnings per share fell 37.5% to $0.95.
Segment performance diverged between revenue and demand. Connect & Control Technologies saw organic revenue rise 17.3% and organic orders surge 58.7% year-over-year. Flow Technologies reported organic revenue growth of 20.7%, while organic orders in that segment declined 2.9%.
Margins were impacted by the SPX FLOW integration. Reported operating margin compressed 580 basis points to 12.2%, as the company faced acquisition-related intangible amortization and costs. Adjusted operating margin expanded 40 basis points to 20.0%.
ITT raised its full-year 2026 adjusted earnings per share guidance to $8.12–$8.32, up from the first-quarter range of $7.70–$8.00. The company also increased its GAAP earnings per share guidance to $4.47–$4.67 from the previous range of $4.15–$4.45.
Cash flow recovered during the period. Net cash from operating activities rose 24.3% year-over-year to $191.1 million, following a 64.8% decrease in the first quarter. Free cash flow increased 18% to $162 million, reversing an 82% decline in the prior quarter.