Key Highlights

  • ITT grew second quarter 2026 orders 53 percent and revenue 51 percent, or 13 percent organically for both, delivering adjusted EPS of $2.08, up 18 percent year over year.
  • The Connect and Control Technologies segment posted 59 percent organic order growth, led by 168 percent growth at its kSARIA defense connector business.
  • The company raised full-year adjusted EPS guidance to a midpoint of $8.22, up $0.37, and raised organic revenue growth guidance to a range of 5 to 8 percent.
  • ITT paid down $124 million of debt in the quarter, reducing its leverage ratio to 2.5 times, six months ahead of its original commitment.

Defense Connector Demand Fuels Record CCT Orders

ITT Inc. (NYSE:ITT) reported second quarter revenue of $1.5 billion, up 51 percent, or 13 percent organically, with a book-to-bill ratio of 1.1 times for the quarter. The Connect and Control Technologies segment was the standout performer, growing orders 59 percent organically, driven by large, multi-year defense bookings at its kSARIA business tied to mission-critical platforms including night vision applications and fighter jet programs, where orders grew 168 percent. Segment operating margin expanded 100 basis points to a record 21.7 percent.

Management said the connectors business also posted record orders, up 38 percent, aided by growth across North America, Europe, and Asia, and noted that visible backlog for the next several quarters is considerably higher than a year ago on some programs, extending visibility into 2028. Motion Technologies grew orders and revenue modestly despite a soft automotive production environment, aided by friction aftermarket strength and outperformance versus global vehicle production.

Flow Technologies Margin Diluted by SPX FLOW as Integration Progresses

Flow Technologies revenue increased 123 percent in total, or 21 percent organically, driven by higher pump project sales and continued share gains in valves used in biopharma applications. However, the segment's operating margin of 21.4 percent was diluted by 160 basis points from the full-quarter inclusion of SPX FLOW, whose orders grew 9 percent versus the prior year with a book-to-bill of 1.13 times. Management said cost synergies from the integration, together with other productivity actions, are expected to expand Flow Technologies margin sequentially through the remainder of the year.

Legacy Flow Technologies organic orders, excluding SPX FLOW, grew 5 percent, split between 4 percent volume and 1 percent price, while excluding SPX FLOW the segment's margin expanded 70 basis points on market share gains and pricing. Organic orders in the Middle East, a historically large market for the segment, declined due to delayed project awards tied to the region's broader macro environment, a dynamic management said could pressure regional growth in coming quarters even as order delays elsewhere show signs of resolving.

Guidance Raised on Bookings Strength, Debt Paydown Ahead of Schedule

ITT raised full-year organic revenue growth guidance to a range of 5 to 8 percent and raised adjusted operating margin guidance to expand more than 100 basis points to approximately 20.5 percent at the midpoint. Adjusted EPS guidance increased to a midpoint of $8.22, with the low end of the new range now exceeding the high end of the company's previous range. Free cash flow guidance was raised to a midpoint of $565 million.

The company paid down $124 million of debt during the quarter, bringing its leverage ratio to 2.5 times, six months ahead of its original target, and closed a small but strategic acquisition of Aerospace Contacts in July to secure supply chain resilience for its connector business. Management characterized second-half organic growth guidance as consistent with first-half momentum once accounting for tougher year-over-year comparisons and a slower Middle East order environment, rather than signaling underlying deceleration.

Conclusion

ITT's second quarter results show its legacy businesses and recent acquisitions compounding value simultaneously, with record margins in its connector business occurring even as the newly acquired SPX FLOW platform works through its own integration and lean-manufacturing improvements. The raised guidance reflects bookings already in hand rather than speculative demand, a dynamic that could support continued execution through year-end, though Middle East order timing and the pace of SPX FLOW synergy realization remain variables to watch heading into 2027.