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ITT Q2 Earnings Beat Estimates on Broad-Based Organic Growth
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Key Takeaways
ITT's Q2 earnings rose 18.2% as segment operating income and operations strengthened.
Flow Technologies sales surged 122.7%, aided by SPX FLOW and strength in pump projects and valves.
ITT raised 2026 earnings, revenue growth, margin and free cash flow guidance.
ITT Inc.’s (ITT - Free Report) second-quarter 2026 adjusted earnings of $2.08 per share surpassed the Zacks Consensus Estimate of $1.93. The bottom line jumped 18.2% year over year, aided by strong segment operating income and solid commercial and operational performance.
Total revenues of $1.47 billion beat the consensus estimate of $1.39 billion. The top line increased 51.5% year over year. Organic sales rose 12.7% year over year, driven by strength in aerospace and defense, connectors, pump projects and continued outperformance in Friction aftermarket.
ITT’s Segmental Results
In the first quarter of 2026, the company combined the Industrial Process segment with its SPX FLOW business to form the Flow Technologies segment.
Revenues from the Flow Technologies segment totaled $792.5 million, up 122.7% year over year. The increase primarily reflected the first full quarter of contributions from the SPX FLOW acquisition, along with strength in pump projects and valves. Our estimate was $718.7 million. Organic sales increased 20.7% and adjusted operating income grew 107.8% on a year-over-year basis.
Revenues from the Motion Technologies segment amounted to $403.6 million, implying a year-over-year increase of 5.6%. The higher sales were attributable to increased volumes from market share gains and favorable foreign currency impacts, partly offset by pricing. Our estimate was $278.6 million. Organic revenues increased 1.6% year over year. Adjusted operating income increased 10%.
Revenues from the Connect & Control Technologies segment of $295.7 million rose 17.4% year over year on a reported basis and 17.3% organically. Our estimate was $271.5 million. The results were driven by wins in defense and industrial connectors and aerospace components, along with favorable pricing actions. Adjusted operating income increased 23% year over year.
ITT’s cost of revenues increased 54.9% year over year to $963 million. The gross profit jumped 45.4% to $510.1 million.
General and administrative expenses increased 68.3% year over year to $143.9 million. Sales and marketing expenses rose 70.2% to $87.5 million. Research and development expenses increased 31.6% year over year to $35.8 million.
Adjusted operating income rose 54.9% year over year to $295.2 million. The margin expanded 40 basis points to 20%.
ITT’s Balance Sheet and Cash Flow
Exiting the second quarter, ITT had cash and cash equivalents of $590.8 million compared with $1.74 billion at the end of fourth-quarter 2025. The company’s short-term borrowings were $858.4 million compared with $261.3 million at the end of December 2025.
In the first six months of 2026, ITT generated net cash of $231.1 million from operating activities compared with $267.1 million in the year-ago period. Capital expenditure totaled $55.2 million in the same period, up 3.8% year over year. Free cash flow was $176 million compared with $214 million in the prior-year period.
During the first six months of the year, ITT paid out dividends of $69.5 million, up 23.7% year over year. It repurchased shares worth $104.9 million in the period.
ITT's Outlook
For 2026, ITT raised its adjusted earnings guidance to $8.12-$8.32 per share from $7.70-$8.00 previously expected. The company also increased its revenue growth forecast to 38-41% from 36-38%, with organic growth now expected at 5-8% compared with 4-6% earlier. Adjusted operating margin guidance was raised to 20-20.9% from 19.7-20.6% anticipated before. Free cash flow is now projected at $550-$580 million, indicating a free cash flow margin of 10-11%.
ITT’s Zacks Rank
The company currently carries a Zacks Rank #4 (Sell).
Carlisle Companies Incorporated (CSL - Free Report) reported second-quarter 2026 adjusted earnings of $7.03 per share, which beat the Zacks Consensus Estimate of $6.43 by 9.3%. The bottom line increased 12% year over year.
Revenues rose 8% year over year to a record $1.57 billion and surpassed the consensus estimate of $1.47 billion.
3M Company (MMM - Free Report) reported second-quarter 2026 adjusted earnings of $2.40 per share, which surpassed the Zacks Consensus Estimate of $2.27 by 5.7%. The bottom line increased 11% year over year.
MMM’s adjusted net revenues of $6.5 billion topped the consensus estimate of $6.4 billion and grew 5.5%. On an adjusted basis, organic revenues increased 5.4% year over year.
Graco Inc. (GGG - Free Report) reported second-quarter 2026 adjusted earnings of 91 cents per share, up 17% from 78 cents in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of 81 cents by 12.4%.
The company’s net sales rose 3% year over year to $590.6 million but lagged the consensus estimate of $609 million by 3%. Organic order backlog (excluding acquisitions) rose 28% from the end of 2025.
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ITT Q2 Earnings Beat Estimates on Broad-Based Organic Growth
Key Takeaways
ITT Inc.’s (ITT - Free Report) second-quarter 2026 adjusted earnings of $2.08 per share surpassed the Zacks Consensus Estimate of $1.93. The bottom line jumped 18.2% year over year, aided by strong segment operating income and solid commercial and operational performance.
Total revenues of $1.47 billion beat the consensus estimate of $1.39 billion. The top line increased 51.5% year over year. Organic sales rose 12.7% year over year, driven by strength in aerospace and defense, connectors, pump projects and continued outperformance in Friction aftermarket.
ITT’s Segmental Results
In the first quarter of 2026, the company combined the Industrial Process segment with its SPX FLOW business to form the Flow Technologies segment.
Revenues from the Flow Technologies segment totaled $792.5 million, up 122.7% year over year. The increase primarily reflected the first full quarter of contributions from the SPX FLOW acquisition, along with strength in pump projects and valves. Our estimate was $718.7 million. Organic sales increased 20.7% and adjusted operating income grew 107.8% on a year-over-year basis.
Revenues from the Motion Technologies segment amounted to $403.6 million, implying a year-over-year increase of 5.6%. The higher sales were attributable to increased volumes from market share gains and favorable foreign currency impacts, partly offset by pricing. Our estimate was $278.6 million. Organic revenues increased 1.6% year over year. Adjusted operating income increased 10%.
Revenues from the Connect & Control Technologies segment of $295.7 million rose 17.4% year over year on a reported basis and 17.3% organically. Our estimate was $271.5 million. The results were driven by wins in defense and industrial connectors and aerospace components, along with favorable pricing actions. Adjusted operating income increased 23% year over year.
ITT Inc. Price, Consensus and EPS Surprise
ITT Inc. price-consensus-eps-surprise-chart | ITT Inc. Quote
ITT’s Margin Profile
ITT’s cost of revenues increased 54.9% year over year to $963 million. The gross profit jumped 45.4% to $510.1 million.
General and administrative expenses increased 68.3% year over year to $143.9 million. Sales and marketing expenses rose 70.2% to $87.5 million. Research and development expenses increased 31.6% year over year to $35.8 million.
Adjusted operating income rose 54.9% year over year to $295.2 million. The margin expanded 40 basis points to 20%.
ITT’s Balance Sheet and Cash Flow
Exiting the second quarter, ITT had cash and cash equivalents of $590.8 million compared with $1.74 billion at the end of fourth-quarter 2025. The company’s short-term borrowings were $858.4 million compared with $261.3 million at the end of December 2025.
In the first six months of 2026, ITT generated net cash of $231.1 million from operating activities compared with $267.1 million in the year-ago period. Capital expenditure totaled $55.2 million in the same period, up 3.8% year over year. Free cash flow was $176 million compared with $214 million in the prior-year period.
During the first six months of the year, ITT paid out dividends of $69.5 million, up 23.7% year over year. It repurchased shares worth $104.9 million in the period.
ITT's Outlook
For 2026, ITT raised its adjusted earnings guidance to $8.12-$8.32 per share from $7.70-$8.00 previously expected. The company also increased its revenue growth forecast to 38-41% from 36-38%, with organic growth now expected at 5-8% compared with 4-6% earlier. Adjusted operating margin guidance was raised to 20-20.9% from 19.7-20.6% anticipated before. Free cash flow is now projected at $550-$580 million, indicating a free cash flow margin of 10-11%.
ITT’s Zacks Rank
The company currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies
Carlisle Companies Incorporated (CSL - Free Report) reported second-quarter 2026 adjusted earnings of $7.03 per share, which beat the Zacks Consensus Estimate of $6.43 by 9.3%. The bottom line increased 12% year over year.
Revenues rose 8% year over year to a record $1.57 billion and surpassed the consensus estimate of $1.47 billion.
3M Company (MMM - Free Report) reported second-quarter 2026 adjusted earnings of $2.40 per share, which surpassed the Zacks Consensus Estimate of $2.27 by 5.7%. The bottom line increased 11% year over year.
MMM’s adjusted net revenues of $6.5 billion topped the consensus estimate of $6.4 billion and grew 5.5%. On an adjusted basis, organic revenues increased 5.4% year over year.
Graco Inc. (GGG - Free Report) reported second-quarter 2026 adjusted earnings of 91 cents per share, up 17% from 78 cents in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of 81 cents by 12.4%.
The company’s net sales rose 3% year over year to $590.6 million but lagged the consensus estimate of $609 million by 3%. Organic order backlog (excluding acquisitions) rose 28% from the end of 2025.