ITT tops Q3 profit estimates, raises full-year profit forecast

ITT said on Nov. 4 that third-quarter adjusted earnings per share rose 20% to $2.26, topping the $2.10 consensus estimate. Revenue of $1.44 billion was in line with the $1.43 billion consensus estimate.

The results were driven by the SPX FLOW acquisition, which contributed 35 points of revenue growth. Organic revenue rose 8%, led by aerospace and defense connectors and pump projects.

Here's how the company did:

• Adjusted EPS: $2.26 vs. $1.89 a year earlier, against a $2.10 consensus estimate
• Revenue: $1.44 billion vs. $999.1 million a year earlier, in line with the $1.43 billion consensus estimate
• Diluted EPS: $1.38 vs. $1.62 a year earlier

Diluted earnings per share fell 15% to $1.38, due to acquisition-related costs. Operating income rose 26% to $227 million, with the legacy business and SPX FLOW both contributing, partly offset by acquisition-related costs.

Adjusted operating income rose 55% to $303.1 million. The company said the increase reflected the SPX FLOW contribution as well as volume, pricing and productivity actions across the portfolio.

Operating margin fell 230 basis points to 15.7%, reflecting acquisition-related intangible amortization and costs. Adjusted operating margin rose 140 basis points to 21.0%.

Net cash from operating activities rose 80% to $313 million. Free cash flow rose 87% to $288.4 million, which the company attributed to strong quarterly operating performance and the SPX FLOW acquisition, partly offset by higher interest.

Revenue has risen in each of the last three quarters, from $999.1 million in the third quarter of 2025 to $1.47 billion in the second quarter of fiscal 2026, according to its SEC filings.

"ITTers around the world delivered yet another strong quarter as they executed relentlessly across the business," said ITT's Chief Executive Officer and President Luca Savi. He said the acquisitions were enhancing the strength of the portfolio, and that SPX FLOW was delivering high-single-digit growth and capturing cost synergies ahead of schedule.

ITT reports three segments: Flow Technologies, Motion Technologies and Connect & Control Technologies.

Segment results

Flow Technologies revenue rose $380 million to $764.3 million, up 99.1%, with organic growth of 6%. Its adjusted operating income rose 96% to $171.6 million, reflecting the SPX FLOW contribution, higher volume and pricing actions.

Motion Technologies revenue rose $8 million to $363.7 million, with organic growth of 1.8%. Its operating income was $75.0 million, up 7.4%, and its operating margin rose 100 basis points to 20.6%.

Connect & Control Technologies revenue rose 21.1% to $313.9 million, with organic growth of 18.6%. Its operating income rose 39.2% to $64.3 million, helped by pricing, volume and net productivity.

2026 guidance

ITT now expects adjusted EPS of $8.54 to $8.62 for the full year. In its previous results release on Aug. 6, it gave a range of $8.12 to $8.32.

Reported EPS is now expected to be $4.65 to $4.73, up from the $4.47 to $4.67 range it gave on Aug. 6.

The company now expects organic revenue growth of 7% to 9%, up from the 5% to 8% range it gave in August. Total revenue growth is now expected to be 41% to 43%, from 38% to 41%.

Operating margin is expected between 13.3% and 14.1%, and adjusted operating margin between 20.2% and 21.0%. Free cash flow is now expected to be $600 million to $620 million, up from the $550 million to $580 million range given in August.

Dividend and leadership change

ITT's board approved a quarterly dividend of 38.6 cents per share for the fourth quarter of 2026. It is payable Dec. 31 to shareholders of record as of Dec. 4.

Davide Barbon, currently Senior Vice President and President, Motion Technologies, will assume leadership of Connect & Control Technologies, effective immediately. Motion Technologies and Connect & Control Technologies will remain separate reportable segments.

"Davide is a proven leader and disciplined operator with a strong track record of delivering results," said Savi.

ITT will host a conference call for investors on Nov. 5 at 8:30 a.m. Eastern Time, with a webcast available on the company's investor website.