ITT Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue increased 44% year-over-year to $1.44 billion, with organic growth of 8%; SPX FLOW contributed 35 percentage points to growth.
• Operating income increased 26% to $226.8 million; operating margin decreased 230 basis points to 15.7% due to acquisition-related intangible amortization and costs.
• Adjusted operating income increased 55% to $303.1 million; adjusted operating margin increased 140 basis points to 21.0%.
• Reported EPS decreased 15% to $1.38 due to acquisition-related costs; adjusted EPS increased 20% to $2.26.
• Net cash from operating activities increased 80% to $312.5 million; free cash flow increased 87% to $288.4 million.
• Total assets grew to $10.85 billion as of October 3, 2026, from $6.31 billion at December 31, 2025, driven by the acquisition.
• Short-term borrowings increased to $707.3 million from $261.3 million; non-current long-term debt increased to $2.81 billion from $521.5 million.
• Goodwill increased to $3.85 billion from $1.51 billion; other intangible assets increased to $2.96 billion from $432.6 million.

Guidance and Future Outlook:

• Full-year 2026 organic revenue growth guidance raised to 7% to 9%; total revenue growth guidance raised to 41% to 43%.
• Full-year 2026 operating margin guidance set between 13.3% and 14.1%; adjusted operating margin guidance set between 20.2% and 21.0%.
• Full-year 2026 EPS guidance raised to $4.65 to $4.73; adjusted EPS guidance raised to $8.54 to $8.62.
• Full-year 2026 free cash flow guidance set between $600 million and $620 million, representing a free cash flow margin of approximately 11%.
• Management expects to continue driving growth and margin expansion in the coming year with a healthy backlog and orders momentum.

Business Segments and Product Lines:

• Flow Technologies (FT): Revenue increased 99.1% to $764.3 million (organic +6.0%); operating margin was 13.7% (adjusted margin 22.4%). Growth driven by SPX FLOW contribution and strength in energy and biopharma.
• Motion Technologies (MT): Revenue increased 2.3% to $363.7 million (organic +1.8%); operating margin increased 100 basis points to 20.6% (adjusted margin 21.0%). Growth driven by Friction and KONI defense.
• Connect & Control Technologies (CCT): Revenue increased 21.1% to $313.9 million (organic +18.6%); operating margin improved 270 basis points to 20.5% (adjusted margin 22.0%). Growth driven by pricing actions, defense wins, and aerospace components.
• Orders increased 58% to $1.56 billion, with 20% organic growth driven by SPX FLOW, aerospace and defense, flow projects, and biopharma.

Market and Competitive Landscape:

• Management reported winning in the market with strength across aerospace and defense connectors, pump projects, and valves.
• SPX FLOW is executing with discipline and speed, delivering high-single-digit growth and capturing cost synergies ahead of schedule.
• Revenue synergies are being unlocked by leveraging expanded capabilities, global reach, and customer relationships.

Risks and Challenges:

• Risks include the ability to successfully integrate SPX FLOW operations within expected timeframes and realizing projected synergies.
• Exposure to uncertain global economic conditions, geopolitical tensions, inflation, and potential trade disputes or tariffs.
• Fluctuations in interest rates, foreign currency exchange rates, and raw material prices (steel, oil, copper, tin).
• Risks related to cybersecurity breaches, product liability claims, and failure to protect intellectual property.
• Potential impacts from government contracting changes, environmental laws, and compliance with anti-corruption legislation.

Management Commentary and Tone:

• CEO Luca Savi stated that ITTers delivered a strong quarter with relentless execution and that acquisitions are enhancing portfolio strength and compounding long-term value.
• Management highlighted the successful integration of SPX FLOW, noting cost synergies are ahead of schedule and revenue synergies are being unlocked.
• The tone is confident regarding the company's position to drive growth and margin expansion next year.

Other Key Points:

• Acquisition: The SPX FLOW acquisition contributed significantly to Q3 results, with $357.3 million in revenue and $362.0 million in orders included in the total.
• Dividend: The Board of Directors approved a quarterly dividend of $0.386 per share, payable December 31, 2026, to shareholders of record as of December 4, 2026.
• Leadership Change: Davide Barbon, formerly President of Motion Technologies, assumed leadership of Connect & Control Technologies effective immediately.
• Share Repurchases: $155.0 million was spent on share repurchases during the nine months ended October 3, 2026.
• Capital Expenditures: Capital expenditures were $84.2 million for the nine months ended October 3, 2026.
• Equity Value: The equity value of common stock issued to acquire SPX FLOW was $777.2 million.