ITT Q3 2026 Earnings: SPX FLOW Drives 44% Revenue Growth

ITT Inc. (NYSE: ITT) reported Q3 2026 revenue of $1.44 billion, up 44.2% year over year, while diluted GAAP EPS fell 14.8% to $1.38 from $1.62. SPX FLOW drove most of the reported revenue expansion, while acquisition-related costs weighed on GAAP profitability; adjusted EPS rose 19.6% and quarterly free cash flow increased 87.0%.

Core Earnings Results

For the quarter ended October 3, 2026, SPX FLOW contributed 35 percentage points of revenue growth, while organic revenue increased 7.6%. Organic gains were led by aerospace and defense connectors in Connect & Control Technologies, along with pump projects and valves in Flow Technologies.

Reported and adjusted profitability moved in different directions. Acquisition-related amortization and costs reduced the GAAP operating margin, while higher volume, pricing and productivity helped lift adjusted operating income and margin.

Higher material and labor costs remained a headwind, but the benefits of SPX FLOW, increased volume, pricing and productivity more than offset those pressures on an adjusted basis.

Business and Segment Performance

Flow Technologies accounted for most of the acquisition-led expansion, while Connect & Control Technologies delivered the highest organic growth and the largest reported margin improvement. Motion Technologies grew more slowly but expanded its operating margin.

Segment revenue excludes $1.3 million of intercompany eliminations and other items.

Flow Technologies benefited from SPX FLOW and organic strength in energy and biopharma. Operating income increased 27.5%, but acquisition-related effects reduced its reported margin by 770 basis points. Its adjusted margin declined 40 basis points year over year while improving 100 basis points sequentially.

Motion Technologies benefited from growth in Friction and strength in KONI defense. Higher productivity and volume lifted operating income 7.4%, faster than its 2.3% revenue growth.

Connect & Control Technologies was the clearest organic growth driver. Pricing, defense wins, industrial connectors and aerospace components supported 18.6% organic growth, while pricing, volume and productivity lifted operating income 39.2%. Higher strategic investment partially offset those gains.

Acquisition Costs Offset Gross Margin Gains in GAAP Results

ITT’s gross margin was approximately 38.2%, up from about 35.9% a year earlier, based on reported gross profit and revenue. That improvement did not carry through to the GAAP operating margin because intangible amortization increased to $61.2 million from $11.1 million, alongside other acquisition-related costs.

The acquisition also affected results below operating income. Interest expense rose to $45.0 million from $11.7 million, while diluted weighted-average shares increased to 89.8 million from 78.4 million. These factors help explain why GAAP EPS declined even as adjusted operating income and adjusted EPS increased.

Profitability, Cash Flow and the Balance Sheet

Quarterly operating cash flow rose 79.6% to $312.5 million, and free cash flow increased 87.0% to $288.4 million. ITT attributed the improvement primarily to quarterly operating performance and the addition of SPX FLOW, partly offset by higher interest expense.

The balance sheet changed substantially following the acquisition. Cash and equivalents stood at $558.1 million on October 3, down from $1.74 billion at the end of 2025, while combined short- and long-term borrowings increased to approximately $3.51 billion from $782.8 million. During the first nine months of 2026, ITT recorded $3.57 billion of cash acquisition spending and issued common stock with an equity value of $777.2 million for the SPX FLOW transaction.

The larger debt balance makes sustained cash generation and the timely realization of acquisition synergies increasingly important to the company’s financial profile.

2026 Guidance

Based on year-to-date commercial and operational performance, ITT raised its full-year outlook across its key metrics. The release provided the updated ranges but did not quantify the previous guidance ranges.

The adjusted operating margin outlook represents year-over-year expansion of 80 to 160 basis points. Adjusted EPS is expected to grow 19% to 20%, while the free cash flow guidance implies a full-year margin of approximately 11%.

Management View

CEO and President Luca Savi said SPX FLOW was delivering high-single-digit growth and that cost synergies were being captured ahead of schedule. Management also reported progress on revenue synergies through ITT’s expanded capabilities, geographic reach and customer relationships.

Orders increased 58% on a reported basis and 20% organically, supported by the acquisition and demand in aerospace and defense, flow projects and biopharma. Management pointed to that order momentum and a healthy backlog as support for continued growth and margin expansion.

Recent Insider Transactions

The supplied insider data shows 25,521 shares purchased across 22 transactions and 8,023 shares sold across three transactions over the preceding six months, resulting in net purchases of 17,498 shares. Among the latest reports, the two priced purchase or sale transactions were as follows.

Other recent entries among the supplied transactions were zero-price stock grants to directors. These transactions do not by themselves establish insiders’ views on the company’s outlook.

Risks Investors Need to Watch

• SPX FLOW integration: The acquisition contributed 35 percentage points of quarterly revenue growth. Delays in integration or failure to realize expected cost and revenue synergies could affect future growth, margins and cash generation.
• Acquisition-related financing and accounting costs: Higher amortization, interest expense and share count already created a gap between GAAP and adjusted earnings. The increased debt balance could keep financing costs elevated.
• Flow Technologies margin recovery: The segment’s reported operating margin declined 770 basis points and its adjusted margin fell 40 basis points. Progress on integration and productivity will be important for converting its larger revenue base into improved profitability.
• Material, labor and trade costs: Higher material and labor expenses affected the quarter, while tariffs, commodity volatility and supply-chain disruption could add further cost pressure or weaken customer demand.

Summary

ITT’s Q3 2026 results reflected acquisition-led scale, solid organic growth and improved adjusted profitability and cash flow. SPX FLOW and Connect & Control Technologies drove the expansion, but acquisition amortization, financing costs and a higher share count pressured GAAP margins and EPS. The main issues to monitor are SPX FLOW integration, Flow Technologies margin recovery, cash generation and management of the larger debt burden.