ITT (ITT) Q1 2026 earnings summary

Executive summary

• Q1 revenue reached $1.212 billion, up 33% year-over-year (11% organic), with all segments contributing and strong performance in Flow Technologies (61% revenue growth, 12% organic) and CCT (17% organic growth).

• Adjusted EPS rose 25% to $1.98, while reported EPS fell to $0.89 due to acquisition-related costs and higher interest expense.

• SPX FLOW acquisition closed ahead of schedule, contributed 17 points to revenue growth, and was immediately accretive on an adjusted basis.

• Orders grew 26% (8% organic), with a book-to-bill ratio of 1.09 and a $2.5B backlog.

• Adjusted operating income increased 42% to $245.6 million, while reported operating income declined 6% due to acquisition costs.

Financial highlights

• Gross profit increased 32.7% to $428.8 million, with gross margin steady at 35.4%.

• Adjusted operating margin expanded 130 bps to 20.3%, while reported margin fell 480 bps to 11.7% due to acquisition and restructuring costs.

• Free cash flow was $14 million, impacted by $71 million in one-time acquisition expenses; excluding these, free cash flow rose 10% year-over-year.

• Interest expense rose 165.6% to $24.7 million, reflecting higher debt from the SPX FLOW acquisition.

• Net income attributable to shareholders was $78.0 million, down 28% year-over-year, with reported EPS of $0.89.

Outlook and guidance

• Full-year 2026 adjusted EPS guidance is $7.70–$8.00, up 9% at midpoint; reported EPS guidance is $4.15–$4.45, down 30% due to acquisition impacts.

• Revenue expected to grow 36–38% (4–6% organic) for the year, with book-to-bill above one.

• Adjusted operating margin guidance of 19.7–20.6%, up 30–120 bps.

• Free cash flow guidance of $540–$580 million, with margin between 10% and 11%.

• SPX FLOW expected to deliver high single-digit revenue growth and low teens net adjusted EPS accretion in 2026.