ITT Inc. reported a 51% year-over-year increase in second-quarter revenue to $1.5 billion, with adjusted earnings per share rising 18% to $2.08. Organic growth stood at 13%, supported by significant order inflows in the defense sector and the initial contribution from the SPX Flow acquisition.

The company’s Connectors and Controls (CCT) segment was a primary driver, with organic orders growing 59%. This surge was fueled by large multi-year bookings in the kSARIA business for mission-critical platforms, including advanced night vision and fighter jet programs. The segment’s operating margin expanded 100 basis points to 21.7%, reflecting higher volumes and pricing benefits.

Segment Performance and Margins

Revenue growth was broad-based across ITT’s portfolio. The Motion Technologies segment saw organic revenue growth of 6%, with margins expanding 90 basis points to 21.1% due to net productivity gains. Flow Technologies delivered 21% organic revenue growth, although total segment margins were diluted by the full-quarter inclusion of SPX Flow.

The SPX Flow acquisition contributed positively to top-line growth, with revenue up 5% in the quarter and orders growing 9%. Management noted that integration synergies are progressing ahead of plan, supporting margin expansion expectations for the remainder of the fiscal year.

Capital Allocation and Guidance

ITT prioritized debt repayment during the quarter, paying down $124 million and reducing its leverage ratio to 2.5 times, six months ahead of its original commitment. The company also deployed capital to acquire Aerospace Contacts, a strategic move to secure supply chain resilience for high-precision contacts used in aerospace and defense applications.

Following the strong first-half performance, ITT raised its full-year FY26 guidance. The company now expects organic revenue growth between 5% and 8%, adjusted EPS of $8.22 at the midpoint, and a free cash flow margin of 10% to 11%. The revised EPS outlook represents a $0.37 increase from previous guidance, reflecting sustained operational momentum.

What the Numbers Show

A divergence exists between the reported free cash flow and underlying operational cash generation. While year-to-date free cash flow was $176 million, this figure includes $71 million in one-time acquisition-related expenses. Excluding these non-recurring costs, free cash flow grew 15% year-over-year, indicating that core cash conversion remains robust despite the accounting drag from M&A activities. Additionally, the CCT segment’s book-to-bill ratio of 1.4 signals strong future revenue visibility, particularly given the long-term nature of the defense contracts secured.

A $1,000 investment in ITT Inc. (NYSE: ITT) made 10 years ago is now worth $6,035.00. This represents an average annual return of 19.65% for the industrial manufacturer.

The company’s performance has exceeded the broader market by 6.02% on an annualized basis over the same period. As of the time of writing, ITT trades at a price of $208.63 per share, with a total market capitalization of $18.65 billion.

Long-term compounding effect

The data highlights the impact of compounded returns on equity investments over a decade. The significant growth in value from the initial principal demonstrates how consistent annual gains accumulate over time.

What the numbers show

The divergence between ITT’s 19.65% average annual return and its 6.02% annualized outperformance against the market indicates that the benchmark index itself delivered a positive return during this period. Specifically, the market’s average annual return was approximately 13.63%, meaning ITT’s absolute gain was driven by both sector strength and relative alpha.