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ITT reported Q3 revenue of $1.4 billion, exceeding the consensus by 2.33%, while adjusted earnings of $2.26 per share exceeded the $2.07 consensus estimate. Revenue rose 44.2% from $999.1 million a year earlier, with acquisitions contributing to the increase.
The filing said organic revenue grew 7.60%, with growth in each segment. Connect & Control Technologies benefited from demand for connectors in commercial aerospace and defense, while Flow Technologies grew through pump projects and valves. Motion Technologies also reported organic growth.
ITT reported diluted earnings of $1.38 per share, down from $1.62 a year earlier. The filing attributed the decline primarily to increased intangible amortization and interest expenses, while adjusted earnings rose on higher adjusted operating income. Operating margin was 15.7%, and free cash flow rose to $283.5 million from $146.2 million a year earlier.
| Q3 FY2026 | Q3 FY2025 | Change | |
|---|---|---|---|
| Revenue | $1.4 billion | $999.1 million | 44.2% |
| Diluted EPS | $1.38 | $1.62 | −14.8% |
| Gross margin | 35.4% | 35.1% | 0.3 percentage points |
| Operating margin | 12.5% | 17.5% | −5.0 percentage points |
| Free cash flow | $283.5 million | $146.2 million | 93.9% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $2.26 | $2.07 | Beat by 9.18% |
| Revenue | $1.4 billion | $1.4 billion | Beat by 2.33% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
CEO Luca Savi said demand was broad across Connect & Control Technologies, with Q3 organic orders up 55.0% on aerospace demand and defense share gains. Asked how orders would translate into revenue, he said the segment’s backlog for Q4 and 2027 was more than 30.0% higher than at the same point a year earlier. Savi also said Flow Technologies’ organic orders grew 11.0%, supported by oil and gas, marine energy-transition and biopharma activity.
On SPX FLOW, Savi said nutrition and health growth had helped offset challenges in industrial pumps. He said ITT was working to expand the mixers aftermarket and localize pump assembly in China and the Middle East, while resizing European operations to reflect demand. Cost savings from the acquisition were ahead of the company’s target, he said, with procurement and supply-chain actions underway.
Asked about pricing, Savi said Flow Technologies and Connect & Control Technologies were seeing positive price-cost dynamics, while Motion Technologies faced customer pricing pressure. He said productivity had helped lift Motion Technologies’ margin to 21.0%, which he described as its new floor. Savi also reaffirmed a 23.0% margin target for the segment by 2030, citing plant productivity and new product formulations.
Savi said ITT was investing in machinery and capacity to support connector growth, including at Aerospace Contacts, acquired during the quarter. Asked about Connect & Control Technologies’ longer-term aspirations, he said investors would have to wait until the next capital markets day. For Q4, he cautioned that the quarter would have fewer working days than a year earlier and that some automotive manufacturers might shut down earlier in December.
Guidance
ITT raised its FY2026 organic revenue growth outlook to 7.00%–9.00% and its total revenue growth outlook to 41.0%–43.0%. Interim CFO Mike Savinelli said the company also raised its adjusted earnings outlook to $8.58 per share at the midpoint; ITT’s range is $8.54–$8.62.
Savinelli said ITT expects adjusted operating margin of approximately 20.6% at the midpoint and raised its free cash flow midpoint to $610.0 million. ITT’s free cash flow range is $600.0 million–$620.0 million.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Backlog, Flow Technologies Middle East | FY2026 | ITT expects its Middle East backlog to be lower at the end of FY2026. | — | — |
| Backlog, Flow Technologies Legacy | FY2026 | ITT expects its legacy Flow Technologies backlog to end FY2026 higher than a year earlier. | — | — |
| Revenue, Motion Technologies | FY2027 | ITT expects Motion Technologies to outperform its market in FY2027 by a similar amount to FY2026. | — | — |
| Operating margin, Motion Technologies | FY2030 | 23.0% | — | New |
| Revenue, Organic | Q4 FY2026 | ITT expects Q4 FY2026 organic revenue growth to be broadly aligned with Q3. | — | — |
| Revenue growth, Saudi Pumps | FY2026 | 20.0% | — | New |
| Free cash flow | FY2026 | $610.0 million | $550.0 million–$580.0 million | Raised |
| EPS, non-GAAP | FY2026 | $8.58 | $8.12–$8.32 | Raised |
| Operating margin, non-GAAP | FY2026 | 20.6% | 20.0%–20.9% | Raised |
| Revenue growth, Organic | FY2026 | 7.00%–9.00% | 5.00%–8.00% | Raised |
| Debt, Leverage Ratio | FY2026 | 2.1× | — | — |
| Revenue, Spx Flow | FY2026 | ITT expects SPX Flow revenue to grow by high single digits in FY2026. | — | — |
| EPS, GAAP | FY2026 | $4.65–$4.73 | $4.47–$4.67 | Raised |
| Operating margin, GAAP | FY2026 | 13.3%–14.1% | 12.8%–13.7% | Raised |
| Revenue growth | FY2026 | 41.0%–43.0% | 38.0%–41.0% | Raised |