Engineered components manufacturer for critical industries ITT Inc. (NYSE: ITT) reported revenue ahead of Wall Street’s expectations in Q2 CY2026, with sales up 51.5% year on year to $1.47 billion. Its non-GAAP profit of $2.08 per share was 6.9% above analysts’ consensus estimates.

Is now the time to buy ITT? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

ITT’s second quarter results were received positively by the market, driven by substantial year-over-year top-line growth and contributions from recent acquisitions. Management attributed the strong performance to robust organic order momentum, especially in the Connectors, Controls & Test (CCT) segment, and successful integration of SPX FLOW. CEO Luca Savi highlighted the role of large defense contracts through the kSARIA business and noted that backlog visibility has improved significantly. The Flow Technologies and Motion Technologies segments also contributed, with management pointing to market share gains in regions like China and across multiple end markets.

Looking ahead, management raised its full-year non-GAAP earnings outlook, citing continued strength in CCT, execution of cost synergies from SPX FLOW, and productivity initiatives across the business. Savi stated that margin expansion efforts will be supported by improving price-to-cost ratios and operational efficiencies, while also noting potential headwinds from delayed orders in the Middle East. Interim CFO Michael Savinelli emphasized the company’s focus on debt reduction and the expectation that recent acquisitions will compound organic value creation through enhanced market exposure and operational improvements.

Key Insights from Management’s Remarks

Management credited Q2’s outperformance to high-value defense orders, regional expansion, and the initial impacts of recent acquisitions, but noted margin dilution due to the integration of SPX FLOW.

• Defense orders boost CCT: The CCT segment saw exceptional organic order growth, led by kSARIA’s multi-year defense platform wins, resulting in a 168% increase in orders and a robust backlog for the coming quarters.
• Connector strength in global markets: Industrial connectors achieved record orders, with growth across North America, Europe, and Asia, as ITT capitalized on market share gains and expansion efforts.
• Motion Technologies outperforms market: Despite a challenging macro environment, Motion Technologies secured new platform awards and outpaced global vehicle production, particularly in Europe and China, contributing to revenue and margin stability.
• SPX FLOW integration impacts margins: The addition of SPX FLOW significantly increased Flow Technologies revenue but diluted segment margins due to integration costs. Management expects margin improvement as cost synergies are realized in the second half of the year.
• Strategic capital allocation: ITT prioritized debt repayment, reducing leverage ahead of schedule, while also investing in targeted bolt-on acquisitions such as Aerospace Contacts to secure supply chains and support growth in connectors and aerospace.

Drivers of Future Performance

ITT’s outlook is shaped by ongoing acquisition integration, margin expansion efforts, and a focus on operational execution amid some regional order volatility.

• Acquisition synergy realization: Management expects further margin expansion as cost and revenue synergies from SPX FLOW and other recent acquisitions ramp up, particularly in Flow Technologies and Nutrition & Health, where cross-selling opportunities and local market adaptation are being pursued.
• Order backlog and market share: Strong backlogs in CCT and Flow Technologies provide short- and medium-term visibility, with large multi-year defense and infrastructure projects supporting growth through 2027 and beyond. Management highlighted that the business mix is shifting toward longer-cycle contracts, increasing predictability.
• Regional and segment headwinds: While North America and China continue to show strength, delayed orders in the Middle East could impact short-term growth. Management also noted that Motion Technologies faces ongoing cost inflation, though price/cost dynamics remain slightly positive at the group level.

Catalysts in Upcoming Quarters

In future quarters, the StockStory team will watch (1) the pace of synergy capture and resulting margin improvement from the SPX FLOW integration, (2) order trends in key growth regions such as China and North America, and (3) the ability to offset Middle East order delays with growth in other end markets. Execution on cross-selling initiatives and progress in reducing leverage will also be important indicators of continued value creation.

ITT currently trades at $214.48, up from $204.20 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).

Now Could Be The Perfect Time To Invest In These Stocks

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.

Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.