ITT beats Q3 EPS forecast and raises full-year guidance
Management says cost savings from the SPX FLOW acquisition are arriving ahead of schedule, and lifts its 2026 free cash flow target to $600m to $620m.
ITT reported third-quarter earnings of $2.26 a share after the US market closed on Wednesday, $0.16 more than expected. Revenue of $1.44B edged past the $1.43B forecast.
The raised guidance matters more than the beat. ITT lifted its 2026 adjusted EPS guidance to $8.54 to $8.62 and its GAAP EPS guidance to $4.65 to $4.73. It also raised its free cash flow guidance to $600m to $620m. These are management's own forecasts, but a raise on profit, revenue and cash together is harder to dismiss than one quarter's beat.
On revenue, ITT now expects growth of 41% to 43% for the year. That figure counts acquired sales. Organic growth, which strips out acquisitions, is expected at 7% to 9%.
Chief Executive Luca Savi said the integration is delivering high-single-digit growth and cost savings ahead of schedule. He said backlog and orders support continued growth and margin expansion next year.
That looks like an answer to the question that has hung over the deal since it closed: can buying SPX FLOW lift margins without weighing on ITT's existing industrial business? The higher cash and revenue targets suggest it can.
ITT also declared a quarterly dividend of $0.386 per share. It is payable on December 31 to shareholders of record on December 4.
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