ITT shares slipped 0.5% to $203.91 at the latest close. That looks almost uneventful beside the headline from its latest filing: revenue jumped 51.5% in the three months ended July 4, to $1.5B.
The acquisition of SPX FLOW supplied much of the scale. The harder part is what happened after the sales landed. Gross profit rose 45.4% to $510.1M, but operating income increased only 3.0%, to $180.3M. Net income fell 29.8% to $84.9M.
ITT gives the main accounting receipt plainly: incremental volume and pricing helped, but the deal added $51.0M of intangible amortization expense. That is the charge for acquired assets being written down over time, and it consumed most of the operating-profit growth created by the larger business.
"Operating income of $180.3 increased by $5.2, or 3.0%, primarily due to incremental volume and pricing actions partially offset by an increased intangible amortization expense of $51.0 related to SPX FLOW."
10-Q, filed August 6, 2026
The result was a 5.8 percentage-point drop in operating margin, from 18.0% to 12.2%. Revenue got much bigger; the slice left after operating costs got smaller.
The acquisition also changed the financing math. ITT used more long-term debt and commercial paper to fund SPX FLOW, and interest expense rose sharply from the comparable three-month period.
"Interest expense for the three and six months ended July 4, 2026 increased by or $37.1, or 294.4%, and $52.6, or 240.2%, respectively, due to higher outstanding long-term debt and commercial paper balances during 2026, primarily stemming from the financing of the SPX FLOW acquisition."
10-Q, filed August 6, 2026
That expense sat below operating income, helping push net margin down to 5.8% from 12.4%. The balance sheet held $590.8M of cash, but six-month net cash from continuing operations was negative $1.15B, versus positive $29.0M a year earlier. The company attributed the operating-cash decline to acquisition transaction expenses, higher interest and tax payments, and working-capital timing, including customer payments.
The physical business is not standing still. Organic revenue rose 20.7% in the three months, with pump projects up 45% on energy demand. But inventory rose 41.5% to $932.3M, a separate working-capital fact the filing does not explain beyond its broader reference to timing.
That puts the filing's central tension in sharper focus: the acquired sales are arriving alongside real organic growth, while amortization, financing costs, and inventory make the earnings and cash contribution harder to read. ITT's own annual results had reached a 17.4% operating margin in 2025, giving the latest 12.2% margin a useful historical reference without resolving the acquisition accounting.
The next reported comparison that matters is whether operating income can move beyond the latest $180.3M as SPX FLOW's amortization and financing costs remain in the numbers. Source: ITT 10-Q filed August 6, 2026, for the three months ended July 4, 2026; operating income $180.3M.