ITT Eyes Growth as SPX FLOW Synergies Outpace Plan, Defense Demand Surges

SPX FLOW integration is ahead of plan: ITT expects to exceed its $80 million run-rate cost-synergy target by the end of the acquisition’s third year, with early savings driven mainly by lower general and administrative costs. SPX FLOW has also delivered high-single-digit revenue and order growth.

Defense demand is accelerating: ITT reported second-quarter defense revenue growth of 16% and orders growth of nearly 60%, supported by business across aircraft, submarines, naval systems, vehicles, soldier modernization and missile platforms.

Growth remains broad but uneven: ITT sees opportunities in aerospace, rail, automotive, chemicals and energy, while European chemicals and near-term Middle East oil-and-gas orders remain softer. The company is continuing to invest in capacity, product development and distribution while seeking a new CFO by year-end.

ITT NYSE: ITT CEO and President Luca Savi outlined the company’s growth priorities, market conditions and integration plans for SPX FLOW during an investor discussion hosted by D.A. Davidson Senior Research Analyst Matt Summerville. Savi described ITT as a diversified engineering company that designs and manufactures components for demanding applications across rail, automotive, aerospace and defense, oil and gas, energy transition, chemical processing, mining and general industrial markets. Following the SPX FLOW acquisition, ITT’s revenue exceeds $5 billion, he said.

The company has delivered 7% organic revenue growth and 16% earnings-per-share compound annual growth over the past three years, according to Savi. He attributed much of the revenue growth to market-share gains rather than favorable underlying market conditions. Looking forward, he said ITT expects both organic and inorganic value creation, including revenue growth, margin expansion and acquisitions.

Savi said market conditions have begun to improve in certain Flow Technologies end markets. Chemical-market trends have turned more positive in North America over the past two quarters, though European chemicals remain weak, he said. In oil and gas, ITT’s Middle East revenue grew substantially in the first six to nine months of the year as the company fulfilled a strong backlog built through prior order wins. However, Savi said orders in the region have shifted to the right, creating a near-term headwind. Saudi Aramco has begun placing orders with engineering, procurement and construction firms, including for the Jafurah 4 project, and ITT is negotiating pump orders with an EPC contractor, he said. Savi also cited demand opportunities in North America, Latin America and Venezuela. ITT’s Bornemann Pumps business has a large installed base in Venezuela, where the company has retained employees despite years of limited activity. He said ITT has received orders since October 2025 from Chevron, PDVSA and other permitted participants for refurbishment and spare-parts work. Svanehøj, ITT’s cryogenic marine-pump business acquired in January 2024, recorded 30% growth and a 1.3 book-to-bill ratio, Savi said. He attributed its performance to both favorable market conditions and market-share gains. While Savi called Flow Technologies’ 21% second-quarter organic growth “exceptional,” he said the company expects continued year-over-year growth at a lower level. ITT expects 2026 growth to be supported by a book-to-bill ratio above one and year-end backlog higher than at the end of December 2025.

SPX FLOW integration ahead on cost synergies