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Achieved 33% total revenue growth and 11% organic expansion, driven by market share gains in industrial connectors and friction outperformance.
Flow Technologies revenue surged 61% following the early closure of the SPX FLOW acquisition, which contributed immediate net earnings accretion.
Friction business outperformed global automotive production by over 1,400 basis points, reaching a 32% global OE market share despite a down market.
CCT segment growth of 17% was bolstered by aerospace and defense demand and the realization of benefits from the Boeing contract renewal.
Operating margin expanded 130 basis points to 21.1% as productivity gains and volume growth successfully offset pricing pressures.
Management attributed the strong start to disciplined execution and the tangible benefits of a long-cultivated M&A strategy.
Full-year adjusted EPS guidance initiated at $7.70 to $8.00, assuming 37% total revenue growth and 5% organic growth at the midpoint.
SPX FLOW is expected to deliver low-teens net adjusted EPS accretion in 2026 and is on track to deliver one-third of the total $80 million in cost synergies during the first year of the acquisition.
Management targets a book-to-bill ratio above 1 for the full year, supported by a healthy project funnel particularly in North America.
Guidance assumes continued friction outperformance of 500 to 700 basis points and high single-digit organic growth in CCT and Flow segments.
Strategic investments will continue in long-term programs including defense modernization (F-35, RSS) and high-performance friction segments.
The SPX FLOW acquisition closed one month ahead of schedule on March 2, with a leverage ratio of 2.7.
Middle East exposure remains limited at 4% of total revenue, with minimal Q1 impact despite ongoing regional conflict and supply chain disruptions.
Free cash flow of $14 million was impacted by $71 million in one-time acquisition-related expenses; normalized cash flow rose 10%.
CFO Emmanuel Caprais will step down in June after almost 14 years with the company, with Mike Samineli appointed as interim CFO.
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Management expressed positive surprise regarding the high level of employee engagement on the shop floor and the potential for revenue synergies.
Identified immediate opportunities to cross-sell Bornemann twin screw pumps through the Waukesha Cherry-Burrell network.
The four extra selling days in Q1 contributed approximately 5 points of revenue growth and slightly less than $0.10 to EPS.
The 4 additional working days in Q1 will be reabsorbed in Q4, and EPS for Q2, Q3, and Q4 is expected to be around $1.90 to $1.95 per quarter.
Despite the large SPX FLOW deal, ITT maintains the financial and management capacity to pursue small, actionable bolt-on acquisitions.
Specific business units like Habonim were noted as having the bandwidth to integrate new assets without distraction from the larger integration.
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