step up in performance in Q2. And for the balance of the year for the second half, we expect to remain at that elevated level of performance. And then looking at each value center for MotionTech, we expect some seasonality in the second half, expecting stable margins. For CCT, we're expecting consistent revenue and margin similar to Q2. and FT's margin expansion we expect to expand from synergies.

And talking about the orders, Mike, I think that different picture. If you think about CCT, as I said, incredible performance of the orders. There are some long-term programs that gives us fantastic visibility in the future. But as I said, in the short term, our backlog is incredibly up for also the next few quarters. So very good visibility there. When you look at Flow Technologies, the orders, you know, up, of course, 91% in total. But if I look at the book-to-bill, Zvanoi book-to-bill is 1.3. Just to give you an example. So if you have a business like this, which is growing 39% in Q2, on top of that, you've got a book-to-bill of 1.3 and you're building backlog. This is visibility in the short, medium term. The SPX Flow, the revenue is up 5% and the book to bill is 1.13. So we are building backlog for the medium term. And then when you go to Motion Technologies, we are winning more and more awards that will feed market share gains. And then KONI orders were also up 9% thanks to Rail and Defense. So great visibility for the long term, but also in the short and medium.

That makes sense. Appreciate that. And then if you just state the union on the legacy flow assets, what you're seeing on a regional basis, maybe specific emphasis on directional dynamics in the Middle East and what you're seeing in terms of project outlays.

Of course. So let me address the Middle East first, and then we talk about the other regions. When you look at about the Middle East, I know that this might sound strange, but our business in the Middle East has been growing for the first six months incredibly well. And this is because of all the orders that we won in the last couple of years that we are delivering. We had a huge backlog, and we are delivering this backlog. So huge growth from a revenue perspective in Q1 and Q2. The orders in the Middle East have been delayed, and this probably will impact the regional growth in Saudi Arabia and in the Middle East when it comes to the next few quarters. Now, what we have seen is that some of the orders are being now given to the EPCs. So we have started seeing some moves in terms of the orders, which is good. The other thing that I want to highlight on the Middle East is Habonim performance. Despite the fact that they are in the middle of it, Habonim has an incredible performance with orders up 18% in the quarter, revenue up 19%. Here to date, both orders and revenue up double digit and the book to build above one. So great over there. Now, if you look at the funnel, the funnel is increasing year over year. As a matter of fact, the funnel is up 34% year over year and 6% sequentially. When you look at the region, your question, North America, Latin America, and interesting Middle East are up. Forget about the Middle East funnel up because mainly that is because the orders get delayed. But North America and Latin America funnel up highlights the strength of those regions because revenue is growing book to bill above one. So your orders are growing even more. And on top of that, your funnel is growing. So you're replenishing at a faster rate. So whereas Europe and Asia Pacific funnels are down a little bit.

That was great. Really appreciate it. Congrats on the quarter.

Thank you.

Our next question comes from Daniel DiCicco with BMO Capital Markets.

Great. Thank you for taking my question. How are you? Good. How are you? Good. Good. So it looks like you're winning share literally everywhere.

So I guess, you know, we've talked about some of the drivers, but maybe where do you see the most

Thank you very much.

We increased market share you see on the growth with a 21% revenue growth in flow technologies organic. You know that we're winning market share there as well, mainly because of our project management and also in connectors. I would say we still have opportunities across the board, but probably more in the FT side, in the flow technologies, as well as CCT. So this is where we can even grow faster and more.

Great, thank you for that. And then just a quick follow-up. I know you've talked about it a little bit in the past, but just some of the commercial opportunities you see within SPX Flow, and then maybe specifically some pricing opportunities on the nutrition and health side would be great.

Sure. So I think that when we look at SPX Flow, Let me give an example. A few weeks ago, I was in Shidu, China, where we have a very good plant in terms of SPX flow. But I think our approach in China could probably be adapted a little bit more to the market. What I mean by that, invest more on the engineering side, on the local application engineering, in some local R&D, so that we are actually Adapting and making decision more closer to the market, closer to the customer. This is what has generated a lot of success for our friction business in China, for our coni business in China, and for our connectors business in China in the last few years. So, decentralize, empowering, developing more the periphery and the markets like China will definitely be a great opportunity. Similar opportunities of Seitar, our plant in small plant in Italy. I mean, that team is eager to win and conquer more. We need to ensure that we have, though managed, a more decentralized and make decision closer to the customer and closer to the market. We are also working on revenue synergies, particularly in Latin America for mixers, I would say. And the polls that we have in the Middle East presents an opportunity for us to get ready with mixers or the Brian Luber pumps with localization in Saudi.

Great. Thank you so much. Congratulations on the great quarter.

Thanks, Ben.

Our next question comes from Joe Giordano with TD Cowen. Hey, guys. Good morning.

Hi, Joe.

Hey, just curious what the opportunity set is. You've been talking about winning Valve's market share for a while with the legacy portfolio in like pharma and health. And just curious what The potential is for you to like bring in and pull in some of the SPX flow into those discussions from the ones that you've had on the legacy in valves.

Yeah, you're absolutely right, Joe. It looks like you were listening to some of our meetings in our meetings. Yeah, we have a very good penetration in some of the Bay of Pharma with our Lancaster plant because of our proprietary technology with Envision. and we won incredibly well. This is a market where we can expand with some of the valves of the SPX flow, but also with the mixers. So these conversations are happening and we need, it could be a cross-sales synergy that we probably were underestimating during the due diligence. Very fair.

Yeah, that's kind of what I figured. And then can you talk about what, so what's going on in the Middle East, the implications of this, right? Like if we have to start moving around where LNG capacity goes and make new pipelines and have different shipping routes, like I'd imagine that you're a pretty big beneficiary from that across multiple elements of the firm. I mean, Stanovoi maybe, and maybe on the infrastructure itself. Can you talk about what, if that's what we ultimately have to do, kind of rethink to kind of where some of this energy flows through.

How does that impact you guys? Sure. There are always two sides to the coin, right? So if our factory in demand gets penalized on one side in the short term, I mean, from the shipping perspective in terms of what the business could be for Svaneoi, could be a positive one. If there is more investment in pipelines, Pipelines will use the BB3 pumps. And interestingly enough, the BB3 is the pump that we went already completely, the complete range through VAVE, and we have a very good product. A product that has allowed us actually to win the Vaca Muerta project in Argentina. And then as well, further investment in different regions could be also good. for our Bornemann or Woods pumps. So for example, what's happening in Venezuela is probably going to be a great tailwind for our Bornemann pumps. Let's not forget that Venezuela was probably the largest market for Bornemann in the long past, in the far past. So definitely great opportunities across the board.

Thank you, Joe.

Thank you, Joe.

Our next question comes from Nathan Jones with Stifel.

Morning, everyone. Morning, Nathan. I'll follow up to Scott's question on Lane and ask you where you think SPX is on their 80-20 journey. and I guess I'm specifically interested in hearing where they are on value-based pricing, given that that comes typically later in the cycle there. I know they'd been on an 80-20 journey since about when they went private, but just any updates or thoughts that you have around that?

Sure. You know that I'm not an 80-20 guy, right? Listen, 80-20 is a good tool. Do we use it in ICT? Of course we do. We do it on the safety, on the quality, use 80-20, absolutely. But I'm not a fan of the 80-20. I'm a fan of the 100 and to go after. So if some of our competitors want to leave there the 20, I'm happily going after that 20. So to be honest with you, we are reversing that approach of the 80-20. and to have a much more rational and much more common sense. To be honest with you, what we are adopting is common sense and approach rigorously. That's it. It could be 80-20, it could be 90-10, it could be 100. So we are reversing that to be much more business savvy. Now, when it comes to the value-based pricing, the team is good. at Value Based Pricing. When I talk commercially with Wendy or with Rudy, I mean, they definitely know their market, their customers, and they know exactly how to price different opportunities. And this is also in nutrition and health in some of those bids that I participated to. and Silvia, the top salesperson and the management team are really able to push it to the right price and to the right value.

Interesting. Fair enough. I guess on the revenue synergy opportunities, you talked about some of the biopharma opportunities pulling SPX product through there. Are there opportunities that you've identified to pull legacy ITT products through to some of the end markets or to combine with some of the SPX products to generate revenue synergies there. Thanks for taking the questions.

Sure. I think that the largest one on that front is the Bornemann Hygienic Pumps. If we look at the Bornemann, mainly in the oil and gas, the chemicals, et cetera, but we have an application. We've got very good products for hygienic. Now having said that, we were nobody in hygienic. We didn't have the proper channels. And therefore, if you think about it, what Waukesha Cherry Boral had is really great channel on hygienics. So having Waukesha Cherry Boral to sell Bornemann Pumps in the U.S. through their channel is really the greatest opportunity, I would say. And in some cases, they might have some strong distributor that we might not have in that region. I'm talking about mixers, for example, with good pumps. And therefore, we might have the benefit of utilizing their distributor instead of ours and vice versa. That's really where we see the benefits.

Great. Thanks for taking the questions.

Thank you, Nathan.

Our next question comes from Vlad Bistricki with Citigroup.

Hey, good morning, guys. Hi, Vlad. Thanks for taking my call and nice results, obviously. Just on the SPX flow orders and revenue momentum, can you parse out a little how much of that is volume versus price driven? And then I guess more broadly for ITT overall, how you're thinking about Price contributing to organic growth this year and evolving going forward given lingering inflation?

Sure. Thank you. So when it comes to SPX flow, the growth is mainly volume. There is a little price on that one. and then when also you look at our if you look for example our legacy short cycle orders in flow technologies they were up five percent in the quarter of that five percent four percent is volume is real growth it's volume growth and one percent is price so as you can see we need to be a a much more surgical today when it comes to to price having said that our price cost equation remains positive for for Flow Technologies every quarter and for the full year.

Got it. Thanks, Luca.

And then just shifting to CCT and I guess specifically on Case ARIA, you know, given the orders growth you're seeing there, I know some of it is longer cycle and extending out, but just how are you thinking about capacity at the case area? at the Caesarea business and your ability to ramp to deliver versus these large orders and really supply chain ability to keep up as well.

Sure. So you're absolutely right. I mean, great performance on the orders. I would say also great performance on the revenue side, because if you look at also Q2, Caesarea revenue was up 28%. So great performance. As of today, we do not see any capacity constraints. on the Quesaria front. As a matter of fact, when we look at the capacity, this is exactly why we made the acquisition of aerospace contacts, right? We were concerned of being able to feed the demand and the growth on the connector side, air and defense, and therefore we purchased aerospace contacts and now we have in-source debt and we are able to have a better, secure and more resilient supply chain. But no real constraint from capacity from a Quesaria point of view.

I'm good to hear. Appreciate that, Luca. I'll get back to you.

Thank you.

Our next question comes from Andrew Obin with Bank of America. Yes, good morning.

Hi, Andrea. Morning.

Hey, how are you? Just a question on margin guide raise. You know, just a question in terms of, you know, I think second quarter was a little bit short. The quarter was good. I'm not complaining. But the quarter came a little bit short on margin versus what we were modeling. But it seems that you raised on margins into the second half. and just trying to understand the dynamic. Why do you feel better about margins into the second half?

Absolutely. I think to be honest with you, Andrew, you're right. Every single place we go, we have plenty of opportunities for improvement. Absolutely. Now, I would say when you look at the margins, I think that Motion technologies at 21.1% margin. They grew up 90 basis points. So great performance, I would say, if you think about where they play in the market that they play, the pressure they're in. And so what we are working in motion technology is to consolidate and maintain this level of margin for the full year so that this is in it. It's solid rock. When you look at the CCT, CCT margin at 21.7 is actually a record margin for CCT. And this is with the dilution of Caesarea. I mean, without Caesarea, this margin will be higher than 23%. So, and improve sequentially more than 240 basis points. So, those. I think that what you might be referring to is that the dilution that we had in flow technologies probably is a little bit higher Then what we were expecting. But having said that, at the 21, the legacy business in flow technologies is up 70 basis points. And we're already probably a great benchmark when you look in the market. You're right, a little bit of a higher dilution in Q2, but as we move forward, you will see this margin improving more and more because the productivity ramp up through the year and you will have the acquisition cost synergies really starting having an impact.

So it's really about flow.

Yeah, that is really more dilution by flow. Absolutely right.

And then the opposite question. The second thing, if you're sort of back into second half organic growth, the math may be incorrect, but I hope it is. We're getting sort of slightly down to plus 6% implied. But the first half, you got 12% organic and orders, I think, were very, very impressive. Yes. The opposite on the top line, very strong first half, but second half feels overly conservative. Any commentary there?

Yeah, just a couple of things. So I would like to bring it back to the full year picture, right? When you look at the full year picture, we are posting is a really great growth, and we are raising the growth for the full year. Now, when you look at the dynamics sequentially, I've seen a couple of things. First, it gets a little bit of a tougher compare, year over year, in terms of Q3 and Q4. Then what you have from a sequential point of view, from a year over year growth, you have to think about it that Q4 of this year will have four days less than Q4 of last year. So from a year over year, you've got that dynamic. And then, of course, there is always the Middle East, where we have been growing tremendously in the first half, but because of the order's delay, there is going to be a little bit of a decrease when it comes to the next few quarters. Having said that, I would say, Andrew, if you look at sequentially, we are consistent. So we have raised, if you look at Q3 and Q4 EPS guidance, Thank you. Thank you.

Once again, if you do have a question, you may press star 1-1 on your touch tone phone at this time. Our next question comes from Joe Ritchie at Goldman Sachs.

Hi, Joe. Hey, guys. Good morning. Your 80-20 comments had me laughing earlier. So I always thought of you guys as the 95-5 company, you know, 5% proud, 95% never satisfied. That's true. Yeah, so, but here, look, this really exceptional performance across the board and incredible that you guys have been able to do all of this M&A, de-lever faster than expected. And the M&A seems to be really paying dividends for you guys. So maybe let's spend a minute just discussing what the pipeline looks like, where the opportunities are from here. How are you thinking about potentially deploying future capital? Obviously, it's been a great way for you guys to compound over the last few years.

Sure. Everything is working well. As you can imagine, Joe, we're very busy cultivating the right companies, so the fact that we are delivering Our priorities have not really changed. So the priorities today is really to pay down the debt, like Mike said in the prepared remarks, is really to execute on the synergies and deliver on SPX flow. of course there might be some bolt-on acquisitions that we're cultivating and this goes across in the flow as well as on the connector side of the business you have seen aerospace a very small contact a very small acquisition but very strategic so small bolt-ons are in the pipeline and then might be executed but we are definitely busy cultivating as well as paying out that and delivering the synergies okay great to hear and then I guess

I may have missed it earlier. When you talked about the Casaria orders and then specifically what you're seeing across your portfolio, I'm curious, is the mix of your business shifting at all to maybe a little bit longer cycle than it has been historically? Maybe comment on that because you're booking these orders on longer-term platforms. I'm just curious how you're thinking about that. that maybe more visibility beyond just like 2026.

I think that's a very fair point, Joe. But I would say is that we are lucky to have it both. And what I mean by that is Kisaria is winning important platforms and you have the visibility for 28. So if you look at JET programs, so we are winning our fair share and more because we're winning market share. You have that. But when you look at the backlog, because every quarter we look at the backlog for the next four quarters, and we compare to the backlog that we had one year ago for the future growth at that time. And I can tell you that our backlog that we have in our hands for the next three quarters Thank you. Thank you.

This does conclude today's teleconference. Please disconnect your lines at this time and have a wonderful day.