Q2 total revenue decreased 29% to $515 million.
Segment operating income decreased 65% to $37 million and earnings per share of $0.53 decreased 29%.
Free cash flow increased 205% to $169 million.
We delivered a 25% segment decremental margin.
We accelerated and increased our cost and spend reduction actions to $160 million.
We generated record free cash flow of $169 million.
We bolstered our liquidity to $1.4 billion, and we signed an LOI to acquire a niche European rail company.
This enabled us to contain the global number of infections to fewer than 70.
From a financial perspective, we delivered solid earnings per share of $0.57, exceptional segment decremental margin of 25%, record free cash flow of $169 million representing a significant growth of 205% or $114 million.
And segment working capital reduction of 210 basis points compared to prior year and 100 basis points compared to the first quarter.
SFO operational improvement enabled industrial process to deliver a 13.7% adjusted operating margin.
This is 120 basis point expansion versus prior year despite a revenue decline of 17%.
The 13.7% margin also represents an improvement of 240 basis points over Q1.
We moved quickly to take out costs and we are progressing nicely toward our long-term 15% plus margin target.
IP continues to impress with strong operational execution, and as an example, the NC line at Seneca Falls achieved above 90% on-time delivery for the tenth consecutive month.
And lastly, this operational excellence combined with our speed in execution enabled us to accelerate and boost our cost reduction plan, adding $25 million of new actions that increase our target to $160 million.
And based on platforms ramping in the second half, we continue to expect to outperform global markets by 700 to 1,000 basis points this year.
Our end ordering unit grew new business awards by 94% in the quarter.
IP grew organic pump project orders by 22%.
As a result, our backlog at the end of Q2 was up 3%, excluding foreign exchange compared to the beginning of 2020.
IP customers were also delighted by Seneca Falls' 95% plus baseline pumps delivery performance during Q2.
This level of execution mirrors the Motion Technologies' playbook where our friction business maintained 99% on-time delivery performance despite operating in areas hit hard by COVID-19.
Today, we have $1.4 billion of available liquidity, and we have ample capital to fund all our operational needs and investments and position us to take advantage of other strategic opportunities.
And we continue to protect our cash position through daily and weekly cash reviews, and we added a record $169 million cash flow year-to-date.
In Q2, we reduced capex by 25% compared to prior year, and our tracking to our $35 million reduction target for the full year.
Segment operating income margin of 12.6% despite the revenue decline.
We delivered this margin through strong operational execution and fast and decisive trust actions that produce segment decremental margin of 25% and an EBIT decremental margin of 20%.
We achieved 52% corporate spend reduction versus prior year.
EPS of $0.57 per share was ahead of our expectations and declined 35%, excluding unfavorable FX of $0.03.
And lastly, we generated $169 million of free cash flow year-to-date, representing a 205% improvement over the prior year.
MT organic revenue declined 35% due to wide-ranging auto production shutdowns impacting our Friction and Wolverine businesses.
In the quarter, Friction declined 42%.
In North America, we outperformed by 1,000 basis points.
In Europe, we outperformed by 400 basis points.
And in China, we outperformed by 1,600 basis points.
Nonetheless, we continue to project 700 to 1,000 basis points of global OE outperformance for the full year as new platform awards enter the production phase in the second half.
Wolverine declined 38% in the quarter, but was able to deliver 800 basis points of outperformance for the first half.
And finally, KONI and Axtone revenue decreased 9% as solid Europe OE rail growth, partially offset lower aftermarket revenue in North America and Asia.
MT's adjusted segment operating income declined 57% to $24 million due to volume declines and unfavorable FX of $2 million.
However, MT successfully contained decrement margins to 27% due to increased manufacturing efficiency, proactive plant shutdowns, restructuring benefits and aggressive discretionary cost actions.
The 27% decremental margin improved sequentially and is also much lower than the decremental margins during the 2008, 2009 recession, reflecting the true resilience of today's MT. MT delivered solid Q2 margin of 12.2%, mainly reflecting the volume decrease.
It is also worthy to note that MT improved working capital by 120 basis points and produced record operating cash flow.
Organic revenue was down 17%.
However, margins expanded 120 basis points compared to the prior year and 240 basis points sequentially.
Short-cycle revenue was up 4%, mostly driven by lower industrial valve activity, more than offset relatively flat aftermarket and baseline activity.
Organic orders for the quarter declined 9% as 22% growth driven by general Industrial market share gains was partially offset by reduced capital investments across major markets due to COVID-19.
IP's backlog at the end of Q2 was up 3% excluding foreign exchange versus the beginning of 2020, providing solid visibility into the second half of 2020.
Operating income declined 9% to $26 million, as George and the IP team confined decremental margins to a near 6%.
And as a result, IP segment operating margin grew 120 basis points to 13.7%.
Working capital improved 760 basis points as the IP and shared services teams were hard at work securing payments from customers and deleveraging the balance sheet.
CCT organic revenue declined 29% and weakness across all major end markets.
The steep reduction in air traffic lowered commercial aero demand and caused a major slowdown in OE build rates that was further compounded by the specific challenges related to the 737 MAX requalification.
Our Industrial Process business experienced a 7% decline and distribution inventory adjusted to lower levels of activity and medical connector surge in demand to accommodate COVID-19 patient care.
Operating income declined 55% on the volume drop and margins declined to 11.1%.
CCT's decremental margins of 35% improved sequentially from Q1 and reflected aggressive restructuring actions executed by the business.
In Q2, as a result of this focus, we increased our savings target of $260 million, exceeding the original guidance that we communicated during Q1.
We are also detailing incremental actions across ITT as part of our increased cost target of $160 million.
Finally, we reduced capex by 25% in Q2 and continue to track to our overall target of $35 million reduction.
Overall, as a result of the great progress made to date and the decisive incremental actions we took, our 25% decremental margin in Q2 has significantly improved from Q1, and we now expect total segment decremental margin in 2020 to range between 22% and 28%.
We ended the quarter with liquidity of $1.4 billion, which was significantly strengthened compared to Q1.
We scored some good wins with customers and our collections in Q2 helped generate a record $169 million of free cash flow year-to-date.
This represents an increase of 205% versus the prior year.
We optimized segment working capital by 210 basis points year-over-year, and we have more opportunities to further improve in the second half, especially regarding inventory at MT and CCT.
Based on this, we are now targeting a free cash flow margin of more than 11% on for the full year, which is 160 basis points better than prior year.
The next few quarters will continue to be unpredictable, even though the visibility has improved compared to 90 days ago.
We expect auto production rates to improve sequentially, reflecting a market decline of approximately 25% for the full year.
We also reaffirm that our Friction OE business will outperform this global market decline by 700 to 1,000 basis points for the full year.
Sequentially, in Q3, we expect MT revenue to improve more than 20% versus Q2 with further improvement expected in Q4.
We are now targeting segment decremental margins of 22% to 28% for the full year.
And finally, from a free cash flow standpoint, we're targeting more than 11% of free cash flow margin.
Tom has been with ITT since 2006 and was named CFO in 2011 as we navigated the spin-off.
By my calculations, Tom has made more than 50 quarterly earnings calls.
Also between conferences and other meetings, he has been part of more than 1,700 investor and analyst meetings during his tenure as CFO.

Summary:
Segment operating income decreased 65% to $37 million and earnings per share of $0.53 decreased 29%.
We bolstered our liquidity to $1.4 billion, and we signed an LOI to acquire a niche European rail company.
From a financial perspective, we delivered solid earnings per share of $0.57, exceptional segment decremental margin of 25%, record free cash flow of $169 million representing a significant growth of 205% or $114 million.
Today, we have $1.4 billion of available liquidity, and we have ample capital to fund all our operational needs and investments and position us to take advantage of other strategic opportunities.
EPS of $0.57 per share was ahead of our expectations and declined 35%, excluding unfavorable FX of $0.03.
Overall, as a result of the great progress made to date and the decisive incremental actions we took, our 25% decremental margin in Q2 has significantly improved from Q1, and we now expect total segment decremental margin in 2020 to range between 22% and 28%.
We ended the quarter with liquidity of $1.4 billion, which was significantly strengthened compared to Q1.
We are now targeting segment decremental margins of 22% to 28% for the full year.