Itt Inc. · NYSE:ITT
Itt — Investor Presentation (June 2025)
44 slides from Itt's investor presentation, June 2025
Slide 1: Investor Overview
ITT Investor Overview June 2025
Slide 2: Safe Harbor and Non-GAAP Disclosures
Safe Harbor and Non-GAAP Disclosures Safe Harbor This presentation contains “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. In addition, the accompanying webcast may include, and officers and rep
Slide 3: Key Messages
Key Messages 01 Delivered targets 2 years ahead of schedule 02 Differentiation through Execution – Organic Growth and Margin Expansion 03 Differentiation through Innovation – Expanding our addressable market 04 Differentiation through M&A – $3B deployment plan through 2030 05 Compelling 2030 Long-Te
Slide 4: ITT is a Leading Manufacturer of Critical Components for Harsh Environment Applications
ITT is a Leading Manufacturer of Critical Components for Harsh Environment Applications Businesses End Markets Geography 18% 26% Aerospace & 32% 29% Connect & Control Defense General Industrial Europe 44% Technologies 37% North Industrial 10% 29% 37% America $3.7B Process Auto Aftermarket Aftermarke
Slide 5: The ITT Journey
The ITT Journey +80% TSR +2,200 bps vs. S&P500 +76% TSR +1,200 bps vs. S&P500 Long-term targets at ITT’s first Investor Day 2022 Transferred US Pension Announced 2020 acquisition of kSARIA and divestiture Divested Legacy Announced acquisition Acquired of Wolverine Asbestos Liabilities of Svanehøj Ha
Slide 6: Historical Outperformance
Historical Outperformance +780 bps outperformance 100% 105% +1,570 bps outperformance 50% 45% 21% 0% 1-year TSR 3-year TSR 5-year TSR Peer Index S&P MidCap 400 S&P 500 Index ITT TSR for the 1, 3, and 5 year periods ended 12/31/2024. Peer index includes the average of Akebono, AME, APH, BWA, DOV, ENO
Slide 7: The Next Chapter
The Next Chapter 01 02 Organic growth and Compounding margin expansion with M&A 7
Slide 8: Long-Term Organic Growth Drivers
Long-Term Organic Growth Drivers Outperformance Growing End Market-Leading Differentiation Differentiation Markets + Positions + through Execution + through Innovation • Growing funnel of energy • Friction best-in-class quality • Safety, Quality, Delivery, • VIDAR, revolutionary industrial transitio
Slide 9: Long-Term Margin Expansion
Long-Term Margin Expansion 2024 Operating Margin by Manufacturing Site >150 bps ~400 bps with higher performing sites underperforming sites to continuous improvement Operating ITT operating margin Margin (excl. M&A) 18.7% and Further Opportunities Remain Opportunity Lean, Automation, Technology Unpr
Slide 10: Compounding with M&A
Compounding with M&A Capital Deployment Acquisition Targets • Expect to deploy $500M to $700M annually to acquisition HSD to LDD growth Clear Criteria • Expand portfolio toward higher growth, higher margin flow and connector assets • Targeted acquisitions aligned with long-term macro trends 30% - 40
Slide 11: Our Businesses
Our Businesses
Slide 12: Leading Portfolio of Differentiated Critical Components and Solutions
Leading Portfolio of Differentiated Critical Components and Solutions Industrial Motion Connect & Control Process Technologies Technologies Chemical Auto Aerospace Aftermarket Energy $ 1.4B Auto OE $ 1.4B $ 0.9B Defense Revenue Revenue Revenue Rail General General Industrial Industrial Mining Defens
Slide 13: Industrial Process Overview
Industrial Revenue by Segment Revenue by End Market Revenue by Geography Process 73% Overview 32% Parts Short cycle 36% Industrial 22% Chemical 13% Asia Pacific 13% A Global Leader in Centrifugal $1.4B 18% Baseline 43% Europe 27% Aftermarket 52% Revenue and Twin-Screw Pumps and Projects North Americ
Slide 14: Industrial Process Financial Results and Targets
Industrial Process Financial Results and Targets Revenue Adjusted Operating Income and Margin ~25.0% 2500 0.26 500 26.00% 0.24 450 1 5-7% 24.00% 22.3% 2000 400 0.22 21.0% 17% 22.00% 350 0.2 19.1% $1.4B $286M 1500 20.00% 300 $252M $1.1B 0.18 $1.0B 250 18.00% 15.7% $185M $0.8B 1000 0.16 200 16.00% 150
Slide 15: Industrial Process Products and Applications
Industrial Process Products and Applications Centrifugal Pumps Valves Twin Screw Pumps • High pressure or temperature and • Severe chemical and industrial • Highly viscous fluids corrosive mediums environments • Multiphase (Gas/Oil/Water) • Abrasive solids mixed with liquid • Cryogenic and high-pres
Slide 16: Innovation | VIDAR
Innovation | VIDAR Game changing industrial motor 85% Operate with fixed 15% Operate with external speed motors variable speed drives OR VS. 100+ year-old technology Varies speed to control flow New industrial motor with embedded variable speed Mechanical controls restrict the flow 30-70% reduction
Slide 17: M&A | Svanehøj
M&A | Svanehøj Leading marine pump manufacturer for fuel and cargo applications Revenue by Product Revenue by Channel Backlog Growth 15% Service solutions – 23% 37% +34% other marine Service Aftermarket CAGR solutions – gas 63% OE 18% 29% $156M Deepwell cargo gas Other marine solutions Revenue pump
Slide 18: Motion Technologies Overview
Motion Revenue by End Market Revenue by Geography Friction OEM Sales by Powertrain Technologies 13% 4% Other 56% 26% 14% Overview Rail Asia Electric Europe Vehicles $1.4B 31% 17% Revenue 57% Aftermarket North 68% 18% ICE Global Leader in Brake Pads Automotive America Hybrid OE 26% and Shock Absorber
Slide 19: Motion Technologies Financial Results and Targets
Motion Technologies Financial Results and Targets Revenue Adjusted Operating Income and Margin 450 26.00% ~23.0% 2500 0.26 400 24.00% 2% 2-4% 1 0.24 350 19.2% 18.6% 22.00% 2000 16.2% 0.22 $262M $269M 300 15.7% 20.00% $1.5B $1.4B $236M $1.4B $1.4B 0.2 250 $216M 1500 18.00% 0.18 200 16.00% 1000 0.16 1
Slide 20: Motion Technologies Products and Applications
Motion Technologies Products and Applications Friction KONI Axtone ICE and Electrified (EV and hybrid) brake • Energy absorption solutions, • Safety and energy absorption pads for: including shock absorbers for car, rail, components for passenger and defense applications and freight trains • Origina
Slide 21: Execution | Friction Technologies Playbook
Execution | Friction Technologies Playbook Premier Customer Experience 100% Flawless Launches ~99% OE On-time Delivery Cost Advantage Superior Manufacturing & Automation In Region for Region ONE Technology, ONE Process, ONE System Concentrated Manufacturing Footprint Speed High Performing Unpreceden
Slide 22: Execution | Sustained Friction Outperformance
Execution | Sustained Friction Outperformance +39% Over the past 7 years Friction OE has outperformed global auto +4,500 bps production by ITT OEM Volumes1 Vehicles Production2 outperformance3 4,500 bps based on volume -6% 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 OE: Original Equipment
Slide 23: Innovation | Breakthrough in Material Science: Geo-Pad
Innovation | Breakthrough in Geo-Pad vs. “status quo” Material Science: Geo-Pad Material Science • Friction set to introduce first ever inorganic green binders • Geopolymers at the core of the formulation • Geo-Pad will provide superior performance and • Unique product performances reduce environmen
Slide 24: Connect & Control Technologies
Connect Revenue by Segment Revenue by End Market Revenue by Geography & Control 69% Connectors 45% 5% RoW Technologies Defense 22% Aerospace 10% Asia Pacific ~70% Overview $0.9B 31% Control Technologies Revenue 7% Energy Aero and Defense 15% Europe 70% Leader in Critical Applications North 26% Ameri
Slide 25: Connect & Control Technologies Financial Results and Targets
Connect & Control Technologies Financial Results and Targets 2500 0.26 Revenue Adjusted Operating Income and Margin 0.24 2000 500 0.22 ~25.0% 26.00% 450 24.00% 1 400 7-9% 0.2 1500 22.00% 350 14% 0.18 300 20.00% 18.1% 18.3% 1000 250 17.9% $0.8B 0.16 18.00% $0.6B $0.7B 200 15.2% $151M 16.00% $0.6B $12
Slide 26: Connect & Control Technologies Products and Applications
Connect & Control Technologies Products and Applications Connectors Control Technologies High-performance signal, data and power for: • Aero flow control and actuation systems, interior components • Commercial Aerospace • Commercial and defense rotorcraft energy • Defense on land, sea and air absorb
Slide 27: Innovation | Small Form Technology
Innovation | Small Small Form Factor Solution, delivering 3-6 times higher density Form Technology 11 months from custom solution to new product introduction, in comparison to typical product development timeline of 2 years Innovation and Speed C5 Warrior Revenue Forecast $15M MKJ Warrior Series C5
Slide 28: M&A | kSARIA
M&A | kSARIA Leading provider of harsh environment interconnect solutions for aerospace and defense Revenue by Products Revenue by End Market Revenue by Source Status 9% Services 25% 23% Communications Air 31% Multi-Source/ Competitive 39% Sole ~$200M 3% Space 85% 17% Land 100% Source Revenue Defens
Slide 29: Financial Performance and M&A
Financial Performance and M&A
Slide 30: Historical Performance
Historical Performance Outstanding value creation delivered since 2021 Adjusted Operating Adjusted EPS Adjusted Revenue Income and Margin Free Cash Flow 1 $3,631M $5.88 $439M $645M 450 6 400 5 350 300 4 +31% +45% 3 +46% 250 200 2 150 100 1 50 0 0 2021 2024 2021 2024 2021 2024 2021 2024 +9% +170 bps
Slide 31: Surpassed Long-Term Targets Two Years Ahead of Plan
Surpassed Long-Term Targets Sales Adjusted Adjusted Free Cash Growth Operating Margin EPS Growth Flow Margin 5-7% ~18.5% 10%+ 11-13% 1 Committed CAGR CAGR Delivered 9% Organic CAGR 18.7%Excluding M&A 13%CAGR 12% (2024) (2024) Two Years Ahead of Plan Long term targets introduced at 2022 Investor Day,
Slide 32: Growth Drivers by End Market
Growth Drivers by End Market Expect to outperform in most markets General Aerospace Energy Automotive Rail Industrial & Defense • Pump aftermarket • Boeing recovers to • Liquefied gases power • Continued • Worldwide public share gains driven pre-pandemic fuel transition outperformance vs. transporta
Slide 33: Building the M&A Machine
Building the M&A Machine Building Building Building the Team the Strategy the Muscle • Recruited Bartek in 2021, • Building scale in each segment • Strong returns with Habonim, extensive M&A and strategy despite conflict impacts experience • Focus M&A growth on attractive, high growth flow • Early s
Slide 34: Capital Allocation Acceleration
Capital Allocation 2025-2030 Acceleration 2022-2024 M&A 2019-2021 M&A M&A Dividends $1.2B $2.2B deployed $5B+ deployed capacity Repurchases Asbestos Dividends Divestiture Repurchases CapEx Repurchases CapEx CapEx Dividends Organic Investments M&A Dividends Share Repurchases Average 7% of Expect to d
Slide 35: Enterprise Strategy and Portfolio Reshape
Enterprise Strategy and Portfolio Reshape 2030 Today 2018 Aero & Aero & Defense Defense Aero & Defense General General General Industrial >$6B Industrial Industrial Energy $3.7B Energy $2.7B Rail Revenue Revenue Rail Revenue Energy Auto Auto Auto Rail 35 All results unaudited. Today represents compo
Slide 36: 2030 Targets
2030 Targets Revenue Adjusted Adjusted Free Cash Base Growth Operating Margin EPS Flow Margin Business ~23% 14-15% >5% Adjusted EBITDA Margin >$11 CAGR >25% Compounding Revenue Adjusted Growth with M&A EPS ~10% >$12 CAGR 36
Slide 37: Why ITT
Why ITT
Slide 38: Key Takeaways
Key Takeaways 01 Organic Value Creation Continues and Compounding with M&A 02 Driving Differentiation Through Execution and Innovation 03 Enterprise Strategy and Portfolio Evolution Continues 04 New 2030 Long-Term Targets Position ITT for the Next Chapter 38
Slide 39: Appendix
Appendix 39
Slide 40: Key Performance Indicators and Non-GAAP Measures
Key Performance Indicators and Non-GAAP Measures Management reviews a variety of key performance indicators including revenue, operating income and margin, earnings per share, order growth, and backlog. In addition, we consider certain measures to be useful to management and investors when evaluatin
Slide 41: ITT Inc. Non-GAAP Reconciliation Statements
ITT Inc. Non-GAAP Reconciliation Statements (In millions; all amounts unaudited) Reconciliation of Revenue to Organic Revenue Full Year 2024 MT IP CCT Elim Total 2024 Revenue $ 1,447.8 $ 1,361.0 $ 825.1 $ (3.2) $ 3,630.7 Less: Acquisitions - 212.0 88.9 - 300.9 Less: FX (102.8) (38.3) (16.8) - (158.0
Slide 42: ITT Inc. Non-GAAP Reconciliation Statements
ITT Inc. Non-GAAP Reconciliation Statements (In millions; all amounts unaudited) Reconciliations of Operating Income/Margin to Adjusted Operating Income/Margin Full Year 2024 Full Year 2023 MT IP CCT Corporate ITT MT IP CCT Corporate ITT Reported Operating Income $ 314.6 $ 278.4 $ 146.1 $ (61.1) $ 6
Slide 43: ITT Inc. Non-GAAP Reconciliation Statements
ITT Inc. Non-GAAP Reconciliation Statements (In millions, except earnings per share; all amounts unaudited) Reconciliation of Reported vs. Adjusted Income from Continuing Operating and Diluted EPS Income from Diluted For the year ended December 31, 2024 Continuing Operations Earnings per Share Repor
Slide 44: ITT Inc. Non-GAAP Reconciliation Statements
ITT Inc. Non-GAAP Reconciliation Statements (In millions, except earnings per share; all amounts unaudited) Reconciliation of Cash from Operating Activities to Free Cash Flow FY 2024 Net Cash - Operating Activities $ 562.6 Less: Capital expenditures 123.9 Free Cash Flow $ 438.7 Revenue $ 3,630.7 Ope