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Core Viewpoint - ITT has recently completed the acquisition of SPX FLOW, positioning the company with approximately $5 billion in revenue, divided into three main business segments [4]. Group 1: Company Overview - ITT's revenue is now around $5 billion following the acquisition of SPX FLOW [4]. - The company operates in three primary business segments, one of which is Motion Technologies [4]. Group 2: Leadership and Presentation - The presentation features ITT's CEO and President, Luca Savi, and the new Vice President of Investor Relations, Carleen Salvage [1][2]. - Carleen Salvage mentioned that the presentation may include forward-looking statements based on current assumptions and expectations [3].

Bank of America Global Industrials Conference 2026 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 conference call may include, and officers and representatives of ITT may from time to time make and discuss, projections, goals, assumptions, and statements that constitute "forward - looking statements" . These forward - looking statem ...

Core Insights - ITT Inc. will participate in the Bank of America Global Industrials Conference 2026 in London on March 17, with CEO Luca Savi presenting from 1:50 – 2:30 p.m. local time [1][1][1] Company Overview - ITT Inc. is a diversified manufacturer of highly engineered critical components and customized technology solutions for transportation, industrial, and energy markets [1][1][1] - The company is headquartered in Stamford, Connecticut, and operates in over 35 countries with sales in approximately 125 countries [1][1][1]

Core Viewpoint - Analysts are increasingly optimistic about infrastructure-related companies, particularly Verizon and ITT, as recent upgrades suggest potential for further gains ahead [1] Group 1: Verizon - Verizon has been upgraded to Outperform by Scotiabank with a new price target of $54.50, reflecting a 27.68% year-to-date increase to $51.12, trading at a forward P/E of 10x and offering a 5.34% yield [1] - The upgrade is based on strong subscriber growth, with postpaid phone net additions reaching 568,000 in Q4 2024, a 26.5% year-over-year increase, and fixed wireless access revenue growing 51.6% year-over-year to $611 million [1] - Scotiabank anticipates further cost reductions in 2027 and 2028, which, combined with lower churn rates, will enhance revenue growth [1] Group 2: ITT - ITT has been initiated with an Equal Weight rating by Barclays, with a price target of $220, while currently priced at $185.59, reflecting an 8.12% decline following the $4.775 billion SPX FLOW acquisition [1] - ITT's free cash flow grew 26.75% in FY2025 to $555.4 million, achieving a 14% free cash flow margin five years ahead of its 2030 target [1] - The acquisition of SPX FLOW is expected to add over $1.3 billion in revenue for 2025, but higher leverage from this acquisition may limit future acquisitions in the near term [1]

Group 1 - Wall Street is becoming more positive on infrastructure-related companies, with Scotiabank upgrading Verizon to Outperform and Barclays initiating coverage on ITT [2][6] - Scotiabank raised Verizon's price target to $54.50 from $50.25, citing strong subscriber growth and cost improvements as key factors [3][4] - Verizon's stock trades at a forward P/E of approximately 10x and has a dividend yield of 5.34%, with a year-to-date increase of nearly 26% [4][6] Group 2 - Scotiabank's analysis indicates a multi-year cost reduction strategy for Verizon, expecting further improvements in 2027 and 2028 [5] - Verizon reported postpaid phone net additions of 568,000 in Q4 2024, a 26.5% year-over-year increase, marking its best performance in over a decade [5] - ITT was initiated at Equal Weight with a price target of $220, while currently trading at $185.59, reflecting a decline of 8.12% after its acquisition of SPX FLOW [6]

Core Viewpoint - Lone Star Funds has successfully completed the sale of SPX FLOW, Inc. to ITT Inc. for $4.775 billion in cash and shares, highlighting the strategic growth and operational improvements made during Lone Star's ownership [1]. Company Overview - SPX FLOW is a leading provider of engineered equipment and process technologies, serving industrial, health, and nutrition markets with operations in over 25 countries and sales in more than 140 countries [1]. - The sale to ITT Inc. is expected to enhance SPX FLOW's ability to deliver high-quality equipment and solutions, driving value for ITT [1]. Transaction Details - The transaction was valued at $4.775 billion, which includes both cash and shares of ITT common stock [1]. - Citi and Jefferies LLC acted as financial advisors to Lone Star during this transaction [1]. Investment Firm Background - Lone Star Funds is a prominent investment firm based in London, with over 30 years of experience in navigating complex investment situations [1]. - The firm has organized 25 private equity funds with total capital commitments of approximately $95 billion since its inception in 1995 [1].

PresentationAll right. Do we have the -- ITT is the Zoom setup?Okay. So I'll just kick it off and then -- are we doing the slides here? Or are they sharing?Kevin DreyerGAMCO Asset Management Inc. Perfect. So next up is ITT. Based in Stanford, Connecticut, ITT is a manufacturer of critical engineered components that serve fast-growing end markets in transportation, flow, energy, aerospace and defense. ITT has 86 million shares outstanding. Shares trade at about $206 for a $17.7 billion market cap, $956 milli ...

Presentation Unknown Analyst Great. Well, we'll get underway with the next session here. It's my pleasure to have up next ITT. The first time you're both coming here. So it's my pleasure to have Luca Savi, President and CEO; Emmanuel Caprais, CFO. So I really appreciate everyone being here, and thank you both for coming. I think you have a couple of comments prepared, and then we'll get into sort of the meat of the Q&A. Thank you. Emmanuel CapraisSenior VP & CFO And before that, I want to read the forward ...

ITT Conference Call Summary Company Overview - **Company**: ITT Inc. (NYSE: ITT) - **Industry**: Engineering and manufacturing of components for harsh environments across various sectors including transportation, aerospace and defense, energy, chemicals, and mining - **Market Size**: Approximately $4 billion - **Growth**: Achieved 7% organic growth over the last three years [10][11] Core Business Segments 1. **Industrial Process**: Focuses on flow technologies, including pumps and valves 2. **Motion Technologies**: Produces brake pads and shock absorbers for various vehicles, including defense and high-speed trains 3. **Connect and Control Technologies**: Manufactures connectors and control components primarily for aerospace and defense [10][11] Financial Performance and Targets - **Long-term Growth Targets**: - 10% total growth - 5% organic growth until 2030 - Adjusted EPS target of over $11, potentially $12 with M&A adjustments - Adjusted operating margin target of 23-25% and cash flow margin of 14-15% [11][12] Market Demand Insights - **U.S. Industrial Demand**: Positive indicators observed in Q4 and January, particularly in aerospace and defense, automotive, and short-cycle projects [13][14] - **Backlog**: Healthy backlog with increased profitability; long-term visibility in air and defense sectors [15][16] - **Green Projects**: Significant growth in green projects, with a 90% increase in 2025 orders compared to 2024 [17] Segment-Specific Insights - **Aerospace and Defense**: Expected to see significant growth due to Boeing's production ramp-up and defense modernization investments [18][20] - **Automotive**: Anticipated to remain flat to slightly down, but ITT expects to outperform the market by 400-500 basis points [22][24] - **Industrial Process**: Expected low- to mid-single-digit growth; strong performance in short-cycle orders and spare parts [24][25] Acquisition Strategy - **SPX FLOW Acquisition**: Expected to close in March; aims to reduce automotive exposure to 20% and integrate successfully for growth [11][12][88] - **Integration Approach**: Focus on value creation rather than traditional integration; immediate synergies targeted [85][86] Profitability and Productivity - **Decentralized Structure**: Emphasizes accountability at local levels to drive productivity and growth; utilizes 48 KPIs for performance measurement [73][75] - **Pricing Power**: Strong pricing power in CCT segment; however, limited pricing power in automotive [57][100] Future Outlook - **Debt Management**: Post-acquisition focus on debt reduction, aiming for a debt ratio around 2.7 [110][114] - **Valuation Expectations**: Anticipated P/E ratio around 20 times [116] Key Risks and Considerations - **Market Volatility**: Potential impacts from economic fluctuations and sector-specific challenges, particularly in automotive and chemicals [22][66] - **Integration Challenges**: Ensuring smooth integration of SPX FLOW while maintaining customer satisfaction and operational efficiency [86][90] This summary encapsulates the key points discussed during the ITT conference call, highlighting the company's strategic direction, market performance, and future growth prospects.