Core Viewpoint - Lone Star Funds has signed a definitive agreement to sell SPX FLOW, Inc. to ITT Inc. for $4.775 billion in cash and stock, marking a significant transaction in the industrial and process technology sectors [1][4]. Company Overview - SPX FLOW, based in Charlotte, N.C., specializes in process technologies that include mixing, blending, fluid handling, separation, and thermal heat transfer, serving industrial, health, and nutrition markets [2]. - The company operates in over 25 countries and has sales in more than 140 countries, indicating a strong global presence [2]. Strategic Developments - Under Lone Star's ownership, SPX FLOW has focused on enhancing sales execution and operational efficiency, while prioritizing high-quality and innovative product development [3]. - The management team has successfully improved the commercial organization and executed growth initiatives, targeting new geographies and industries for expansion [3]. Transaction Details - The sale is seen as the culmination of efforts to streamline SPX FLOW's portfolio and enhance its business operations [4]. - The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close by the end of Q1 2026 [4]. Advisory Information - Citi and Jefferies LLC are serving as financial advisors to Lone Star in this transaction [5].

Core Insights - ITT has announced a definitive agreement to acquire SPX FLOW, indicating a strategic move to enhance its portfolio of highly engineered critical components [1] Company Summary - ITT is recognized as a leading provider in the sector, focusing on critical components that are highly engineered [1] - The acquisition of SPX FLOW is expected to strengthen ITT's market position and expand its capabilities [1] Industry Context - The acquisition reflects ongoing consolidation trends within the industry, as companies seek to enhance their competitive edge through strategic mergers and acquisitions [1]

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heritage of innovation, ITT partners with its customers to deliver enduring solutions to the key industries that underpin our modern way of life. ITT is headquartered in Stamford, Connecticut, with employees in more than 35 countries and sales in approximately 125 countries. For more information, visit[www.itt.com] (https://cts.businesswire.com/ct/CT? STAMFORD, Conn.--([BUSINESS WIRE](https://www.businesswire.com))--December 3, 2025-- ITT Inc. (NYSE:[ITT](https://cts.businesswire.com/ct/CT? id=smartlink&url ...

PresentationUnknown Analyst All right. Good morning, everybody. Welcome to the UBS Global Industrials and Transportation Conference. My name is Amit Mehrotra. I lead the multi-industry franchise here at UBS. Very happy to have ITT. We've got a really full lineup today and tomorrow. So I appreciate folks here in the audience and then obviously, folks dialing in on the webcast. We've got ITT, a great company, a really interesting kind of growth story, really good technology. Happy to have Emmanuel Caprais he ...

ITT Conference Summary Company Overview - ITT is a company with approximately $4 billion in revenue, divided into three segments: Industrial Process (largest), Motion Technologies (second largest), and Connectors and Control Technologies (smallest) [3][4] - The Industrial Process segment focuses on pumps and valves, while Motion Technologies produces brake pads and shock absorbers for the transportation industry. The Connectors segment targets aerospace, defense, and industrial markets [3][4] Core Business Insights - ITT aims to reduce its automotive revenue share while expanding in defense and industrial markets [4] - The company has achieved 9% organic revenue growth over the past three years and low teens adjusted EPS growth [4][6] - ITT has over 1 million pumps installed, generating significant aftermarket revenue [5] Financial Performance - In Q3, ITT reported nearly $1 billion in revenue with 6% organic growth, and operating income grew at twice the rate of organic revenue growth [6] - The company expects to generate $500 million in cash for the full year [6] Market Position and Strategy - ITT focuses on customer satisfaction through quality, delivery, and cost (SQDC) principles, leading to high customer retention [8][10] - The company has a strong emphasis on innovation and reinvestment of profits into new product development [11] Growth Projections - ITT anticipates organic growth of around 5% until 2030, with potential for an additional 500 basis points from capital deployment [12] - The company expects 2026 to be a growth year, driven by a significant backlog and new acquisitions [14] Segment-Specific Insights Industrial Process (IP) - The IP segment is seeing improvements in project funnels, particularly in conventional and decarbonization energy sectors [16][17] - The introduction of the Vidar motor, which integrates a variable frequency drive, is expected to yield significant energy savings and revenue contributions starting in 2027-2028 [20][23] Motion Technologies - ITT has outperformed automotive production by 300-400 basis points, with expectations for continued growth in Q4 [33] - The company is expanding into the light commercial vehicle market and high-performance brake pads, gaining market share in Europe and the U.S. [39][43] Connectors and Control Technologies (CCT) - The CCT segment is focused on defense contracts, including significant content on the F-35 Joint Strike Fighter [66][69] - ITT differentiates itself through customized solutions and rapid prototyping, allowing for quick responses to customer needs [70][71] Risk Management and Tariffs - ITT has adapted to tariffs through USMCA exemptions and price increases where necessary, maintaining a strong position in the market [73][74] - The company is actively working to increase North American content in its products to mitigate tariff impacts [76] M&A Strategy - ITT plans to pursue acquisitions to diversify its portfolio away from automotive, targeting growth in pumps, valves, and connectors [78][79] - The company has a healthy acquisition pipeline, focusing on bolt-on opportunities while remaining open to larger deals [83] Conclusion - ITT is positioned for continued growth through strategic focus on quality, customer satisfaction, and innovation across its segments, while effectively managing risks and pursuing M&A opportunities to enhance its market position [84]

Financial Performance - ITT reported Q3 2025 revenue of $999.1 million, a 12.9% increase compared to $885.2 million in Q3 2024[31] - Organic revenue growth for Q3 2025 was 6.1%[31] - Adjusted EPS for Q3 2025 was $1.78, a 21.1% increase compared to $1.47 in Q3 2024[43] - Free cash flow for Q3 2025 was $154.1 million, a 77% increase compared to $87.3 million in Q3 2024[17,53] - The company raised its full-year adjusted EPS guidance to a range of $6.62 to $6.68[16] Segment Performance (2024 Revenue) - Motion Technologies (MT) reported $1.4478 billion in revenue[26] - Industrial Process (IP) reported $1.361 billion in revenue[26] - Connect & Control Technologies (CCT) reported $825.1 million in revenue[26] Growth Metrics - The company achieved a 9% organic revenue CAGR and a 13% adjusted EPS CAGR over a 3-year period[11] - Average ROIC was 15%[11] - Total Shareholder Return (TSR) was +45%, outperforming the S&P 500 by +1,600 bps[11] Full Year 2024 vs 2021 (Organic) - Organic revenue grew by $805.3 million, a 30% increase[26] - Organic orders grew by $767.2 million, a 27% increase[28] Full Year 2025 Guidance - The company expects approximately $3.87 billion in revenue[53] - The company expects approximately $500 million in free cash flow[16,53]

Group 1 - ITT, Lockheed Martin, and Northrop Grumman will trade ex-dividend on 12/1/25, with respective dividends of $0.351, $3.45, and $2.31 [1] - ITT's dividend yield is approximately 0.19%, Lockheed Martin's is 0.76%, and Northrop Grumman's is 0.41% based on their recent stock prices [2][4] - Historical dividend stability is important for assessing future dividend expectations, with current estimated annualized yields of 0.76% for ITT, 3.04% for Lockheed Martin, and 1.63% for Northrop Grumman [4] Group 2 - In recent trading, ITT and Lockheed Martin shares are up about 0.4%, while Northrop Grumman shares are down about 0.4% [5]

Core Viewpoint - ITT has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based solely on changes in a company's earnings picture, which is a critical factor for stock price movements [2][4]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. ITT's Earnings Outlook - For the fiscal year ending December 2025, ITT is expected to earn $6.65 per share, consistent with the previous year's reported figure, while the Zacks Consensus Estimate has increased by 2.6% over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - ITT's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Core Insights - ITT has announced the acquisition of Köhler & Hörter GmbH (KOHO), which specializes in high-quality compressors for various industries [1] Company Summary - The acquisition enhances ITT's capabilities in the compressor market, potentially expanding its product offerings and market reach [1] - Köhler & Hörter GmbH is recognized for its expertise in manufacturing compressors, which may provide ITT with a competitive advantage in the industry [1] Industry Implications - This acquisition reflects a trend in the industry where companies are consolidating to strengthen their positions and enhance product portfolios [1] - The move may indicate growing demand for high-quality compressor solutions across multiple sectors, suggesting a positive outlook for the compressor market [1]