Core Viewpoint - Investors are seeking growth stocks that can deliver above-average returns, but identifying such stocks is challenging due to their inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - ITT is currently recommended as a strong growth stock, possessing a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth being particularly attractive [3] - ITT has a historical EPS growth rate of 14.8%, with projected EPS growth of 11% this year, surpassing the industry average of 8.8% [4] Group 3: Cash Flow Growth - Higher-than-average cash flow growth is essential for growth-oriented companies, enabling them to expand without relying on external funding [5] - ITT's year-over-year cash flow growth is 14.7%, significantly higher than the industry average of -9.5% [5] - The historical annualized cash flow growth rate for ITT is 6.6%, compared to the industry average of 4.4% [6] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [7] - The current-year earnings estimates for ITT have been revised upward, with a 0.1% increase in the Zacks Consensus Estimate over the past month [7] Group 5: Overall Positioning - ITT has achieved a Growth Score of B and a Zacks Rank 2 due to positive earnings estimate revisions, positioning it well for potential outperformance [9]

Company Overview - ITT Inc. is a mid-cap industrial compounder with a diverse portfolio in essential markets such as auto brake pads, rail safety components, industrial pumps and valves, and connectivity/control devices [2] - The company is focused on operational excellence, margin expansion, and strategic mergers and acquisitions (M&A) to drive growth [2] Growth Strategy - ITT's growth strategy emphasizes productivity gains, value-based pricing, and operating leverage as volumes increase [3] - The company is shifting its revenue mix from cyclical auto original equipment (OE) to higher-margin niche industrial components, particularly in industrial flow and aerospace/defense connectors [3] - ITT aims to achieve over $11 in earnings per share (EPS) by 2030, with potential to exceed $12 EPS through planned ~$600 million in annual M&A and share repurchases [3] Financial Performance - ITT has a return on invested capital (ROIC) around 20% and free cash flow margins nearing 15% [4] - The company is positioned for a potential re-rating towards peers like Ingersoll, suggesting a price-to-earnings (P/E) ratio of 24–25x next twelve months (NTM) [4] - This could imply total returns of 20–25% internal rate of return (IRR) even before considering M&A benefits [4] Management and Market Position - ITT is supported by a capable management team with a strong track record in operational and financial execution [4] - The disciplined M&A approach, as seen in acquisitions like kSARIA and Svanehoj, enhances both earnings and strategic positioning [4] - The company presents a compelling opportunity for investors seeking steady industrial growth with multiple avenues for margin and value expansion [4]

Presentation Matt SummervilleD.A. Davidson & Co., Research Division Good morning, everyone. Thank you for joining us today. I'm Matt Summerville, Senior Research Analyst with D.A. Davidson, here to host a fireside chat with leadership from ITT. With us here today, we have Luca Savi, CEO and President; and Emmanuel Caprais, CFO. With that brief introduction, I'm going to turn it over to Emmanuel for covering -- to cover the safe harbor, and then they're going to make a few opening remarks. Emmanuel Caprai ...

ITT FY Conference Summary Company Overview - **Company**: ITT Inc. (NYSE: ITT) - **Date of Conference**: September 18, 2025 Key Points Industry and Market Position - ITT has experienced strong orders growth in Q2, indicating a positive trajectory for the company moving forward [3][4] - The automotive segment has seen a significant shift, with its contribution to EBIT decreasing from over 60% to approximately 30%, and projected to be around 20% by 2030 [4][5] - ITT aims for long-term targets of 5% organic growth, 10% total growth, and an operating margin of 23% or more [5] Financial Performance - ITT generated a free cash flow margin of 14% in Q2, which supports ongoing investments in R&D and M&A [3][6] - The company repurchased $500 million in shares this year, indicating a strong capital allocation strategy [18] Organic Growth Strategy - ITT has made significant investments in high-performance products across its segments, including automotive and industrial applications [9][10] - The automotive business has outperformed the market by approximately 700 basis points over the last decade, with market shares in Europe, China, and North America at 31%, 27%, and a healthy position respectively [10][11] - Major investments include a $50 million plant for high-performance vehicles, resulting in a 5% market share gain in that segment within 18 months [11][12] Inorganic Growth Strategy - ITT is actively pursuing M&A opportunities, focusing on high-margin businesses and establishing strong relationships with potential targets [14][15] - The company has a healthy M&A funnel and aims to deploy capital for acquisitions in the near future [15][16] Market Dynamics - The automotive market is expected to remain flat in production year-over-year, with China showing resilience while Europe and North America may decline [24][25] - ITT has maintained a strong market share in the automotive sector, with a focus on original equipment (OE) rather than aftermarket sales [23] Industrial Products (IP) Segment - The IP segment is experiencing moderate growth, particularly in spare parts, while the long-cycle business has seen a decline in the order funnel due to previous high order volumes [40][41] - The backlog for ITT stands at approximately $1.2 billion, with a significant portion expected to convert into revenue in 2025 and 2026 [47][48] Decarbonization Efforts - ITT is positioned to support customers in decarbonization efforts, particularly in oil and gas, with solutions that prevent flaring and enhance carbon capture [49][50] - The marine segment, particularly Svanehøj, is benefiting from a shift towards cleaner fuels like LNG and ammonia [50] Aerospace and Defense - The CCT segment, while smaller, has shown growth potential, particularly in defense applications [54][58] - ITT is negotiating new pricing terms with Boeing, aiming to adjust for increased material costs since previous contracts were set [56][57] Conclusion - ITT is strategically positioned for growth through a combination of organic and inorganic initiatives, with a strong focus on innovation, market share expansion, and capital allocation to enhance shareholder value [3][5][14]

Core Insights - The company is focused on the development of transcript-related projects, indicating a commitment to enhancing their offerings in this area [1] - The publication of thousands of quarterly earnings calls per quarter suggests a significant volume of content being generated and shared with readers [1] - The ongoing growth and expansion of coverage highlight the company's strategic direction towards increasing its market presence in transcript services [1]

September 18, 2025 Shown: Svanehøj NCM, a new compact and versatile marine engine room pump. 1 Safe Harbor and Non-GAAP Disclosures D.A. Davidson Diversified Industrials & Services Conference 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 an ...

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks can be challenging due to their inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - ITT is currently highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is crucial for investors, with double-digit growth being particularly desirable as it indicates strong future prospects [4] - ITT has a historical EPS growth rate of 14.8%, with projected EPS growth of 10.6% this year, surpassing the industry average of 7.4% [5] Group 3: Cash Flow Growth - Higher-than-average cash flow growth is essential for growth-oriented companies, allowing them to expand without relying on external funding [6] - ITT's year-over-year cash flow growth stands at 14.7%, significantly higher than the industry average of -9.2% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 6.6%, compared to the industry average of 5.3% [7] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [8] - The current-year earnings estimates for ITT have increased by 1.3% over the past month, indicating a favorable outlook [9] Group 5: Overall Assessment - ITT has achieved a Zacks Rank of 2 and a Growth Score of B, suggesting it is a potential outperformer and a solid choice for growth investors [11]

Core Viewpoint - ITT has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [2][4]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Business Improvement Indicators - Rising earnings estimates and the Zacks rating upgrade for ITT suggest an improvement in the company's underlying business, which could lead to higher stock prices as investors respond positively [5][10]. Earnings Estimate Revisions for ITT - For the fiscal year ending December 2025, ITT is expected to earn $6.48 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 2.1% over the past three months [8]. Zacks Rank System Overview - 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]. - The upgrade of ITT to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Group 1 - Zacks Premium offers various tools to help investors make informed decisions, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1][2] - The Zacks Style Scores are designed to complement the Zacks Rank, rating stocks based on value, growth, and momentum characteristics, which can help investors identify stocks likely to outperform the market in the short term [2][3] Group 2 - Stocks are rated from A to F based on their value, growth, and momentum, with A being the highest score indicating a better chance of outperforming the market [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [3] - The Growth Score assesses a company's financial health and future outlook, looking at projected earnings and sales growth [4] - The Momentum Score identifies stocks with favorable price trends, utilizing recent price changes and earnings estimate revisions [5] Group 3 - The VGM Score combines the three Style Scores, providing a comprehensive rating that highlights stocks with attractive value, strong growth potential, and positive momentum [6] - The Zacks Rank model uses earnings estimate revisions to identify stocks, with 1 (Strong Buy) stocks historically achieving an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [7][9] Group 4 - ITT Inc. is highlighted as a 2 (Buy) stock on the Zacks Rank with a VGM Score of B, indicating strong potential for growth investors [11] - ITT is forecasted to have a year-over-year earnings growth of 10.6% for the current fiscal year, with upward revisions in earnings estimates from analysts [12] - The Zacks Consensus Estimate for ITT's earnings has increased by $0.11 to $6.48 per share, with an average earnings surprise of +1.5% [12]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Group 1: Momentum Style Score - ITT currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The Zacks Rank for ITT is 2 (Buy), suggesting a favorable outlook for the stock [3] - Stocks rated Zacks Rank 1 (Strong Buy) and 2 (Buy) with Style Scores of "A or B" tend to outperform the market over the following month [3] Group 2: Price Performance - ITT shares have increased by 1.57% over the past week, while the Zacks Diversified Operations industry has decreased by 3.45% [5] - Over the past month, ITT's price change is 5.11%, outperforming the industry's 1.56% [5] - In the last quarter, ITT shares rose by 11.73%, and over the past year, they increased by 33.5%, compared to the S&P 500's 11.71% and 19.86% respectively [6] Group 3: Trading Volume - ITT's average 20-day trading volume is 437,079 shares, which serves as a bullish indicator when combined with rising stock prices [7] Group 4: Earnings Outlook - In the past two months, three earnings estimates for ITT have been revised upwards, increasing the consensus estimate from $6.37 to $6.46 [9] - For the next fiscal year, four estimates have moved higher with no downward revisions [9] Group 5: Conclusion - Given the strong momentum indicators and positive earnings outlook, ITT is positioned as a 2 (Buy) stock with a Momentum Score of A, making it a potential candidate for near-term investment [11]