22 Reconciliation of GAAP vs Adjusted EPS Guidance - Full Year 2024 | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |------------------------------------------------------------------------------------------------|-------|---------------------|-------|---------------------|-------|---------------------|-------|---------------------|-------|------------------------------------|-------|----------------| | Net Cash - Operating Activities Less: Capital expenditures 39.1 30.2 107. ...

Financial Performance - Net income for Q3 2023 was $111.8 million, an increase of 8.3% compared to $103.2 million in Q3 2022[19] - Comprehensive income attributable to ITT Inc. for Q3 2023 was $81.2 million, up from $69.2 million in the same quarter last year, reflecting a growth of 17.9%[19] - For the nine months ended September 30, 2023, net income reached $321.4 million, a significant increase of 26.9% from $253.3 million in the prior year[19] - Total comprehensive income for the nine months ended September 30, 2023, was $286.9 million, compared to $137.1 million for the same period in 2022, indicating a substantial increase of 109.5%[19] - For Q3 2023, ITT Inc. reported total revenue of $822.1 million, a 9.1% increase from $753.6 million in Q3 2022[43] - For the nine months ended September 30, 2023, total revenue was $2,453.9 million, a 10.9% increase from $2,213.1 million in the same period of 2022[43] - The nine-month operating income was $409.4 million, up 29.1% from $317.1 million in the prior year, with an operating margin of 16.7% compared to 14.3%[43] Segment Performance - Motion Technologies segment revenue increased to $359.5 million in Q3 2023 from $342.2 million in Q3 2022, with an operating income of $59.4 million and an operating margin of 16.5%[43] - Industrial Process segment revenue rose to $279.8 million in Q3 2023 from $248.5 million in Q3 2022, with operating income increasing to $64.7 million and an operating margin of 23.1%[43] - Connect & Control Technologies segment revenue grew to $184.0 million in Q3 2023 from $163.2 million in Q3 2022, with operating income of $33.2 million and an operating margin of 18.0%[43] Assets and Liabilities - As of September 30, 2023, total assets increased to $3,802.3 million from $3,780.3 million as of December 31, 2022, reflecting a growth of 0.6%[21] - Total current liabilities decreased to $1,044.0 million from $1,185.5 million, a reduction of 11.9%[21] - The total shareholders' equity as of September 30, 2023, was $2,419.2 million, up from $2,257.4 million at the end of 2022, indicating a growth of 7.2%[21] - The total debt and finance leases decreased to $251.9 million as of September 30, 2023, from $458.7 million as of December 31, 2022, a significant reduction of about 45%[81] - Commercial paper outstanding decreased to $242.7 million as of September 30, 2023, from $448.3 million as of December 31, 2022, a decline of approximately 46%[83] Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2023, was $367.6 million, significantly higher than $115.2 million in the prior year[23] - The company reported a net cash outflow from investing activities of $142.0 million for the nine months ended September 30, 2023, compared to an outflow of $244.8 million in the same period of 2022[23] - Capital expenditures for the nine months ended September 30, 2023, were $68.5 million, slightly lower than $73.7 million in the same period of 2022[23] Shareholder Returns - Dividends paid increased to $71.9 million in 2023 from $66.1 million in 2022, reflecting an increase of 11.0%[23] - The company repurchased and retired 0.7 million shares of common stock for $60.5 million during the nine months ended September 30, 2023, compared to 3.0 million shares for $245.3 million in the same period of 2022[93] - An indefinite term $1,000 million open-market share repurchase program was approved on October 4, 2023, to commence after the completion of the existing $500 million program[94] Challenges and Risks - ITT Inc. is facing challenges such as supply chain disruptions and raw material shortages, which could impact future performance[13] - The company is actively managing risks related to foreign currency fluctuations and their potential impact on revenues[13] - The company anticipates continued growth driven by strategic plans and market expansion initiatives, although specific numerical guidance was not provided[10] Tax and Subsidies - The effective tax rate for Q3 2023 was 21.1%, up from 13.7% in Q3 2022, primarily due to prior year benefits from a valuation allowance reversal[51] - The company recognized a benefit of $6.3 million related to energy subsidies for the nine months ended September 30, 2023, which was recorded within Costs of revenue[64] Acquisitions - ITT Inc. completed the acquisition of Micro-Mode Products, Inc. for a purchase price of $79.3 million on May 2, 2023, with results reported in the Connect & Control Technologies segment[29] - The company signed an agreement to acquire Svanehøj Group A/S for approximately $395 million, expected to close in the first quarter of 2024[117] Employee Compensation - Total share-based compensation expense for the three months ended September 30, 2023, was $5.4 million, an increase from $5.0 million in the same period of 2022[91] - The company had no open-market share repurchases during Q3 2023, contrasting with repurchases of 0.1 million shares for $4.4 million in Q3 2022[93]

Organic revenue growth +12% Q2 SUMMARY RESULTS Share Count, Interest, Tax Rate - FX hedge benefit in prior year Adjusted segment operating margin Operational margins subtotal 19.9% KEY PERFORMANCE INDICATORS & NON-GAAP MEASURES Special items include, but are not limited to, restructuring costs, acquisition-related expenses, and other unusual or infrequent items. 16 #A Represents expected revenue growth of 8%, reflecting the mid-point of the 7% to 9% range. 4 (+50 bps) Headwinds Price / Cost FX Strategic Ini ...

Emmanuel Caprais And then if you look at our rail platform, KONI and Axtone, we see many opportunities, both from a pricing standpoint and also a productivity standpoint. So here in pricing, we have just scratched the surface, but there's still much more to go after. And because this is the longer cycle business, we're not seeing all the impacts of pricing yet in our P&L. So we're going to continue to drive this. And with further margin expansion from KONI, Axtone as well as from Friction, we expect really ...

2022 Results and 2023 Outlook February 9, 2023 SAFE HARBOR AND NON-GAAP DISCLOSURES Safe Harbor The forward-looking statements included in this presentation speak only as of the date hereof. We undertake no obligation (and expressly disclaim any obligation) to update any forward-looking statements, whether written or oral, as a result of new information, future events or otherwise. • CCT growth in connectors (+13%) and aerospace components (+26%) REVENUE + Shop floor productivity and cost controls FREE CASH ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition period from_____ to _____ Commission File No. 001-05672 ITT INC. Incorporated in the State of Indiana 81-1197930 (State or Other Jurisdiction of Incorporation or Organization) ...

Financial Data and Key Metrics Changes - ITT reported a revenue growth of over 17%, driven by double-digit growth across all business segments [37][134] - The company achieved a record segment margin in Q4, overcoming approximately $50 million in cost inflation [35][138] - Adjusted EPS growth is expected to be 7% at the midpoint for 2023, with a strong focus on improving cash flow generation [13][142] Business Line Data and Key Metrics Changes - Industrial Process (IP) saw organic revenue growth of 27%, with project bookings increasing over 70% [4][37] - Connect and Control Technologies (CCT) grew sales by 16%, supported by strong demand in aerospace components [134][128] - Motion Technologies (MT) experienced a decline in margins to 14.7%, impacted by higher material and labor costs [137][100] Market Data and Key Metrics Changes - The rail business grew 10% organically, with orders up 35%, particularly strong in Europe [7] - The automotive market is expected to be flat to low single digits in 2023, with a slowdown anticipated in Europe during the second half [11][56] - Demand for EV connectors grew significantly, with orders reaching almost $40 million in 2022 [130] Company Strategy and Development Direction - The company is focusing on value-based pricing strategies and improving supply chain effectiveness to drive long-term value creation [9][43] - ITT is investing in new product development and innovation, particularly in electrification and clean energy projects [10][14] - The company aims to achieve a 30% global market share in the EV space by 2026, leveraging its competitive advantages [86][121] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2023, expecting strong performance in the first half but anticipating a slowdown in the second half due to economic conditions [57][142] - The company is committed to maintaining pricing discipline while navigating ongoing cost inflation and supply chain challenges [52][100] - Management highlighted the importance of execution and market share gains as key differentiators for future growth [44][144] Other Important Information - ITT announced a 10% increase in dividends and repurchased over $250 million of shares, reducing the share count by 3% [36] - The company is experiencing strong cash flow generation, with a free cash flow margin of 17% in Q4, the best performance of the year [35][129] - ITT's effective purchase multiple has decreased to 8-9x, down from approximately 12x at the time of acquisition [36] Q&A Session Summary Question: What are the expectations for price versus cost inflation in 2023? - Management indicated that while they were slightly price positive in Q3 and Q4 of 2022, they expect to maintain that in 2023 despite some headwinds from commodity costs [46] Question: Can you provide specific examples of growth in IP projects? - Management highlighted significant orders in energy projects, including initiatives in Nigeria, Angola, and Malaysia, indicating strong international growth [22] Question: What is the outlook for margins in Motion Technologies? - Management expects MT to return to high teens margins in the long term, although it may take longer than other segments due to current challenges [70] Question: How does the company view competition in the EV space? - Management acknowledged increased competition but emphasized their ability to differentiate and maintain market share through innovation and customer focus [64][86] Question: What are the expectations for the global economy's impact on business? - Management anticipates a significant deceleration in the global economy in the second half of 2023, affecting various segments [57][101]

Financial Data and Key Metrics Changes - ITT reported a 21% increase in EPS, marking the highest quarterly earnings on record for the company [8] - Organic revenue grew by 15%, driven by strong pricing and higher sales volumes across all businesses [10][24] - Operating margin improved to 16.9%, reflecting a 140 basis points increase despite over 700 basis points headwind from cost inflation [26] Business Line Data and Key Metrics Changes - Industrial Process (IP) saw an 11% organic orders growth, with margins expanding by 550 basis points year-over-year [9][11] - Connect & Control Technologies (CCT) achieved 12% organic orders growth, with a margin expansion of over 100 basis points year-over-year [10][32] - Motion Technologies (MT) reported a 22% organic growth in friction revenue, although aftermarket growth slowed to 1% due to high distributor inventory [24][30] Market Data and Key Metrics Changes - Demand remained strong across most end markets, with notable growth in commercial aerospace and defense [9][24] - North American auto production is expected to improve, while Europe may remain at low levels due to ongoing challenges [38] - The strengthening of the USD negatively impacted sales by approximately 800 basis points, equating to a $0.04 EPS impact [25] Company Strategy and Development Direction - ITT is focusing on value-based pricing strategies and operational improvements to enhance profitability [10][12] - The company is investing in sustainability initiatives, including solar energy projects and a commitment to reducing greenhouse gas emissions [20][23] - ITT aims to maintain agility in adjusting its cost structure in response to economic uncertainties and supply chain disruptions [22] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding potential economic slowdowns and ongoing supply chain challenges [37][41] - The aerospace recovery is expected to continue, with strong order rates in CCT [39][85] - The company anticipates a high teens organic sales growth in Q4, driven by IP and CCT [35] Other Important Information - ITT's backlog exceeded $1 billion, providing a solid foundation for future growth [33] - The company is actively managing working capital to improve free cash flow generation, which has been below expectations [27][97] Q&A Session Summary Question: Commentary on industrial connectors and market deterioration - Management noted that while industrial connectors grew, there was a softening in purely industrial connectors, indicating a potential economic slowdown [44] Question: Challenges in pricing acceptance - Management indicated that ITT achieved price-cost neutrality for the first time in Q3, with expectations for improvement in Q4 [46] Question: Margin progression in Motion Technologies - Management acknowledged continued pressure from commodities and a negative mix impact on margins, with expectations for improvement in 2023 [50][51] Question: Pump market share and project delays - Management reported strong growth in short-cycle orders but noted delays in project sign-offs, particularly in Europe [60] Question: CapEx expectations and EV platform risks - Management expects a stronger Q4 for capital investments while remaining cautious about potential recession impacts [70] Question: Interest rates and working capital strategy - Management is focused on improving cash performance and managing inventory effectively to mitigate the impact of rising interest rates [97]

ITT Inc. (NYSE:ITT) Q2 2022 Earnings Conference Call August 4, 2022 8:30 AM ET Company Participants Mark Macaluso - VP, IR Luca Savi - CEO and President Emmanuel Caprais - CFO Conference Call Participants Mike Halloran - Baird Jeff Hammond - KeyBanc Adam Farley - Stifel Vlad Bystricky - Citigroup Damian Karas - UBS Joe Giordano - Cowen Sabrina Abrams - Bank of America Matt Summerville - D.A. Davidson Operator Welcome to ITT's 2022 Second Quarter Conference Call. Today is Thursday, August 4th, 2022. Today's ...

2022 Goldman Sachs Industrials and Materials Conference Emmanuel Caprais, Chief Financial Officer 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. These forwardlooking statements are not historical facts, but rather represent only a belief regarding future events based on current expectations, estimates, assumptions and projection ...