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, Hella Aftermarket, is actively expanding its product offerings in the brake system sector to solidify its position as a leading independent aftermarket supplier [2][3] - Hella Aftermarket has introduced a combination kit of brake pads and discs for popular models, enhancing convenience for distributors, repair shops, and end customers [3] Product Expansion - The product range for the new non-deposit brake calipers (NEWMAN product line) will increase from 350 to 500 items, covering a wider array of vehicle models [2] - The brake disc product supply is also expanding, with approximately 50 new product numbers added, including traditional and two-piece brake discs [2] - Hella has introduced a cost-optimized one-piece brake disc for models like BMW and Mercedes-Benz, which complies with ECE-R 90 regulations and features corrosion-resistant coatings [2] Market Coverage - Hella Aftermarket's brake pads and discs market coverage is nearly 99%, while hydraulic brake product coverage exceeds 85% [3] - The company has achieved over 90% coverage in the brake pads market for electric and hybrid vehicles, with brake disc coverage exceeding 85% [3] Service and Logistics - Distributors and repair shops benefit from a comprehensive product matrix and robust technical services [3] - Hella's strong international sales network ensures high supply rates, short delivery times, and excellent logistics services [3]