Financial Data and Key Metrics Changes - Revenue grew by 8% in total and 5% organically for 2025, with EPS increasing by 14% or 18% when excluding certain impacts [7][19] - Operating income rose by 11%, and operating margin expanded by 40 basis points to 18.2% [7] - Free cash flow increased to over $550 million, up 27%, with a free cash flow margin of 14% [9][18] Business Line Data and Key Metrics Changes - In Q4, orders and revenue both exceeded $1 billion for the first time, with orders growing by 15% or 9% organically [8] - CCT saw an outstanding 40% organic growth, with contributions from both legacy business and kSARIA [8][17] - IP segment grew significantly, with Svanehøj increasing over 50% and legacy pump projects up 30% organically [17] Market Data and Key Metrics Changes - Backlog ended at $1.9 billion, up 18% year-over-year, indicating strong future demand [9] - Aerospace and defense sectors contributed significantly to growth, with CCT orders up 27% and 17% respectively [17] - The automotive market showed mixed signals, with expectations for flat to low single-digit growth in 2026 [49] Company Strategy and Development Direction - The company is focused on organic growth and M&A, with the pending acquisition of SPX FLOW expected to accelerate growth in higher margin flow business [10][26] - Investments in new products and technologies, such as VIDAR in flow and high-performance friction materials, are aimed at capturing previously unaddressed markets [10][12] - The company aims to leverage synergies from acquisitions while maintaining operational stability in existing businesses [68] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the 2026 outlook, expecting total revenue growth of approximately 11% and 5% organically [24] - The aerospace recovery is expected to drive growth, with significant contributions from aftermarket sales [48] - Management noted that while some cyclical improvements are observed, it is still early to determine the overall market trajectory [79] Other Important Information - The company completed an equity raise in December to fund the SPX FLOW acquisition, which is expected to close in March [5][26] - Significant progress was made in operational performance, with improvements in safety, quality, delivery, and cost metrics [20] Q&A Session Summary Question: Update on IP orders and funnel visibility - Management indicated that the funnel is stable compared to Q3, with growth in the Middle East and Asia Pacific [34][35] Question: Clarification on CCT's 40% organic growth - Management noted that the growth was broad-based, with connectors and controls seeing significant increases, and only minor price adjustments affecting the results [37] Question: Sustainability of SPX FLOW's order trajectory - Management expressed confidence in SPX FLOW's position in the nutrition and health segments, indicating a good CapEx cycle [46] Question: Changes in outlook for 2026 - Management confirmed that trends in aerospace and defense are strengthening, while the automotive market is expected to remain flat [49] Question: Competitive behavior in IP - Management reported no significant changes in competitive behavior, with improved performance leading to customer loyalty [92] Question: Incremental opportunities in biopharma valves - Management highlighted significant growth in the GLP-1 business and ongoing expansion opportunities in Europe [95]

Financial Data and Key Metrics Changes - Revenue grew by 8% in total and 5% organically for 2025, with EPS increasing by 14% or 18% excluding certain impacts [7][19] - Operating income rose by 11%, and operating margin expanded by 40 basis points to 18.2% [7] - Free cash flow exceeded $550 million, up 27%, with a free cash flow margin of 14% [9][18] Business Line Data and Key Metrics Changes - In Q4, orders and revenue both exceeded $1 billion for the first time, with orders growing 15% or 9% organically [8] - CCT saw outstanding organic growth of 40%, with contributions from both legacy business and kSARIA [8] - IP and CCT both grew more than 11% organically, while MT operating income grew 13% with a margin of 19.7% [17][18] Market Data and Key Metrics Changes - Orders in the defense sector grew by 27%, with significant contributions from soldier-worn and drone applications [15] - The backlog ended at $1.9 billion, up 18% year-over-year, indicating strong future demand [9] - The aerospace market is expected to drive meaningful growth, supported by a recovery in wide-body production [22] Company Strategy and Development Direction - The pending acquisition of SPX FLOW is expected to be a significant growth accelerator, focusing on a higher growth, higher margin flow business [10][11] - The company aims to compound organic growth with M&A, as evidenced by recent acquisitions like Svanehøj and kSARIA [16] - ITT is focused on delivering growth through innovation and operational excellence, with a strong emphasis on customer intimacy and loyalty [12][92] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the 2026 outlook, expecting total revenue growth of approximately 11% and 5% organically [24] - The company anticipates continued strong performance in aerospace and defense, with a focus on capturing market share [22][49] - Management noted that while some cyclical improvements are observed, it is still early to determine the overall market trajectory [78] Other Important Information - The company is preparing for the integration of SPX FLOW, focusing on identifying best practices and defining priorities for a seamless transition [11][60] - Significant progress has been made in operational performance, with improvements in safety, quality, delivery, and cost metrics [20] Q&A Session Summary Question: Update on IP orders and funnel visibility - Management noted that the funnel is stable compared to Q3, with growth in the Middle East and Asia Pacific [34][35] Question: Clarification on CCT's 40% organic growth - Management explained that the growth was broad-based, with connectors and controls seeing significant increases, and only minor price adjustments affecting the overall performance [37] Question: Sustainability of SPX FLOW's order trajectory - Management indicated strong customer relationships and a good CapEx cycle for SPX FLOW, suggesting sustainable growth opportunities [46] Question: Changes in outlook for 2026 - Management confirmed that trends in aerospace and defense are strengthening, while the auto market is expected to remain flat or slightly down [49] Question: Competitive behavior in IP - Management reported no significant changes in competitive behavior, with improved performance leading to customer loyalty [92]

Financial Data and Key Metrics Changes - Revenue grew by 8% in total and 5% organically for the year, with Q4 revenue increasing by 13% in total and 9% organically [5][15] - EPS increased by 14% for the full year, and 23% in Q4, reaching $1.85, with a 26% increase when excluding the dilutive impact of the equity offering [5][16] - Operating income grew by 11% for the year and 19% in Q4, with operating margin expanding by 40 basis points to 18.2% for the year and 90 basis points to 18.4% in Q4 [5][16] - Free cash flow reached over $550 million, up 27%, with a free cash flow margin of 14%, an increase of 200 basis points [7][16] Business Line Data and Key Metrics Changes - Industrial Process (IP) saw significant growth, with Svanehøj growing over 50% and legacy pump projects up 30% organically [15] - Connect and Control Technologies (CCT) orders grew by 40% organically, driven by strong performance in aerospace and defense [6][15] - Motion Technologies (MT) reported KONI Defense growing 13% as it penetrated the ground vehicle market in Europe [15] Market Data and Key Metrics Changes - Orders grew by 10% to $4 billion, with a backlog of $1.9 billion, up 18% year-over-year [7] - Aerospace and defense markets showed strong growth, with aftermarket sales in aerospace up over 20% [16][109] - The automotive market is expected to remain flat to slightly down in 2026, with production in Europe and North America showing weakness [45] Company Strategy and Development Direction - The company is focused on organic growth and M&A, with the pending acquisition of SPX FLOW expected to close in March, which will enhance growth in the higher margin flow business [8][20] - Investments in new products and technologies, such as VIDAR in flow and high-performance friction materials, are aimed at addressing previously unaddressed markets [8][10] - The company aims to leverage synergies from the SPX FLOW acquisition, targeting $80 million in savings over three years [80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for 2026, with expectations of mid-single-digit organic revenue growth across all segments [21][23] - The company anticipates continued strong performance in aerospace and defense, with a positive outlook for the biopharma valves business [92] - Management noted that while some signs of improvement in cyclical markets are observed, it is still early to draw definitive conclusions [76] Other Important Information - The company completed an equity raise in December to fund the SPX FLOW acquisition, which is expected to enhance long-term value [4] - The integration of SPX FLOW is being prepared with a focus on maintaining operational stability while achieving synergies [64] Q&A Session Summary Question: Update on the order funnel for IP - The funnel is slightly down year-over-year but stable in Q4, with growth in the Middle East and Asia Pacific [31][32] Question: Clarification on CCT's 40% organic growth - The growth was broad-based, with connectors up over 20% and controls up 70%, with only minor price adjustments affecting the results [34] Question: Sustainability of SPX FLOW's order momentum - SPX FLOW is well-positioned in the nutrition and health segments, with good customer relationships supporting future growth [42] Question: Changes in outlook for 2026 - Some trends have reinforced, particularly in aerospace and defense, while the automotive market is expected to be flat [44][45] Question: Competitive behavior in IP - No significant changes in competitive behavior have been observed, with improved performance leading to customer loyalty [88] Question: Opportunities in biopharma valves - The biopharma valves business is expanding, with significant growth opportunities in the U.S. and Europe [92]