ITT (ITT) 18th Annual Global Transportation & Industrials Conference summary

Business Overview and Recent Performance

• Designs engineering components for harsh environments across automotive, rail, defense, energy, and more, with a global footprint and a 'region for region' strategy.

• Achieved significant value creation over the past six years through organic growth and margin expansion.

• Q1 2025 saw record orders exceeding $1 billion, 2% organic orders growth, 7% total growth, and $100 million in share repurchases, with $500 million repurchased year-to-date.

• Surpassed previous long-term targets two years early, prompting new 2030 goals and continued portfolio evolution.

• All financial metrics reflect the change from LIFO to FIFO inventory accounting and recent acquisitions/divestitures.

Financial and Operational Performance

• Adjusted operating margin expanded to 17.4% in Q1 2025, up 30 bps year-over-year.

• Adjusted EPS reached $1.45, with free cash flow of $77 million, up 154% from prior year.

• Three-year organic revenue CAGR at 9%, adjusted EPS CAGR at 15%, and average ROIC at 29%.

• Maintained full-year 2025 guidance, highlighting resiliency and strong Q2 outlook.

• Total shareholder return over three years was +45%, outperforming the S&P 500 by 1,600 bps.

Strategic Targets and Growth Outlook

• 2030 targets: >5% organic revenue growth, 10% total growth, ~23% adjusted operating margin, >25% EBITDA margin, $11 EPS (organic), and 14–15% free cash flow margin.

• With M&A, 2030 targets increase to ~10% revenue CAGR and >$12 adjusted EPS.

• Outperformance in core markets expected to continue, driven by execution and innovation, with 300–400 basis points above market growth.

• Segment growth targets: IP 5–7%, MT 2–4%, CCT 7–9%.

• Base business targets include >5% revenue CAGR, ~23% adjusted operating margin, >$11 adjusted EPS.