ITT (ITT) Bank of America Global Industrials Conference 2026 summary

Business Overview and Recent Developments

• Completed acquisition of SPX FLOW, creating a $5 billion revenue company with three main segments: Motion Technologies, Connect and Control Technologies (CCT), and Flow Technologies, expanding exposure to North America and new markets like nutrition and health.

• Operates in 35+ countries with $5.3B pro forma revenue for 2025, diversified across Connect & Control, Motion, and Flow Technologies.

• Flow Technologies now includes leading brands in pumps and mixers, reducing energy exposure and increasing resilience.

• Q1 saw continued strong orders and outperformance in automotive OE and short-cycle pumps, connectors, and aerospace.

• The SPX FLOW deal involved $4.775 billion in cash and $700 million in shares, with low double-digit EPS growth expected year-over-year.

Growth Strategy and Market Outlook

• Long-term organic growth target is 5%-7%, with recent years exceeding this range; SPX FLOW expected to grow mid to high single digits.

• Projected mid-single-digit organic revenue growth and low double-digit adjusted EPS growth for the near term.

• Growth is driven by market share gains and volume, not just pricing, with a focus on sustainable growth across all segments.

• Continued opportunities for market share gains in rail, automotive, connectors, and flow, with specific growth potential in China and North America.

• Defense business benefits from current geopolitical events, while Middle East exposure is limited and manageable.

Synergies and Operational Improvements

• Cost synergies from SPX FLOW acquisition targeted at $80 million run rate after three years, mainly from G&A and purchasing; footprint rationalization savings expected after year three.

• Revenue synergies are not included in guidance but are being pursued, especially in Latin America and Saudi Arabia, with near-term opportunities in North America.

• Targeting 10%+ ROIC from SPX FLOW acquisition within five years.

• Cash flow generation expected to stabilize as major CapEx investments are complete, with focus on inventory and working capital improvements.

• Management highlighted ongoing evaluation of key performance indicators and non-GAAP measures to assess operational performance and capital deployment.