ITT (ITT) Barclays 43rd Annual Industrial Select Conference summary

Company overview and recent performance

• Designs and manufactures critical components for harsh environments in transportation, defense, energy, and industrial sectors.

• Structured into Industrial Process (pumps/valves), Motion Technologies (brake pads/shock absorbers), and Connect & Control Technologies (connectors/control components).

• Achieved 7% organic growth over three years, with strong cash flow and EPS growth.

• Value creation driven by organic growth, margin expansion, and recent M&A, including the SPX FLOW acquisition.

• Long-term targets include 10% total growth, 5% organic growth, and adjusted operating margin of 23%+ through 2030.

Market trends and demand outlook

• Positive order trends across sectors, especially in Q4 and January, with stable growth in automotive.

• Backlog is healthy and profitable, with increased visibility and higher margins, especially in Aero & Defense.

• Green projects in Industrial Process are growing significantly, with longer conversion cycles.

• Aerospace & Defense expected to lead order growth, while automotive remains flat to slightly down but outperformed by the company.

• Short cycle and spare parts demand remain strong, with project growth stabilizing at elevated levels.

Revenue, backlog, and segment performance

• Revenue growth in Q4 was 9%, aided by easy comps due to prior Boeing work stoppage.

• Defense segment, including kSARIA and KONI shock absorbers, is about 10% of the portfolio and growing rapidly.

• Defense orders and revenue expected to grow double digits in 2026, with strong order book and modernization tailwinds.

• CCT business guided for mid-high single digit growth, with repricing and volume growth as key drivers.

• Industrial Process portfolio is over 50% petrochem/energy, with strong performance in energy transition and Saudi Arabia.