ITT (ITT) Investor Day 2025 summary

Strategic direction and portfolio evolution

• Targeting over $6B in revenue by 2030, shifting the portfolio toward high-growth, high-margin flow, connectors, and aerospace/defense businesses.

• Automotive's share of EBIT reduced from 60% in 2018 to 31% in 2024, targeting 21% by 2030 through organic growth and M&A.

• Strategic M&A and divestitures (e.g., Wolverine) are reshaping the business mix toward less cyclical, higher-value sectors.

• Expanding in markets driven by energy transition, defense modernization, aerospace recovery, and rail infrastructure investments.

• Emphasis on local-for-local operations and leveraging global expertise for regional growth.

Financial targets and guidance

• 2030 targets: 10% total revenue growth (5% organic), 23% adjusted operating margin, EBITDA >25%, adjusted EPS >$12, and free cash flow margin of 14%-15%.

• Surpassed previous long-term targets two years ahead of plan, with 9% organic revenue CAGR and 13% EPS CAGR since 2021.

• M&A expected to contribute 400-500 basis points to annual revenue growth, with $500M-$700M deployed per year and ROIC >10% by year 3-5.

• M&A expected to add $0.75–$1.00 to EPS by 2030, with $5B+ capital allocation capacity through 2030.

• Free cash flow margin improvement supported by working capital reduction and disciplined capital allocation.

Differentiation through execution and innovation

• Execution excellence built on SQDC (Safety, Quality, Delivery, Cost), customer centricity, and continuous improvement across all sites.

• Launched VIDAR, an industrial motor with embedded variable speed drive, targeting a $6B addressable market and >$150M revenue by 2030.

• Introduced Geo-Pad, a breakthrough friction material with lower environmental impact and streamlined production.

• Accelerated new product development cycles, with rapid prototyping and customization in connectors and defense applications.

• Enhanced operational excellence through automation, lean processes, and continuous improvement, driving margin expansion across segments.