ITT (ITT) Baird 2026 Global Industrial Conference summary

Growth and financial outlook

• Revenue spans global markets, with 45% from North America and the remainder well balanced; organic revenue growth averaged 7% over the past three years.

• EPS grew more than 15% annually over the past three years; free cash flow margin was 14% last year.

• Latest quarter organic revenue growth was 8%, with margin expansion and EPS growth of roughly 20% YoY; FY EPS growth guidance was raised to 19%–20%.

• Management cited a strong backlog and momentum entering 2027.

Differentiation and market share

• Growth evaluation emphasizes volume gains over price alone; share gains are driven by execution, innovation and continuous improvement.

• Flow Technologies delivered 95%+ on-time delivery on Middle East projects; friction brake-pad delivery was 99.95% on time each month for 10 years.

• Friction worldwide share is 31%–32%, with further opportunity in Japanese OEMs, heavy commercial vehicles and high performance; fragmented flow markets and CCT also offer runway.

• Acquired businesses are being supported through growth-focused incentives, more R&D investment and product development.

Capital allocation and acquisitions

• Q3-end leverage was 2.3x; near-term priorities are cash generation, SPX Flow synergies, debt repayment and rapid deleveraging.

• Bolt-on deals may be pursued over the next 6–12 months, potentially comparable to Habonim or kSARIA or somewhat larger; transformational M&A likely waits at least 18 months.

• M&A focus areas are fragmented Flow Technologies and CCT, particularly aerospace and defense.

• SPX Flow expanded nutrition and health exposure and helped shift the portfolio toward higher-growth, higher-margin businesses; automotive fell from 61% of EBIT in 2017–18 to 22% after the deal.