ITT Inc at DA Davidson Diversified Industrials & Services Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Matt Summerville - D.A. Davidson & Co. (Research) - Analyst : Perfect. Thank you, guys. I think first off, I want to talk about portfolio management a little bit, which is pretty topical given some of your remarks. ITT recently announced selling Wolverine, a business that was acquired to my recollection around the time you were running MT segment. What changed why now? And is there more portfolio optimization to be had by ITT? And has this been informed by an 80-20 like approach to running the business.

Question: Matt Summerville - D.A. Davidson & Co. (Research) - Analyst : Very good. Sticking just with that transaction, how accretive will that be to profitability? And Emmanuel, you mentioned that business generating an 18% operating margin this year, I think -- or the segment, excuse me, I think you've established a target to get to 20%. What does it take to get this business to 20% margins or better and over what time frame?

Question: Matt Summerville - D.A. Davidson & Co. (Research) - Analyst : Perfect. Just sticking with MT, the share capture story has been really attractive in a hallmark to your ability to execute in that business. Can you review where your market share position was across the three regions, maybe three to five years ago, where it is today? And ultimately, whether you can surpass your stated target of 37% global friction share?

Question: Matt Summerville - D.A. Davidson & Co. (Research) - Analyst : When you look at the transition, albeit the slope maybe changing a little bit, when you think about the ICE to EV transition, how does ITT win in that transition?

Question: Matt Summerville - D.A. Davidson & Co. (Research) - Analyst : When you look over the last few years, what's defined your ability to capture share? You have gone through a supply chain crisis, logistical challenges, COVID impacts. Talk about some of the KPIs that you often use as selling points with your customers to help gain market share?

Question: Matt Summerville - D.A. Davidson & Co. (Research) - Analyst : Perfect. I have more I want to talk about with MT, but maybe let's pivot over to IP for a couple of minutes. Emmanuel, in your remarks, you talked about the project side of the business being -- sounded extremely strong, at least from an inbound order standpoint. I would think there's no way the market is growing that fast. So maybe can you highlight what's enabling you to deliver the market outgrowth you're delivering? And can you touch on -- do a little bit of a deeper dive just from an end market standpoint, talk about chemical, oil and gas, mining, general industrial and if you're able to take that a step further with a little bit of a geographic overlay, that would be helpful.

Question: Matt Summerville - D.A. Davidson & Co. (Research) - Analyst : With respect to decarbonization, you mentioned that, how big is your decarbonation driven business today? What's your technology differentiation? And maybe just to switch gears to Svanehoj, which you mentioned in your prepared remarks, what did that acquisition bring to the table for you guys that's differentiated? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 19, 2024 / 1:45PM, ITT.N - ITT Inc at DA Davidson Diversified Industrials & Services Conference

Question: Matt Summerville - D.A. Davidson & Co. (Research) - Analyst : Perfect. Thank you for that. Sticking with IP. Across the broader industrial space, we've seen capital investments being laid deferred as a function of -- I mean, you can name 10 different things, but supply chain constraints, macro geopolitical, political, how might we expect this to play out in IP's order entry over shorter and longer cycle businesses over the next couple of quarters?

Question: Matt Summerville - D.A. Davidson & Co. (Research) - Analyst : Perfect. Maybe moving over to CCT here. Can you talk about how ITT is positioned relative to the commercial aerospace? Obviously, we're seeing some challenges from an OEM standpoint. Supply chain constraints had been total -- now what's maybe more topical is the Boeing strike. Should we expect that to impact your business over maybe the next three months? And if it goes beyond that, how should we be thinking about that? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 19, 2024 / 1:45PM, ITT.N - ITT Inc at DA Davidson Diversified Industrials & Services Conference

Question: Matt Summerville - D.A. Davidson & Co. (Research) - Analyst : Perfect. If I recollect properly, you are the major multiyear OEM contract that's up for renegotiation, which you're contemplating some pretty notable price capture. Is there any update you can provide as to how those negotiations have been progressing?

Question: Matt Summerville - D.A. Davidson & Co. (Research) - Analyst : Thank you. Let's stick to CCT. So speak to ITT's core defense-related business and the relative positioning here, growth outlook into '25, but also very importantly, how kSARIA, which you now just acquired fits into that framework?

Question: Matt Summerville - D.A. Davidson & Co. (Research) - Analyst : Perfect. Maybe just sticking with kSARIA. Can you just take a moment to remind investors the opportunities for synergies kSARIA, the core CCT business, the commercial operational and the potential impact on ITT's financials with respect to accretion, et cetera.

Question: Matt Summerville - D.A. Davidson & Co. (Research) - Analyst : Perfect. And then I think we just have about two, maybe three minutes left. Just talking about capital deployment, you mentioned having a pretty good funnel. As it pertains to inorganic, talk a little bit more about the actionability, the depth of the funnel, how that's matured as you brought in additional M&A resources over the last few years? And how ITT thinks about M&A versus repurchases, noting you have $1 billion or so authorization out there? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 19, 2024 / 1:45PM, ITT.N - ITT Inc at DA Davidson Diversified Industrials & Services Conference