ITT Inc at TD Cowen Aerospace & Defense Conference Transcript

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

Question: Joe Giordano - TD Cowen - Analyst : Great, and so I have a bunch of questions we'll go through if anyone has any as we go just put up your hand, we'll we'll we'll, keep it as interactive as you'd like it to be. We're going to start off a little bit more broad and then we'll get into some of the A&D kind of specific questions, in a bit. But if we start, maybe I think 4th quarter was a good like representation for you guys of how like the balance of the portfolio can help navigate you got. Somewhere you do it better and somewhere else, can you talk about how that how your strategy is kind of shaped around this where you want to be kind of not you know not too specific into one area and kind of stay stay balanced?

Question: Joe Giordano - TD Cowen - Analyst : So which markets are you most excited about right now? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 12, 2025 / 8:35PM, ITT.N - ITT Inc at TD Cowen Aerospace & Defense Conference

Question: Joe Giordano - TD Cowen - Analyst : Have you seen like changes post-election and customer behavior? I know there was a little bit of uncertainty going in is that. Has that kind of gone away or has it been replaced with now new uncertainty around policy and things like that? No.

Question: Joe Giordano - TD Cowen - Analyst : I'll ask the prerequisite tariffs question. So how should we think about global organization with manufacturing a lot of spots? So how do we think about the implications of, we have metal tariffs or if it's China, Mex China, Canada, Mexico, how should we, how should we. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 12, 2025 / 8:35PM, ITT.N - ITT Inc at TD Cowen Aerospace & Defense Conference

Question: Joe Giordano - TD Cowen - Analyst : Axis, ultimately it's my problem at the end of the day.

Question: Joe Giordano - TD Cowen - Analyst : We'll see. I'm sure it's been pretty well thought out at the top level, so. We'll figure that out. I think we're all trying to deal with it, you mentioned M&A a bunch of times. This is kind of a new muscle for you guys to some extent so maybe we could talk about how that how the internal capability has developed over the last several years and how you know you've been opportunistic in the past, but I think now it's starting to show more consistency and more more consistent deployments so maybe talk us through the developments there.

Question: Joe Giordano - TD Cowen - Analyst : Just need to find companies that are easier to say.

Question: Joe Giordano - TD Cowen - Analyst : And for no other reason that you just thought it was too much to do.

Question: Joe Giordano - TD Cowen - Analyst : Yeah, that makes sense. Alright, so we sit here, we're halfway through the quarter. You're guiding full year 3 to 5 organic 80 bits margin, where do you see potential for upside to that and what is like the parts of it that you have the most uncertainty around?

Question: Joe Giordano - TD Cowen - Analyst : Execute on the backlog, do you is that translate. Does executing better than historical translate to revenue being higher because you're burning through it faster, or does it translate to better margins because you're doing it more fi.

Question: Joe Giordano - TD Cowen - Analyst : So I'm glad you mentioned execution. So Luca and you came up through MT, and that's always kind of been the driving force behind efficiency at the whole company. So can you talk about how you're, obviously making very different things and different types of technologies, but how you taking like the process and the thought. The thoughts of MT and applying them to IP and CCT.

Question: Joe Giordano - TD Cowen - Analyst : And sitting in your seat, how do you kind of balance the capital allocation between these businesses like if you're saying. Is there a business that we need to invest more to make it more efficient or businesses that are running more efficient deserve more capital because they're earning it like how do you how do you kind of balance that?

Question: Joe Giordano - TD Cowen - Analyst : Interesting. So we'll take the last couple minutes here we'll dig into the AND portfolio a little bit more maybe. Can you just kind of give us a bit of an overview of like what you're actually what what kind of niches you're in there and how has it evolved over the years? I know you've Casario is a big one and micro mode and how's the portfolio kind of changed a bit?

Question: Joe Giordano - TD Cowen - Analyst : How should we think about like the growth if in errors within A&D like what's the growth most tied to is it is it build rates? Is it how much is like more of replacement in services or is it defense budgets like what what are the key drivers to that?

Question: Joe Giordano - TD Cowen - Analyst : Is there a content story there as well, or is it more like if we make the same amount of whatever missiles or planes or whatever, is there more and more of your stuff going to be on these things in the future or is it about taking connectors out and driving a value proposition from that?

Question: Joe Giordano - TD Cowen - Analyst : Source some.

Question: Joe Giordano - TD Cowen - Analyst : Maybe just last What about the space market? What's your, where are you playing there? Is that an area that you think you can get more into? Yes.

Question: Joe Giordano - TD Cowen - Analyst : Anyone in the audience, any last questions here? Perfect. All right, I think we'll leave it there. Thirty seconds to spare. Thank you, guys.