Financial Analysis

"ACQUISITIONS, INVESTMENTS, AND DIVESTITURES Acquisition of kSARIA On September 12, 2024, we completed the acquisition of 100% of the privately held stock of kSARIA for a purchase price of $460.1, net of cash acquired and including deferred consideration of $4.5 which was paid in 2025. kSARIA is a leading manufacturer of mission-critical cable assembly and networking application solutions primarily for the aerospace and defense market. kSARIA is headquartered in New Hampshire, with approximately 1,000 employees across five manufacturing sites in the U.S. and one in Mexico. Subsequent to the acquisition, kSARIAs financial results are reported within our CCT segment. The assets acquired and liabilities assumed for the kSARIA acquisition were recorded at fair value and are shown in the table below, including final adjustments to the purchase price during 2025. The impact to the current period income statement resulting from the adjustments was not material. kSARIA - Allocation of Purchase Price Preliminary 12/31/2024 2025 Adjustments Final 12/31/2025 Receivables $ 26.7 $ (0.3) $ 26.4 Inventory 48.0 (9.6) 38.4 Plant, property and equipment 9.4 (0.3) 9.1 Goodwill (a) 244.3 (0.8) 243.5 Other intangible assets 185.1 185.1 Other assets 10.3 (0.3) 10.0 Accounts payable and accrued liabilities (28.5) (2.0) (30.5) Other liabilities (30.5) 11.6 (18.9) Contract liabilities (3.0) (3.0) Net assets acquired $ 461.8 $ (1.7) $ 460.1 (a) Goodwill acquired with kSARIA is primarily attributable t …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

COMMITMENTS AND CONTINGENCIES From time to time, we are involved in litigation, claims, government inquiries, investigations and proceedings, including but not limited to those relating to environmental exposures, intellectual property matters, personal injury claims, product liabilities, regulatory matters, commercial and government contract issues, employment and employee benefit matters, commercial or contractual disputes, and securities matters. Although the ultimate outcome of any legal matter cannot be predicted with certainty, based on present information including our assessment of the merits of the particular claim, as well as our current reserves and insurance coverage, we do not expect that such legal proceedings will have any material adverse impact on our financial statements, unless otherwise noted below. However, there can be no assurance that an adverse outcome in any of the proceedings described below will not result in material fines, penalties or damages, changes to the Company's business practices, loss of (or litigation with) customers or a material adverse effect on our financial statements. Environmental Matters In the ordinary course of business, we are subject to federal, state, local, and foreign environmental laws and regulations. We are responsible, or are alleged to be responsible, for ongoing environmental investigation and site remediation primarily related to former ITT businesses and former operating locations. These sites are in various stage …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"DEBT The following table summarizes our outstanding debt obligations. As of December 31 2025 2024 Commercial paper $ 258.0 $ 424.5 Short-term loans 0.5 0.5 Current maturities of long-term debt 2.8 2.6 Total short-term borrowings 261.3 427.6 Non-current maturities of long-term debt 521.5 232.6 Total debt $ 782.8 $ 660.2 Commercial Paper The following table presents our outstanding commercial paper borrowings and associated weighted average interest rates. As of or for the Year Ended December 31 2025 2024 Commercial Paper Outstanding - U.S. Program $ $ 424.4 Commercial Paper Outstanding - Euro Program 258.0 Total Commercial Paper Outstanding $ 258.0 424.4 Weighted Average Interest Rate - U.S. Program N/A 4.80 % Weighted Average Interest Rate - Euro Program 2.42 % N/A Outstanding commercial paper for both periods had maturity terms less than three months from the date of issuance. 2025 Term Loan Credit Agreement On April 30, 2025, the Company entered into a credit agreement (as amended, the 2025 Term Loan Credit Agreement) among the Company, as borrower, certain of our subsidiaries, as guarantors, each lender from time to time party thereto, and U.S. Bank National Association, as the administrative agent. In connection with the entry into the 2025 Revolving Credit Agreement (as defined below), on July 30, 2025, the Company and lenders entered into an amendment to the 2025 Term Loan Credit Agreement to modify certain covenant baskets and other terms (including amendments to the …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table represents our revenue disaggregated by end market. For the Year Ended December 31, 2025 Motion Technologies Industrial Process Connect & Control Technologies Eliminations Total Auto and rail $ 1,414.0 $ $ $ $ 1,414.0 Chemical and industrial pumps 955.7 955.7 Aerospace and defense 10.6 712.0 722.6 General industrial 3.6 251.9 (2.9) 252.6 Energy 540.5 53.1 593.6 Total $ 1,428.2 $ 1,496.2 $ 1,017.0 $ (2.9) $ 3,938.5 For the Year Ended December 31, 2024 Auto and rail $ 1,423.6 $ $ $ $ 1,423.6 Chemical and industrial pumps 905.3 905.3 Aerospace and defense 7.9 511.6 519.5 General industrial 16.3 259.0 (3.2) 272.1 Energy 455.7 54.5 510.2 Total $ 1,447.8 $ 1,361.0 $ 825.1 $ (3.2) $ 3,630.7 For the Year Ended December 31, 2023 Auto and rail $ 1,423.7 $ $ $ (0.1) $ 1,423.6 Chemical and industrial pumps 893.0 (0.1) 892.9 Aerospace and defense 8.4 377.3 385.7 General industrial 25.7 270.7 (3.6) 292.8 Energy 236.6 51.4 288.0 Total $ 1,457.8 $ 1,129.6 $ 699.4 $ (3.8) $ 3,283.0 …

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"LONG-TERM INCENTIVE EMPLOYEE COMPENSATION The 2011 Omnibus Incentive Plan (2011 Incentive Plan) was approved by shareholders and established in May 2011 to provide for the awarding of options on common shares and full value restricted common shares or units to employees and non-employee directors. As of December 31, 2025, 35.9 shares were available for future grants under the 2011 Incentive Plan. The Company can make shares available for the exercise of stock options or vesting of restricted shares or units by purchasing shares in the open market. Our long-term incentive plan (LTIP) awards are comprised of two components: restricted stock units (RSUs) and performance stock units (PSUs). The majority of RSUs and PSUs settle in shares; however RSUs and PSUs granted to certain international employees are settled in cash. We account for equity-settled RSUs and PSUs as equity-based compensation awards. We account for cash-settled RSUs and PSUs as liability-based awards. PSUs contain equally weighted performance conditions for total shareholder return (TSR) and return on invested capital (ROIC). PSUs vest based on predetermined performance metrics that align with the Company's stock price and financial performance generally following a three-year performance period and are subject to a payout factor which includes a maximum and minimum payout. PSUs are accounted for as two distinct awards, a TSR award and a ROIC award. LTIP costs are primarily recorded within General and administr …

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GOODWILL AND OTHER INTANGIBLE ASSETS, NET Goodwill The following table provides a rollforward of the carrying amount of our goodwill by segment. Motion Technologies Industrial Process Connect & Control Technologies Total Goodwill as of December 31, 2023 $ 292.3 $ 403.0 $ 321.0 $ 1,016.3 Goodwill acquired (a) 215.6 244.3 459.9 Adjustments to purchase price allocations 0.6 0.6 Allocated to divestiture of business (b) (16.0) (16.0) Foreign currency translation (3.9) (25.3) (1.5) (30.7) Goodwill as of December 31, 2024 $ 272.4 $ 593.3 $ 564.4 $ 1,430.1 Goodwill acquired 11.1 11.1 Adjustments to purchase price allocations (0.8) (0.8) Foreign currency translation 9.1 59.3 2.4 70.8 Goodwill as of December 31, 2025 $ 281.5 $ 663.7 $ 566.0 $ 1,511.2 (a) Goodwill acquired for our IP and CCT segments is related to our acquisitions of Svanehj and kSARIA, respectively, representing the calculation of the excess purchase price over the net assets acquired. (b) During 2024, we completed the sale of our Wolverine business, which was previously included within our MT segment. See Note 22, Acquisitions, Investments, and Divestitures , for further information. Goodwill acquired represents the calculation of the excess purchase price over the net assets acquired. During the year ended December 31, 2025, the valuation of kSARIA was finalized. Refer to Note 22, Acquisitions, Investments, and Divestitures , for further information. Other Intangible Assets, Net The following table summarizes our …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

LEASES The Companys lease portfolio primarily relates to real estate, which may be used for manufacturing or non-manufacturing purposes (e.g., office space), and contains lease terms generally ranging between one and 23 years. Our lease portfolio also includes vehicles and equipment. Substantially all of our leases are classified as operating leases. Lease costs associated with fixed payments related to the Company's operating leases were $35.3, $31.4, and $30.2 for the years ended December 31, 2025, 2024 and 2023, respectively. Short-term lease costs, variable lease costs, and sublease income related to our operating leases, as well as total lease costs related to our finance leases, were not material for the years ended December 31, 2025, 2024 and 2023. The following table displays our future lease obligations related to non-cancellable operating leases with an initial term in excess of 12 months as of December 31, 2025. 2026 $ 27.3 2027 20.4 2028 14.1 2029 9.4 2030 5.4 Thereafter 18.6 Total undiscounted future operating lease obligations 95.2 Less: imputed interest 10.8 Present value of future operating lease obligations (a) $ 84.4 (a) Includes $ 24.4 of current operating lease liabilities recorded within Accrued and other current liabilities and $ 60.0 of non-current operating lease liabilities recorded within Other non-current liabilities in our Consolidated Balance Sheets. The following table includes other supplemental information regarding our operating leases. As of …

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Recently adopted accounting pronouncements In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU requires disclosure of specific categories in the rate reconciliation and additional information for reconciling items that meet a quantitative threshold. The amendment also includes other changes to improve the effectiveness of income tax disclosures, including further disaggregation of income taxes paid for individually significant jurisdictions. We adopted this guidance prospectively for the year ending December 31, 2025. See Note 6, Income Taxes , for more information.

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POSTRETIREMENT BENEFIT PLANS Defined Contribution Plans Substantially all of ITTs U.S. and certain international employees are eligible to participate in a defined contribution plan. ITT sponsors numerous defined contribution savings plans, which allow employees to contribute a portion of their pre-tax and/or after-tax income in accordance with specified guidelines. Certain plans require us to match a portion of the employee contributions. Company contributions charged to expense amounted to $19.1, $19.4 and $17.3 for 2025, 2024 and 2023, respectively. The ITT Stock Fund, an investment option in our U.S. based defined contribution plan, is considered an employee stock ownership plan and, as a result, participants in the ITT Stock Fund may receive dividends in cash or may reinvest such dividends into the ITT Stock Fund. The ITT Stock Fund held approximately 0.1 shares of ITT common stock at December 31, 2025. Defined Benefit Plans ITT currently sponsors a number of defined benefit pension plans, primarily outside of the U.S., which have approximately 880 active participants. As of December 31, 2025, international pension plans represented 85% of our total projected pension benefit obligation. There is one remaining U.S. pension plan, which is frozen to new participants. International plan benefits are primarily determined based on participant years of service, future compensation, and age at retirement or termination. ITT also provides health care and life insurance benefits f …

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RESTRUCTURING ACTIONS From time to time, we initiate restructuring actions to optimize our cost structure, improve operational efficiencies, align our workforce with strategic business initiatives, or integrate acquired businesses. For the years ended December 31, 2025, 2024, and 2023, none of our restructuring activities were considered individually significant. Restructuring costs are recorded within General and administrative expenses in our Consolidated Statements of Operations. The following table summarizes our restructuring costs by component and by segment. For the Year Ended December 31 2025 2024 2023 By component: Severance and other employee-related costs $ 21.2 $ 8.1 $ 8.0 Asset write-offs 0.1 1.8 Other 0.1 Total restructuring costs $ 21.3 $ 8.1 $ 9.9 By segment: Motion Technologies $ 9.4 $ 2.7 $ 4.0 Industrial Process 8.2 3.0 4.6 Connect & Control Technologies 3.7 2.4 1.3 Total restructuring costs $ 21.3 $ 8.1 $ 9.9 The following table displays a rollforward of our total restructuring liability, which is included within Accrued and other current liabilities in our Consolidated Balance Sheets. 2025 2024 Restructuring liability as of January 1 $ 2.9 $ 4.8 Restructuring costs 21.3 8.1 Cash payments (20.6) (10.0) Asset write-offs (0.1) Foreign exchange translation and other 0.2 Restructuring liability as of December 31 $ 3.7 $ 2.9 By accrual type: Severance and other employee-related $ 3.7 $ 2.9 …

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REVENUE The following table represents our revenue disaggregated by end market. For the Year Ended December 31, 2025 Motion Technologies Industrial Process Connect & Control Technologies Eliminations Total Auto and rail $ 1,414.0 $ $ $ $ 1,414.0 Chemical and industrial pumps 955.7 955.7 Aerospace and defense 10.6 712.0 722.6 General industrial 3.6 251.9 (2.9) 252.6 Energy 540.5 53.1 593.6 Total $ 1,428.2 $ 1,496.2 $ 1,017.0 $ (2.9) $ 3,938.5 For the Year Ended December 31, 2024 Auto and rail $ 1,423.6 $ $ $ $ 1,423.6 Chemical and industrial pumps 905.3 905.3 Aerospace and defense 7.9 511.6 519.5 General industrial 16.3 259.0 (3.2) 272.1 Energy 455.7 54.5 510.2 Total $ 1,447.8 $ 1,361.0 $ 825.1 $ (3.2) $ 3,630.7 For the Year Ended December 31, 2023 Auto and rail $ 1,423.7 $ $ $ (0.1) $ 1,423.6 Chemical and industrial pumps 893.0 (0.1) 892.9 Aerospace and defense 8.4 377.3 385.7 General industrial 25.7 270.7 (3.6) 292.8 Energy 236.6 51.4 288.0 Total $ 1,457.8 $ 1,129.6 $ 699.4 $ (3.8) $ 3,283.0 Revenue recognized related to our Industrial Process segment primarily consists of pumps, valves and plant optimization systems and related services which serve the general industrial, energy, chemical and petrochemical, pharmaceutical, mining, pulp and paper, food and beverage, and power generation markets. Many of Industrial Processs products are highly engineered and customized to our customer needs and therefore do not have an alternative use. For these longer term design and bui …

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SEGMENT INFORMATION The Companys segments are reported on the same basis used by our chief operating decision maker (CODM) for evaluating performance and for allocating resources. The Companys CODM is the President and Chief Executive Officer. The CODM allocates resources based on revenue and operating income primarily through the annual budget and periodic forecasting process. The CODM considers budget-to-actual variances when making decisions about allocating capital and personnel to the segments. Our three reportable segments are referred to as: Motion Technologies, Industrial Process, and Connect & Control Technologies. Motion Technologies manufactures brake components, shock absorbers and damping technologies primarily for the global automotive and rail transportation markets. Industrial Process manufactures engineered fluid process equipment serving a diversified mix of customers in global industries such as chemical, energy, marine, mining, and other industrial process markets and is a provider of pumps, valves, and aftermarket services and parts. Connect & Control Technologies manufactures harsh-environment connector solutions, cable assemblies, critical energy absorption, flow control components, and composite materials for the aerospace and defense, general industrial, medical, and energy markets. Assets of our reportable segments exclude general corporate assets, which principally consist of cash, investments, deferred taxes, and certain property, plant and …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"CAPITAL STOCK ITT has authority to issue an aggregate of 300 shares of capital stock, of which 250 shares have been designated as common stock having a par value of $1 per share and 50 shares have been designated as preferred stock not having any par or stated value. There was no preferred stock outstanding as of December 31, 2025 and 2024. On December 10, 2025, the Company issued 8.05 shares of common stock at a public offering price of $167.00 per share, generating net proceeds of $1,314.1 after underwriting discounts and expenses. The shares were issued under the Companys shelf registration statement on Form S-3ASR. The Company intends to use the net proceeds to fund a portion of the cash purchase price for the previously announced acquisition of SPX FLOW, Inc., (""SPX FLOW"") expected to close by the end of the first quarter of 2026. If the acquisition is not consummated, the Company intends to use the net proceeds for general corporate purposes. The holders of ITT common stock are entitled to receive dividends when and as declared by ITTs Board of Directors. Dividends are paid quarterly. Dividends declared were $1.404, $1.276 and $1.160 per common share totaling $111.0, $104.8, and $95.9 in 2025, 2024, and 2023, respectively. On October 4, 2023, the Board of Directors approved an indefinite term $1,000 open-market share repurchase program (the 2023 Plan). There was $455 of remaining capacity left under the 2023 Plan as of December 31, 2025. The following table summarize …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing