ITT INC.

NOTE 3

SEGMENT INFORMATION

The Company’s segments are reported on the same basis used by our chief operating decision maker (CODM) for evaluating performance and for allocating resources. The Company’s 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. Ourthree 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 equipment. These assets are included within Corporate and Other, which is described further below.

Corporate and Other consists of corporate office expenses including compensation, benefits, occupancy, depreciation, and other administrative costs, as well as charges related to certain matters, such as environmental liabilities, that are managed at a corporate level and are not included in segment results when evaluating performance or allocating resources. In addition, Corporate and Other includes the operating results associated with a subsidiary that does not constitute a reportable segment.

The following table presents our segment revenue and operating income for each segment and reconciles to total consolidated revenue, total segment operating income and income from continuing operations before income tax.

(a)The significant expense categories and amounts align with segment-level information that is regularly provided to the CODM.

(b)Other segment items for each reportable segment includes (gain) loss on sale of fixed assets and (gain) loss on sale of businesses.

The following table presents our operating margin for each segment. Segment operating margin is calculated as segment operating income divided by segment revenue.

The following table presents our assets as of December 31, 2025 and 2024, as well as our capital expenditures and depreciation and amortization expense for the years ended December 31, 2025, 2024, and 2023, by segment.

(a) Total assets for Corporate and Other as of December 31, 2025 reflect an increase in cash and equivalents of approximately $1.3 billion resulting from the issuance of common stock intended to be utilized to finance a portion of the pending SPX FLOW acquisition. See Note 18, Capital Stock, for additional information.

The following table displays consolidated revenue by geographic region. Revenue is attributed to individual regions based on the destination of the product or service delivery.

(a)Includes revenue of $1,365.3, $1,197.6, and $1,075.8 from the United States for 2025, 2024, and 2023, respectively.

(b)Includes revenue of $365.2, $385.9, and $387.8 from Germany for 2025, 2024, and 2023, respectively.

(c)Includes revenue of $465.4, $445.3, and $351.8 from China for 2025, 2024, and 2023, respectively.

The following table displays Plant, Property and Equipment (PPE), net by geographic region.

(a)Includes PPE, net of $135.6 and $113.0 in the United States as of December 31, 2025 and 2024, respectively.

(b)Includes PPE, net of $171.5 and $154.8 in Italy as of December 31, 2025 and 2024, respectively.

(c)Includes PPE, net of $70.5 and $62.3 in China as of December 31, 2025 and 2024, respectively.

NOTE 4

REVENUE

The following table represents our revenue disaggregated by end market.

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 Process’s products are highly engineered and customized to our customer needs and therefore do not have an alternative use. For these longer term design and build projects, if the contract states that we also have an enforceable right to payment, we recognize revenue over time using the cost-to-cost method as we satisfy the performance obligations identified in the contract. If no right to payment exists, revenue is recognized at a point in time, generally based on shipping terms. A majority of our design and build project contracts currently do not have a right to payment. For pumps that do have an alternative use to us, revenue is recognized at a point in time. Revenue on service and repair contracts represents less than 4% of consolidated ITT revenue in 2025 and less than 5% in both 2024 and 2023 and is recognized after the services have been rendered or over the service contract period.

Our Motion Technologies segment manufactures brake pads, shock absorbers, and energy absorption components primarily for the transportation industry. Our Connect & Control Technologies segment designs and manufactures a range of highly engineered connectors, cable assemblies and specialized control components for critical applications supporting various markets including aerospace and defense, industrial, transportation, medical, and energy. In both of these segments, most products have an alternative use. Therefore, revenue for those products is recognized at a point in time when control passes to the customer.

Contract Assets and Liabilities

Contract assets consist of unbilled amounts where revenue recognized exceeds customer billings. Contract liabilities consist of advance payments and billings in excess of revenue recognized. The following table represents our net contract assets and liabilities.

Our net contract liability increased $39.5 during 2025, primarily due to timing of cash receipts relative to project performance within our IP segment. During 2025, we recognized revenue of $84.2 related to contract liabilities at December 31, 2024.

The aggregate amount of the transaction price allocated to unsatisfied or partially satisfied performance obligations, or backlog, was $1,876.4 as of December 31, 2025. Of this amount, we expect to recognize approximately 80% to 85% of revenue during 2026 and the remainder thereafter. Our backlog generally represents firm orders that have been received, acknowledged, and entered into our production systems. However, within certain businesses in MT, our customers include automotive OEMs and we may win an award on an automotive platform several years in advance based on estimated levels of future automotive production. These awards allow for the customer to adjust their production levels at any time and therefore are not considered firm orders. Within these businesses we believe orders are firm upon receipt of the customer purchase order, which may require us to fulfill the order in as little as one week. As such, our backlog at any point in time for these businesses is not believed to be significant and therefore has been excluded from the total backlog amount.

As of December 31, 2025 and 2024, deferred contract costs, net were $3.0 and $3.2, respectively, primarily related to pre-contract costs.

NOTE 5

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.

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.