ITT INC.

ITT Inc., through its worldwide subsidiaries, is a diversified manufacturer of highly engineered critical components and customized technology solutions for the transportation, industrial, energy, and health and nutrition markets. We manufacture components that are integral to the operation of systems and manufacturing processes in these key markets. Our products enable functionality for applications where reliability and performance are critically important to our customers and the users of their products.

Our businesses share a common, repeatable operating model centered on our engineering capabilities. Each business applies its technology and engineering expertise to solve our customers’ most pressing challenges. Our applied engineering provides a valuable business relationship with our customers given the critical nature of their applications. This in turn provides us with unique insight to our customers’ requirements and enables us to develop solutions to assist our customers in achieving their business goals. Our technology and customer intimacy produce opportunities to capture recurring revenue streams, aftermarket opportunities and long-lived platforms from original equipment manufacturers (OEMs).

Our product and service offerings are organized into three reportable segments: Flow Technologies (FT), Motion Technologies (MT), and Connect & Control Technologies (CCT). Flow Technologies, formerly Industrial Process, was renamed following our acquisition of SPX FLOW to reflect the expanded scale and capabilities of the combined operations. See Note 3, Segment Information, to the Consolidated Condensed Financial Statements for a summary description of each segment. Additional information is also available in our 2025 Annual Report within Part I, Item 1, “Description of Business.”

All comparisons included within Management’s Discussion and Analysis of Financial Condition and Results of Operations refer to the comparable three and nine months ended September 27, 2025, unless stated otherwise.

Effective January 1, 2026, the Company is presenting intangible amortization expense as a separate line item within the consolidated statements of operations to enhance transparency and comparability. For additional information on the change in presentation, refer to Note 1, Description of Business and Basis of Presentation. Management’s discussion and analysis of the financial condition and results of operations have been adjusted to reflect the change in presentation.

Global Macroeconomic Conditions

Global macroeconomic conditions continued to evolve during the third quarter of 2026 amid geopolitical conflict, sustained energy market volatility, shifting trade policies, and changing monetary policy conditions. While customer demand remained generally resilient across many of our end markets, particularly in defense and aftermarket applications, activity levels varied by geography and market sector. We continue to focus on operational execution, productivity initiatives, and disciplined capital allocation while leveraging our diversified portfolio and global operating footprint to navigate changing market conditions.

Geopolitical and Energy Market Risk: Geopolitical developments, including ongoing conflict and instability in the Middle East, continued to affect global energy markets, trade flows, transportation networks, and customer sentiment during the third quarter of 2026. The Company remains exposed to fluctuations in energy prices, transportation costs, and global economic activity; however, our diversified end-market exposure, global manufacturing footprint, and significant aftermarket presence help mitigate the impact of localized disruptions. In addition, portions of our CCT platform may benefit from sustained investments in defense, security, and critical infrastructure programs. Overall, our continued portfolio evolution and diversified end‑market exposure are intended to enhance durability and adaptability across macroeconomic and geopolitical cycles.

Tariffs and Trade Policies: Trade policy uncertainty remained elevated during the third quarter of 2026 as governments continued to pursue tariff programs. Changes to U.S. tariff frameworks and ongoing Section 301-related proceedings may affect customer demand, sourcing decisions, and input costs across portions of our businesses. We continue to pursue opportunities to recover tariffs previously paid where authorized programs and administrative processes permit recovery and remain focused on mitigating the impact of future trade actions through pricing, sourcing, and supply chain initiatives. However, the timing and ultimate amount of any potential recoveries, as well as the impact of future trade policy developments, remain uncertain.

Workforce Availability and Cost: Labor markets remained generally stable during the third quarter of 2026, although competition for skilled manufacturing, engineering, and technical talent remains elevated in certain regions. Wage inflation has moderated relative to recent years but remains above historical levels in select markets. We continue to invest in talent development, workforce planning, automation, and productivity initiatives, which support operational performance, customer service, and long-term growth.

Technology Transformation: Advancements in automation, data analytics, artificial intelligence, and digital manufacturing platforms continue to influence industrial markets and customer investment priorities. We are leveraging digital technologies to improve operational efficiency, enhance product performance, and expand value-added solutions across our businesses. At the same time, increasing digitalization and connectivity heighten cybersecurity and data protection risks, require ongoing investment in security, infrastructure, and governance.

Supply Chain and Cost Inflation: Supply chain conditions remained relatively stable during the third quarter of 2026; however, periodic volatility in freight markets, energy costs, transportation networks, and certain commodity categories continued to affect portions of our global operations. In addition, higher interest rates and broader financial market uncertainty may affect customer investment decisions, working capital requirements, and overall economic activity. We continue to utilize dual-sourcing strategies, long-term supplier agreements, localized sourcing initiatives, inventory management practices, and productivity programs to mitigate supply chain and cost pressures and support operational performance.

Sustainability and Energy Transition: Long-term trends related to energy security, infrastructure modernization, industrial efficiency, and environmental sustainability continue to influence customer investment decisions across our end markets. These trends are creating opportunities for the Company’s technologies and solutions supporting energy-efficient operations, critical industrial processes, liquefied natural gas infrastructure, cryogenic applications, electrification, and other energy-related investments. We continue to invest in product development and innovation to address evolving customer requirements and support long-term profitable growth.

EXECUTIVE SUMMARY

The following table provides a summary of key performance indicators for the third quarter of 2026 compared to the third quarter of 2025.

*Represents a non-GAAP financial measure

Further details related to these results are contained elsewhere in the Discussion of Financial Results section. Refer to the section titled “Key Performance Indicators and Non-GAAP Measures” for definitions and reconciliations between GAAP and non-GAAP metrics, including organic revenue, adjusted operating income, adjusted operating margin, and adjusted EPS.

Our third quarter 2026 results are summarized below:

•Revenue of $1,440.6 increased by $441.5, including $365.0 from acquisition contributions. Organic revenue increased by $75.8, or 7.6%, reflecting growth at each segment, led by CCT from connectors strength within the commercial aerospace and defense markets and at FT from continued growth in pump projects and valves.

•Operating income of $226.8 increased by $47.0, or 26.1%, primarily due to benefits from volume growth, pricing actions, and net savings from supply chain and productivity initiatives, partially offset by increased intangible amortization expense of $50.1. Adjusted operating income increased by $107.3, or 54.8%, driven by robust growth and operational performance across the legacy portfolio, as well as benefits from SPX FLOW results and synergy realization.

•Income from continuing operations was $1.38 per diluted share, a decrease of $0.24 compared to the prior year, primarily due to increased intangible amortization and interest expenses. Adjusted income from continuing operations was $2.26 per diluted share, an increase of $0.37, or 19.6% primarily driven by adjusted operating income growth, partially offset by increased interest expense and a higher effective tax rate and weighted-average share count resulting from the acquisition of SPX FLOW.