ITT Inc.

play beginning at 12 p.m. Eastern Time. At this time, all participants have been placed in a listen-only mode and the floor will be open for your questions following the presentation. If you would like to ask a question at that time, please press star 1 on your touchtone phone. If at any point your question has been answered, you may remove yourself from the queue by pressing star 1. We ask that you please pick up your handset to allow optimal sound quality. It is now my pleasure to turn the floor over to Mark Macaluso, Vice President Investor Relations and Global Communications. You may begin.

Thank you, Bella, and good morning. Joining me in Stanford today are Lucas Sava, ITT's Chief Executive Officer and President, and Emmanuel Capre, Chief Financial Officer. Today's call will cover ITT's financial results for the three-month period ended June 28, 2025. Please refer to slide 2 of the presentation, available on our website, where we note that today's comments will include forward-looking statements that are based on our current expectations. Actual results may differ materially due to several risks and uncertainties, including those described in our 2024 annual report on Form 10-K and other recent SEC filings. Except for otherwise noted, the second quarter results we present this morning will be compared to the second quarter of 2024 and include certain non-GAAP financial measures. The reconciliation of such measures to most comparable GAAP figures are detailed in our press release and in the appendix of our presentation, both of which are available on our website. With that, it's now my pleasure to turn it over to Lucas who will begin on slide 3.

Thank you, Mark, and good morning. I'd like to begin, as always, with a heartfelt thank you to all our ITTers. We could not have delivered these results without each and every one of you and your hard work. I'm humbled by our team's ability to achieve such strong performance once again. In May, we were fortunate to see many of you at our Capital Markets Day in New York City. There, we showcased ITT's enterprise strategy and value creation pillars. First, organic growth and margin expansion. Second, the compounding with M&A. And when you look at our second quarter results, you see all of this value creation in action. Let me share some highlights. In Q2, we delivered $1 billion of orders, up 16% total and 13% organic, as all our businesses deliver a strong order intake, bolstered by the Quesaria and Savannah acquisitions. We generated record quarterly revenue of more than $970 million, up 7% total and 4% organic, with all segments contributing. Operating income grew more than twice the organic sales growth rate, and operating margin expanded over 100 basis points, excluding M&A. Our profitable growth and continued operational improvement resulted in adjusted EPS growth of 10% or 16% excluding the Wolverine divestiture. Finally, we grew free cash flow to $214 million year to date, making significant progress to nearly half a billion dollars for the full year. Furthermore, free cash flow margin was 14% in Q2. To round out the highlights, we repurchased $500 million of ITT shares year to date, reaffirming our confidence in the long-term outlook of ITT and lowering our weighted average share count by 3%. As you can see, a strong performance in Q2, built on ITT's pillars of value creation, organic growth and margin expansion, compounded now with M&A, as we laid out at Capital Markets Day. Now, let's get into the details. Orders. Definitely one of the highlights of the quarter. Industrial process grew 22% driven by strength in Goosebumps and Svanahoye. Notably, in the first six months of 2025, Svanahoye orders of nearly $200 million were above their full year 2024 revenue. A strong first half, to say the least. Furthermore, Boneyman won large awards on leading energy projects with two oil majors in Australia and the Middle East. The former, in one of the world's largest LNG fields, where Boneyman won again thanks to our superior technology, our customer service and our execution on the current pump project. The latter, at an onshore oil field in the UAE, where our customers standardized on Boneyman's twin screw pumps based on the performance track record of our existing solution. And this is despite aggressive pricing by our competition during the bidding phase. Well done, Yorun and Boneyman team. Moving to Connect and Control. We grew 9% organic driven by the Science and Commercial Aerospace Awards and grew total orders 36%. Quesaria continued to secure content on coveted defense platforms such as the Abrams tank and the battlefield communications program. As a result, their orders grew more than 25% this quarter. I was fortunate to be at Quesaria at Quarters in New Hampshire with Michael and the leadership team to work together on executing our commercial synergies. The team successfully replaced a competitor's connector with our Canon HDX on an important existing Quesaria platform. And there are many more still to capture. In Motion Technologies, the Friction team won 49 new electrified platform awards with leading OEMs in China, Europe and North America, including Zika, Cherry, BYD and Mercedes-AMG. And in Coney, once again, we saw strong orders across the board, mainly driven by rail and defense, including a notable win on a prominent U.S. battle vehicle. All in, our book to bill of 1.1 resulted in an ending backlog of nearly $2 billion, up 34% versus prior year and up 9% sequentially. On revenue, we saw broad-based organic growth across all segments as we worked to convert a robust backlog. IP grew 5% organically on project strength. Svanio also delivered strong top-line performance, growing 43%. CCT grew 4% organically as defense momentum continues and aerospace demand improves. And in MT, Friction OE grew 7% organically, continuing to outperform global auto production in all geographies. On profitability, we continued to expand margin, growing 30 basis points after overcoming headwinds from temporary M&A amortization and foreign currency transaction costs. IP grew margin 100 basis points to nearly 22%, driven by volume, productivity and price. The Svanio team also drove improvements in profitability as they are efficiently ramping up production capacity. MT grew margin by 140 basis points driven by productivity savings, and this after offsetting 100 basis points of unfavorable FX impact. And finally, CCT grew margin 270 basis points excluding M&A dilution. This was driven mainly by strategic pricing actions, with two additional customer price negotiations closed this quarter. On capital deployment, an incredibly strong cash performance, which put us in a position to act quickly to repurchase $400 million of ITT shares in April and May alone. And on M&A, we continued to progress several acquisition targets of size to the funnel, building our M&A muscle that will drive the next leg of value creation for ITT. Lastly, on the outlook, given our strong first hour performance, ramping contribution from acquisition and the less volatile environment, we are raising our full year adjusted EPS outlook to $6.45 at the first point, amounting to 10% growth versus prior year or 13% growth if we exclude the loss earnings from our 2024 Wolverine divestiture. This is a testament to our team's ability to deliver day in and day out for our customers and our shareholders, no matter the environment. Emmanuel will talk more about our revised guidance shortly. Now, let's spend a few moments discussing our 2025 capital markets day and a few examples of how in Q2 we differentiated through execution, innovation, and M&A. First, on execution. In our engineered valves business, thanks to the value of our patented Envision technology and the impeccable service we are providing to a large biopharma customer, our team is expected to double the size of a previous valve order to roughly $50 million. Next, friction China. To industrialize the new awards that Zulai and the China team won in the last 18 months, we performed more than 150 process validations in Q2. This means that the team had to stop production lines two times per day to run small test batches of the newly awarded Braithead. And despite all this, our overall plant efficiency in Wuxi was more than 90% in Q2. Well done, friction. Next, on innovation. At capital markets day, you heard us talk about the Geopolymer, the next breakthrough material science in Braithead at ITT. In Barge, Italy, I was fortunate to see the production line we designed that will make the Geopolymer. We have the product, we have the manufacturing technology, and we have a customer. Today, we are one step closer to the commercialization of this unique and patented technology. Then in Svanahoye, we recently launched our new high pressure fuel pump. The lab testing demonstrated this new pump will outlast our competitors' product. It has been running on an operating vessel since March, and the second pump will be installed on another vessel in August. This type of innovation for harsh environments will sustain Svanahoye's share gain momentum. Last but not least, Vida, a revolutionary compact motor that embeds variable speed capabilities to deliver energy efficiency and better reliability for our customers. At our launch event in June in Houston, we secured strategic wins, and now we have deployed Vida in trials at two of the world's largest oil companies. The team already secured more than a million dollars in orders, and last week, we started shipping. Finally, on M&A. We are still early on our M&A journey, but the success with Habonim, Svanahoye, and Kessaria is promising as Bartek share the capital market's day. We continue to progress acquisition targets through the funnel with rigor and a disciplined framework for deal selection, execution, and integration. Now with all of these in mind, let me reiterate our 2030 financial targets on slide four. We expect to drive more than 5% organic revenue growth and approximately 10% growth in total on an average annual basis. Margin is expected to reach 23%, representing over 500 basis points of expansion compared to 2024. This will drive more than $11 of adjusted EPS from our existing businesses and more than $12 including anticipated M&A. And free cash flow margin should reach 14 to 15%. As you can see, we have now started our journey towards this target, and Q2 was a very good first step in that direction. Now let me turn the call over to Emmanuel to discuss our Q2 results in more detail.