ITT Inc. (ITT): Business Model Canvas [Dec-2025 Updated]

You're looking for the real story behind ITT Inc.'s numbers, especially now that they've closed that massive $\mathbf{\$4.775 \text{ billion}}$ SPX FLOW deal, right? As someone who's spent two decades mapping out industrial giants, I can tell you ITT is less about simple manufacturing and more about owning the mission-critical niche-think copper-free brake pads for EVs and specialized pumps for harsh environments. We've distilled their entire operation, from their $\mathbf{18.2\% \text{ to } 18.5\%}$ Adjusted Operating Margin guidance for 2025 to their nearly $\mathbf{\$2 \text{ billion}}$ order backlog, into this Business Model Canvas. Dive in below to see exactly how their Key Resources and Revenue Streams are set up to handle the next wave of industrial decarbonization and M&A deployment.

ITT Inc. (ITT) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that power ITT Inc.'s strategy as of late 2025, especially following major moves in the Industrial Process segment. These aren't just casual vendor agreements; these are deep, multi-year commitments that secure market access and technology integration.

Lone Star Funds for the $4.775 billion SPX FLOW acquisition

The most significant recent partnership event is the definitive agreement to acquire SPX FLOW from Lone Star Funds. This deal is valued at a substantial $4.775 billion, paid through a mix of cash and $700 million in ITT common stock issued directly to Lone Star Funds. This transaction, the largest ever by ITT Inc., is expected to close by the end of the first quarter of 2026. To be fair, the valuation reflects SPX FLOW's scale, which posted about $1.3 billion in revenue for the twelve months ending September 27, 2025, alongside a healthy 22% adjusted EBITDA margin. ITT is banking on this integration, projecting $80 million in annualized cost synergies by year three post-close, which brings the effective valuation down to 11.5 times the forecasted 2026 adjusted EBITDA.

Here's a quick look at the financial scale of the SPX FLOW addition:

Global automotive Original Equipment Manufacturers (OEMs) for brake pad supply

In Motion Technologies, ITT Friction Technologies maintains critical, long-term relationships with global automotive OEMs, often through Tier-1 suppliers. A prime example is the 10-year strategic agreement signed with Continental AG for exclusive aftermarket brake pads, running from January 1, 2024, through December 31, 2033. This single contract is expected to generate more than $1 billion in revenue over its term. Back in 2022, sales to Continental represented approximately 8% of ITT's total revenue. ITT is heavily focused on the shift to electric vehicles (EVs), where success in developing specialized pads has led to multiple platform awards with both established and new OEMs. The high-performance brake pad segment itself is a key focus, representing a total addressable market of nearly 11 million pads annually by 2026.

The Motion Technologies segment, which houses this business, is a major revenue driver for the company.

• Sales to Continental in 2022: 8% of total ITT revenue.
• Revenue expected from Continental deal (10-year term): Over $1 billion.
• High-performance brake pad TAM (by 2026): Nearly 11 million units annually.
• ITT Motion Technologies revenue share (2022): 18% of the segment's revenue from Continental.

Key aerospace and defense contractors for specialized connectors

ITT's Connect and Control Technologies segment, particularly through its Cannon brand, partners on mission-critical defense and aerospace programs. For instance, ITT was responsible for overall system integration and engineering under an FAA NextGen contract option running through September 2025. In defense, the company showcases solutions like the Ultra-High-Density C5 Warrior connector, which delivers data rates exceeding 10 Gbps in a rugged package. The broader Aerospace and Defense Connectors Market itself was valued at $7.98 billion in 2025. Furthermore, kSARIA, another ITT entity, features mission-critical connectivity solutions from its Compulink and TopFlite divisions to defense contractors.

Svanehøj's acquisition of KOHO, expanding gas solutions technology

Within the Industrial Process segment, ITT's Svanehøj business executed a strategic expansion by acquiring Köhler & Hörter GmbH (KOHO Kompressorsysteme) on October 1, 2025. This move bolsters Svanehøj's position in the growing gas tanker market by adding high-quality reciprocating compressor systems. Before this, Svanehøj, which operates in countries like Denmark, the UK, and the U.S., generated approximately $160 million in sales in 2024 and employed about 550 professionals. KOHO adds approximately 40 personnel to this team. This was Svanehøj's second acquisition in 2025, following the January purchase of European Pump Services B.V.

Strategic suppliers for raw materials like copper and specialty metals

ITT Inc. relies on a vast network of third-party suppliers for manufactured components and primary raw materials. The company's overall revenue for the second quarter of 2025 was $972 million, showing a 7% increase versus the prior year. Orders for Q1 2025 surpassed $1.0 billion. For context on the scale of operations exposed to commodity pricing, ITT's total sales across approximately 125 countries reached $3.6 billion in 2024, with 67% of that revenue generated outside the U.S. Key raw materials ITT monitors closely include Steel, Gold, Copper, Nickel, Aluminum, Tin, Rubber, and Specialty Alloys like Titanium. The company continually monitors its supply chain to mitigate risks associated with price volatility and availability constraints for these inputs.

Finance: draft 13-week cash view by Friday.

ITT Inc. (ITT) - Canvas Business Model: Key Activities

You're looking at the core engine of ITT Inc. (ITT) operations as we wrap up 2025. The key activities aren't just about making things; they're about engineering specific, high-value outcomes for demanding customers globally.

Manufacturing highly engineered critical components globally remains central. This activity supports a business that reported third quarter 2025 revenue of $999 million, with total revenue growth for the full year 2025 now guided between 6% to 7%. This global footprint is supported by a team of nearly 10,000 ITTers.

A significant operational focus is executing large, complex Industrial Process (IP) pump projects. This segment showed strong performance, with Q3 2025 revenue increasing 11%, driven by this project strength. Furthermore, the announced acquisition of SPX FLOW, set to join the IP segment, generated $1.3 billion in revenue in the trailing twelve months ended September 27, 2025, which will significantly scale this activity.

The company actively pursues strategic Mergers and Acquisitions (M&A) to deploy $500 million to $700 million annually. This deployment strategy, detailed at the May 2025 Capital Markets Day, is a core activity intended to drive value creation toward the 2030 targets. You can see how this capital deployment compares to recent cash generation:

Research and development for electrification and decarbonization solutions is a growing key activity, evidenced by product innovation. The company launched the VIDAR, a revolutionary compact motor, to the market in mid-2025. Initial field trials for this motor showed a reduction in power and CO2 emissions by roughly 50% for customers. This supports the broader environmental goal to reduce Scope 1 and Scope 2 GHG emissions by 10% by the end of 2026 against a 2021 baseline.

Finally, managing the existing business pipeline involves maintaining a nearly $2 billion order backlog. As of the Q3 2025 earnings call, ITT Inc. was looking ahead to 2026 with a backlog of approximately $2 billion, which provides strong visibility into near-term revenue execution.

Here are some key performance indicators related to these activities:

• Q2 2025 Orders: $1 billion
• Q2 2025 Book-to-Bill Ratio: 1.1
• Q3 2025 Organic Revenue Growth (vs. prior year): 6%
• Motion Technologies Adjusted Operating Margin: 20.2%

Finance: draft 13-week cash view by Friday.

ITT Inc. (ITT) - Canvas Business Model: Key Resources

You're looking at the core assets ITT Inc. relies on to deliver its highly engineered solutions across transportation, industrial, and energy markets. These aren't just assets; they are the foundation supporting their premium industrial valuation.

Iconic, high-equity brands form a critical part of the offering. These names carry significant customer trust and market recognition.

• Goulds Pumps
• KONI shock absorbers
• Cannon connectors

The company's focus on technology is underpinned by extensive Intellectual Property (IP) in friction and flow technologies. This IP drives differentiation and margin expansion. Management is targeting EBITDA margins above 25% by 2030, up from around 21%-22% in 2025.

The physical infrastructure supporting this is a global manufacturing and engineering footprint. As of early 2025, ITT Inc. operated in 39 countries with over 100 facilities, including approximately 50 manufacturing sites. This global presence helps serve customers in approximately 125 countries.

A significant financial resource is the large installed base of pumps generating captive aftermarket revenue. The announced acquisition of SPX FLOW is set to significantly boost this area. SPX FLOW brings a 43% aftermarket revenue stream, which will double the Industrial Process segment's aftermarket sales to approximately $1.2 billion.

Financial strength is evidenced by the investment-grade credit rating. Fitch Ratings affirmed ITT Inc.'s Long-Term Issuer Default Rating at 'BBB+' and Short-Term IDR at 'F1' as of December 5, 2025. Following the SPX FLOW acquisition, valued at approximately $4.775 billion, the company expects projected net leverage to be below 3.0x, targeting a reduction to less than 2.0x within approximately 18 months post-close. This focus on a strong balance sheet is key; they are defintely committed to deleveraging post-transaction.

Here is a quick look at some key figures related to the company's scale and recent performance, which underpins the value of these resources:

The company's Q3 2025 adjusted operating margin stood at 18.5%, showing operational leverage from these resources.

ITT Inc. (ITT) - Canvas Business Model: Value Propositions

You're looking at how ITT Inc. delivers unique value across its core segments as of late 2025. It's all about engineered solutions solving tough, critical problems, which is why their backlog is near $2 billion as they entered Q3 2025.

Motion Technologies: EV Transition and Manufacturing Excellence

For Motion Technologies, the value proposition centers on supporting the automotive industry's shift. While the geopolymer brake pad technology is nearing commercialization, the execution on current awards shows the commitment. To industrialize new awards in Friction China, the team in Wuxi performed over 150 process validations in Q2 2025, stopping production lines two times per day for small test batches. Still, despite this intense validation work, the overall plant efficiency in Wuxi remained above 90% in Q2 2025.

Industrial Process: Critical Flow Control and Decarbonization Enablers

Industrial Process (IP) delivers engineered flow control for the most demanding industrial and energy applications. The value here is proven by project strength; IP revenue increased $25 million in Q2 2025, largely due to pump projects, including those from the Svanehøj acquisition. The segment's operating margin hit 21.5% in Q2 2025, showing strong profitability from these specialized offerings.

The twin-screw pump technology, particularly from Bornemann, is a key value driver for global decarbonization efforts. For instance, Bornemann twin-screw pumps deployed at two Nigerian sites are helping a major energy producer cut CO2 emissions by 350,000 tons per year by preventing flaring. Furthermore, Svanehøj is supplying cargo pumps for vessels involved in the Northern Lights carbon capture project in Norway.

Here's a quick look at how the segments performed in Q2 2025:

Connect & Control: Mission-Critical Connectivity and Growth

For Connect & Control Technologies (CCT), the value is in high-performance, customized components for mission-critical systems, bolstered by strategic M&A. CCT revenue grew $60 million in Q2 2025, significantly helped by the kSARIA acquisition which closed in September 2024. Even organically, pricing actions drove a $9 million increase in revenue. You see this engineered value elsewhere, too; for example, an engineered valves business order, supported by patented Envision technology and service, is expected to double to roughly $50 million.

Aftermarket Service and Execution Reliability

Reliability in delivery and service underpins the value across all segments. Key competitive drivers in the brake pad business, for example, include the ability to meet demanding delivery and volume schedules. The company's overall execution is strong, evidenced by Q2 orders reaching $1 billion, up 16% year-over-year, leading to a book-to-bill ratio of 1.1. Cash generation accelerated, growing over 30% year-to-date in 2025, allowing for capital deployment like the $500 million in share repurchases in April and May alone.

Finance: draft 13-week cash view by Friday.

ITT Inc. (ITT) - Canvas Business Model: Customer Relationships

You're looking at how ITT Inc. keeps its key industrial customers locked in, which is crucial given their focus on complex, long-cycle engineered products. The core relationship strategy is built on being indispensable, not just a vendor. This means dedicated, long-term relationships with blue-chip industrial customers, often spanning decades across multiple equipment generations.

The Industrial Process segment, which saw its revenue around $1.4 billion in 2024, heavily relies on a service-based model for its installed base. This recurring revenue stream is a major stabilizer. The recent acquisition of SPX Flow, which generated $1.3 billion in revenue for the trailing twelve months ended September 27, 2025, is explicitly cited as bolstering this, bringing in 'best-in-class aftermarket services' and 'longstanding blue-chip customer relationships.' Post-close, ITT expects the combined entity to increase its overall aftermarket revenue contribution to approximately 32% of total revenue, up from SPX FLOW's standalone aftermarket sales of 43% of its TTM revenue. This aftermarket focus is key to profitability, as Fitch noted the focus on meaningful higher-margin aftermarket revenue supports ITT's profitability.

For the engineered-to-order solutions, especially in the Industrial Process segment, the sales approach has to be high-touch and consultative. You aren't selling a widget off the shelf; you're solving a complex process challenge for a chemical plant or a mining operation. This requires deep technical engagement from ITT's experts to design the right centrifugal pump or engineered valve system. This consultative approach naturally builds strong switching costs and deepens the relationship, which is why the company is so focused on execution and innovation to maintain that differentiation.

ITT Inc. is also pushing digital tools to enhance support and aftermarket ordering, aligning with broader industry trends where digital adoption is high. For instance, in Q2 2025, ITT's revenue growth was supported by demand in Connect & Control Technologies and pump projects in Industrial Process. The company's digital transformation centers on IoT-enabled products like the VIDAR smart motor and SaaS platforms, which offer predictive maintenance capabilities. This digital layer helps manage the relationship post-sale, moving toward recurring revenue models.

Here's a quick look at the scale of the Industrial Process segment before the full integration:

The digital aspect of customer relationships is evolving rapidly. You should expect ITT to continue integrating these tools to improve efficiency and customer experience. Honestly, if onboarding takes too long, churn risk rises, so speed matters.

• VIDAR smart motors offer predictive maintenance via embedded sensors.
• SaaS platforms support data-driven service and operational efficiency.
• Digital tools streamline aftermarket parts ordering for installed bases.
• The company's focus on digital initiatives is recognized by the market.
• B2B companies generally show 60% chatbot implementation rates.

Finance: draft 13-week cash view by Friday.

ITT Inc. (ITT) - Canvas Business Model: Channels

You're looking at how ITT Inc. gets its engineered components and technology solutions into the hands of its global customer base. It's a multi-pronged approach, balancing direct, high-touch sales with broad distribution, all supported by a global manufacturing footprint. Considering ITT's Trailing Twelve Months (TTM) revenue as of September 2025 was approximately $3.814 Billion USD, the scale of these channels is significant.

The channels ITT Inc. employs are structured to serve its diverse end markets, which include transportation, industrial, and energy sectors.

Direct sales force for large industrial and defense contracts.

For major projects, especially within the Industrial Process (IP) segment, ITT relies on its direct sales teams. This is evident in the execution of large pump projects, which drove Industrial Process revenue strength in Q3 2025. The company's Connect & Control Technologies (CCT) segment also sees direct engagement for aerospace and defense awards, which contributed to the 13% total revenue growth in Q3 2025.

Global network of distributors and agents for aftermarket parts and smaller products.

ITT leverages a vast network to service the aftermarket and smaller product sales. The company has sales across approximately 125 countries as of early 2025. This channel is critical for the Motion Technologies (MT) segment, where KONI aftermarket car shock absorbers are sold globally through distribution networks marketing products into specific geographies or customer groups. The Q1 2025 revenue showed strength in the pumps aftermarket, indicating the importance of this channel for recurring service and parts revenue.

The reach and reliance on these channels are summarized here:

• Global sales presence in approximately 125 countries as of February 2025.
• Approximately 67% of revenue was generated outside the U.S. in 2024.
• The Q3 2025 revenue of $999 million was supported by strength across all segments.
• The company has employees in more than 35 countries.

OEM supply chain integration for automotive and aerospace components.

Integration into Original Equipment Manufacturer (OEM) supply chains is key for the Motion Technologies and Connect & Control Technologies segments. For MT, sales are made directly to train manufacturers and train operators, as well as through distributors for maintenance. CCT sees revenue driven by commercial aerospace components and connectors. The Q1 2025 results noted lower aerospace demand offset growth in connectors and rail, showing the direct impact of OEM production schedules on this channel.

Regional manufacturing and engineering centers (e.g., expanded site in Saudi Arabia).

ITT strategically positions manufacturing and engineering centers to serve high-growth regions locally. The expansion in Dammam, Saudi Arabia, is a concrete example of this strategy, aimed at serving Middle East customers with local capabilities. The second phase of this expansion was completed in November 2025, representing a $25 million investment. This work doubles the capacity at the Dammam site, increasing the total land area to approximately 30,000 square meters. The site secured $160 million in orders in 2024 and is targeting over $300 million in annual orders by 2030. This is part of a broader investment, including an approximately $11 million investment in pump testing capabilities across Germany, India, and Saudi Arabia.

The scale of ITT's physical channel infrastructure and recent investments is detailed below:

The company's overall channel strategy supports its full-year 2025 guidance, which anticipates total revenue growth of 6% to 7%. Finance: draft 13-week cash view by Friday.

ITT Inc. (ITT) - Canvas Business Model: Customer Segments

You're looking at the customer base for ITT Inc. (ITT) as of late 2025, which has been significantly reshaped by the recent, major acquisition of SPX FLOW, announced on December 5, 2025.

The customer segments are served across ITT's existing segments-Motion Technologies (MT), Connect & Control Technologies (CCT), and Industrial Process (IP)-now bolstered by the addition of SPX FLOW technologies into the Industrial Process segment.

Global Automotive OEMs, particularly those focused on Electric Vehicles (EVs)

This group is primarily served by the Motion Technologies segment. For the third quarter of 2025, ITT noted automotive share gains in MT, contributing to the overall revenue growth of 13% (6% organic) for the company in that period. Prior to the SPX FLOW deal, the automotive business represented barely above 20% of ITT's revenue.

Aerospace and Defense manufacturers for military and commercial aircraft

Demand from this sector drives significant business within the Connect & Control Technologies (CCT) segment and Motion Technologies (MT). In the second quarter of 2025, CCT organic order growth of 9% was powered by defense and aerospace awards. CCT revenue in Q3 2025 increased by $52 million, driven partly by strength in commercial aerospace components.

Energy, Mining, Chemical, and Water/Wastewater industrial companies

This forms a core focus area, significantly enhanced by the SPX FLOW acquisition. The Industrial Process (IP) segment, which had approximately $1.4 billion in revenue in 2024, is strengthened in industrial, chemical, and energy markets by the addition of SPX FLOW. SPX FLOW itself brought in $1.3 billion in revenue in the trailing twelve months ended September 27, 2025. The IP segment saw 22% organic order growth in Q2 2025, driven by a 62% increase in pump projects.

Rail and general industrial markets for motion and control components

Rail demand contributed to Motion Technologies' performance, with KONI rail demand noted in Q2 2025. The general industrial market is now much broader, incorporating SPX FLOW's flow and process solutions, which serve attractive end markets including industrial and chemical sectors.

Health and Nutrition sectors (bolstered by the SPX FLOW acquisition)

This represents a new, established area of focus for ITT Inc. The SPX FLOW acquisition establishes leading positions in health and nutrition sectors. SPX FLOW's trailing twelve-month revenue of $1.3 billion included sales into these attractive adjacencies.

Here's a quick look at the scale of the combined entity's market focus following the SPX FLOW close, based on reported figures:

The customer relationships are characterized by high loyalty in critical applications, evidenced by SPX FLOW's 43% aftermarket revenue mix.

ITT's overall business momentum in 2025 is strong, with raised full-year guidance expecting total revenue growth of 6% to 7% and adjusted EPS between $6.62 to $6.68.

You can see the segment focus through order growth in Q2 2025:

• Industrial Process (IP) organic order growth: 22%.
• Connect & Control Technologies (CCT) organic order growth: 9%.
• Motion Technologies (MT) Friction OE outperformance: 520 basis points.

Finance: draft 13-week cash view by Friday.

ITT Inc. (ITT) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive ITT Inc.'s expenses, which is key to understanding their profitability targets. It's not just about what they sell, but what it costs to make and deliver those specialized components globally.

The Cost of Goods Sold (COGS) is a major component, reflecting the inherent expense of manufacturing highly engineered products. For the second quarter ended June 28, 2025, the Cost of revenue stood at $625.6 million on total revenue of $972.4 million. This translates to a gross profit of $346.8 million for that period. To be fair, the overall gross margin has been cited around 34.96%, showing the pressure from raw materials and labor costs that ITT Inc. noted as offsetting some pricing benefits.

Investment in innovation is another significant cost center. ITT Inc. must maintain a deep bench of engineering talent to support its specialized product lines. In the second quarter of 2025, Research and development expenses totaled $57.0 million.

The company's strategy involves maintaining a broad global footprint, which carries fixed and variable costs related to supply chain management and manufacturing overhead. Costs associated with this structure are often seen as the difference between the gross profit and the operating income, which is managed through productivity actions.

Here's a look at some key operational cost components from the second quarter of 2025:

The management of these operating expenses is targeted toward achieving specific profitability levels. For the full year 2025, ITT Inc. is guiding for an Adjusted Operating Margin of 18.2% to 18.5%. This is a tight range, showing how closely they manage the spend relative to revenue growth.

The recent, large-scale acquisition of the parent of SPX FLOW, Inc. introduces substantial transaction-related costs and financing expenses. The aggregate purchase price for this deal is $4.775 billion. The financing structure itself dictates future interest costs:

• Cash Consideration: $4.075 billion
• Debt Commitments for Cash Portion: A $2.875 billion term loan and a $1.200 billion bridge facility
• Stock Consideration: $700 million in ITT common stock

Finance: draft 13-week cash view by Friday.

ITT Inc. (ITT) - Canvas Business Model: Revenue Streams

The revenue generation for ITT Inc. (ITT) is fundamentally tied to the sale of its engineered products across its three core segments, supplemented by a growing focus on recurring aftermarket services and technology monetization. You see this structure clearly when looking at the most recent quarterly results, which show strong top-line performance driven by both product sales and strategic acquisitions.

The company's product sales from the three core segments-Motion Technologies (MT), Industrial Process (IP), and Connect & Control Technologies (CCT)-form the bulk of the income. For the third quarter ended September 27, 2025, ITT Inc. reported total revenue of \$999.1 million, which represented a 13% year-over-year growth rate (6% organic).

Here is a look at the revenue contribution from the segments based on the latest available quarterly data:

A critical component of the revenue mix is aftermarket services and spare parts. This stream is valued for its stickiness and typically higher margins compared to original equipment sales. For instance, approximately half of the Motion Technologies division revenue is recurring aftermarket revenue. Furthermore, the planned acquisition of SPX FLOW is set to significantly bolster this area; SPX FLOW's TTM revenue was approximately \$1.3 billion, with 43% derived from aftermarket sales, and this deal is specifically noted to double Industrial Process aftermarket sales.

Looking at the broader financial picture for the period ending late 2025, the Trailing Twelve Months (TTM) revenue as of September 30, 2025, stood at \$3.814 billion. Management has a positive outlook, projecting that the full-year 2025 total revenue is expected to grow between 6% to 7%, with a specific total revenue expectation of \$3,870 million.

The final, though currently minor, stream involves licensing and technology transfer fees. ITT Inc. is actively evolving its model toward recurring revenue by developing predictive software offerings, such as SaaS analytics platforms. This strategic shift aims to embed ITT deeper into customer operations, which naturally leads to more predictable, high-margin service and software subscriptions over time, even if specific licensing fee dollar amounts aren't broken out separately in the main segment reporting.

You should track the organic growth versus acquisition-driven growth closely, as the latter is currently providing a significant lift to the headline revenue figures.