ITT Inc.

Reputation and brand · Brand damage and negative publicity

If we are unable to protect our patents, trademarks, or other proprietary rights, or if we infringe or violate the rights of others, our ability to remain competitive could be adversely impacted. If we are unable to maintain our competitive position, our business, results of operations or financial condition could be materially adversely affected.

International and currency · Emerging markets exposure

Our operations in emerging markets could involve additional uncertainties such as challenges in our ability to protect our intellectual property, pressure on the pricing of our products, and risks of political instability. Governments of emerging market countries may also impose limitations or prohibitions on our ability to repatriate funds, impose or increase withholding or other taxes on remittances and other payments to us, seek to nationalize our assets, or impose or increase investment barriers or other restrictions.

Credit and liquidity · Credit risk and customer defaults

A downturn in the economic environment can also lead to increased credit and collectability risk or slower collection on the Company's trade receivables, increased bankruptcy risk amongst our suppliers.

International and currency · International operations and emerging markets

Our international operations, including U.S. exports, comprise a growing portion of our operations and are a strategic focus for continued future growth. We have sales in emerging markets such as Mexico, South America, China, and the Middle East. In 2025, approximately 65% of our total sales were to customers operating outside of the United States. Our sales from international operations and export sales are subject to varying degrees of risks inherent in doing business outside of the United States.

Capital structure and performance · Credit rating and cost of capital

These increases in our indebtedness may, among other things, reduce our flexibility to respond to changing business and economic conditions or to fund capital expenditures or working capital needs, and cause ratings agencies to downgrade our credit ratings or place us on negative watch.

Cybersecurity and data protection · Data breaches and cyber attacks

Our information technology systems and those of our third-party service providers may be susceptible to damage, disruptions or shutdowns due to power outages, hardware failures, telecommunication failures, cybersecurity incidents and user errors that may affect our operations. Even the most well-protected information technology systems could be vulnerable to internal and external cybersecurity incidents including, but not limited to, those by employees and by computer hackers and other threat actors utilizing techniques such as phishing, ransomware or denial of service attacks.

Cybersecurity and data protection · Third party data security and vendors

The efficient operation of our business is dependent on information technology (IT) systems, some of which are owned or managed by third parties. In the ordinary course of business, we collect and store confidential information, including proprietary business information belonging to us, our customers, suppliers, business partners and other third parties, as well as personally identifiable information of our employees and others.

Digital transformation and innovation · Artificial intelligence and automation

The integration of artificial intelligence ('AI') into our engineering and manufacturing processes could amplify cybersecurity risks, including unauthorized access to proprietary data and disruption of production systems. AI usage can expand our attack surface and increase the sensitivity and volume of data processed. Threat actors may exploit AI systems (including generative models) to enable more sophisticated phishing, deepfake social engineering, and automated vulnerability discovery.

Market position and competition · Market cyclicality and demand volatility

Our business is impacted by our customers' levels of capital investment, maintenance expenditures, production, and market cyclicality. Demand for certain of our products and services depends on the levels of capital investment, planned maintenance expenditures, and/or production of our customers which, in turn, depend on general economic conditions, availability of credit, economic conditions within their respective industries, supply and demand shocks, workforce strikes or employee absenteeism, volatility in commodity prices.

Innovation and product development · Intellectual property protection and infringement

Obtaining, maintaining and enforcing our proprietary rights is another factor that is critical to the success of our business and our ability to remain competitive. For certain products and manufacturing processes, we rely on patents, trademarks, trade secrets, non-disclosure agreements and other contracts to protect these rights. These contracts may be breached or may not prevent competitors from independently developing or selling similar products.

Customer and revenue · Customer concentration and key customer dependence

Sales to Aumovio SE, a supplier to the automotive industry and ITT's largest customer, were approximately 6% of our total revenue in 2025. The loss of this customer, or a reduction in this customer's market share could have a material adverse effect on our business, results of operations or financial condition.

Industry regulation · Regulatory compliance and changes

We are subject to a variety of federal, state, local and foreign laws, rules and regulations related to the use, storage, handling, discharge or disposal of certain chemicals used in manufacturing our products, as well as laws related to greenhouse gas emissions (including cap-and-trade laws). These laws could require us to incur substantial expenses.

Legal and litigation · Product liability and warranty claims

Our business exposes us to potential product liability risks that are inherent in the design, manufacture, and marketing of products for the markets we serve. Component failures, manufacturing defects, design flaws, or inadequate disclosure of product-related risks or product-related information could result in an unsafe condition or injury to, or death of, an end-user of our products. The occurrence of such a problem could result in product liability claims or a recall of, or safety alert relating to, one or more of our products.

Geopolitical and trade · Government funding and budget changes

Our CCT and MT segments derive a portion of their revenue from sales to U.S. government customers and higher tier contractors who sell to the U.S. government. The government's expenditures are subject to political and budgetary fluctuations and constraints, which may result in significant unexpected changes in levels of demand for our products.

Economic and market conditions · Credit market conditions

A downturn in the economic environment can also lead to increased credit and collectability risk or slower collection on the Company's trade receivables, increased bankruptcy risk amongst our suppliers, the failure of derivative counterparties or other financial institutions, limitations on the ability of the Company to issue new debt, reduced liquidity.

Geopolitical and trade · International conflicts and tensions

The supply of raw materials to ITT and to its component parts suppliers has been, and may continue to be, interrupted for a variety of reasons affecting our suppliers, including... heightened geopolitical tensions, including related to the Russia-Ukraine and the Middle East conflicts.

Natural and catastrophic events · Pandemic and public health crises

If operations at one or more of our manufacturing facilities were to be disrupted or damaged as a result of... an epidemic or pandemic... our ability to meet customer demand for our products may be impacted.

Geopolitical and trade · Regulatory and policy uncertainty

The legal, regulatory, and compliance environments surrounding the design and use of AI technology at the federal, state, and international levels are evolving and complex. For example, the European Union's Artificial Intelligence Act establishes obligations based on risk classifications, and U.S. federal and state agencies continue to introduce new frameworks governing AI.

Economic and market conditions · Inflation and deflation pressures

Adverse global macroeconomic conditions, including due to heightened geopolitical tensions, inflation, slowing growth or a recession... can negatively impact customer confidence, spending, and demand for our products and services.

Natural and catastrophic events · Climate change and environmental impact

If operations at one or more of our manufacturing facilities were to be disrupted or damaged as a result of... changing weather or climate conditions (including increases in storm intensity, sea-level rise, melting of permafrost and temperature extremes on facilities or operations; and changes in the availability or quality of water, or other natural resources on which our business depends).