Matthew Summerville

Matthew Somerville asked about the expected relative price capture across ITT's three reportable business segments that is factored into the full-year 2026 organic outlook. He also inquired about the guidance for friction aftermarket performance in 2026, specifically how it compares to its performance over the full year 2025, which saw a 9% increase against an easy comparison.

Answer

CFO Emmanuel Caprais stated that 2025 was successful for price capture, with IP and CCT capturing price above cost inflation, and Motion Technologies (MT) limiting price decreases, offset by raw material disinflation. For 2026, he expects strong incremental price capture, with IP and CCT leading with positive price-cost from a dollar and margin standpoint, and MT expected to be neutral. Regarding friction aftermarket, Emmanuel Caprais expects the independent aftermarket to be roughly flat in 2026, primarily due to the flatlining growth in Europe, where it's mainly a European business. Original equipment spares are also expected to be flat, driven by market share gains and low-cost solutions.

Matthew Somerville asked about the expected relative price capture across ITT's three reportable business segments embedded in the full-year 2026 organic outlook. He then inquired about the guidance for friction aftermarket in 2026, specifically how it compares to its 9% growth in 2025, which benefited from an easy comparison.

Answer

CFO Emmanuel Caprais stated that 2025 was a successful year for price capture, with IP and CCT exceeding cost inflation, and Motion Technologies (MT) limiting price decreases. For 2026, IP and CCT are expected to lead with positive price-cost, while MT is projected to be neutral. Regarding friction aftermarket, Mr. Caprais expects the independent aftermarket to be roughly flat in 2026, primarily due to flat growth in Europe, and original equipment spares are also anticipated to be flat, driven by market share gains.

Matthew Summerville of D.A. Davidson asked for more details on Paragon Medical's organic sales and order growth, its future organic algorithm, and current profitability relative to initial acquisition expectations, also seeking clarification on the improved outlook for the process market.

Answer

Chairman and CEO David Zapico stated Paragon Medical had outstanding double-digit orders growth, is halfway through a restructuring to reduce costs, and is winning new programs. Margins are now in line with AMETEK's overall margins, with expectations to reach 35%+ EBITDA. For the process market, Zapico noted sequential improvement across all markets and geographies except China, with increasing visibility and a strong pipeline, anticipating an excellent 2026 for the segment.

Matthew Summerville asked for more details on Paragon Medical's organic sales, order growth, future organic algorithm, and profitability trends, and later inquired about the basis for optimism in the process market.

Answer

David Zapico, Chairman and CEO, highlighted Paragon's outstanding double-digit order growth, ongoing restructuring, new program wins, and current margins aligning with AMETEK's, with potential for 35%+ EBITDA. For the process market, Mr. Zapico noted sequential improvement across all geographies except China, with improving visibility and anticipation of an excellent 2026.