Good afternoon, everyone. Thank you for joining us. My name is Matt Summerville. I am the Senior Research Analyst with D.A. Davidson following ITT, a name I have covered now for almost 25 years. With us today, we have Luca Savi, the company's CEO and President. With that brief introduction, before I hand it over to Luca for just a couple minutes of prepared remarks, Carleen is going to go ahead and read the safe harbor statement.
Our presentation and comments may contain forward-looking statements which are based on our best view of the world and our businesses as we see them today. These assumptions and expectations can change, and we ask that you view them in that light. We encourage you to review the latest risks and uncertainties in our Form 10-K and other SEC filings available on our website. With that, I will turn it over to Luca.
Okay. Good afternoon, everybody. In Italian, we say the dessert is at the end. So here we are. Okay? Only a couple of minutes to tell you a little bit about ITT. We are a diversified engineering company. What we do, we engineer, design, and manufacture components for harsher environment across different industry, across different sectors being rail and auto, air and defense, oil and gas, energy transition, chemical, petrochemical, mining, general industrial. After the acquisition of SPX FLOW, our revenue is above $5 billion. You see the geographic spread. A lot is in North America. You see the markets we are exposed there on the chart. In the last few years, we deliver quite a considerable amount of value for our customers and for our shareholders.
Those are the numbers in terms of organic revenue growth, of 7% in the last three years, EPS of 16% in terms of CAGR. What I would like to stress is that revenue growth has been mainly market share gains, because if you look at the markets we are exposed to, we did not really have a lot of tailwinds in the last few years. When we look at the future value creation, the future value creation will come from organically and inorganically. We have a couple of slides to talk about the organic value creation, revenue growth, margin expansion. Revenue growth, finally, we have tailwinds. Margin expansion. We did a lot of margin expansion in the last few years, but there is still a lot to come.
In this chart, what you see are mainly most of the ITT sites around the world, and you see that many are still underperforming our average. That underperforming piece represents roughly 40% of the revenue. There is still a lot of work to do. I can tell you there is also a good opportunity on the overperforming side when you go granular and you split it, we still have opportunity to improve there. Organic value creation is here to stay. When it comes to the M&A, we are developing the muscle of M&A. These are three acquisitions that we went through. Svanehøj acquired in January 2024. These are cryogenic pumps for marine, energy transition from dirty fuels to LNG, and in the future, ammonia. EBITDA multiple, the purchase was a little bit above 13%, and when you look at the actual, is actually six.
kSARIA, cable harnesses in air and defense, mainly defense, 80% of defense, multiple as well, between 13 and 14, is if you look at the actual 11, and then when you look at the focus for 2027, probably it's going to be a single-digit number as well. SPX FLOW is early to tell, but the integration is doing well. Really what we want to share with you is that there is a lot that we are doing in terms of market share gain, and that market share gains are coming from differentiation in execution and in innovation. The strategy is clear, is grounded, good common sense, and it enables us to deliver value, and there is a bunch of ITTers that are working hard to deliver this value. With that, over to Q&A.
Thank you, Luca. Why don't we start with the businesses? Can you maybe talk about what you're seeing from an overall demand standpoint across Flow Technologies, particularly in oil and gas, chemical, industrial mining, energy transition, and maybe add a little bit of geographic context, and then I have a few follow-ups.
Sure. As I was saying before, the last six, seven years across all the markets, we didn't have a lot of tailwinds. What we are seeing today are some positive trends. If you start on the chemical side, chemical was difficult for the last few years as a market. We kept on growing orders in the last five years in chemical, but that was mainly in ITT and market share gains. What we have seen in the last couple of quarters is actually positive trends in the market, specifically in the North American market. We're not talking about the European chemical, which is not great at all. When you look at the oil and gas, of course, there is a situation in the Middle East, which everybody knows.
Now, if you look at our business in the Middle East in the first six, nine months of this year, has actually grown tremendously from a revenue point of view. The reason for that is that we won a lot of orders in the past because we were executing very well. Therefore, the huge backlog that we had at the beginning of the year, we delivered on the backlog and we grew revenue substantially. On the orders front, the orders have shifted to the right. What we see, though, is that Saudi Aramco has start moving. So they started giving orders, for example, Jafurah 4 to L&T and EPC, and we are negotiating to get our orders for pumps with this EPC. So we are seeing things moving, even though not as fast as was going last year.
Now, if this is a specific situation in the Middle East, has generated probably investment in other parts of the world. So if it is in North America, if it is in Latin America, and of course, we have a very positive situation in Venezuela, where we have our Bornemann pumps, huge install base. What is going on is generating a lot of orders for refurbishment, spare parts, and we started seeing these orders since the end of last year. So not necessarily a positive trend related to the situation in the Middle East, but more positive when it comes to other parts of the world. Energy transition, Svanehøj, we play in marine, with cryogenic pumps. Now, great growth, 30% growth, book-to-bill of 1.3.
Obviously, there is a positive market there, but there is a lot of market share gain based on the execution and the good and differentiated product that we do have. There are good opportunities also when it comes to Latin America, particularly in the mining as well as in the oil and gas.
Perfect. You delivered 21% organic growth in FT in the second quarter, 45% pumps, 10% short cycle. How should we be thinking about the sustainability of at least the trajectory and the growth profiles independently as you move through 2027, and then touch on your confidence in your ability to overdrive, continue to overdrive versus the market?
Sure. It was for sure an exceptional performance. Now, I would say we will keep on growing. We will keep on having a nice growth when it comes to Flow Technologies. Probably not at this level that we posted in Q2, but for sure, we will continue to grow year-over-year. Now, bear in mind that we have, for sure, some tailwind when it comes to Latin America, when it comes to Venezuela, when it comes to North America. There is a headwind which is the Middle East, exactly because the orders have shifted to the right.
But for 2027, it's a little bit too early to tell, but I can tell you is that we're going to post a good growth for 2026 with the book-to-bill above one and the backlog at the end of the year that is going to be higher than the backlog that we had at the end of December 2025. Now, in terms of the ability to continue to outperform, this is very much who we are. At ITT, if you are growing like the market, you don't get any pat on the shoulder, right? It's the outgrowing of the market where we can really say, "Okay, you did something good." If you're growing because of price, great, good. You get the pat on the shoulder. But price is really not real growth.
At ITT, we are really incentivizing and motivating people, A, to post real growth, this means volume growth. Second, to outperform the market that you play in. And these are we're motivating and rewarding and recognizing. We count on keep on doing so.
Very good. You talked about, and you kind of touched on this, some project delays in the Middle East, not cancellations. Are those projects still sort of progressing through the funnel, which may, given the widening sort of related destruction, of course, unfortunate, how should we think about timing conversion over the next couple of quarters? Could that be maybe needle-moving for you guys in 2027 if things calm down a bit?
Sure. It's difficult to say. It's positive that Saudi Aramco have started moving and giving some orders to the EPC. They're talking about potential investment in pipeline, and that would be great because we got the perfect product for the pipeline that also helped us winning the Vaca Muerta project in Latin America. It's difficult to say in terms of the timing. At this point in time, it's still a little bit moving, and moving a little bit slowly, I would say.
Is there any sort of way to size up, since you referenced it, the potential go-forward opportunity in Venezuela, having not really been able to participate there, at least in recent years?
Sure. You will laugh at this, but in 2012, ITT bought Bornemann Pumps. This was a German company making twin-screw pumps. The largest market for Bornemann pumps were Russia, Iran, Venezuela. So you really know now how we spend our last eight years. Resizing, not getting a lot of work, actually zero work out of these three countries. Now, in Venezuela, we had a huge install base. Also because of the heavy oil, our Bornemann pumps, twin-screw pumps, are perfect for that market. Huge install base. Now, when Venezuela went to zero, we kept all our employees in Venezuela, and we kept them working on other Latin American project, which means that today we are the only one that have a team well-established in Venezuela.
We have already gone through all the different sites, make the assessment, if it is with Chevron, if it is with PDVSA, if it is other EPCs. So it's a very sizable opportunity, and we have already started receiving orders since October of 2025 from Chevron, PDVSA, and the players that are allowed to work there. So, it's a good one.
Great. Let's talk about SPX FLOW for a minute. Orders up high single digits year to date, book-to-bill above one, integration cost synergies running ahead of plan. What's driving that relative performance? Talk about sustainability and maybe what you're finding to be the biggest opportunities to accelerate further as you move into 2027 and what that could hold for that business.
Okay. Sure, sure. When you look at the revenue growth, high single digits so far, book-to-bill above one, orders growing, high single digit. First of all, that, as I share with many of our investors, has got nothing to do with ITT. What we saw it, we saw it in the backlog, we saw it in the opportunities, is we are executing what was already there. There is a good thing that they build that backlog, build those opportunities, and we are executing on those. When it comes to the future in terms of future growth, why do we think that this business can continue to grow high single digit? When you look at nutrition and health, which represent roughly 50%- 60% of the SPX FLOW, is you have a supply-demand game going on there.
If you look at some of our customers, if it's Danone, Nestlé, Unilever, they are going to improve, increase their CapEx in the next four or five years, between 3% and 5%. Think about all the investment in protein that today is everywhere, or medical food. There is a lot of investment happening there that will feed the future growth. I would say the other thing is that the way that we will run SPX FLOW, which is going to be much more entrepreneurial, much more decentralized, investing in the region, in the periphery as well, on the product and rejuvenation of product, all of that will help in feeding the growth. Then working very closely with the customer.
I was, on Friday, last Friday, spending the day with the CEO of Danone, and we are the only supplier of nutrition and health systems that are working together with them in building their CapEx. We are doing research development project together with them to make them more successful and to make them more efficient in running their plant. This gives us an incredible amount of visibility and an insight that some of our competitors do not have. Those kind of relationship are the one that will help feed in that growth.
At the announcement of the Flow acquisition, you targeted $80 million run rate cost synergies by the end of year three. Has anything you have seen thus far changed your confidence in that target or timing, and can you further drive that more so in 2027?
Sure. We are not losing sleep on the cost synergies. We will be ahead by year three in terms of the run rate. We are ahead in year one in terms of the cost synergies that we are executing, that we will have as a run rate at the end of the year, and also that we post in the P&L of 2026. Mainly this is due to the fact that we have executed fast on the G&A synergies that we are executing this year. Now, year two and year three will come a lot of the purchasing synergies. That takes a little bit longer to be able to materialize and execute. In those $80 million, there is only 10% that comes from footprint synergies, and that is a prudent approach that we are having because when you touch the footprint, you touch your customer delivery.
We want to ensure that we got everything very well organized for that. But that will be the gift that keeps on giving in terms of there will be continuous future optimization of the sites.
Got it. With the cost opportunity relatively tangible, on the revenue side, where do you see the largest cross-selling or commercial opportunities between legacy ITT and SPX FLOW? When should those two become more visible in the reported growth rate of that business? Have you seen it already or is that more on 2027?
Sure. It's a mix. If you look at one of the businesses, for example, in SPX FLOW is Waukesha Cherry-Burrell. This is our hygienic pumps based out of Delavan, Wisconsin. Waukesha is the number one leader in North America of these hygienic pumps, and they got almost a complete product portfolio. The only product they do not have are those twin-screw pumps. Guess what? This is the only product that we have in ITT in hygienic. We are nobody in hygienic, but in ITT legacy, but we had really that product. That is something that is happening now. Waukesha has already sold almost $500,000 of twin-screw pumps in North America. We have a quotation for roughly $4 million-$5 million of potential orders.
What we have done is put inventory here in North America of these pumps, then we will go through the localization of the assembly, and then also the localization of the manufacturing. That is something that is happening, it's happening now. When you look at a couple of other revenue synergies, it takes a little bit more time. For example, Latin America. We, in SPX FLOW, we really do not have a base in Latin America from an operational point of view. We have a sales rep, but you can imagine, if you're thinking that you know what the heck is going on with your sales rep in North America, thinking that you're sitting here in North America, I think it's a dream.
We are going to have more our direct people, manage it and supervise it more locally, understanding exactly how they spend the time and where, and then we will localize all the assembly to reduce the lead time. That is a big opportunity for mixers in particular, but it takes time to build that. This is also why the revenue synergies are not in the model. Another opportunity is the Middle East. When you look at the Middle East, we don't sell practically anything in the Middle East from SPX perspective, so we are localizing the assembly of the Bran+Luebbe pumps and as well as the mixer. We're going through the process in terms of the bureaucratic process, in terms of adding the license and all of that. It's going to take time. We have a good site.
We don't need a major investment to be able to assemble those pump and the mixer in the Middle East. That is happening. Something that is going to happen faster is some of the SPX pumps that we assemble in Germany, we will localize them in China, because today we assemble in Germany and we hope to sell those German pumps, import them in China, and sell them in China. Even this one is a dream that would never come true. When I was in Xidu in Shanghai a couple of months ago, we looked at the line. We're going to assemble those Bran+Luebbe pumps directly in China, and we will be able to sell it more in that market.
Great. Let's move on to Motion Technologies or MT. Within the friction OEM business, the company continues to materially outperform overall global auto production, almost 400 basis points of outgrowth in the second quarter, guidance still assuming more than 500. That must mean you are going to do better in the second half of the year, including probably Q3. How are you feeling about the setup for that business through the remainder of the year relative to that target, and what continues to underpin that share gain engine, as I assume, next year will be another year of material market outgrowth?
Sure. Listen, this is the perfect example of how ITT wins in the market, differentiating in execution and in innovation. In execution, I shared with you, I was in China, and that our plant in Wuxi in China has performed 100% on-time delivery every single month for the last two years. Every other plant around the world is 99.95, but 100% every single month for the last two years. Our quality is measured in PPBs, parts per billions. Our competitors are at 40, 50 PPMs, so they are two order of magnitude worse than us. If the Chinese want to launch a new car in three months, they come to us to have a flawless execution and a flawless launch. The way that we are executing is unmatched by any of our competitors, and that is a differentiator that help us win.
Second, on the innovation side, we have roughly more than 120, 130 researchers in the R&D in Italy, where we have the major R&D, and we have another probably 40 or 50 in our R&D in China. We spend more than 5% of revenue in R&D, and we are coming with new material, spend a lot on material science, and we are able to make our product more cost-competitive and also to sell value to our customers. I can give some specific example, but I would probably go too much in the detail, but that innovation is really feeding the rest of the growth. I can tell you that we are comfortable to say that we will continue to outperform also in 2027 and in 2028. This is not an arrogant statement. It is just because of the way this market works.
The award that you won in 2025 will have the SOP, the start of production, in 2027. The awards that we won this year in 2026 will have the start of production in 2028. So we know that we have kept all the platforms we are in, and we know that we won and conquered platforms that we were not in. So we know we will outperform. The question is how much, and this is why we gave usually a kind of a range.
Understood. How should we think about the incremental content opportunity from newer products such as high performance, Galfer, Smart Pad? Is the bigger opportunity higher value per platform, incremental platform wins or both?
Okay. Most of the car will have eight brake pads. When you look from a content point of view, this is our eight brake pads. Unless you've got drums in the back, in the rear axle, it's eight brake pads for the car. So content is roughly the same. Now, it's a little bit different based on the technology of the car. If you're driving an EV or if you're driving a hybrid, the vehicle is heavier. Because it's heavier, when you want to stop it, you need to have a friction area which is larger. What happens is the brake pad is just bigger. Because it's bigger, then from a content, from a dollar point of view, it is higher. So number of pads, the same. Content from a dollar point of view in terms of hybrid and electric vehicles, higher.
Margin, roughly the same, probably a little bit more, a little bit better on the EV and on the hybrid. When it comes to the high performance, so high performance, we're talking about the high-performance vehicles, the top of the range of Porsche, of Daimler, of BMW, or of Audi. What happens on those brake pads, they tend to be priced accordingly, so a price which is a multiple of the usual price on the brake pads. The content is the same, the value in terms of dollar is much higher, the margin is higher, but the volume is considerably lower.
Understood. Chinese auto OEMs continue to expand outside their domestic market, particularly into Europe. Given your existing position with a number of customers in China and your relative market position in Europe, which we know is much higher, does their international expansion create an incremental share opportunity, a headwind? What's the right way to think about it?
We are agnostic. Listen, we have been working for the European OEM, the North American OEM, and when we went to China in 2014, we started working for all the Chinese OEM that were nobody at the time. We did not apply 80/20. We do not necessarily believe in the 80/20 strategy at all. We have a very great relationship with the Chinese Tier 1 and with the Chinese OEMs. When they come to Europe, they rely to company like us that know how to work with them and have a very good and strong footprint also on the European side. I repeat, agnostic, but for sure, the great relationship we have with them is an asset.
Got it. Just to round out MT, why don't we just hit the rail business quickly. Similar to friction, you have generated considerable market outgrowth in rail. What are the most important secular drivers, and what should that mean as you think about that business for next year relative to what you deliver in 2026?
Sure. When you look at rail, it is good for green, right? When you think about macro trend in terms of green, that is good. That will keep on happening, particularly in places like Europe, as well as Asia, and in particular in China. That is good. The other thing which is good about rail is the visibility that you have. When you win a platform, it is going to be there for the next 30 years, which is very good. Then is the aftermarket content. Usually what you have in rail is 60% of the market, 40% OE, so that is also pretty good. We are growing across the regions. Mainly it is freight in North America, it is freight as well as passengers in Europe. In China, it is a subway coach, high-speed train.
We are today the only one that has been certified for the high-speed train that is going to run at 450 km an hour, which we are going to be started operating either for Mid-Autumn Festival here in October or just a little bit later. I am pretty sure that there is going to be another supplier that is going to be qualified, but as of today, it is going to be only us. The trend is positive for sure there too.
Good. Moving to the last business, Custom Controls Technology or CCT. Talk about your positioning relative to the commercial aerospace cycle today. With commercial aero revenue up 14% in the quarter, OEM build rates continuing to move higher, is there any reason we don't see that kind of sequential revenue progression through the balance of the year in the business net of any normal seasonal factors? How are you thinking about demand plus price just in aero in 2027 versus 2026?
I may forgot some parts of the question.
That's okay, yeah.
When you look at our aero business, we are mainly exposed to Boeing. This has been a big headwind for us since 2019. What has been good is Boeing performing well and ramping up, that we've seen the performance changing during 2025, and therefore we've been very close to them and we are ramping our production and our growth together with them. I would say when it comes to aerospace, we are growing with the market. There is no market share gains there, et cetera. We are growing with Boeing. They are growing in terms of their production. They're ramping up and we are growing. We are growing with them. Now, in that market, I would say there are two, when you look at our revenue, there are two components of growth. One, of course, is volume, and we are growing with them.
There is another component, which is price. We had a major renegotiation with Boeing because we had a contract that was a fixed price signed in 2014, and therefore we had many components where we were losing an incredible amount of money. We went through a renegotiation of the contract with Boeing. The renegotiation was good and was executed as at 1st of January 2026 with fixed price increases that has brought us to a profitable situation and that will cover inflation also for the next three, four years.
Good. Defense has become an increasingly important growth driver within CCT. Revenue up 16%, orders up nearly 60% in the second quarter. Can you talk about the visibility you have into that demand and the platforms or application driving the strongest growth? Remind us if you have leverage to missile rearmament and potential incremental militarization.
Sure. When you look at the coverage that we have on, in defense, we are across the board, both on the connector side, on the cable assembly, fiber and copper, as well as the components and controls of CCT, so quite broad. When you look at our customers, broad customer base, we are on the planes, on the F-35. We are on the submarines. We are on the Navy. We are on the vehicles. We are on the soldier modernization. We are, of course, on the missiles, if it is the THAAD, the Tomahawk, the PAC-3, the Patriot, Interceptor. So we have a good content across the board, and it's relatively broad. So what you have here is there is, of course, a positive trend when you look at the market, and therefore, the market is growing. We're going with that.
There is also a market share gain game here. Difficult to quantify, but let me give you one example just to show it. If you look at our kSARIA business, cable assembly. We are on the F-35. We have been able to win the next round of the F-35, and not only win our content, what we already had, but double the content. Why? The competitor was not performing as well as we are. We are performing on time delivery, good product, good quality, and we got rewarded, and we doubled the content that we had on that 35. Now, it is not just visibility of the long term, which is great in defense, but also when I look at the backlog that we need to deliver in Q3, Q4, and Q1 2027, and compare to at the same time last year, is considerably higher.
Great visibility long, but also good growth in the short and medium term.
Perfect. Let us maybe talk a little bit about M&A. It has become a much larger part of the ITT story the last few years when you look across Svanehøj, kSARIA, SPX FLOW to name some of the larger transactions. What have you learned about these types of businesses where ITT can create the most incremental value after you close on a deal?
When you look at all these deals, there are few things in common. If you look at Habonim, Svanehøj, and kSARIA, these are good product, well-run companies, good brand, good position in the market, good management team. If you look at the management team of Habonim, our valves in Israel is 100% of the management team is still with us. If you look at Svanehøj cryogenic pumps, marine energy transition based out of Denmark, 100% of the management team is still with us. If you look at kSARIA, with the exception of the founder, who still owned when he sold a part of his ownership to us together with the PE, he sold all of it, is apart from the founder, everybody in the management team is still with us.
This is the way that we cultivate, the way that we found company, we always do those ourself, and the way that we integrate them. We usually manage them in a very decentralized way. We are a completely decentralized company. We want the decision to be made as close to the market, as close to the customer as possible, and we want to give them the resources to feed the growth. For example, in Svanehøj, to feed in terms of the R&D, to accelerate the development of new product. This is the value that we brought, for example, in Svanehøj, and give them the resources to grow. This is what has been a success factor. Now, when you look at the SPX FLOW, it's a little bit different and a little bit of the same.
Different because if you look at SPX FLOW, looks like a big company, $1.3 billion, corporate, et cetera. But actually, when you take out all the corporate stuff and you look at the four businesses, it's very much the same story. Waukesha, number one leader in North America, great brand, great management team, great position, good business. Lightnin, Philadelphia, great brand, good position.
Number one or number two in different geographies, depend on the geography. Bran+Luebbe pumps, nutrition and health solutions. All of these are good business with good management team and good position in the market. This is what has worked well for us. And the way that, as I said, we will improve the value in terms of in the margin in SPX FLOW, is really we have taken out all of the G&A from the corporate staff. We eliminated all of the corporate excellence initiative, because in ITT, there is no such a thing like corporate and excellence. They do not go together. I think that if we keep on doing this way, I am pretty sure that we will have a good story to tell also on the SPX FLOW.
All right, perfect. We just have a couple of minutes left, so maybe two quick things. First, CFO transition. Can you update us on your CFO search, what you are prioritizing in the next finance leader, given how much ITT has changed over the last few years?
Sure. I think that we will be able to have our new CFO by the end of the year. That would be good. When you look at what we are looking for in terms of CFO is really an operational CFO. Is what we call it in ITT is your copilot. Is a CFO that works together with the business, that works together with me to make the business better, to make those business successful. To challenge. It needs to integrate well in our culture, which is a high performance, where we discuss, we debate, we disagree, so needs to be comfortable on that. Then as I said, a service leader, there to serve and humble. All of those aspects is what we're looking for, and we hope to have the new CFO on board, as I said, by the end of the year.
Very good. Maybe last question, then we can wrap up. Let's talk a little bit about your differentiation, organic growth investments. Maybe spend the last two minutes talking about some of the more meaningful organic investments you're making across ITT today for the future, where you see the greatest opportunity to compound growth above markets, and given how the portfolio has evolved, how has the mix of internal investment cadence maybe changed across MT, CCT, and now that you have a much larger flow business?
Sure. When you look at where the money goes first, the money goes first in organic investment. This is where we get the best return. If you think about an investment in Motion Technologies, our friction business, our ROIC is above 35%. Money goes first to organic investment. Now, it's true that as we are shifting enterprise portfolio more towards Flow Technologies and also CCT, there is more and more investment happening in those two businesses. But investment is happening organic also on the Motion Technologies. Now, what are the largest investments that are happening? If you look at the CCT, there is huge demand. You talk about the growth in terms of orders. For the last 12, 15 months, we have been building capacity in new machines, okay? So that we were able to actually feed this demand.
Also, the Aerospace Contacts acquisition, this inorganic investment, was done in order to be able to in-source the contacts manufacturing that are key to make the connectors. We need to ensure that we secure that supply chain, because with this huge demand, the supplier extended the lead time. That will not enable us to feed the growth. This is what is happening on the CCT front. If you look at Flow Technologies, investment in terms of new technologies, in terms of SPX FLOW, is a new product development. This is an area where probably the private equity did not really invest a lot. There is a lot in terms of R&D and in new product development. Then there is going to be a big investment in the center of North America with a distribution center.
We had a small distribution center close to Memphis because of the acquisition of SPX FLOW, and because we are winning market share and there is more and more demand, we are making an investment to enlarge our distribution center. This is a differentiation of us. Everything out of the distribution center, 80% of that gets shipped within 24 hours. More than 90% of our orders there get shipped within 48 hours. That is a differentiator of ours. When it comes to Motion Technologies, it is keep on investing in terms of R&D, innovation, inventing the next recipe, the next material science for the brake pads.
Great. I think we are at time, Luca. We can go ahead and leave it there. Thank you so much.
Thank you very much. Thank you, my friend.
Thank you.