Illinois Tool Works Inc · Q3 2022 earnings

Briefing

ITW delivered strong performance despite softening demand and inventory destocking.

ITW reported a strong third quarter with a 13% increase in revenue, driven by 16% organic growth. EPS increased by 16% to $2.35, and operating income reached a record $983 million, up 16%. The company is raising full-year GAAP EPS and organic revenue growth guidance.

• Revenue increased by 13% to $4.0 billion, with organic growth of 16%.
• GAAP EPS increased by 16% to $2.35.
• Operating income reached a record $983 million, up 16%.
• Full-year GAAP EPS guidance raised to $9.45 to $9.55 per share and organic revenue growth guidance raised to 11 to 12%.

Headline financials

Revenue & EPS history

ITW is projecting full-year organic growth guidance of 11 to 12 percent and full-year revenue growth of nine to ten percent. Prior GAAP EPS guidance of $9.00 to $9.40 was adjusted to a narrower range of $9.00 to $9.10 primarily to account for incremental foreign currency translation headwinds and raised by the estimated divestiture gain of $0.45 resulting in the company raising its full-year GAAP EPS guidance to a range of $9.45 to $9.55 per share. For the full year, operating margin is projected to be approximately 24 percent, with enterprise initiatives contributing 100 basis points. Free cash flow is projected to be approximately 80 percent of net income.