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14:00
Jul 28 ◎

ITW FY2026 Q2 Watch

Illinois Tool Works Inc. (ITW) FY2026 Q2 Earnings Call

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Chris O'Herlihy

In welding and T&M/electronics, order intake is running ahead of revenue recognition, suggesting near-term revenue acceleration and potential capacity constraints. — Indicates stronger demand than reported and could signal share gains at competitors' expense, plus potential pricing power.

"The order activity that we've seen in welding and test measurement electronics has been a good bit ahead of the revenue rates we've been demonstrating."

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Michael Larsen

ITW raised both top and bottom line guidance for the second time this year, driven by accelerating order growth and strong CBI contribution, signaling high confidence in sustained 4.5% organic growth and margin expansion in H2.

"We enter the second half of 2026 with strong operational momentum highlighted by organic growth of 4.5% in the second quarter. As evidenced by today's RAISE guidance, which implies sustained organic growth of 4.5% in the second half"

ITW WATCH

Michael Larsen

Raw material and logistics inflation is driving a temporary price-cost margin headwind of ~40bps in Q2, with full catch-up expected by Q4. — Confirms supply chain cost pressures across materials and freight, potentially affecting chemical suppliers' pricing power.

"The Q2 impact was primarily from crude oil derivatives, so we're talking resin and chemicals. I'll also add to the logistics, transportation, freight costs."

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Chris O'Herlihy

Welding growth of 19% in North America is tied to infrastructure, energy, aerospace/defense, and data center construction, reflecting a broad-based industrial capex upcycle. — Confirms robust demand in end markets that are directly relevant to heavy equipment and machinery manufacturers.

"broad-based growth across both industrial and commercial markets, as demand continued to strengthen in areas such as infrastructure, energy, aerospace, and defense."

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HIGH

14:00
Apr 30 ◎

ITW FY2026 Q1 Watch

Illinois Tool Works Inc. (ITW) FY2026 Q1 Earnings Call

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Michael Larson

Order rates in welding and test & measurement are meaningfully higher than the organic growth rates those segments posted in Q1, implying potential upward revision to full-year guidance if sustained. — This suggests that ITW's welding and electronics businesses are capturing share or seeing an earlier cyclical recovery than the current guidance reflects, which is a positive lead indicator for the broader industrial economy.

"we are seeing order rates that are meaningfully higher than the organic growth rates that those segments put up in the first quarter"

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Michael Larson

Management expresses increasing confidence in the full-year outlook, citing stronger order rates in capex-related segments (welding, test & measurement) that are not fully reflected in the conservative 1-3% organic growth guidance, with April organic growth trending toward the high end of that range.

"As we sit here today, we feel very, very confident in our ability to deliver both Q2 and the full year."

ITW WATCH

Michael Larson

ITW expects a meaningful sequential improvement in automotive OEM margins of more than 100 basis points from Q1 to Q2, driven by China auto builds recovering from -10% to flat. — The sequential improvement in China auto production is a direct read-through for auto parts suppliers and OEMs, suggesting a stabilization in the world's largest auto market.

"we expect meaningful sequential margin improvement more than 100 basis points we expect incremental margins to improve"

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Michael Larson

ITW's electronics and semi-related businesses (about $500M annual revenue, 15% of the segment) grew more than 15% in Q1, with strong order activity supporting sustainability of the recovery. — This points to strengthening capex in the semiconductor manufacturing chain, a leading indicator for wafer fab equipment makers.

"the semi-related businesses, which represent about $500 million of annual revenues, or about 15% of the segment, grew more than 15%"

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HIGH

15:00
Feb 03 ◎

ITW FY2025 Q4 Watch

Illinois Tool Works Inc. (ITW) FY2025 Q4 Earnings Call

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Chris O'Herlihy

The 2026 guidance of 1-3% organic growth and ~100 bps of operating margin expansion is demonstrably better than the prior year's actual performance, indicating a continued improvement trajectory. The tone is upbeat, driven by strong Q4 momentum and improving end markets.

"In Q4, the ITW team delivered a solid operational and financial finish to the year. Organic growth was 1.3%. Foreign currency translation added 2.5%, and acquisitions contributed 0.3%, bringing total revenue growth to 4.1%."

ITW WATCH

HIGH

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