Illinois Tool Works Inc

ITW

Equity

ISIN null / Valor 940785

New York Stock Exchange, Inc (2026-09-08)

USD 268.69-0.53%

Illinois Tool Works Inc
UMushroom community rating:

0.00 0 votes No rating yet

NegativeNeutralPositive

About company

Illinois Tool Works Inc. is a publicly traded, diversified industrial manufacturer headquartered in Glenview, Illinois, that designs and produces specialty engineered components, consumables and equipment for a wide range of markets including automotive, construction, electronics, foodservice and general industrial customers. Its product mix spans fastening systems and assembly technologies, welding and joining equipment, adhesives and sealants, packaging and food‑service machinery, testing and measurement tools, and related consumables and replacement parts, with sales driven by both original equipment and aftermarket demand. The company operates through a decentralized network of smaller business units and has grown through targeted acquisitions, emphasizing operational margins, free cash flow and recurring revenue from consumables and service parts.

Summarized from source with an LLMView SourceSector: Industrials

Revenue & Growth

Q2 2026 revenue was $4.30 billion, up 6.1% year-over-year; organic revenue growth accelerated to 4.5% (North America organic +6.4%), with currency adding 1.4% and acquisitions 0.2%.

Profitability & Margins

Operating income was $1.15 billion (+7.4%) and operating margin expanded 40 basis points to 26.7% in Q2 2026; management attributes ~120 bps of the margin improvement to enterprise initiatives.

Earnings Per Share

GAAP diluted EPS was $2.84 in Q2 2026, a 10.1% increase versus prior year; amortization from acquisition-related intangibles reduced EPS by about $0.04 in the quarter.

Cash Flow & Conversion

Operating cash flow was $723 million and free cash flow was $631 million (up 41%), representing a 77% free-cash-flow-to-net-income conversion in the quarter.

Capital Allocation & Returns

The company returned over $1.2 billion to shareholders in Q2 2026 through dividends and $750 million of share repurchases; ITW now expects about $1.5 billion of repurchases for the full year.

Guidance Raised

Full-year 2026 guidance raised: GAAP EPS to $11.35–$11.55 (midpoint $11.45, +$0.15), total revenue growth to 4–5%, organic growth to 3–4% (midpoint 3.5%, a +1.5 ppt increase), operating margin 26.5–27.5%, free cash flow >100% of net income, and an expected effective tax rate of 23–24%.

Segment Performance

Capex-related segments led the quarter: double-digit organic growth in Welding and in Test & Measurement and Electronics, with strong contributions from Polymers & Fluids; Welding posted a 32.4% operating margin in Q2.

Other Key Financials

Net income for Q2 2026 was $815 million; cash and equivalents stood at $839 million; total debt (short- and long-term) was $9.694 billion; quarterly effective tax rate was 24.4%.

Summarized from source with an LLMView Source

Key figures

0.75%1Y

12.7%3Y

21.1%5Y

Performance

21.3%1Y

19.9%3Y

21.5%5Y

Volatility