Core Viewpoint - Illinois Tool Works (ITW) exceeded earnings expectations for the quarter but faces challenges from tariffs and macroeconomic conditions, leading to a decline in share price [1][2]. Financial Performance - ITW reported earnings of $2.44 per share on sales of $3.8 billion, surpassing the consensus estimate of $2.35 per share but falling short of revenue expectations by approximately $40 million [2]. - Year-over-year sales decreased by 3.4%, attributed to foreign currency fluctuations and weak demand in certain markets [2]. Operational Insights - The company achieved an operating margin of 24.8% for the quarter, down from 26.8% for the full year 2024 [3]. - CEO Christopher A. O'Herlihy acknowledged the "uncertain external environment" but maintained the company's full-year guidance, expecting price increases and other measures to mitigate tariff impacts [3]. Market Position and Strategy - ITW's ability to pass on some tariff-related costs to customers is supported by its essential product offerings [4]. - The company manufactures a significant portion of its products in the markets where they are sold, which provides some insulation from tariffs, although it still depends on imports for raw materials [4]. Investment Considerations - Despite being in a challenging environment, ITW's stock has only declined by 7% year-to-date, suggesting potential for long-term investors [5]. - The company offers a nearly 3% dividend yield, making it an attractive option for patient investors [5].

Core Insights - Illinois Tool Works (ITW) reported revenue of $3.84 billion for Q1 2025, a year-over-year decline of 3.4% and an EPS of $2.38 compared to $2.44 a year ago, with revenue matching the Zacks Consensus Estimate but an EPS surprise of +1.71% [1] Financial Performance - The company's organic growth in operating revenue was -1.6%, which was below the three-analyst average estimate of -0.8% [4] - Automotive OEM operating revenue was $786 million, slightly above the estimate of $782.57 million, but represented a -3.7% change year-over-year [4] - Food Equipment operating revenue was $627 million, exceeding the estimate of $618.05 million, with a year-over-year change of -0.6% [4] - Test & Measurement and Electronics operating revenue was $652 million, below the estimate of $672.59 million, reflecting a -6.3% year-over-year change [4] - Intersegment revenues were reported at -$5 million, better than the estimate of -$6.57 million, with a year-over-year change of -16.7% [4] - Polymers & Fluids operating revenue was $429 million, slightly above the estimate of $423.16 million, with a year-over-year change of -0.7% [4] - Construction Products operating revenue was $443 million, below the estimate of $452.05 million, representing a -9.2% change year-over-year [4] - Specialty Products operating revenue was $435 million, exceeding the estimate of $422.93 million, with a year-over-year change of -1.1% [4] - Welding operating revenue was $472 million, above the estimate of $460.45 million, reflecting a -0.8% year-over-year change [4] Stock Performance - Shares of Illinois Tool Works have returned -2.8% over the past month, compared to the Zacks S&P 500 composite's -0.2% change, with a current Zacks Rank of 3 (Hold) indicating potential performance in line with the broader market [3]

Illinois Tool Works (ITW) came out with quarterly earnings of $2.38 per share, beating the Zacks Consensus Estimate of $2.34 per share. This compares to earnings of $2.44 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.71%. A quarter ago, it was expected that this equipment manufacturer for the transportation, power, food and construction industries would post earnings of $2.49 per share when it actually produced earnings of ...

Illinois Tool Works (ITW) Q1 2025 Earnings Call April 30, 2025 10:00 AM ET Company Participants Erin Linnihan - Vice President of Investor RelationsChristopher O'Herlihy - President & CEOMichael Larsen - SVP & CFOTami Zakaria - Executive DirectorStephen Volkmann - Managing DirectorJamie Cook - Managing Director - Equity ResearchJoseph O'Dea - Managing Director Conference Call Participants Vlad Bystricky - AnalystJulian Mitchell - Equity Research AnalystNone - AnalystNicole Deblase - Lead Analyst Operator Go ...

Illinois Tool Works (ITW) Q1 2025 Earnings Call April 30, 2025 10:00 AM ET Speaker0 Good morning. My name is Lacey, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the ITW's First Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Session. And if needed, one follow-up question. You. Erin Linehan, Vice President of Investor Relations, ...

Revenue Performance - First quarter 2025 revenue was $3.8 billion, a decline of 3.4%, with organic revenue down 1.6%[4] - The company is maintaining its full year 2025 GAAP EPS guidance range of $10.15 to $10.55 per share, expecting revenue and organic growth of 0% to 2%[7] Earnings and Income - GAAP EPS for Q1 2025 was $2.38, a decrease of 2% compared to the previous year, impacted by $0.10 from higher restructuring expenses and unfavorable foreign currency translation[6] - The company reported a decline in net income to $700 million for Q1 2025, compared to $819 million in Q1 2024[13] - Net income for Q1 2025 was $700 million, down 14.5% from $819 million in Q1 2024[21] - Operating income after taxes for Q1 2025 was $722 million, compared to $773 million in Q1 2024, reflecting a decrease of 6.6%[21] Cash Flow - Operating cash flow for Q1 2025 was $592 million, with free cash flow at $496 million, representing a conversion rate of 71% to net income[6] - Free cash flow is projected to exceed 100% of net income, with plans to repurchase approximately $1.5 billion of its own shares[7] - Free cash flow for Q1 2025 was $496 million, slightly up from $494 million in Q1 2024, with a conversion rate of 71%[27] - The company reported a net cash provided by operating activities of $592 million for Q1 2025, compared to $589 million in Q1 2024[27] Tax and Effective Rate - The effective tax rate for Q1 2025 was 21.7%, including a discrete tax benefit of $21 million related to the reversal of valuation allowances[6] - The effective tax rate for Q1 2025 was reported at 21.7%, adjusted to 24.0% when excluding a discrete tax benefit of $21 million[22] Assets and Liabilities - Total current assets increased to $6.037 billion as of March 31, 2025, compared to $5.856 billion at the end of 2024[15] - The company’s total liabilities increased to $12.226 billion as of March 31, 2025, from $11.750 billion at the end of 2024[15] Investment Metrics - Total invested capital increased to $10,632 million in Q1 2025 from $10,387 million in Q1 2024, representing a growth of 2.4%[21] - The net income to average invested capital for Q1 2025 was 26.9%, down from 32.0% in Q1 2024[21] - Average invested capital for Q1 2025 was $10,432 million, an increase from $10,249 million in Q1 2024[21] - The after-tax return on average invested capital for the twelve months ended December 31, 2024, was 31.2%[24] Accounting Changes - The cumulative effect of the change in inventory accounting method in Q1 2024 had a pre-tax impact of $117 million, or $88 million after-tax[21] Operating Margin - Operating margin for Q1 2025 was 24.8%, down 60 basis points year-over-year, with enterprise initiatives contributing 120 basis points[6]

First Quarter 2025 Earnings Conference Call April 30, 2025 Forward-Looking Statements Safe Harbor Statement This presentation and related conference call contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements regarding global supply chain challenges, expected impact of inflation including raw material inflation and rising interest rates, the potential impact of tariffs, the Company's projected ...

Core Insights - Illinois Tool Works Inc. (ITW) reported first quarter 2025 results, achieving financial outcomes ahead of expectations while maintaining guidance for the full year 2025 [1][2] Financial Performance - First quarter revenue was $3.8 billion, a decline of 3.4% year-over-year, with organic revenue down 1.6% [3][8] - GAAP EPS for Q1 2025 was $2.38, a decrease of 2% compared to the previous year, impacted by higher restructuring expenses and unfavorable foreign currency translation [5][8] - Operating margin for Q1 2025 was 24.8%, down 60 basis points from the previous year, with enterprise initiatives contributing positively [5][8] Cash Flow and Share Repurchase - Operating cash flow was $592 million, with free cash flow at $496 million, representing a conversion rate of 71% to net income [5][28] - The company repurchased $375 million of its own shares during the quarter and plans to repurchase approximately $1.5 billion in total for 2025 [5][6] 2025 Guidance - ITW is maintaining its full year 2025 GAAP EPS guidance range of $10.15 to $10.55 per share, expecting ongoing pricing actions to offset tariff cost impacts [6][8] - Projected revenue growth for 2025 is estimated at 0% to 2%, with operating margin expected to be between 26.5% and 27.5% [6][8] Segment Performance - Total operating revenue for the segments was $3.8 billion, with notable contributions from Automotive OEM ($786 million) and Food Equipment ($627 million) [16][17] - Organic revenue changes varied across segments, with Automotive OEM down 1.2% and Food Equipment up 1.2% [19]

Core Viewpoint - Illinois Tool Works Inc. (ITW) is expected to report first-quarter 2025 results on April 30, with a consensus estimate indicating a decrease in both revenues and adjusted earnings compared to the previous year [1][2][7] Revenue and Earnings Estimates - The consensus estimate for revenues is $3.84 billion, reflecting a 3.3% decline from the same quarter last year [2] - Adjusted earnings are estimated at $2.34 per share, which is a 4.1% decrease from the year-ago quarter [2] - Overall, total revenues are projected to be $3.9 billion, indicating a 2.6% year-over-year decrease, while adjusted earnings are expected to decline by 13.5% to $2.37 per share [7] Segment Performance Insights - The Test & Measurement and Electronics segment is likely to benefit from recovery in the MTS Test & Simulation business and the semiconductor end market [3] - Growth in institutional end markets in North America and increased demand in European warewash and cooking markets are expected to drive the Food Equipment segment [3] - The Polymers & Fluids segment is anticipated to perform well due to rising demand in Europe, particularly in the life sciences market [3] - The Specialty Products segment is projected to see revenues of $445.6 million, a 1.3% increase from the previous year, aided by strong performance in ground support equipment and consumer packaging [4] Challenges and Declines - The Automotive OEM segment is expected to face a revenue decline of 5.3% year-over-year to $772.8 million due to a decrease in North American auto build rates [5] - The Welding segment is also projected to see a revenue drop of 2.3% year-over-year to $465.1 million, attributed to declining demand in industrial and commercial markets [6] - Foreign currency headwinds are likely to negatively impact ITW's margins and profitability due to its significant international operations [6] Earnings Prediction - The company has a positive Earnings ESP of +0.15%, suggesting a potential earnings beat, with the most accurate estimate at $2.34 per share, slightly above the consensus estimate of $2.33 [8][9]

Core Viewpoint - Analysts expect Illinois Tool Works (ITW) to report quarterly earnings of $2.34 per share, reflecting a year-over-year decline of 4.1%, with revenues projected at $3.84 billion, down 3.3% from the previous year [1]. Earnings Projections - The consensus EPS estimate has been revised 0.2% higher over the last 30 days, indicating a collective reevaluation by analysts [1][2]. - Revisions to earnings projections are critical for predicting investor behavior and stock performance [2]. Revenue Estimates by Segment - 'Operating Revenues- Test & Measurement and Electronics' is estimated at $672.59 million, a decrease of 3.4% year-over-year [4]. - 'Operating Revenues- Construction Products' is projected at $452.05 million, indicating a decline of 7.4% from the prior year [4]. - 'Operating Revenues- Food Equipment' is expected to be $618.05 million, down 2.1% year-over-year [4]. - 'Operating Revenues- Specialty Products' is forecasted to reach $422.93 million, reflecting a 3.9% decrease [5]. - 'Operating Revenues- Automotive OEM' is anticipated at $782.57 million, showing a decline of 4.1% [5]. - 'Operating Revenues- Welding' is expected to be $460.45 million, down 3.3% year-over-year [5]. - 'Operating Revenues- Polymers & Fluids' is projected at $423.16 million, indicating a 2.1% decrease [6]. Operating Income Estimates - 'Operating Income- Automotive OEM' is expected to be $151.73 million, down from $162 million in the previous year [7]. - 'Operating Income- Food Equipment' is projected at $160.61 million, compared to $164 million last year [8]. - 'Operating Income- Test & Measurement and Electronics' is estimated at $158.07 million, down from $163 million in the same quarter last year [8]. Stock Performance - Shares of Illinois Tool Works have shown a return of -3.9% over the past month, compared to a -4.8% change in the Zacks S&P 500 composite [8].