Illinois Tool Works (NYSE: ITW ) is a multinational corporation that specializes in industrial technology as well as manufacturing. The company operates through many segments, including: Food Equipment, Automotive OEM, Welding, Test & Measurement and Electronics, Construction Products, Polymers and Fluids and Specialty Products. The company was founded more thanI have a masters degree in Analytics from Northwestern University and a bachelors degree in Accounting. I have worked in the investment arena for ov ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ Commission File Number: 1-4797 ILLINOIS TOOL WORKS INC. (Exact name of registrant as specified in its charter) | --- | ...

Illinois Tool Works Inc. (NYSE:ITW) Q3 2024 Earnings Conference Call October 30, 2024 10:00 AM ET Company Participants Erin Linnihan - VP, IR Chris O'Hairlehy - President and CEO Michael Larsen - SVP and CFO Conference Call Participants Jeff Sprague - Vertical Research Partners Jamie Cook - Truist Securities Andy Kaplowitz - Citi Group Tami Zakaria - J.P. Morgan Joe O’Dea - Wells Fargo Sabrina Abrams - Bank of America Merrill Lynch Julian Mitchell - Barclays Adam Farley - Stifel Operator Good morning. My na ...

Illinois Tool Works Inc. (ITW) reported third-quarter 2024 adjusted earnings of $2.65 per share, which surpassed the Zacks Consensus Estimate of $2.53. Earnings increased 4% year over year. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. Illinois Tool's revenues of $3.97 billion missed the consensus estimate of $4.01 billion. The top line declined 1.6% year over year owing to a decrease of 1.4% in organic sales. While acquisition increased revenues by 0.2%, unfavorable foreign curr ...

Third Quarter 2024 Earnings Conference Call October 30, 2024 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 impact of enterprise initiatives, future financial ...

For the quarter ended September 2024, Illinois Tool Works (ITW) reported revenue of $3.97 billion, down 1.6% over the same period last year. EPS came in at $2.65, compared to $2.55 in the year-ago quarter. The reported revenue represents a surprise of -1.30% over the Zacks Consensus Estimate of $4.02 billion. With the consensus EPS estimate being $2.53, the EPS surprise was +4.74%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to de ...

Illinois Tool Works (ITW) came out with quarterly earnings of $2.65 per share, beating the Zacks Consensus Estimate of $2.53 per share. This compares to earnings of $2.55 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 4.74%. A quarter ago, it was expected that this equipment manufacturer for the transportation, power, food and construction industries would post earnings of $2.45 per share when it actually produced earnings o ...

Revenue and Growth - Revenue of $4.0 billion, a decrease of 2% as organic growth declined 1%[1] - Total revenue for the nine months ended September 30, 2024, was $11,966 million, with an operating income of $3,233 million and an operating margin of 27.0%[14] Operating Performance and Margins - Operating margin of 26.5% with enterprise initiatives contributing 130 basis points[1] - Operating income was $1.05 billion, with six of seven segments expanding operating margin[4] - Operating margin is projected to be in the range of 26.5 to 27%, an improvement of 165 basis points at the midpoint[7] - Automotive OEM segment revenue for the nine months ended September 30, 2024, was $2,403 million, with an operating income of $469 million and an operating margin of 19.5%[14] - Food Equipment segment revenue for the nine months ended September 30, 2024, was $1,975 million, with an operating income of $537 million and an operating margin of 27.2%[14] - Test & Measurement and Electronics segment revenue for the nine months ended September 30, 2024, was $2,071 million, with an operating income of $501 million and an operating margin of 24.2%[14] - Welding segment revenue for the nine months ended September 30, 2024, was $1,404 million, with an operating income of $458 million and an operating margin of 32.6%[14] - Polymers & Fluids segment revenue for the nine months ended September 30, 2024, was $1,334 million, with an operating income of $364 million and an operating margin of 27.3%[14] - Construction Products segment revenue for the nine months ended September 30, 2024, was $1,471 million, with an operating income of $436 million and an operating margin of 29.6%[14] - Specialty Products segment revenue for the nine months ended September 30, 2024, was $1,327 million, with an operating income of $410 million and an operating margin of 30.9%[14] Earnings Per Share (EPS) and Net Income - GAAP EPS of $3.91 included a divestiture gain of $1.26; ex-gain EPS of $2.65, an increase of 4%[1] - Full year GAAP EPS guidance raised by $1.33 to a range of $11.63 to $11.73 per share[1] - Net income for the nine months ended September 30, 2024, was $2,738 million, compared to $2,240 million for the same period in 2023[17] - Net income for the twelve months ended December 31, 2023, was $2,957 million, with an after-tax return on average invested capital of 30.4%[24] - Adjusted net income per share diluted for the three months ended September 30, 2024, was $2.65, after adjusting for the impact of the sale of noncontrolling interest in Wilsonart[27] Cash Flow and Capital Management - Operating cash flow was $891 million, and free cash flow was $783 million, with a conversion rate to adjusted net income of 102%[5] - The company repurchased $375 million of its own shares and raised its dividend by 7% to an annualized $6.00 per share[5] - Free cash flow for the nine months ended September 30, 2023, was $2,176 million, with a free cash flow to net income conversion rate of 97%[26] - Net cash provided by operating activities for the nine months ended September 30, 2023, was $2,500 million, with a net cash to net income conversion rate of 112%[26] - Free cash flow for the three months ended September 30, 2024, was $783 million, with a free cash flow to net income conversion rate of 68% excluding certain discrete items[26] Divestitures and Tax Impact - Proceeds from the Wilsonart divestiture were $395 million, resulting in a pre-tax gain of $363 million and a favorable GAAP EPS impact of $1.26[6] - The effective tax rate for the third quarter was 14.9%[5] - Reported income taxes for the nine months ended September 30, 2023, were $656 million with a tax rate of 22.7%, adjusted to $676 million and 23.4% after including a discrete tax benefit of $20 million[23] - Effective tax rate for the year ended December 31, 2023, excluding the discrete tax benefit, was 23.2%[25] Return on Invested Capital - After-tax return on average invested capital for the nine months ended September 30, 2024, was 31.3%, compared to 30.5% for the same period in 2023[17] - Net income to average invested capital for the twelve months ended December 31, 2023, was 29.0%[24] - Average invested capital for the twelve months ended December 31, 2023, was $10,214 million[24] - Total invested capital as of December 31, 2023, was $10,112 million, including cash and equivalents of $1,065 million and debt of $8,164 million[24]

Core Insights - Illinois Tool Works Inc. (ITW) reported third quarter 2024 revenue of $4.0 billion, a decrease of 2% year-over-year, with organic growth declining by 1% [1][3] - The operating margin was 26.5%, with enterprise initiatives contributing 130 basis points [1][5] - GAAP EPS increased to $3.91, including a divestiture gain of $1.26; excluding this gain, EPS was $2.65, reflecting a 4% increase [1][4] - The company raised its full-year GAAP EPS guidance by $1.33 to a range of $11.63 to $11.73 per share [1][8] Financial Performance - Revenue for the third quarter was $4.0 billion, down 1.6% due to a 1.4% decline in organic growth, with foreign currency translation impacting revenue by 0.4% and acquisitions contributing 0.2% [3] - Operating income was $1.05 billion, with an operating margin of 26.5%, unchanged from the prior year; six of seven segments expanded their operating margins [5] - Operating cash flow was $891 million, and free cash flow was $783 million, with a conversion rate to adjusted net income of 102% [6] Divestiture Impact - The company completed the sale of its noncontrolling equity interest in Wilsonart, generating proceeds of $395 million and a pre-tax gain of $363 million, which positively impacted GAAP EPS by $1.26 [7][8] - The divestiture is not expected to materially affect the company's financial results in future quarters [7] Guidance and Future Outlook - ITW is maintaining its guidance for flat revenue and organic growth for 2024, with an operating margin projected between 26.5% and 27% [8] - The company plans to repurchase approximately $1.5 billion of its own shares and has raised its dividend by 7% to an annualized $6.00 per share [6][8] Segment Performance - In the third quarter, the Automotive OEM segment reported revenue of $772 million with an operating margin of 19.4%, while Food Equipment generated $677 million with a margin of 28.4% [19] - Specialty Products segment saw a revenue increase of 6.0%, while Construction Products experienced a decline of 8.8% [21]

Illinois Tool Works Inc. (ITW) is scheduled to release third-quarter 2024 results on Oct. 30, before market open. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. The Zacks Consensus Estimate for third-quarter earnings has decreased 0.4% in the past 60 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters. The average surprise was 3.2%. The consensus estimate for revenues is pegged at $4 billi ...