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Illinois Tool Works Inc.
S&P 500
🏹 Trader: 🎯 Near 52W High | BRS 63 Forming View all →
$77.4B
Market Cap
23.5
P/E
15.22
PEG
29.9%
ROCE
93.7%
ROE
2.86
D/E
26.5%
OPM
-9.8%
% from 52W High
55
α RS
🔍 ITW is showing a high-conviction setup because it matches 12 of 39 tracked screener presets, Sector RRG has Industrials in the Improving quadrant with the trail still strengthening, and it's within 9.8% of its 52-week high. Net: Broad signal stack, not a recommendation. ? Conviction RRG 52W High
Sources
Conviction 12/39 · Industrials in Improving quadrant · 9.8% from 52W high
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🌏 Global Investor Returns
Currency-adjusted total returns for ITW including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
📊 Sector Averages
About

Illinois Tool Works Inc. provides industrial products and equipment in North America, Europe, the Middle East, Africa, the Asia Pacific, and South America. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products. The Automotive OEM segment offers plastic and metal components, fasteners, and assemblies for automobiles, light trucks, and other industrial uses. The Food Equipment segment provides warewashing, cooking, refrigeration, and food processing equipment; kitchen exhaust, ventilation, and pollution control systems; and food equipment maintenance and repair services. The Test & Measurement and Electronics segment produce and sells test and measurement; and electronic manufacturing and maintenance, repair, and operations solutions. The Welding segment produces arc welding equipment, and metal arc welding consumables and related accessories. The Polymers & Fluids segment produces adhesives, sealants, lubrication and cutting fluids, and fluids and polymers for auto aftermarket maintenance and appearance. The Construction Products segment offers engineered fastening systems and solutions for the residential construction, renovation/remodel, and commercial construction markets. The Specialty Products segment provides beverage packaging equipment and consumables, product coding and marking equipment and consumables, and appliance components and fasteners. The company serves automotive OEM and aftermarket, commercial food equipment, construction, general industrial, industrial capital goods, consumer durables, and other markets, as well as MRO markets. It distributes its products directly to industrial manufacturers, as well as through independent distributors. Illinois Tool Works Inc. was founded in 1912 and is based in Glenview, Illinois.

Key Ratios Snapshot
📈 Growth Pattern
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⭐ Superinvestors Holding ITW
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 659.8K $171.7M 0.27% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$4.30B
+6.1% YoY
Operating Income
$1.15B
+7.4% YoY
Operating Margin
26.7%
+40 bps YoY
GAAP EPS
$2.84
+10.1% YoY
What Went Right
  • Organic growth accelerated to 4.5%, with Welding up 14% and Test & Measurement/Electronics up 10%.
  • Customer-Back Innovation contributed 3% to first-half revenue growth, up from 2.4% in FY2025.
  • Free cash flow rose 41% to $631M, with operating margin expanding 40 bps to 26.7%.
What to Watch
  • Price-cost timing lags diluted operating margins by 40 bps in Q2, with modest headwind expected into Q3.
  • Europe organic growth was flat, and Automotive OEM Europe declined 5%.
  • A storm damaged two Appleton, Wisconsin welding facilities; no material impact expected but contingency plans are in effect.
Management Guidance
  • FY2026 organic growth raised to 3%-4%, midpoint now 3.5%.
  • FY2026 GAAP EPS raised to $11.35-$11.55, midpoint $11.45.
  • FY2026 operating margin guidance unchanged at 26.5%-27.5%; free cash flow conversion expected >100%; ~$1.5B buybacks planned.
Investor Lens
The thesis is stronger after this call. Organic growth accelerated to 4.5% and the company raised full-year guidance for the second time, underpinned by momentum in welding and electronics plus CBI contributing 3% in the first half. The temporary price-cost drag is a manageable timing issue, and with enterprise initiatives contributing 120 bps and a record operating profit quarter, ITW is tracking well toward its 2030 margin and growth targets.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong quarter: 4.5% organic growth, raised EPS guide to $11.45
Revenue
Q2 revenue was $4.30B, up 6.1% year over year, with organic growth of 4.5%. Regionally, North America and Asia Pacific both grew 6%, China grew 3%, and Europe was flat; Welding grew 14%, Test & Measurement/Electronics grew 10%, and Polymers & Fluids grew 7%.
Profitability
GAAP EPS rose 10.1% to $2.84, and operating income increased 7.4% to $1.15B, the most profitable quarter in company history. The company also raised full-year EPS guidance by $0.15 to a new midpoint of $11.45.
Margins
Operating margin expanded 40 bps to 26.7%, helped by 120 bps from enterprise initiatives; price-cost timing lags temporarily diluted margins by 40 bps. Welding maintained a 32.4% margin and Polymers & Fluids posted a record 29.3% margin.
Balance Sheet
Free cash flow increased 41% to $631M, representing 77% conversion of net income, with operating cash flow of $723M. The company returned over $1.2B to shareholders in the quarter, including $750M of share repurchases at an average price of $255.
Key Risks
Management flagged raw material inflation, particularly crude-oil derivatives such as resins, plus logistics and electronic component cost pressure. European organic growth was flat and Automotive OEM Europe fell 5%, while the Appleton welding facility storm adds near-term operational uncertainty.
Outlook
Full-year 2026 organic growth guidance was raised to 3%-4% and GAAP EPS to $11.35-$11.55. Management expects second-half organic growth to remain around 4.5%, with operating margin of 26.5%-27.5% and free cash flow conversion above 100%.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-28
Q2 2026 saw 4.5% organic growth, record profitability, and margin expansion, with strong performance in CapEx-related segments and Customer-Back Innovation driving results. Guidance for full-year organic growth and EPS was raised, and robust cash flow enabled significant shareholder returns.
Q1 2026 Q1 2026 2026-04-30
Q1 2026 saw 5% revenue growth and 12% GAAP EPS growth, with strong performance in CapEx-related segments and margin expansion to 25.4%. Full-year guidance was raised, with all segments expected to deliver positive organic growth and margin improvement.
Q4 2025 Q4 2025 2026-02-03
Q4 and full-year results showed strong revenue and margin growth, with all segments expanding margins and robust CBI-driven innovation. 2026 guidance projects continued organic growth, margin expansion, and high cash returns to shareholders, supported by ongoing investments and a strong innovation pipeline.
Q3 2025 Q3 2025 2025-10-24
Q3 saw revenue up 3% and record operating income, with strong margin expansion and robust free cash flow. Full-year EPS guidance was narrowed upward, with continued focus on innovation and portfolio optimization. Automotive and China led growth, while construction and electronics remained challenged.
Q2 2025 Q2 2025 2025-07-30
Q2 delivered record EPS and operating margin, with revenue up 1% and strong execution in China and automotive. Full-year guidance was raised, with all segments expected to grow and improve margins in H2, despite ongoing macro and tariff challenges.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Information Sources:
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