ITW Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, April 30, 2026 astatine 10:18 AM CDT 27 min read

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Date

April 30, 2026, 10 a.m. ET

Call participants

• Chairman & Chief Executive Officer — Christopher A. O’Herlihy

• Senior Vice President & Chief Financial Officer — Michael M. Larsen

• Vice President, Investor Relations — Erin Linnihan

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Full Conference Call Transcript

Christopher A. O’Herlihy: Thank you, Erin, and bully morning, everyone. As you saw successful our property merchandise this morning, Illinois Tool Works Inc. delivered a coagulated commencement to the twelvemonth with results that were successful enactment with our expectations. In the archetypal quarter, we continued to outperform our underlying extremity markets, delivering gross maturation of 5% and a 12% summation successful GAAP EPS to $2.66. Through disciplined operational execution, we expanded operating borderline by 60 ground points to 25.4%. We proceed to capitalize connected affirmative request trends successful our CapEx-related segments, with integrated maturation successful Welding up 6% and Test & Measurement and Electronics up 5%.

While our consumer-facing businesses contended with challenging extremity marketplace dynamics, the Illinois Tool Works Inc. squad executed astatine a precocious level connected the nett drivers wrong our control. Our Enterprise Initiatives contributed 120 ground points to the bottommost line, driving that 60 ground constituent wide borderline improvement. We were arsenic encouraged by our continued advancement connected Illinois Tool Works Inc.’s integrated maturation agenda, specifically connected customer-backed innovation, oregon CBI arsenic we telephone it. We are positioning the institution to consistently present 3% positive CBI publication to gross by 2030. As we person noted before, this is the cardinal operator of our quality to consistently present 4% positive high-quality integrated maturation astatine the endeavor level.

As we look up and based connected our coagulated Q1 results, we are raising our afloat twelvemonth GAAP EPS guidance by $0.10. Our caller guidance midpoint of $11.30 incorporates a somewhat little taxation complaint and represents 8% year-over-year growth. Our afloat twelvemonth integrated maturation projection of 1% to 3% remains unchanged, reflecting existent request levels adjusted for seasonality. For the afloat year, we expect operating borderline enlargement of astir 100 ground points powered by our Enterprise Initiatives. Notably, each 7 segments are projected to present affirmative integrated maturation and borderline enlargement successful 2026.

As we person said before, Illinois Tool Works Inc.’s unsocial concern model, resilient portfolio, and “do what we say” execution demonstrated regular by our colleagues worldwide guarantee we are good positioned to present robust fiscal show successful immoderate situation and stay invested successful our semipermanent strategy done immoderate concern cycle. As bid enactment continues to fortify crossed respective of our extremity markets, our accumulation capacity, caller merchandise pipeline, and best-in-class customer-facing metrics presumption america to instrumentality marketplace stock and afloat capitalize connected these affirmative request trends that we are present opening to see. With that, I volition present crook the telephone implicit to Michael to supply much item connected the 4th and our guidance for 2026. Michael?