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Mar 31, 2023

ITW Q1 2023 Earnings Report

ITW's Q1 2023 results were reported, featuring revenue of $4.0 billion, a 2% increase, and organic growth of 5%.

Key Takeaways

ITW reported a solid start to the year with a 5% organic growth, operating margin expansion of 150 basis points, strong free cash flow, and double-digit EPS growth. The company is raising its full-year GAAP EPS guidance by $0.05 to a range of $9.45 to $9.85 per share.

Revenue increased by 2% to $4.0 billion, with organic growth of 5%.

Operating income rose by 9% to $972 million.

GAAP EPS increased by 10% to $2.33, a new first quarter record.

Free cash flow increased by 147% to $615 million, with a conversion rate to net income of 86%.

Total Revenue
$4.02B
Previous year: $3.94B
+2.0%
EPS
$2.33
Previous year: $2.11
+10.4%
Organic Revenue Growth
5%
Previous year: 10.6%
-52.8%
Gross Profit
$1.68B
Previous year: $1.58B
+6.1%
Cash and Equivalents
$1.14B
Previous year: $1.3B
-11.8%
Free Cash Flow
$615M
Previous year: $249M
+147.0%
Total Assets
$15.9B
Previous year: $16.3B
-2.2%

ITW

ITW

ITW Revenue by Segment

Forward Guidance

The company is raising its full-year GAAP EPS guidance to $9.45 to $9.85 per share. The organic growth projection of three to five percent reflects current levels of demand and a risk adjustment for further slowing in certain end markets.

Revenue & Expenses

Visualization of income flow from segment revenue to net income