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Sep 30, 2022

ITW Q3 2022 Earnings Report

ITW delivered strong performance despite softening demand and inventory destocking.

Key Takeaways

ITW reported a strong third quarter with a 13% increase in revenue, driven by 16% organic growth. EPS increased by 16% to $2.35, and operating income reached a record $983 million, up 16%. The company is raising full-year GAAP EPS and organic revenue growth guidance.

Revenue increased by 13% to $4.0 billion, with organic growth of 16%.

GAAP EPS increased by 16% to $2.35.

Operating income reached a record $983 million, up 16%.

Full-year GAAP EPS guidance raised to $9.45 to $9.55 per share and organic revenue growth guidance raised to 11 to 12%.

Total Revenue
$4.01B
Previous year: $3.56B
+12.8%
EPS
$2.35
Previous year: $1.96
+19.9%
Organic Revenue Growth
16%
Previous year: 6%
+166.7%
Gross Profit
$1.64B
Previous year: $1.46B
+12.3%
Cash and Equivalents
$774M
Previous year: $1.99B
-61.0%
Free Cash Flow
$612M
Previous year: $548M
+11.7%
Total Assets
$15.2B
Previous year: $15.5B
-1.9%

ITW

ITW

ITW Revenue by Segment

Forward Guidance

ITW is projecting full-year organic growth guidance of 11 to 12 percent and full-year revenue growth of nine to ten percent. Prior GAAP EPS guidance of $9.00 to $9.40 was adjusted to a narrower range of $9.00 to $9.10 primarily to account for incremental foreign currency translation headwinds and raised by the estimated divestiture gain of $0.45 resulting in the company raising its full-year GAAP EPS guidance to a range of $9.45 to $9.55 per share. For the full year, operating margin is projected to be approximately 24 percent, with enterprise initiatives contributing 100 basis points. Free cash flow is projected to be approximately 80 percent of net income.

Revenue & Expenses

Visualization of income flow from segment revenue to net income