Illinois Tool Works

  • Illinois Tool Works (ITW) manufactures industrial products and equipment. It operates   through the following segments, Automotive OEM, Test & Measurement and   Electronics, Food Equipment, Polymers & Fluids, Welding, Construction   Products, and Specialty Products.

  • For Q2 2022, ITW reported revenue of $3.9 billion representing a   year-on-year growth rate of 11%. EPS of $2.11 was recorded, which was flat.   Both revenue and EPS were marginally above consensus. The company’s operating   margin decreased from 25.5% to 22.7% while return on invested capital   declined to 27.6% from 32.1% in Q1 2021.

  • Despite   current economic headwinds, ITW raised full-year revenue growth guidance to   between 8.5% and 11.5%. EPS guidance was hiked to between $9.00 to $9.40 per   share, an increase of between 11% and 16%.

  • ITW   is one of 65 companies in the S&P 500 that has qualified as a so-called   dividend aristocrat. Dividend aristocrats are companies that have increased   dividends for at least 25 years and in ITW’s case the company has increased   its dividend for a staggering 51 consecutive years. In our view, ITW has a   wide economic moat with the company holding over 17,000 granted and pending   patents. ITW is held in our global managed portfolios as well as the Cratos   BCI Worldwide Flexible Fund.

Illinois Tool Works