Illinois Tool Works Inc. · NYSE:ITW

Illinois Tool Works — Q2 2023 Earnings Presentation

9 slides from Illinois Tool Works's earnings presentation, Aug 1, 2023

  1. Slide 1: Second Quarter 2023 Earnings Conference Call

    Second Quarter 2023 August 1, 2023 Earnings Conference Call

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements Safe Harbor Statement This presentation and related conference call contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements regarding global supply chain chal

  3. Slide 3: Q2'23 Financial Performance

    Q2’23 Financial Performance HIGHLIGHTS GAAP EPS $2.37 $2.48 +5% - Ex. One-time tax items $2.21 $2.41 +9% • Organic revenue growth of 3% – Resilient demand in many end markets partially offset by $4.1B +2% inventory reduction efforts by customers and channel $4.0B partners; Impacted organic growth by

  4. Slide 4: Q2'23 Financial Performance: Operating Margins and Automotive OEM

    Q2’23 Financial Performance OPERATING MARGINS AUTOMOTIVE OEM $826M +16% +170 bps 24.8% Year-over-Year $711M +250 bps 24.1% 16.8% +60 bps 14.3% vs. Q1'23 Pre- pandemic Q2'22 Q2'23 Q2'22 Q2'23 Q2'19 Q2'23 Total Revenue Operating Margin • Operating margins now solidly above • Organic revenue 16% pre-pa

  5. Slide 5: Q2'23 Segment Performance: Food Equipment, Test & Measurement/Electronics

    Q2’23 Segment Performance FOOD EQUIPMENT TEST & MEASUREMENT/ELECTRONICS +1% +6% +310 bps $696M $700M $654M 27.8% $614M +70 bps 24.7% 23.2% 22.5% Q2'22 Q2'23 Q2'22 Q2'23 Q2'22 Q2'23 Q2'22 Q2'23 Total Revenue Operating Margin Total Revenue Operating Margin • Organic revenue 7% • Organic revenue 1%; 7%

  6. Slide 6: Q2'23 Segment Performance: Welding, Polymers & Fluids

    Q2’23 Segment Performance WELDING POLYMERS & FLUIDS +1% $486M $490M +460 bps $496M (8)% 33.9% $459M 29.3% 25.9% +80 bps 25.1% Q2'22 Q2'23 Q2'22 Q2'23 Q2'22 Q2'23 Q2'22 Q2'23 Total Revenue Operating Margin Total Revenue Operating Margin • Organic revenue 1% • Organic revenue (1)%, divestiture (6)% •

  7. Slide 7: Q2'23 Segment Performance: Construction Products, Specialty Products

    Q2’23 Segment Performance CONSTRUCTION PRODUCTS SPECIALTY PRODUCTS $565M (7)% $526M +170 bps (5)% 29.3% $447M (90) bps 27.6% $423M 26.9% 26.0% Q2'22 Q2'23 Q2'22 Q2'23 Q2'22 Q2'23 Q2'22 Q2'23 Total Revenue Operating Margin Total Revenue Operating Margin • Organic revenue (6)% • Organic revenue (4)%,

  8. Slide 8: 2023 Financial Guidance

    2023 Financial Guidance HIGHLIGHTS GAAP EPS $9.77 $9.55 - $9.95 -Ex. ’22 Divestiture gains $9.17 +4 – 9% • Expect stable underlying demand and strong margin +2 - 4% performance through the balance of the year $16.3 - $16.6B - Organic growth of 3 to 5% $15.9B +3 - 5% - Enterprise initiatives contribu

  9. Slide 9: Q&A

    Q&A

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