Key Takeaways ITW is set to report Q2 2026 results on July 28 before market open after four straight earnings beats.ITW's Food Equipment, Automotive OEM and Electronics units are expected to post revenue growth.ITW may face pressure from weak construction demand in Europe and foreign currency headwinds. Illinois Tool Works Inc. (ITW - Free Report) is scheduled to release second-quarter 2026 results on July 28, 2026, before market open.
The Zacks Consensus Estimate for second-quarter earnings has remained steady in the past 30 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters. The average surprise was 2.8%.
The consensus estimate for second-quarter revenues is pegged at $4.18 billion, suggesting growth of 3.2% from the year-ago quarter’s figure. The consensus estimate for adjusted earnings is pinned at $2.80 per share, indicating an 8.5% increase from the year-ago quarter’s number.
Let’s see how things have shaped up for Illinois Tool this earnings season.
Factors to Note Ahead of ITW’s ResultsGrowth in the institutional and food retail markets in North America, along with higher service revenues, is likely to have boosted the performance of Illinois Tool’s Food Equipment segment. Our model estimates the segment’s revenues to increase 2.5% year over year to $696.8 million.
Strong momentum in the filter medical business is likely to have driven its Specialty Products segment’s performance. We expect the Specialty Products segment’s revenues to grow 2.6% year over year to $466.6 million.
Solid momentum in the equipment and filler metals businesses due to higher demand for products in North America is expected to have aided the Welding segment’s performance in the second quarter. Our model estimates the segment’s revenues to increase 4.7% from the year-ago quarter to $501.5 million.
The Automotive OEM segment’s performance is expected to have benefited from growth in the electric vehicles end market. We expect the segment’s revenues to grow 2.1% year over year to $862.3 million in the second quarter.
Strength in the semiconductor and electronics end markets in North America and the Asia Pacific is expected to boost the Test & Measurement and Electronics segment’s results. We expect the segment’s revenues to increase 4.5% year over year to $716.9 million in the second quarter.
The Polymers & Fluids segment is anticipated to have performed well in the second quarter, driven by new product launches in the automotive aftermarket. We expect the segment’s revenues to increase 2.9% from the year-ago quarter to $450.8 million.
However, weakness in the commercial and residential construction end markets, owing to lower demand for products in Europe, is likely to have hurt the Construction Products segment’s revenues in the second quarter.
ITW has considerable exposure to overseas markets. Given the company’s substantial international operations, foreign currency headwinds are likely to have marred its profitability.
Earnings WhispersOur proven model does not conclusively predict an earnings beat for ITW this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.
Earnings ESP: ITW has an Earnings ESP of 0.00% as both the Zacks Consensus Estimate and the Most Accurate Estimate are pegged at $2.80 per share. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Illinois Tool presently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to ConsiderHere are some companies, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.
Crane Company (CR - Free Report) has an Earnings ESP of +4.73% and a Zacks Rank of 2 at present. The company is scheduled to release second-quarter 2026 results on July 28.
Crane’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 11.3%.
Ferguson Enterprises Inc. (FERG - Free Report) has an Earnings ESP of +1.22% and a Zacks Rank of 2 at present. The company is slated to release second-quarter 2026 results on Aug. 10.
Ferguson’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.5%.
Ingersoll Rand Inc. (IR - Free Report) has an Earnings ESP of +0.61% and a Zacks Rank of 3 at present. The company is slated to release second-quarter 2026 results on July 30.
Ingersoll Rand’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters while matching the mark in two, the average surprise being 2.4%.
The upcoming report from Illinois Tool Works (ITW - Free Report) is expected to reveal quarterly earnings of $2.80 per share, indicating an increase of 8.5% compared to the year-ago period. Analysts forecast revenues of $4.18 billion, representing an increase of 3.2% year over year.
The consensus EPS estimate for the quarter has undergone a downward revision of 0.1% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
That said, let's delve into the average estimates of some Illinois Tool Works metrics that Wall Street analysts commonly model and monitor.
Analysts predict that the 'Operating Revenues- Test & Measurement and Electronics' will reach $711.73 million. The estimate points to a change of +3.8% from the year-ago quarter.
The average prediction of analysts places 'Operating Revenues- Construction Products' at $481.52 million. The estimate indicates a year-over-year change of +1.8%.
It is projected by analysts that the 'Operating Revenues- Food Equipment' will reach $695.22 million. The estimate indicates a year-over-year change of +2.2%.
Based on the collective assessment of analysts, 'Operating Revenues- Specialty Products' should arrive at $465.35 million. The estimate indicates a year-over-year change of +2.3%.
The collective assessment of analysts points to an estimated 'Operating Revenues- Automotive OEM' of $866.34 million. The estimate indicates a change of +2.5% from the prior-year quarter.
The combined assessment of analysts suggests that 'Operating Revenues- Welding' will likely reach $497.44 million. The estimate suggests a change of +3.9% year over year.
Analysts expect 'Operating Revenues- Polymers & Fluids' to come in at $450.98 million. The estimate indicates a change of +3% from the prior-year quarter.
The consensus estimate for 'Operating Income- Automotive OEM' stands at $186.26 million. The estimate is in contrast to the year-ago figure of $180.00 million.
According to the collective judgment of analysts, 'Operating Income- Food Equipment' should come in at $199.13 million. The estimate compares to the year-ago value of $189.00 million.
Analysts' assessment points toward 'Operating Income- Test & Measurement and Electronics' reaching $173.11 million. The estimate is in contrast to the year-ago figure of $157.00 million.
The consensus among analysts is that 'Operating Income- Specialty Products' will reach $150.68 million. The estimate is in contrast to the year-ago figure of $148.00 million.
Analysts forecast 'Operating Income- Polymers & Fluids' to reach $128.43 million. The estimate compares to the year-ago value of $121.00 million.
View all Key Company Metrics for Illinois Tool Works here>>>
Over the past month, Illinois Tool Works shares have recorded returns of +3.9% versus the Zacks S&P 500 composite's +0.4% change. Based on its Zacks Rank #3 (Hold), ITW will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Illinois Tool Works (ITW - Free Report) , which belongs to the Zacks Manufacturing - General Industrial industry, could be a great candidate to consider.
This equipment manufacturer for the transportation, power, food and construction industries has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 2.90%.
For the most recent quarter, Illinois Tool Works was expected to post earnings of $2.55 per share, but it reported $2.66 per share instead, representing a surprise of 4.31%. For the previous quarter, the consensus estimate was $2.68 per share, while it actually produced $2.72 per share, a surprise of 1.49%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for Illinois Tool Works lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Illinois Tool Works currently has an Earnings ESP of +0.31%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on July 28, 2026.
When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
The market expects Illinois Tool Works (ITW - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on July 28, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis equipment manufacturer for the transportation, power, food and construction industries is expected to post quarterly earnings of $2.80 per share in its upcoming report, which represents a year-over-year change of +8.5%.
Revenues are expected to be $4.18 billion, up 3.2% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.38% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Illinois Tool Works?For Illinois Tool Works, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.31%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Illinois Tool Works will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Illinois Tool Works would post earnings of $2.55 per share when it actually produced earnings of $2.66, delivering a surprise of +4.31%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Illinois Tool Works appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAnother stock from the Zacks Manufacturing - General Industrial industry, Illinois Tool Works (ITW - Free Report) , is soon expected to post earnings of $2.8 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +8.5%. Revenues for the quarter are expected to be $4.18 billion, up 3.2% from the year-ago quarter.
The consensus EPS estimate for Illinois Tool Works has been revised 0.4% lower over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +0.31%.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that Illinois Tool Works will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
APPLETON, Wis.--(BUSINESS WIRE)--Miller Electric Mfg. LLC, a leading worldwide manufacturer of Miller® brand arc welding equipment, announces the launch of the new Deltaweld 600 and Auto Deltaweld 600, extending the proven Deltaweld platform to 600 amps. Built for operations that need more power when the job calls for it, Deltaweld 600 and Auto Deltaweld 600 enable an operation to weld with higher amperage for longer periods while continuing to use a system they already know. “The Deltaweld fam.
Illinois Tool Works remains a quality operator but is currently rated 'hold' due to valuation at the higher end of fair value. Recent revenue growth has been driven primarily by foreign currency gains, masking organic sales declines across several segments. Management guides for 2026 revenue of $16.3–$16.6 billion and net profit growth, but organic demand remains soft in key end markets.
Illinois Tool Works is rated Hold due to a premium valuation not justified by its below-sector growth profile. Recovery in the semiconductor market and the Customer-Back Innovation (CBI) program are expected to drive FY2026 net sales growth. Margin expansion is supported by the 80/20 program and Product Line Simplification, with management targeting 100 bps improvement in FY2026.
ITW is seeing broad strength across key segments and margin gains from enterprise initiatives, even as construction weakness and currency risks remain.
Illinois Tool Works (NYSE: ITW) stock has pulled back in the past few days as investors position themselves for the upcoming earnings report that will provide more color on its business. While growth expectations are low, the stock has formed the rare inverted head-and-shoulders pattern, pointing to a rebound.
Illinois Tool Works is a large American industrial company that makes products used directly and indirectly by millions of people globally.
It makes automotive products that are used by large companies like General Motors and Ford, construction products like Paslode, Ramset, and Red Head, and food equipment like commercial dishwashers and ovens.
ITW has grown to become a dividend king, a company that has paid and raised its dividends for over 50 years. It now has a dividend yield of 2.43%, a five-year growth of 7.4%, and a payout ratio of 58%.
Illinois Tool Works stock has come under pressure in the past few months as the US-Iran war has led to a surge in key raw material costs. At the peak of this war, the stock dropped from $303 to $241 within weeks.
The next key catalyst for the ITW stock price is the upcoming earnings report, which will provide more color on its business. The report will come out on July 28th this year.
Yahoo Finance data shows that analysts expect the upcoming report will show that its revenue rose by 3.36% in the last quarter to $4.19 billion. Its guidance for the third quarter’s number will be $4.18 billion, up by 3%. Its annual revenue is expected to come in at $16.6 billion from the previous year’s $16 billion.
The most recent results showed that ITW delivered solid numbers, with its revenue rising by 5% in Q1, with its margin rising by 60 basis points to 25.4%. Its earnings per share (EPS) rose by 12% to $2.66.
READ MORE: Illinois Tool Works stock: why Josh Brown says ITW is the 'best' in market
A key concern now is on its valuation, which is a bit elevated for a slow-growing industrial company.
Illinois Tool Works trades with a forward price-to-earnings ratio of 23.38, slightly higher than the sector median of 20. The S&P 500 Index has a multiple of 22.
Most notably, ITW now trades with a higher multiple than other faster-growing companies like Micron and Nvidia. Micron, whose revenue is growing by triple digits and has higher margins, trades with a forward multiple of 13, while Nvidia has a multiple of 21.
As such, the company will need to report stronger revenue and profits to convince investors. This explains why analysts are not highly excited about the company, with most of them having hold or underweight ratings.
Illinois Tool Works stock chart | Source: TradingView
The daily chart shows that the Illinois Tool Works stock remains under pressure today. However, a closer look shows that it is in the process of forming an inverted head-and-shoulders pattern. It has already completed the formation of the left shoulder and head sections and is now in the right one.
This pattern suggests that it may need to rereat to the right shoulder section of $255 and then bounce back. In the future, the stock may jump to $303, its highest level in February this year.
Need a new dividend stock you know you can count on? The usual suspects like Coca-Cola and Procter & Gamble remain solid options. You may have better luck, however, with a dividend stock that has an equally strong track record that's a bit off the beaten path. That's Dividend King Illinois Tool Works (ITW +0.14%).
Built to last Contrary to a common assumption, Illinois Tool Works doesn't manufacture typical hand tools like hammers and drills. Rather, automobile parts, commercial-grade cooking, industrial testing equipment, plastic packaging, construction fasteners, and welding supplies are all in its product portfolio. It makes very little under the company's brand name, though. Illinois Tool Works is a true conglomerate of several different businesses that not only operate independently of one another, but each of which operates under its own moniker.
Image source: Getty Images.
This entrepreneurial-minded model works, too. Illinois Tool Works is consistently profitable and a reliable grower.
More important to interested investors, this constant cash flow has allowed the company to raise its dividend payment for 62 consecutive years. And by more than a little. Over the course of just the past decade, its quarterly per-share payout has improved from $0.55 to $1.61. That's annualized growth of a little more than 11%, easily outpacing inflation during this stretch.
Affording these payments isn't a problem, either. Last year's total payout of $6.22 per share was more than covered by the company's full-year GAAP earnings of $10.49, extending a long-standing payout ratio that's hovered around a comfortable -- and sustainable -- 60% for several years now.
No pizzazz, but plenty of performance And this begs the question: Why is this solid dividend stock down 12% from its mid-February peak?
It's for many of the usual reasons you'd expect, like growth headwinds, economic uncertainty, and valuation concerns. Mostly, though, rather than an indictment of the company's prospects or the stock's valuation, the slide since then is just a right-pricing of the stock following its early February surge. Analysts still expect continued top-line growth of a little more than 3% this year as well as next to drive considerably faster per-share earnings growth, as has been the case for years now.
ITW Shares Outstanding (Quarterly) data by YCharts
See, Illinois Tool Works has also been steadily buying back its own stock since 2004, more than halving its outstanding share count over that period. These stock repurchases aren't apt to end anytime soon. The $76 billion company expects to spend $1.5 billion buying back its own stock this year alone.
Today's Change
(
0.14
%) $
0.38
Current Price
$
265.48
No, it's not a sexy growth company in a high-flying industry like artificial intelligence. It's relatively boring, in fact, and slow moving.
For income investors in need of reliable income and inflation-beating dividend growth, though, this often-overlooked outfit offers it in droves. The recent weakness is a buying opportunity, letting you in at a relative low point in a long-term uptrend. Don't overthink it.
July 08, 2026 16:59 ET | Source: Illinois Tool Works Inc.
GLENVIEW, Ill., July 08, 2026 (GLOBE NEWSWIRE) -- Illinois Tool Works Inc. (NYSE: ITW) will issue its second quarter 2026 results on Tuesday, July 28, 2026, at 7:00 a.m. CDT. Following the release, ITW will hold its second quarter 2026 earnings webcast at 9:00 a.m. CDT.
To access the webcast for the event, please click on the following link:
ITW Q2 2026 Earnings Webcast
If you are a participant on the conference call, please dial 1-833-461-5787 (domestic) or 1-585-542-9983 (international) 10 minutes prior to the 9:00 a.m. CDT start time. The meeting id is 826217805.
Following the webcast, presentation materials and an audio webcast replay will be available at http://investor.itw.com.
About Illinois Tool Works
ITW (NYSE: ITW) is a Fortune 300 global multi-industrial manufacturing leader with revenue of $16 billion in 2025. The company’s seven industry-leading segments leverage the unique ITW Business Model to drive solid growth with best-in-class margins and returns in markets where highly innovative, customer-focused solutions are required. ITW’s approximately 43,000 dedicated colleagues around the world thrive in the company’s decentralized and entrepreneurial culture. www.itw.com.
APPLETON, Wis.--(BUSINESS WIRE)--Miller Electric Mfg. LLC, a leading worldwide manufacturer of Miller® brand arc welding equipment, today announced a free product upgrade for the Millermatic® 211 PRO and Multimatic® 215 PRO. The upgrade adds new capabilities, including Dyna-Pulse™ technology never before available from Miller in this amp class, to machines already in welders' shops. The upgrade is delivered through a quick USB-enabled software download at no additional cost. The upgrade reflect.
Miller Electric Mfg. LLC, a leading worldwide manufacturer of Miller brand arc welding equipment, today announced a free product upgrade for the MillermaticÂ
A calm lake with a wooden dock in the foreground in Algonquin Provincial Park, Ontario, Canada. Two Adirondack chairs with neatly folded beach towels on the arms face the water. Long exposure shot.
getty
Sell in May? Ha! Try “buy in July.”
Truth is, summer is the best time to troll for dividend deals—especially July. We’re going to “back up the truck” on two tickers in a sec.
Why July?
Because it’s the strongest month of the year for stocks, according to a 2024 report from the Carson Group, a financial-advisory firm. Here’s the upshot: Over the 20 years leading up to July 2024, the S&P 500 rose 2.3% on average.
And that’s just the average. Many years saw bigger gains than that.
This is our short-term play.
On the horizon, we’ve got the midterms. We’re not going to linger on that dreaded event. Suffice it to say, the vote is not what we’re interested in—it’s what traditionally comes in the year after it: stock-market gains.
A May study by RBC Wealth Management sets the table here. Going back to 1932, it found that the year following the midterms was the strongest in the four-year presidential cycle, with S&P 500 rising 14% on average.
MORE FOR YOU
The bottom line for us is that we’ve got a nice setup for gains this summer, plus another price pop setting up for 2027.
And despite what the headlines say, inflation (and interest rates) will come down. We’re already seeing it in oil prices, and the International Energy Agency (IEA) actually forecasts an oil glut next year.
Oversupply of the goo is fuel (sorry, couldn’t resist!) for growth. It’s an inflation-killer, too.
But we don’t want to be naïve. There’s certainly concern out there. But at times like these, it pays to remember the old stock-market adage: Stocks climb a wall of worry.
They’re certainly doing that now! And my indicators suggest they’ll keep it up. That makes now a good time to buy. Here are two dividend-growth plays to put on your list.
ITW: Hated By Wall Street, Loved By Dividend InvestorsIllinois Tool Works (ITW) is one of those stocks analysts hate. That’s because it’s basically an umbrella name covering a range of businesses that aren’t really connected.
Kitchen ovens and fryers? ITW makes ’em under its Hobart and Vulcan brands. Gear for testing electronics? It makes that, too. Fasteners and components for cars? Check.
It’s enough to drive Wall Street—which loves a “clean” single-product story—batty! According to the WSJ, and only two analysts covering the stock rate it a buy right now, with 11 at hold, two “underweight” and five sells. Perfect. We love disliked stocks like these because as they beat low expectations, more analysts come onboard, creating a feedback loop that boosts its price.
And there’s every reason for that to happen.
For one, the company follows what it calls the 80/20 model, where it zeroes in on its biggest/most profitable clients or products—the top 20% or so—which the company sees as providing the bulk (or 80%) of the company’s sales. That tight focus keeps margins high: in Q1, operating margins rose 60 basis points, to 25.4%.
Revenue also jumped a tidy 5% and EPS gained 12%. And management raised full-year guidance by $0.10, to between $11.10 to $11.50. The stock trades at a reasonable 24-times the midpoint of that range.
Which brings me to another reason why ITW is overlooked: the dividend. As I write this, shares yield 2.4%, which sounds okay—until you look at the company’s payout history:
ITW Total Returns
Ycharts
As you can see, over the last decade, ITW has nearly tripled its dividend. You can also see what I call the “Dividend Magnet” in action: The share price has climbed in lockstep. That gap on the right side represents further upside.
That means, of course, that an investor who bought back then is not yielding 2.4% today. They’re pocketing 6.2% (and climbing) on their buy instead. And that’s before we account for the 17% of the company’s float that management has bought back in that time, throwing an additional lift under the stock.
ITW, in other words, is the picture of shareholder friendliness, which makes it worth our attention now.
Deere: Buy for the Construction Boom, Stay for the Farm RevivalDeere & Co. (DE) is sitting in a “sweet spot” for us to buy now.
For starters, the company, a holding my Hidden Yields service, boasts a booming construction-equipment segment, with management forecasting a 20% sales gain, plus 10% to 12% operating-margin expansion for this business, in 2026.
That’s the good news.
The drag? The segment of its agricultural business focusing on large farms, where sales slumped 14% in Q1, and management sees slipping 5% to 10% this year, according to the company’s latest earnings presentation.
But there are green shoots in these numbers, namely that corn and wheat prices have been firming up in the last few weeks, according to the two Teucrium ETFs tracking them, and management itself has said it sees now as the bottom of the ag cycle:
Crop Prices
Ycharts
That’s a nice window for us: We never chase a boom. We buy the bottom instead. And as with ITW, we’re looking at a stock that Wall Street doesn’t understand.
Beyond that, high fuel and fertilizer costs, as well as high borrowing costs, have been squeezing farmers, but fuel costs look set to trend lower (see the oil glut mentioned above), and a decline in overall inflation should slow the rise of other costs, as well.
Meantime, as with ITW, Deere’s share price has been following the furrow plowed by its dividend—a trend I expect to continue as the ag cycle turns and global infrastructure spending (including, yes, on data centers) keeps Deere’s construction-equipment business booming:
DE Total Returns
Ycharts
A final upside driver for the payout? Deere’s low payout ratio, with the divvie accounting for just 47% of the last 12 months of free cash flow. That’s very manageable and lends itself to strong payout growth, especially in this “sweet spot” in the ag-growth cycle.
Brett Owens is Chief Investment Strategist for Contrarian Outlook. For more great income ideas, get your free copy his latest special report: Your Early Retirement Portfolio: Huge Dividends—Every Month—Forever.
On June 24, 2026, we delve into the DCF analysis for Illinois Tool Works Inc ITW , a company that has shown a price performance of +6.9% year-to-date and +9.8% over the past year. Despite its recent gains, the valuation metrics suggest a more cautious outlook.
DCF Earnings-based intrinsic value is $153.16, indicating a margin of safety of -70.8% compared to the current price of $261.64. DCF FCF-based intrinsic value stands at $112.23, suggesting a significantly overvalued status with a margin of safety of -133.1%. The GF Score™ of 85/100 indicates a reliable assessment of the DCF inputs, reflecting strong fundamentals. What Is ITW Worth? DCF Earnings-Based Model The DCF earnings-based model employs a two-stage approach to estimate the intrinsic value of ITW. In the first stage, we forecast earnings growth over the next ten years, followed by a terminal growth phase. The assumptions used in this model are critical for accurate valuation.
Parameter Value Current EPS (TTM, excl. non-recurring) $10.77 10-Year Growth Rate 8.2% 10-Year Treasury Rate 4.49% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the growth phase, we project that EPS will grow at 8.2% annually for ten years, discounted at a rate of 11%. The terminal phase assumes a 4% growth rate for the subsequent ten years. The summary of the calculations is as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 8.2%, discounted at 11% $93.83 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $59.33 Intrinsic Value Growth + Terminal $153.16 With the current price at $261.64, the intrinsic value of $153.16 indicates that ITW is modestly overvalued, with a margin of safety of -70.8%. It is important to note that GuruFocus uses EPS excluding non-recurring items, as research indicates a stronger correlation between stock prices and earnings rather than free cash flow. For further calculations, visit the ITW DCF Calculator.
What Does the Free Cash Flow DCF Say? When we analyze ITW using the free cash flow (FCF) DCF model, the intrinsic value is calculated at $112.23. This value diverges significantly from the earnings-based valuation, reinforcing the notion that ITW is significantly overvalued with a margin of safety of -133.1%. The disparity between the two models suggests that the market may be pricing in more optimistic growth expectations than what the cash flow metrics support.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for ITW is calculated at $265.92, which positions the stock as slightly undervalued by 1.6%. GF Value™ is GuruFocus' proprietary measure derived from historical trading multiples, past business growth, and future performance estimates. While the DCF models indicate overvaluation, the GF Value™ presents a contrasting perspective, suggesting that the stock may be more fairly valued than the earnings and FCF models imply. For more insights, visit the GF Value™ page.
What Does ITW's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been shown to generate higher long-term returns based on backtesting from 2006 to 2021.
Metric Rating GF Score™ 85/100 Financial Strength 5/10 Profitability 9/10 Growth 6/10 Valuation 9/10 Momentum 7/10 With a predictability rank of 1/5 stars, the reliability of the DCF model for ITW is limited. For more details, check the ITW stock page.
Key Assumptions and Limitations It is crucial to note that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Additionally, stocks with low predictability ratings tend to produce less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not accurately reflect future economic conditions.
What This Means for Investors In synthesizing the three valuation models—DCF earnings, DCF FCF, and GF Value™—the consensus indicates that ITW is overvalued. The DCF earnings-based model suggests a significant discrepancy from the current market price, while the FCF model reinforces this view with an even lower intrinsic value. The GF Value™ offers a slightly more optimistic perspective but does not fully align with the DCF findings.
For the full DCF analysis, visit the ITW DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is ITW's intrinsic value based on DCF?
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Alley Investment Management Company LLC lessened its holdings in Illinois Tool Works Inc. (NYSE:ITW – Free Report) by 94.9% in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 1,932 shares of the industrial products company’s stock after selling 36,172 shares during the quarter. Alley Investment Management Company LLC’s holdings in Illinois Tool Works were worth $476,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
A number of other institutional investors have also recently bought and sold shares of the business. Mayflower Financial Advisors LLC grew its stake in Illinois Tool Works by 3.8% in the 4th quarter. Mayflower Financial Advisors LLC now owns 1,065 shares of the industrial products company’s stock valued at $262,000 after purchasing an additional 39 shares during the period. Revisor Wealth Management LLC grew its stake in Illinois Tool Works by 1.4% in the 4th quarter. Revisor Wealth Management LLC now owns 2,841 shares of the industrial products company’s stock valued at $734,000 after purchasing an additional 39 shares during the period. Fort Washington Investment Advisors Inc. OH grew its stake in Illinois Tool Works by 1.3% in the 4th quarter. Fort Washington Investment Advisors Inc. OH now owns 3,015 shares of the industrial products company’s stock valued at $743,000 after purchasing an additional 40 shares during the period. JFS Wealth Advisors LLC grew its stake in Illinois Tool Works by 22.3% in the 4th quarter. JFS Wealth Advisors LLC now owns 219 shares of the industrial products company’s stock valued at $54,000 after purchasing an additional 40 shares during the period. Finally, Everpar Advisors LLC grew its stake in Illinois Tool Works by 1.7% in the 3rd quarter. Everpar Advisors LLC now owns 2,574 shares of the industrial products company’s stock valued at $671,000 after purchasing an additional 42 shares during the period. Institutional investors own 79.77% of the company’s stock.
Insider Transactions at Illinois Tool Works In related news, EVP Axel Beck sold 4,223 shares of the stock in a transaction dated Thursday, February 5th. The stock was sold at an average price of $290.22, for a total transaction of $1,225,599.06. Following the sale, the executive vice president owned 5,789 shares of the company’s stock, valued at approximately $1,680,083.58. This represents a 42.18% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Ernest Scott Santi sold 167,345 shares of the stock in a transaction dated Wednesday, February 4th. The stock was sold at an average price of $290.93, for a total value of $48,685,680.85. Following the sale, the director directly owned 258,766 shares in the company, valued at $75,282,792.38. This trade represents a 39.27% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.83% of the company’s stock.
Analyst Ratings Changes A number of research analysts have issued reports on the company. Citigroup upped their price objective on Illinois Tool Works from $271.00 to $284.00 and gave the company a “neutral” rating in a research note on Wednesday, February 4th. Wolfe Research upped their price target on Illinois Tool Works from $276.00 to $295.00 and gave the company an “underperform” rating in a research report on Friday, February 27th. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Illinois Tool Works in a research report on Wednesday, January 28th. The Goldman Sachs Group reaffirmed a “sell” rating and set a $253.00 price target on shares of Illinois Tool Works in a research report on Tuesday, February 3rd. Finally, Barclays dropped their price target on Illinois Tool Works from $275.00 to $250.00 and set an “underweight” rating on the stock in a research report on Wednesday, April 1st. Two equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and five have given a Sell rating to the stock. Based on data from MarketBeat.com, Illinois Tool Works has an average rating of “Reduce” and an average target price of $270.00.
Read Our Latest Stock Report on Illinois Tool Works
Illinois Tool Works Stock Performance Shares of ITW opened at $272.34 on Tuesday. The stock’s 50-day simple moving average is $275.60 and its 200 day simple moving average is $260.95. The stock has a market capitalization of $78.46 billion, a price-to-earnings ratio of 25.96, a price-to-earnings-growth ratio of 4.89 and a beta of 1.13. The company has a debt-to-equity ratio of 2.07, a quick ratio of 0.89 and a current ratio of 1.21. Illinois Tool Works Inc. has a 52-week low of $224.90 and a 52-week high of $303.15.
Illinois Tool Works (NYSE:ITW – Get Free Report) last issued its quarterly earnings data on Tuesday, February 3rd. The industrial products company reported $2.72 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.69 by $0.03. The business had revenue of $4.09 billion for the quarter, compared to analysts’ expectations of $4.07 billion. Illinois Tool Works had a return on equity of 95.16% and a net margin of 19.11%.The firm’s quarterly revenue was up 4.1% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.54 EPS. Illinois Tool Works has set its FY 2026 guidance at 11.000-11.400 EPS. Research analysts forecast that Illinois Tool Works Inc. will post 11.26 EPS for the current fiscal year.
Illinois Tool Works Announces Dividend The business also recently disclosed a quarterly dividend, which was paid on Thursday, April 9th. Investors of record on Tuesday, March 31st were issued a dividend of $1.61 per share. The ex-dividend date of this dividend was Tuesday, March 31st. This represents a $6.44 dividend on an annualized basis and a yield of 2.4%. Illinois Tool Works’s dividend payout ratio is 61.39%.
About Illinois Tool Works (Free Report)
Illinois Tool Works Inc (ITW) is a diversified industrial manufacturer that designs and produces a broad array of engineered products, consumables and related service solutions for industrial customers. Its offerings span engineered fastening systems, specialty components, industrial equipment, welding products, foodservice and packaging equipment, adhesives and polymer products, and test-and-measurement technologies. These products are used as critical inputs by customers across automotive, construction, electronics, foodservice, maintenance and other industrial end markets.
The company operates a decentralized business model in which independently managed businesses focus on niche product lines and close customer relationships.
See Also Five stocks we like better than Illinois Tool Works
Receive News & Ratings for Illinois Tool Works Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Illinois Tool Works and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINECME Group Inc. $CME Shares Acquired by Alley Investment Management Company LLC
NEXT HEADLINE »Alley Investment Management Company LLC Sells 21,813 Shares of Arthur J. Gallagher & Co. $AJG
If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Illinois Tool Works (ITW - Free Report) . This company, which is in the Zacks Manufacturing - General Industrial industry, shows potential for another earnings beat.
When looking at the last two reports, this equipment manufacturer for the transportation, power, food and construction industries has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 2.98%, on average, in the last two quarters.
For the most recent quarter, Illinois Tool Works was expected to post earnings of $2.68 per share, but it reported $2.72 per share instead, representing a surprise of 1.49%. For the previous quarter, the consensus estimate was $2.69 per share, while it actually produced $2.81 per share, a surprise of 4.46%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for Illinois Tool Works lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Illinois Tool Works has an Earnings ESP of +0.30% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on April 30, 2026.
With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Wall Street expects a year-over-year increase in earnings on higher revenues when Illinois Tool Works (ITW - Free Report) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 30. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis equipment manufacturer for the transportation, power, food and construction industries is expected to post quarterly earnings of $2.55 per share in its upcoming report, which represents a year-over-year change of +7.1%.
Revenues are expected to be $4 billion, up 4.1% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.1% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Illinois Tool Works?For Illinois Tool Works, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.30%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Illinois Tool Works will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Illinois Tool Works would post earnings of $2.68 per share when it actually produced earnings of $2.72, delivering a surprise of +1.49%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Illinois Tool Works appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAmong the stocks in the Zacks Manufacturing - General Industrial industry, Idex (IEX - Free Report) , is soon expected to post earnings of $1.78 per share for the quarter ended March 2026. This estimate indicates a year-over-year change of +1.7%. This quarter's revenue is expected to be $835.16 million, up 2.6% from the year-ago quarter.
The consensus EPS estimate for Idex has been revised 0.1% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -0.85%.
This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Idex will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
It's been tough being an income investor of late. All the excitement seems to be on growth's side of the fence. Indeed, after an alarming pullback in February and March, the S&P 500 Growth index is up nearly 13% just since the end of last month.
That seems to have come at the expense of value stocks, and at the expense of dividend stocks in particular. If income is your investing priority, though, this recent movement doesn't change anything -- other than perhaps reopening the door to an entry opportunity you might have missed.
With that as the backdrop, here's a rundown of four of the market's top dividend-paying prospects right now. Even if you're already holding one or more of them, don't rule out the idea of adding to an existing position.
^SPXG data by YCharts.
1. Illinois Tool Works Illinois Tool Works (ITW +1.17%) might be one of the stock market's best-kept secrets.
Although its forward-looking dividend yield of 2.4% is far from thrilling, this company has been able to raises its per-share payout every year for the past 62 years -- and by more than a little. Over the course of just the past 10 years, the stock's quarterly per-share payment has improved from $0.55 to $1.61. That's an annualized growth rate of more than 11%. A healthy cadence of stock buybacks has also boosted per-share profitability and payouts during this stretch.
Credit the nature of its businesses, mostly: None of them are exactly high-growth. All are consistently profitable, though, and increasingly so. These lines of business include always-marketable goods like industrial fluids, food-service equipment, welding supplies, car parts, and testing equipment.
Today's Change
(
1.17
%) $
2.98
Current Price
$
257.43
2. Oneok It's been a wild ride for most oil stocks since the conflict in the Middle East materialized in early March. The disruption of supply chains creates scarcity, and scarcity raises prices. Most investors have spent the last couple of months guessing as to when matters might return to normal.
The one thing that scarcity and subsequently higher oil prices don't do, however, is reduce the consumption of gasoline or diesel fuel -- or for that matter, oil itself. The U.S. Energy Information Administration reports we're still using just as much as we ever have, regardless of its cost.
While this might create cost and profit havoc for the companies drilling and refining oil, it doesn't impact those simply transporting it from point A to point B. These are pipeline companies like Oneok (OKE +1.35%), which simply charges a fee for the amount of product it pushes through its pipes, regardless of the cost of the commodity traveling within their gas and oil delivery networks. This business is ideally suited for supporting recurring dividends.
Today's Change
(
1.35
%) $
1.21
Current Price
$
90.41
Oneok is one of the best for income investors to consider right now. It's currently offering a solid forward dividend yield of 5%, based on a payout that's been not only reliable but also steadily growing for over a decade.
3. Verizon Communications If you need your dividend stocks to also produce impressive capital gains and jaw-dropping dividend growth, you'll probably end up disappointed in Verizon Communications (VZ +2.48%). On the other hand, with newcomers stepping into a forward-looking dividend yield of 6.1%, the lack of upside potential in these other metrics may still be well worth it.
Image source: Getty Images.
The core argument for owning Verizon as an income investment is clear. When money is tight, consumers might postpone the purchase of a new automobile, or do a little less shopping. But they're unlikely to let go of their connection to the rest of the world; people will continue paying their mobile phone bills regardless of the cost.
The telecom giant has upped its payout for 19 consecutive years now. There are certainly other dividend payers out there with longer-lived growth pedigrees. Given that the company in its current form is only 26 years old, though, that's actually a pretty solid streak. Verizon is also only a few years away from becoming dividend royalty, and as such is highly incentivized to ensure it keeps paying and growing its dividend.
4. Brookfield Asset Management Finally, add Brookfield Asset Management (BAM +1.03%) to your list of dividend stocks to buy, or to buy more of even if you happen to already own some.
Just as the name suggests, Brookfield is an investment manager -- a business with lots of competition. This one is unusual in that it doesn't bother with the usual index-based or sector-themed mutual funds or exchange-traded funds (ETFs). Rather, it only manages a small handful of publicly traded funds, under its own name, that limit their focus to infrastructure (like data centers, pipelines, and railroads), or renewable energy businesses (like hydroelectric power, wind, and solar).
Today's Change
(
1.03
%) $
0.48
Current Price
$
47.10
While some might see this narrow focus as self-limiting, it's actually brilliant; it doesn't waste time, resources, or capital on businesses that aren't positioned to offer as much return on investment. Instead, it devotes resources to the best growth opportunities for the near term and the foreseeable future.
And the company isn't shy about touting its potential. It publicly says it's looking for growth of between 15% and 20% per year, and adds that right around 90% of whatever profits it produces will be passed along to shareholders in the form of dividends. You'd be stepping into a solid dividend yield of around 4%.
Calamos Advisors LLC decreased its position in Illinois Tool Works Inc. (NYSE:ITW – Free Report) by 3.7% in the 4th quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 60,902 shares of the industrial products company’s stock after selling 2,327 shares during the period. Calamos Advisors LLC’s holdings in Illinois Tool Works were worth $15,000,000 as of its most recent filing with the SEC.
Several other institutional investors and hedge funds have also recently added to or reduced their stakes in ITW. Lodestone Wealth Management LLC purchased a new stake in Illinois Tool Works in the 4th quarter valued at about $28,000. Beacon Financial Strategies CORP purchased a new stake in Illinois Tool Works in the 4th quarter valued at about $29,000. True Wealth Design LLC increased its stake in Illinois Tool Works by 341.9% in the 3rd quarter. True Wealth Design LLC now owns 137 shares of the industrial products company’s stock valued at $36,000 after buying an additional 106 shares during the last quarter. MTM Investment Management LLC increased its stake in Illinois Tool Works by 70.5% in the 3rd quarter. MTM Investment Management LLC now owns 162 shares of the industrial products company’s stock valued at $42,000 after buying an additional 67 shares during the last quarter. Finally, Financial Consulate Inc. purchased a new stake in Illinois Tool Works in the 3rd quarter valued at about $43,000. Hedge funds and other institutional investors own 79.77% of the company’s stock.
Trending Headlines about Illinois Tool Works Here are the key news stories impacting Illinois Tool Works this week:
Positive Sentiment: Wall Street expects ITW to report earnings growth next week; analysts see the company as having the right setup for a likely beat, which supports near-term upside into the report. Illinois Tool Works (ITW) Reports Next Week: Wall Street Expects Earnings Growth (Zacks) Positive Sentiment: Analyst write-up positions ITW as a top defensive stock (ranked 6th on a defensive list), highlighting its 80/20 front-to-back process and steady cash generation — a reason some investors buy on weakness. Illinois Tool Works Inc. (ITW): Emerging as Premier Defensive Play Neutral Sentiment: General coverage names ITW among large-cap stocks to watch; this is broad interest/visibility but not new company-specific catalyst. 1 Large-Cap Stock Worth Your Attention and 2 We Find Risky Negative Sentiment: MarketWatch notes ITW underperformed rivals on Friday, signaling relative weakness vs. peers that can amplify selling when sector sentiment turns cautious. Illinois Tool Works Inc. stock underperforms Friday when compared to competitors Negative Sentiment: Peer Allegion flagged rising costs and FX headwinds ahead of earnings — signals that cost/forex pressure is present across industrial peers and could temper ITW’s margin outlook. Allegion Gears Up to Post Q1 Earnings: Is a Beat in the Offing? Negative Sentiment: IDEX warned of weak end-market demand in parts (fire safety) and rising costs — another indicator of demand/margin pressure in the industrials group. IDEX Gears Up to Report Q1 Earnings: What’s in the Cards? Negative Sentiment: Gates Industrial is expected to report an earnings decline, reflecting weaker industrial demand in parts of the cycle — a caution for investors watching momentum across the space. Analysts Estimate Gates Industrial (GTES) to Report a Decline in Earnings: What to Look Out for Negative Sentiment: Avery Dennison’s preview highlights margin pressures and a negative earnings surprise signal — adds to the theme of input-cost and margin risk across packaging/industrial stocks. Avery Dennison to Report Q1 Earnings: What’s in Store for the Stock? Analyst Ratings Changes ITW has been the subject of several research analyst reports. Wells Fargo & Company decreased their price target on shares of Illinois Tool Works from $270.00 to $245.00 and set an “underweight” rating for the company in a research note on Wednesday, April 1st. Citigroup raised their price target on shares of Illinois Tool Works from $271.00 to $284.00 and gave the stock a “neutral” rating in a research note on Wednesday, February 4th. Weiss Ratings restated a “buy (b-)” rating on shares of Illinois Tool Works in a research note on Wednesday, January 28th. Barclays decreased their price target on shares of Illinois Tool Works from $275.00 to $250.00 and set an “underweight” rating for the company in a research note on Wednesday, April 1st. Finally, Wolfe Research raised their price target on shares of Illinois Tool Works from $276.00 to $295.00 and gave the stock an “underperform” rating in a research note on Friday, February 27th. Two analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and five have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Reduce” and a consensus price target of $270.00.
View Our Latest Analysis on ITW
Insider Activity at Illinois Tool Works In related news, Director Ernest Scott Santi sold 167,345 shares of the firm’s stock in a transaction that occurred on Wednesday, February 4th. The shares were sold at an average price of $290.93, for a total value of $48,685,680.85. Following the completion of the transaction, the director directly owned 258,766 shares of the company’s stock, valued at approximately $75,282,792.38. This trade represents a 39.27% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Axel Beck sold 4,223 shares of the firm’s stock in a transaction that occurred on Thursday, February 5th. The stock was sold at an average price of $290.22, for a total transaction of $1,225,599.06. Following the completion of the transaction, the executive vice president directly owned 5,789 shares of the company’s stock, valued at approximately $1,680,083.58. This trade represents a 42.18% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.83% of the stock is currently owned by company insiders.
Illinois Tool Works Trading Down 1.4% Shares of ITW stock opened at $269.44 on Friday. The company has a 50 day moving average of $273.43 and a 200-day moving average of $261.27. The company has a quick ratio of 0.89, a current ratio of 1.21 and a debt-to-equity ratio of 2.07. Illinois Tool Works Inc. has a 12-month low of $228.76 and a 12-month high of $303.15. The firm has a market cap of $77.62 billion, a P/E ratio of 25.69, a PEG ratio of 4.90 and a beta of 1.13.
Illinois Tool Works (NYSE:ITW – Get Free Report) last issued its quarterly earnings results on Tuesday, February 3rd. The industrial products company reported $2.72 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.69 by $0.03. The company had revenue of $4.09 billion during the quarter, compared to analyst estimates of $4.07 billion. Illinois Tool Works had a net margin of 19.11% and a return on equity of 95.16%. Illinois Tool Works’s quarterly revenue was up 4.1% compared to the same quarter last year. During the same quarter last year, the business posted $2.54 EPS. Illinois Tool Works has set its FY 2026 guidance at 11.000-11.400 EPS. Sell-side analysts anticipate that Illinois Tool Works Inc. will post 11.26 earnings per share for the current year.
Illinois Tool Works Dividend Announcement The firm also recently disclosed a quarterly dividend, which was paid on Thursday, April 9th. Investors of record on Tuesday, March 31st were issued a $1.61 dividend. The ex-dividend date of this dividend was Tuesday, March 31st. This represents a $6.44 annualized dividend and a yield of 2.4%. Illinois Tool Works’s dividend payout ratio (DPR) is 61.39%.
Illinois Tool Works Profile (Free Report)
Illinois Tool Works Inc (ITW) is a diversified industrial manufacturer that designs and produces a broad array of engineered products, consumables and related service solutions for industrial customers. Its offerings span engineered fastening systems, specialty components, industrial equipment, welding products, foodservice and packaging equipment, adhesives and polymer products, and test-and-measurement technologies. These products are used as critical inputs by customers across automotive, construction, electronics, foodservice, maintenance and other industrial end markets.
The company operates a decentralized business model in which independently managed businesses focus on niche product lines and close customer relationships.
Featured Articles Five stocks we like better than Illinois Tool Works
Receive News & Ratings for Illinois Tool Works Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Illinois Tool Works and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINECalamos Advisors LLC Sells 1,730 Shares of General Dynamics Corporation $GD
NEXT HEADLINE »Apple Inc. $AAPL Shares Purchased by CCG Wealth Management LLC
Wall Street analysts expect Illinois Tool Works (ITW - Free Report) to post quarterly earnings of $2.55 per share in its upcoming report, which indicates a year-over-year increase of 7.1%. Revenues are expected to be $4 billion, up 4.1% from the year-ago quarter.
The consensus EPS estimate for the quarter has undergone a downward revision of 0.1% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
Given this perspective, it's time to examine the average forecasts of specific Illinois Tool Works metrics that are routinely monitored and predicted by Wall Street analysts.
The consensus among analysts is that 'Operating Revenues- Test & Measurement and Electronics' will reach $693.00 million. The estimate indicates a year-over-year change of +6.3%.
It is projected by analysts that the 'Operating Revenues- Construction Products' will reach $453.41 million. The estimate indicates a year-over-year change of +2.4%.
According to the collective judgment of analysts, 'Operating Revenues- Food Equipment' should come in at $651.53 million. The estimate suggests a change of +3.9% year over year.
Analysts forecast 'Operating Revenues- Specialty Products' to reach $448.81 million. The estimate suggests a change of +3.2% year over year.
The average prediction of analysts places 'Operating Revenues- Automotive OEM' at $806.93 million. The estimate suggests a change of +2.7% year over year.
The collective assessment of analysts points to an estimated 'Operating Revenues- Welding' of $498.79 million. The estimate indicates a year-over-year change of +5.7%.
Analysts expect 'Operating Revenues- Polymers & Fluids' to come in at $448.36 million. The estimate points to a change of +4.5% from the year-ago quarter.
The consensus estimate for 'Operating Income- Automotive OEM' stands at $168.31 million. Compared to the current estimate, the company reported $151.00 million in the same quarter of the previous year.
Analysts predict that the 'Operating Income- Food Equipment' will reach $178.31 million. The estimate compares to the year-ago value of $166.00 million.
Based on the collective assessment of analysts, 'Operating Income- Test & Measurement and Electronics' should arrive at $155.54 million. The estimate compares to the year-ago value of $139.00 million.
Analysts' assessment points toward 'Operating Income- Specialty Products' reaching $135.48 million. Compared to the present estimate, the company reported $135.00 million in the same quarter last year.
The combined assessment of analysts suggests that 'Operating Income- Polymers & Fluids' will likely reach $120.66 million. The estimate is in contrast to the year-ago figure of $114.00 million.
View all Key Company Metrics for Illinois Tool Works here>>>
Over the past month, shares of Illinois Tool Works have returned +5.3% versus the Zacks S&P 500 composite's +12.8% change. Currently, ITW carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Comerica Bank lessened its stake in shares of Illinois Tool Works Inc. (NYSE:ITW – Free Report) by 3.6% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 64,343 shares of the industrial products company’s stock after selling 2,370 shares during the period. Comerica Bank’s holdings in Illinois Tool Works were worth $15,848,000 at the end of the most recent reporting period.
A number of other hedge funds have also recently added to or reduced their stakes in ITW. Lodestone Wealth Management LLC bought a new position in Illinois Tool Works during the 4th quarter worth $28,000. Beacon Financial Strategies CORP bought a new position in Illinois Tool Works during the 4th quarter worth $29,000. True Wealth Design LLC increased its stake in Illinois Tool Works by 341.9% during the 3rd quarter. True Wealth Design LLC now owns 137 shares of the industrial products company’s stock worth $36,000 after acquiring an additional 106 shares during the period. MTM Investment Management LLC increased its stake in Illinois Tool Works by 70.5% during the 3rd quarter. MTM Investment Management LLC now owns 162 shares of the industrial products company’s stock worth $42,000 after acquiring an additional 67 shares during the period. Finally, Financial Consulate Inc. bought a new position in Illinois Tool Works during the 3rd quarter worth $43,000. Institutional investors own 79.77% of the company’s stock.
Analysts Set New Price Targets A number of equities analysts have commented on the company. Weiss Ratings restated a “buy (b-)” rating on shares of Illinois Tool Works in a research note on Wednesday, January 28th. Barclays lowered their price objective on Illinois Tool Works from $275.00 to $250.00 and set an “underweight” rating on the stock in a research note on Wednesday, April 1st. UBS Group reaffirmed a “neutral” rating and issued a $285.00 target price on shares of Illinois Tool Works in a report on Wednesday, February 4th. Robert W. Baird set a $278.00 target price on Illinois Tool Works in a report on Wednesday, February 4th. Finally, Citigroup raised their target price on Illinois Tool Works from $271.00 to $284.00 and gave the company a “neutral” rating in a report on Wednesday, February 4th. Two investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and five have given a Sell rating to the company. According to MarketBeat.com, Illinois Tool Works presently has an average rating of “Reduce” and a consensus price target of $270.00.
Check Out Our Latest Report on Illinois Tool Works
Insider Activity In other Illinois Tool Works news, EVP Axel Beck sold 4,223 shares of Illinois Tool Works stock in a transaction dated Thursday, February 5th. The stock was sold at an average price of $290.22, for a total transaction of $1,225,599.06. Following the transaction, the executive vice president directly owned 5,789 shares of the company’s stock, valued at approximately $1,680,083.58. The trade was a 42.18% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Ernest Scott Santi sold 167,345 shares of Illinois Tool Works stock in a transaction dated Wednesday, February 4th. The stock was sold at an average price of $290.93, for a total value of $48,685,680.85. Following the transaction, the director directly owned 258,766 shares in the company, valued at $75,282,792.38. The trade was a 39.27% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.83% of the stock is currently owned by insiders.
Illinois Tool Works Price Performance Shares of ITW opened at $268.72 on Wednesday. Illinois Tool Works Inc. has a 12-month low of $228.76 and a 12-month high of $303.15. The business has a 50-day simple moving average of $272.27 and a two-hundred day simple moving average of $261.65. The company has a quick ratio of 0.89, a current ratio of 1.21 and a debt-to-equity ratio of 2.07. The stock has a market cap of $77.41 billion, a PE ratio of 25.62, a PEG ratio of 4.84 and a beta of 1.13.
Illinois Tool Works (NYSE:ITW – Get Free Report) last announced its earnings results on Tuesday, February 3rd. The industrial products company reported $2.72 EPS for the quarter, topping the consensus estimate of $2.69 by $0.03. The firm had revenue of $4.09 billion for the quarter, compared to the consensus estimate of $4.07 billion. Illinois Tool Works had a return on equity of 95.16% and a net margin of 19.11%.The business’s quarterly revenue was up 4.1% compared to the same quarter last year. During the same period in the previous year, the business earned $2.54 EPS. Illinois Tool Works has set its FY 2026 guidance at 11.000-11.400 EPS. Analysts anticipate that Illinois Tool Works Inc. will post 11.26 earnings per share for the current fiscal year.
Illinois Tool Works Announces Dividend The business also recently announced a quarterly dividend, which was paid on Thursday, April 9th. Shareholders of record on Tuesday, March 31st were issued a dividend of $1.61 per share. The ex-dividend date of this dividend was Tuesday, March 31st. This represents a $6.44 annualized dividend and a yield of 2.4%. Illinois Tool Works’s payout ratio is presently 61.39%.
Illinois Tool Works Company Profile (Free Report)
Illinois Tool Works Inc (ITW) is a diversified industrial manufacturer that designs and produces a broad array of engineered products, consumables and related service solutions for industrial customers. Its offerings span engineered fastening systems, specialty components, industrial equipment, welding products, foodservice and packaging equipment, adhesives and polymer products, and test-and-measurement technologies. These products are used as critical inputs by customers across automotive, construction, electronics, foodservice, maintenance and other industrial end markets.
The company operates a decentralized business model in which independently managed businesses focus on niche product lines and close customer relationships.
Read More Five stocks we like better than Illinois Tool Works
Receive News & Ratings for Illinois Tool Works Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Illinois Tool Works and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEComerica Bank Sells 21,757 Shares of BNY $BK
NEXT HEADLINE »Comerica Bank Has $16.57 Million Holdings in MSA Safety Incorporporated $MSA
Revenue of $4.02 billion, an increase of 5%Operating margin of 25.4%, an increase of 60 bps, as Enterprise Initiatives contributed 120 bpsGAAP EPS of $2.66, an increase of 12%Full Year 2026 GAAP EPS guidance raised by $0.10 to a range of $11.10 to $11.50 GLENVIEW, Ill., April 30, 2026 (GLOBE NEWSWIRE) -- Illinois Tool Works Inc. (NYSE: ITW) today reported its first quarter 2026 results and raised full year 2026 GAAP EPS guidance.
“ITW delivered a solid start to the year, marked by five percent revenue growth, margin expansion of 60 basis points to 25.4 percent, and a 12 percent increase in GAAP earnings per share to $2.66. Positive demand trends continued in our capex-related segments, led by Welding and Test & Measurement and Electronics, which delivered organic growth of six percent and five percent, respectively, this quarter,” said Christopher A. O’Herlihy, President and Chief Executive Officer.
“As we move forward, ITW’s unique and resilient business model and ‘Do What We Say’ execution ensure that we are primed to deliver robust financial performance in any environment. With a disciplined focus on our organic growth and enterprise initiatives, we expect to continue to outperform our end markets in 2026, while further increasing profitability and margins,” O’Herlihy concluded.
First Quarter 2026 Results
First quarter revenue of $4.02 billion increased by 4.6 percent. Organic revenue growth was 0.4 percent. Foreign currency translation increased revenue by 3.9 percent and an acquisition added 0.3 percent.
GAAP EPS grew 12 percent to $2.66, while operating income increased seven percent to $1.02 billion. Operating margin expanded by 60 basis points to 25.4 percent, driven by a 120-basis point contribution from enterprise initiatives. Operating cash flow was $623 million, and free cash flow was $528 million, a six percent increase representing a 69 percent conversion of net income, in line with seasonal expectations. During the quarter, the company returned capital to shareholders through the repurchase of $375 million of its own shares. The effective tax rate for the quarter was 20.6 percent.
2026 Guidance
ITW is raising its full year 2026 GAAP EPS guidance by $0.10 to a range of $11.10 to $11.50 per share, representing eight percent growth at the mid-point. Based on current demand levels and prevailing foreign exchange rates, the company continues to project revenue growth of two to four percent and organic growth of one to three percent.
For the full year, all seven segments are expected to deliver both positive organic growth and operating margin expansion. Operating margin is projected to reach a range of 26.5 to 27.5 percent, a year-over-year improvement of approximately 100 basis points, driven by an approximate 100-basis point contribution from enterprise initiatives.
Free cash flow is projected to exceed 100 percent of net income, and the company expects to repurchase approximately $1.5 billion of its own shares. The projected effective tax rate is in the range of 23 to 24 percent.
Non-GAAP Measures
This earnings release contains certain non-GAAP financial measures. A reconciliation of these measures to the most directly comparable GAAP measures is included in the attached supplemental reconciliation schedule. The estimated guidance of free cash flow to net income conversion rate is based on assumptions that are difficult to predict, and estimated guidance for the most directly comparable GAAP measure and a reconciliation of this forward-looking estimate to its most directly comparable GAAP estimate have been omitted due to the unreasonable efforts required in connection with such a reconciliation and the lack of reliable forward-looking cash flow information. For the same reasons, the company is unable to address the potential significance of the unavailable information, which could be material to future results.
Forward-looking Statements
This earnings release contains 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 challenges, expected impact of inflation including raw material inflation and rising interest rates, the potential impact of tariffs, the company’s projected pricing actions, the impact of enterprise initiatives, future financial and operating performance, free cash flow and free cash flow to net income conversion rate, organic and total revenue, operating and incremental margin, price/cost impact, statements regarding diluted income per share, expected dividend payments, after-tax return on invested capital, effective tax rates, exchange rates, expected timing and amount of share repurchases, end market economic and regulatory conditions, the impact of recent or potential acquisitions and/or divestitures, and the company’s 2026 guidance. These statements are subject to certain risks, uncertainties, assumptions, and other factors, which could cause actual results to differ materially from those anticipated. Important risks that could cause actual results to differ materially from the company’s expectations include those that are detailed in ITW’s Form 10-K for 2025 and subsequent reports filed with the SEC.
About Illinois Tool Works
ITW (NYSE: ITW) is a Fortune 300 global multi-industrial manufacturing leader with revenue of $16 billion in 2025. The company’s seven industry-leading segments leverage the unique ITW Business Model to drive solid growth with best-in-class margins and returns in markets where highly innovative, customer-focused solutions are required. ITW’s approximately 43,000 dedicated colleagues around the world thrive in the company’s decentralized and entrepreneurial culture. www.itw.com.
ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
STATEMENT OF INCOME (UNAUDITED)
Three Months Ended March 31,In millions except per share amounts 2026 2025 Operating Revenue$4,016 $3,839 Cost of revenue 2,256 2,161 Selling, administrative, and research and development expenses 722 706 Amortization and impairment of intangible assets 18 21 Operating Income 1,020 951 Interest expense (73) (68)Other income (expense) 20 12 Income Before Taxes 967 895 Income Taxes 199 195 Net Income$768 $700 Net Income Per Share: Basic$2.66 $2.39 Diluted$2.66 $2.38 Cash Dividends Per Share: Paid$1.61 $1.50 Declared$1.61 $1.50 Shares of Common Stock Outstanding During the Period: Average 288.3 293.6 Average assuming dilution 289.1 294.5 ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
STATEMENT OF FINANCIAL POSITION (UNAUDITED)
In millionsMarch 31, 2026 December 31, 2025Assets Current Assets: Cash and equivalents$827 $851 Trade receivables 3,380 3,227 Inventories 1,726 1,659 Prepaid expenses and other current assets 402 463 Total current assets 6,335 6,200 Net plant and equipment 2,230 2,230 Goodwill 5,083 5,098 Intangible assets 574 591 Deferred income taxes 505 519 Other assets 1,537 1,510 $16,264 $16,148 Liabilities and Stockholders' Equity Current Liabilities: Short-term debt$2,545 $2,286 Accounts payable 609 522 Accrued expenses 1,534 1,636 Cash dividends payable 463 465 Income taxes payable 180 217 Total current liabilities 5,331 5,126 Noncurrent Liabilities: Long-term debt 6,603 6,683 Deferred income taxes 158 154 Other liabilities 942 959 Total noncurrent liabilities 7,703 7,796 Stockholders' Equity: Common stock 6 6 Additional paid-in-capital 1,817 1,771 Retained earnings 30,454 30,150 Common stock held in treasury (27,246) (26,875)Accumulated other comprehensive income (loss) (1,802) (1,827)Noncontrolling interest 1 1 Total stockholders' equity 3,230 3,226 $16,264 $16,148 ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Three Months Ended March 31, 2026Dollars in millionsTotal RevenueOperating IncomeOperating MarginAutomotive OEM$820 $173 21.0%Food Equipment 637 157 24.7%Test & Measurement and Electronics 715 164 22.9%Welding 507 163 32.1%Polymers & Fluids 452 126 28.0%Construction Products 458 135 29.4%Specialty Products 431 135 31.3%Intersegment (4) — —%Total Segments 4,016 1,053 26.2%Unallocated — (33)—%Total Company$4,016 $1,020 25.4% ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Q1 2026 vs. Q1 2025 Favorable/(Unfavorable)Operating RevenueAutomotive OEMFood EquipmentTest & Measurement and ElectronicsWeldingPolymers & FluidsConstruction ProductsSpecialty ProductsTotal ITWOrganic(0.9)%(2.8)%4.6%6.0%1.7%(1.3)%(4.7)%0.4%Acquisitions/
Divestitures—%—%1.8%—%—%—%—%0.3%Translation5.3%4.5%3.2%1.3%3.7%4.7%3.7%3.9%Operating Revenue4.4%1.7%9.6%7.3%5.4%3.4%(1.0)%4.6% Q1 2026 vs. Q1 2025 Favorable/(Unfavorable)Change in Operating MarginAutomotive OEMFood EquipmentTest & Measurement and ElectronicsWeldingPolymers & FluidsConstruction ProductsSpecialty ProductsTotal ITWOperating Leverage(20) bps(60) bps130 bps100 bps40 bps(20) bps(80) bps—Changes in Variable Margin & OH Costs110 bps(130) bps50 bps(110) bps110 bps30 bps70 bps40 bpsTotal Organic90 bps(190) bps180 bps(10) bps150 bps10 bps(10) bps40 bpsAcquisitions/
Divestitures——(60) bps————(10) bpsRestructuring/Other80 bps10 bps30 bps(30) bps—10 bps50 bps30 bpsTotal Operating Margin Change170 bps(180) bps150 bps(40) bps150 bps20 bps40 bps60 bps Total Operating Margin % *21.0%24.7%22.9%32.1%28.0%29.4%31.3%25.4% * Includes unfavorable operating margin impact of amortization expense from acquisition-related intangible assets30 bps10 bps140 bps10 bps100 bps10 bps20 bps50 bps **** Amortization expense from acquisition-related intangible assets had an unfavorable impact of ($0.05) on GAAP earnings per share for the first quarter of 2026. ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
GAAP to NON-GAAP RECONCILIATIONS (UNAUDITED)AFTER-TAX RETURN ON AVERAGE INVESTED CAPITAL (UNAUDITED)
Three Months Ended March 31,Dollars in millions 2026 2025 Numerator: Net Income$768 $700 Discrete tax benefit related to the first quarter 2026 (34) — Discrete tax benefit related to the first quarter 2025 — (21)Interest expense, net of tax (1) 56 52 Other (income) expense, net of tax (1) (15) (9)Operating income after taxes$775 $722 Denominator: Invested capital: Cash and equivalents$827 $873 Trade receivables 3,380 3,153 Inventories 1,726 1,663 Net plant and equipment 2,230 2,085 Goodwill and intangible assets 5,657 5,475 Accounts payable and accrued expenses (2,143) (2,071)Debt (9,148) (8,263)Other, net 701 327 Total net assets (stockholders' equity) 3,230 3,242 Cash and equivalents (827) (873)Debt 9,148 8,263 Total invested capital$11,551 $10,632 Average invested capital (2)$11,447 $10,432 Net income to average invested capital (3) 26.8% 26.9%After-tax return on average invested capital (3) 27.1% 27.7% (1) Effective tax rate used for interest expense and other (income) expense for the three months ended March 31, 2026 and 2025 was 24.1% and 24.0%, respectively.
(2) Average invested capital is calculated using the total invested capital balances at the start of the period and at the end of the periods presented.
(3) Returns for the three months ended March 31, 2026 and 2025 were converted to an annual rate by multiplying the calculated return by 4.
A reconciliation of the tax rate for the three month period ended March 31, 2026, excluding the first quarter 2026 discrete tax benefit of $34 million primarily related to the resolution of a U.S. tax audit, is as follows:
Three Months Ended March 31, 2026Dollars in millionsIncome Taxes Tax RateAs reported$199 20.6%Discrete tax benefit related to the first quarter 2026 34 3.5%As adjusted$233 24.1% A reconciliation of the tax rate for the three month period ended March 31, 2025, excluding the first quarter 2025 discrete tax benefit of $21 million related to the reversal of a valuation allowance on net operating loss carryforwards, is as follows:
Three Months Ended March 31, 2025Dollars in millionsIncome Taxes Tax RateAs reported$195 21.7%Discrete tax benefit related to the first quarter 2025 21 2.3%As adjusted$216 24.0% AFTER-TAX RETURN ON AVERAGE INVESTED CAPITAL (UNAUDITED)
Twelve Months EndedDollars in millionsDecember 31, 2025Numerator: Net income$3,066 Net discrete tax benefit related to the third quarter 2025 (27)Discrete tax benefit related to the first quarter 2025 (21)Interest expense, net of tax (1) 222 Other (income) expense, net of tax (1) (32)Operating income after taxes$3,208 Denominator: Invested capital: Cash and equivalents$851 Trade receivables 3,227 Inventories 1,659 Net plant and equipment 2,230 Goodwill and intangible assets 5,689 Accounts payable and accrued expenses (2,158)Debt (8,969)Other, net 697 Total net assets (stockholders' equity) 3,226 Cash and equivalents (851)Debt 8,969 Total invested capital$11,344 Average invested capital (2)$10,959 Net income to average invested capital 28.0%After-tax return on average invested capital 29.3% (1) Effective tax rate used for interest expense and other (income) expense for the year ended December 31, 2025 was 23.9%.
(2) Average invested capital is calculated using the total invested capital balances at the start of the period and at the end of each quarter within the period presented.
A reconciliation of the 2025 effective tax rate, excluding the third quarter 2025 net discrete tax benefit of $27 million, which included a favorable discrete tax benefit of $43 million related to the estimated U.S. federal tax liability for 2024, partially offset by a $16 million discrete tax expense related primarily to the resolution of a foreign tax audit, and excluding the first quarter 2025 discrete tax benefit of $21 million related to the reversal of a valuation allowance on net operating loss carryforwards, is as follows:
Twelve Months Ended December 31, 2025Dollars in millionsIncome Taxes Tax RateAs reported$900 22.7%Net discrete tax benefit related to the third quarter 2025 27 0.7%Discrete tax benefit related to the first quarter 2025 21 0.5%As adjusted$948 23.9% FREE CASH FLOW (UNAUDITED)
Three Months Ended March 31,Dollars in millions 2026 2025 Net cash provided by operating activities$623 $592 Less: Additions to plant and equipment (95) (96)Free cash flow$528 $496 Net income$768 $700 Net cash provided by operating activities to net income conversion rate 81% 85%Free cash flow to net income conversion rate 69% 71%
GAAP diluted EPS was $2.66. The estimated earnings per share was $2.56.Revenue was $4.02 billion. The estimated revenue was $4.01 billion.Operating margin was 25.4%, up 60 bps year over year.Organic revenue increased 0.4%. Foreign currency translation increased revenue by 3.9%.Operating income was $1.02 billion, up 7% year over year.Free cash flow was $528 million, a 69% conversion of net income.Share repurchases were $375 million in the quarter.Effective tax rate was 20.6%.After-tax return on average invested capital (annualized) was 27.1%. On April 30, 2026, Illinois Tool Works Inc ITW released its 8-K filing reporting first quarter 2026 results. The company posted revenue of $4.02 billion and GAAP EPS of $2.66, alongside a 60 bps improvement in operating margin to 25.4%, supported by 120 bps from Enterprise Initiatives.
Founded in 1912, Illinois Tool Works has become a diversified industrial manufacturer through acquisitions and innovations that follow customer needs. ITW operates through seven business segments, with no segment representing more than one-fifth of revenue. ITW's automotive OEM segment sells vehicle components; its food equipment segment sells commercial kitchen appliances; its test and measurement and electronics segment sells inspection and analysis equipment; its welding segment sells welding equipment and consumables; its polymers and fluids segment sells industrial and consumer adhesives, solvents, and coatings; its construction products segment sells building fasteners and tools; and its specialty products segment sells medical, packaging, HVAC, and airport ground equipment.
Quarterly performance and estimate comparison GAAP diluted EPS of $2.66 exceeded the analyst estimate of $2.56. Revenue of $4.02 billion exceeded the analyst estimate of $4.01 billion. Reported revenue grew 4.6% year over year, with organic growth of 0.4% and a 3.9% tailwind from currency. Operating income rose 7% to $1.02 billion, and operating margin expanded to 25.4%.
“ITW delivered a solid start to the year, marked by five percent revenue growth, margin expansion of 60 basis points to 25.4 percent, and a 12 percent increase in GAAP earnings per share to $2.66. Positive demand trends continued in our capex-related segments, led by Welding and Test & Measurement and Electronics, which delivered organic growth of six percent and five percent, respectively, this quarter,”Management noted Enterprise Initiatives contributed 120 bps to margin, while amortization of acquisition-related intangibles reduced GAAP EPS by $0.05. The effective tax rate was 20.6% for the quarter.
Segment trends and margins Performance was mixed across segments, with capex-related areas leading growth. Welding organic growth was 6.0%. Test & Measurement and Electronics organic growth was 4.6%. Automotive OEM and Food Equipment faced modest organic declines, and Specialty Products declined organically.
SegmentRevenue ($M)Operating Margin Automotive OEM82021.0% Food Equipment63724.7% Test & Measurement and Electronics71522.9% Welding50732.1% Polymers & Fluids45228.0% Construction Products45829.4% Specialty Products43131.3% Total Company4,01625.4% Operating margin improved year over year in most segments, led by Automotive OEM (+170 bps) and Test & Measurement and Electronics (+150 bps). Food Equipment margin declined by 180 bps, reflecting softer organic demand (-2.8%). Specialty Products organic revenue declined 4.7%, though margins remained above 30%.
Income statement and cash flow highlights MetricQ1 2026Q1 2025 Revenue$4,016M$3,839M Operating Income$1,020M$951M Operating Margin25.4%24.8% Net Income$768M$700M Diluted EPS$2.66$2.38 Operating cash flow was $623 million. Free cash flow was $528 million, equating to 69% of net income, which the company noted is in line with seasonal patterns. After-tax return on average invested capital (annualized) was 27.1%, reflecting disciplined capital efficiency in an industrial context.
Balance sheet and capital allocation Cash and equivalents were $827 million at quarter end, compared with $851 million at year-end 2025. Trade receivables increased to $3.38 billion and inventories rose to $1.73 billion. Short-term debt increased to $2.55 billion, while long-term debt decreased slightly to $6.60 billion. Total stockholders’ equity was $3.23 billion.
The company returned capital through $375 million of share repurchases during the quarter. Cash dividends paid were $1.61 per share, up from $1.50 per share in the prior-year quarter. The average diluted share count declined to 289.1 million from 294.5 million, supporting per-share results.
Key takeaways for investors The quarter showed resilient execution, with margin expansion and cash generation underpinning earnings that surpassed consensus. The importance of these results for an industrial products company lies in sustaining high incremental margins and ROIC through varied cycles, aided by Enterprise Initiatives and pricing/mix discipline.
At the same time, organic growth of 0.4% indicates varied end-market demand. Several segments posted organic declines, including Food Equipment and Specialty Products, and currency provided most of the top-line growth. Segment dispersion, a lower organic contribution, and a quarter featuring a favorable tax rate underscore areas to monitor. The increase in short-term debt and modestly lower current ratio also merit attention.
GuruFocus Valuation Check Based on GuruFocus’s proprietary GF Value framework, Illinois Tool Works Inc ITW appears slightly overvalued. The current price of $265.67 sits about 1.3% above the GF Value estimate of $262.3, suggesting limited near-term margin of safety at today’s quotation.
The GF Score is 89/100, which is strong and indicative of attractive overall quality and performance potential. The Profitability Rank is 9/10, aligning with ITW’s high margins and consistent returns. The Growth Rank is 6/10, pointing to steady but not rapid expansion. Financial Strength at 6/10 reflects a solid, though not fortress, balance sheet. Predictability is rated 3 stars, implying moderate earnings consistency. The Moat Score of 8/10 suggests durable competitive advantages across its diversified segments.
Insider Activity shows $55.0 million in sales over the last three months and no insider buying, which is typically a cautionary signal for prospective buyers. For a deeper dive, visit the Illinois Tool Works Inc stock page on GuruFocus.
Explore the complete 8-K earnings release (here) from Illinois Tool Works Inc for further details.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Illinois Tool Works (ITW - Free Report) came out with quarterly earnings of $2.66 per share, beating the Zacks Consensus Estimate of $2.55 per share. This compares to earnings of $2.38 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +4.22%. A quarter ago, it was expected that this equipment manufacturer for the transportation, power, food and construction industries would post earnings of $2.68 per share when it actually produced earnings of $2.72, delivering a surprise of +1.49%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Illinois Tool Works, which belongs to the Zacks Manufacturing - General Industrial industry, posted revenues of $4.02 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.46%. This compares to year-ago revenues of $3.84 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Illinois Tool Works shares have added about 7.9% since the beginning of the year versus the S&P 500's gain of 4.2%.
What's Next for Illinois Tool Works?While Illinois Tool Works has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Illinois Tool Works was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.83 on $4.17 billion in revenues for the coming quarter and $11.26 on $16.6 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - General Industrial is currently in the bottom 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, ATS (ATS - Free Report) , has yet to report results for the quarter ended March 2026.
This automation services provider is expected to post quarterly earnings of $0.32 per share in its upcoming report, which represents a year-over-year change of +14.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
ATS's revenues are expected to be $546.61 million, up 36.7% from the year-ago quarter.
For the quarter ended March 2026, Illinois Tool Works (ITW - Free Report) reported revenue of $4.02 billion, up 4.6% over the same period last year. EPS came in at $2.66, compared to $2.38 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $4 billion, representing a surprise of +0.46%. The company delivered an EPS surprise of +4.22%, with the consensus EPS estimate being $2.55.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Illinois Tool Works performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Operating Revenue - Organic growth - Total ITW: 0.4% versus 2.1% estimated by two analysts on average.Operating Revenue - Test & Measurement and Electronics - Organic growth: 4.6% versus 3.8% estimated by two analysts on average.Operating Revenue - Automotive OEM - Organic growth: -0.9% versus the two-analyst average estimate of 0.7%.Operating Revenue - Specialty Products - Organic growth: -4.7% compared to the 1.2% average estimate based on two analysts.Operating Revenues- Test & Measurement and Electronics: $715 million compared to the $693 million average estimate based on two analysts. The reported number represents a change of +9.7% year over year.Operating Revenues- Construction Products: $458 million compared to the $453.41 million average estimate based on two analysts. The reported number represents a change of +3.4% year over year.Operating Revenues- Food Equipment: $637 million versus $651.53 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +1.6% change.Operating Revenues- Specialty Products: $431 million versus $448.81 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -0.9% change.Operating Revenues- Intersegment revenues: $-4 million compared to the $-4.7 million average estimate based on two analysts. The reported number represents a change of -20% year over year.Operating Revenues- Automotive OEM: $820 million versus $806.93 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +4.3% change.Operating Revenues- Welding: $507 million compared to the $498.79 million average estimate based on two analysts. The reported number represents a change of +7.4% year over year.Operating Revenues- Polymers & Fluids: $452 million versus the two-analyst average estimate of $448.36 million. The reported number represents a year-over-year change of +5.4%.View all Key Company Metrics for Illinois Tool Works here>>>
Shares of Illinois Tool Works have returned +2% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
May 08, 2026 13:35 ET | Source: Illinois Tool Works Inc.
GLENVIEW, Ill., May 08, 2026 (GLOBE NEWSWIRE) -- The Board of Directors of Illinois Tool Works Inc. (NYSE: ITW) declared a dividend on the company's common stock of $1.61 per share for the second quarter of 2026. The dividend equates to $6.44 per share on a full-year basis. The dividend will be paid on July 10, 2026 to shareholders of record as of June 30, 2026.
About Illinois Tool Works
ITW (NYSE: ITW) is a Fortune 300 global multi-industrial manufacturing leader with revenue of $16 billion in 2025. The company’s seven industry-leading segments leverage the unique ITW Business Model to drive solid growth with best-in-class margins and returns in markets where highly innovative, customer-focused solutions are required. ITW’s approximately 43,000 dedicated colleagues around the world thrive in the company’s decentralized and entrepreneurial culture. www.itw.com.
On June 10, 2026, we delve into the DCF analysis for Illinois Tool Works Inc ITW , a company that has shown a price performance of +3.2% over the past week and +6.4% over the past year. The current market price stands at $256.55, which prompts a closer examination of its intrinsic value through discounted cash flow models.
DCF Earnings-based intrinsic value is $153.16, indicating a margin of safety of -67.5% compared to the current price. DCF Free Cash Flow-based intrinsic value is $112.23, suggesting a second opinion on valuation. GF Score™ of 85/100 indicates a high reliability of the DCF inputs. What Is ITW Worth? DCF Earnings-Based Model The DCF earnings-based model for ITW utilizes a two-stage approach to estimate its intrinsic value. The first stage encompasses a growth phase lasting ten years, where earnings per share (EPS) is projected to grow at an annual rate of 8.2%. The second stage transitions into a terminal phase with a more modest growth rate of 4% for the subsequent ten years. The discount rate applied is 11%, derived from the risk-free rate and equity risk premium.
Parameter Value Current EPS (TTM, excl. non-recurring) $10.77 10-Year Growth Rate 8.2% 10-Year Treasury Rate 4.53% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% The calculation summary for the DCF earnings-based model is as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 8.2%, discounted at 11% $93.83 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $59.33 Intrinsic Value Growth + Terminal $153.16 With the current price at $256.55, the intrinsic value of $153.16 indicates that ITW is modestly overvalued, with a margin of safety of -67.5%. It is important to note that GuruFocus uses EPS without non-recurring items, as research shows that stock prices correlate more closely with earnings than free cash flow. For further details, you can access the ITW DCF Calculator.
What Does the Free Cash Flow DCF Say? The Free Cash Flow (FCF)-based intrinsic value for ITW is calculated at $112.23. When compared to the earnings-based valuation of $153.16, there is a significant discrepancy, indicating that the two models do not agree. The FCF model suggests that ITW is significantly overvalued, with a margin of safety of -128.6%.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for Illinois Tool Works Inc is calculated at $265.46, providing a third perspective on valuation. GF Value™ is GuruFocus' proprietary measure derived from historical trading multiples, past business growth, and future performance estimates. In this case, the DCF earnings model and FCF model both indicate overvaluation, while the GF Value™ suggests that ITW is slightly undervalued. For more information, visit the GF Value™ page.
What Does ITW's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been shown to generate higher long-term returns based on backtested data from 2006-2021. The current GF Score™ for ITW is 85/100, reflecting strong fundamentals. Below is a summary of the GF Score™ metrics:
Metric Rating GF Score™ 85/100 Financial Strength 5/10 Profitability 9/10 Growth 6/10 Valuation 9/10 Momentum 7/10 With a predictability rank of 1/5 stars, it is essential to note that higher predictability ratings typically indicate more reliable DCF models for stock valuation. For more insights, visit the ITW stock page.
Key Assumptions and Limitations It is crucial to recognize that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks with low predictability ratings, such as ITW's 1/5 stars, tend to produce less reliable DCF estimates. Additionally, the terminal growth rate of 4% is a simplifying assumption that may not accurately reflect future performance.
What This Means for Investors In synthesizing the three valuation models—DCF earnings, DCF FCF, and GF Value™—the consensus indicates that Illinois Tool Works Inc is overvalued. The earnings-based and FCF-based models both suggest significant overvaluation, while the GF Value™ provides a slightly more optimistic view. Overall, the clear verdict is that ITW is overvalued at its current price. For the full DCF analysis, visit the ITW DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is ITW's intrinsic value based on DCF?
Answer: earnings-based $153.16, FCF-based $112.23
Is ITW overvalued or undervalued?
Answer: Based on the DCF and GF Value™ consensus, ITW is overvalued.
How reliable is the DCF model for ITW?
Answer: The predictability rank of 1/5 indicates lower reliability for the DCF model for ITW.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
New welding automation additions support a wider range of applications and production needs
APPLETON, Wis.--(BUSINESS WIRE)--Miller Electric Mfg. LLC, a leading worldwide manufacturer of Miller® brand arc welding equipment, announces the expansion of its Copilot family with two new product variations: Copilot Builder with FANUC CRX‑30 and Copilot with XR-AlumaPro™ CB torch. These build on the Copilot platform’s promise of making robotic welding easier to adopt, more flexible to configure and capable of growing alongside evolving production needs while addressing a wider array of welding applications.
“One of the biggest barriers to robotic welding is complexity,” says Sam Harvey, business unit director, Miller Welding Automation. “By expanding the Copilot family, we’re making it easier for teams to automate more challenging applications while maintaining the simplicity and confidence Copilot is known for. The introduction of new variations lets you reimagine your workflow and advances the platform to meet a wider range of operational requirements.”
Copilot™ Builder™ With FANUC CRX‑30
Copilot Builder with FANUC CRX‑30 is designed for customers looking to take on larger weldments, particularly those already using FANUC robotics and seeking equipment standardization across their operations. It’s available in either air- or water-cooled versions, and it includes the same features as the Copilot Builder system with through-arc seam tracking built into the FANUC arm.
Key features and benefits include:
Enhanced reach for larger weldments: The CRX‑30’s 70‑inch reach unlocks the ability to weld larger assemblies that may be difficult or impractical with shorter‑reach arms. Improved waypoint accuracy: Miller AccuGuide™ positioning control allows for higher precision when setting waypoints, a task that can be challenging when programming long‑arm welding applications. Simplified programming: Compared to native FANUC programming and many traditional robotic platforms, Copilot Builder offers a more straightforward, welder‑friendly programming experience. Standardization advantages: Ideal for customers already invested in FANUC robotics, the system supports equipment standardization, including aligned preventative maintenance schedules across robotic assets. Copilot™ and Copilot™ Builder With XR-AlumaPro CB Torch
Copilot with Aluminum is engineered to help manufacturers successfully automate aluminum welding applications, including those involving more challenging wire types. Available for both the Copilot and Copilot Builder, and in air- and water-cooled models, the system pairs specialized hardware with advanced software features to deliver consistent feeding and enhanced control over weld quality.
Key features and benefits include:
Consistent aluminum wire feeding: The push‑pull XR‑AlumaPro CB torch enables accurate and reliable feeding of aluminum wire, including 4XXX series wires, helping reduce feeding issues and improve process stability. Advanced software control: Miller software includes advanced features and waveforms, such as Accu-Pulse® with Profile Pulse™ sequencing capabilities, providing greater control over welding parameters to help increase weld quality and consistency for aluminum applications. Extending the Copilot™ Family
With these new additions, Miller continues to evolve the Copilot platform to address a broader range of welding challenges while preserving the core attributes that define the Copilot experience. Whether tackling larger weldments, expanding into aluminum or configuring a more flexible automation system with Copilot Builder, manufacturers can now arrange a Copilot system tailored to their specific needs.
To learn more about the Copilot family and explore how Miller continues to drive innovation in welding automation, visit millerwelds.com/products/copilot.
About Miller
Miller Electric Mfg. LLC, headquartered in Appleton, Wisconsin, is a leading worldwide manufacturer of Miller® brand arc welding products and is a wholly owned subsidiary of Illinois Tool Works Inc. (NYSE: ITW). For more information, visit MillerWelds.com, call 1-800-4-A-Miller (800-426-4553), email [email protected], fax 877-327-8132, or write to Miller Electric Mfg. LLC, P.O. Box 100, Lithonia, GA 30058.
Miller Electric Mfg. LLC, a leading worldwide manufacturer of Miller® brand arc welding equipment, announces the expansion of its Copilot family with two new product variations: Copilot Builder with FANUC CRX‑30 and Copilot with XR-AlumaPro™ CB torch. These build on the Copilot platform’s promise of making robotic welding easier to adopt, more flexible to configure and capable of growing alongside evolving production needs while addressing a wider array of welding applications.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260610952925/en/
Copilot Builder FANUC Robot Extension in use
“One of the biggest barriers to robotic welding is complexity,” says Sam Harvey, business unit director, Miller Welding Automation. “By expanding the Copilot family, we’re making it easier for teams to automate more challenging applications while maintaining the simplicity and confidence Copilot is known for. The introduction of new variations lets you reimagine your workflow and advances the platform to meet a wider range of operational requirements.”
Copilot™ Builder™ With FANUC CRX‑30
Copilot Builder with FANUC CRX‑30 is designed for customers looking to take on larger weldments, particularly those already using FANUC robotics and seeking equipment standardization across their operations. It’s available in either air- or water-cooled versions, and it includes the same features as the Copilot Builder system with through-arc seam tracking built into the FANUC arm.
Key features and benefits include:
Enhanced reach for larger weldments: The CRX‑30’s 70‑inch reach unlocks the ability to weld larger assemblies that may be difficult or impractical with shorter‑reach arms. Improved waypoint accuracy: Miller AccuGuide™ positioning control allows for higher precision when setting waypoints, a task that can be challenging when programming long‑arm welding applications. Simplified programming: Compared to native FANUC programming and many traditional robotic platforms, Copilot Builder offers a more straightforward, welder‑friendly programming experience. Standardization advantages: Ideal for customers already invested in FANUC robotics, the system supports equipment standardization, including aligned preventative maintenance schedules across robotic assets. Copilot™ and Copilot™ Builder With XR-AlumaPro CB Torch
Copilot with Aluminum is engineered to help manufacturers successfully automate aluminum welding applications, including those involving more challenging wire types. Available for both the Copilot and Copilot Builder, and in air- and water-cooled models, the system pairs specialized hardware with advanced software features to deliver consistent feeding and enhanced control over weld quality.
Key features and benefits include:
Consistent aluminum wire feeding: The push‑pull XR‑AlumaPro CB torch enables accurate and reliable feeding of aluminum wire, including 4XXX series wires, helping reduce feeding issues and improve process stability. Advanced software control: Miller software includes advanced features and waveforms, such as Accu-Pulse® with Profile Pulse™ sequencing capabilities, providing greater control over welding parameters to help increase weld quality and consistency for aluminum applications. Extending the Copilot™ Family
With these new additions, Miller continues to evolve the Copilot platform to address a broader range of welding challenges while preserving the core attributes that define the Copilot experience. Whether tackling larger weldments, expanding into aluminum or configuring a more flexible automation system with Copilot Builder, manufacturers can now arrange a Copilot system tailored to their specific needs.
To learn more about the Copilot family and explore how Miller continues to drive innovation in welding automation, visit millerwelds.com/products/copilot.
About Miller
Miller Electric Mfg. LLC, headquartered in Appleton, Wisconsin, is a leading worldwide manufacturer of Miller® brand arc welding products and is a wholly owned subsidiary of Illinois Tool Works Inc. (NYSE: ITW). For more information, visit MillerWelds.com, call 1-800-4-A-Miller (800-426-4553), email [email protected], fax 877-327-8132, or write to Miller Electric Mfg. LLC, P.O. Box 100, Lithonia, GA 30058.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260610952925/en/
