Earnings Call

ITW Q2 FY2026 Earnings Call

With Michael Larsen (SVP and CFO) and Chris O'Herlihy (President and CEO).

ITW

Fiscal Q2 2026

July 28, 2026

32 min read

9 questions

ITW (NYSE: ITW) is a Fortune 300 global multi-industrial manufacturing leader with revenue of $16 billion in 2025.

More about ITW

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.

1Prepared remarks3 speakers

Operator Good morning. My name is Trevor, and I will be your conference operator today. At this time, I would like to welcome everyone to the ITW second quarter earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press the star followed by…

Erin LinnihanVP of Investor Relations

Thank you, Trevor. Good morning. Welcome to ITW's second quarter 2026 conference call. I'm joined by our President and Chief Executive Officer, Chris O'Herlihy, and Senior Vice President and Chief Financial Officer, Michael Larsen. During today's call, we will discuss ITW's second quarter 2026 financial results and provide an update on our outlook for full year 2026. Slide two is a reminder that this presentation contains forward-looking statements.

Please refer to the company's 2025 Form 10-K and subsequent…

Chris O'HerlihyPresident and CEO

Thank you, Erin. Good morning, everyone. As you saw in our press release this morning, the ITW team delivered strong operational and financial performance in the second quarter. Highlights include 4.5% organic growth, operating margin expansion to 26.7%, and a 10% increase in GAAP EPS to $2.84. Notably, operating income reached $1.15 billion, a 7.4% increase, marking the most profitable quarter in ITW's history.

Our top-line momentum this quarter was propelled by significant acceleration in our CapEx-related…

Michael LarsenSVP and CFO

Thank you, Chris, and good morning, everyone. In Q2, total revenue grew 6.1%, driven by 4.5% organic growth, a 1.4% contribution from foreign currency translation, and 0.2% from an acquisition. As Chris said, organic growth performance was particularly strong in our CapEx and semiconductor-related segments, as well as polymers and fluids. Our Customer-Back Innovation efforts continue to gain momentum, and CBI was a key top-line catalyst, contributing 3% to growth in the first half. From a regional perspective…