Tornado Costs ITW $40M in Revenue; Welding Still Grows 7% as Guidance Rises
ITW is trading near its 52-week low of $238.82 (15% above the low).
Summary
ITW's Q3 came in at $3.00 EPS, ahead of the $2.97 consensus, but revenue of $4.236 billion missed the $4.259 billion estimate. The headline number was clipped by a tornado that hit two Welding facilities and cut an estimated $40 million of revenue; excluding it, Welding organic growth would have been roughly 15% instead of the reported 7%. Test & Measurement and Electronics was the standout at $819 million, up 17% with 16% organic growth, helped by AI-related semiconductor fab spending. Management raised full-year GAAP EPS guidance to $11.45-$11.55 from $11.35-$11.55 and lifted the revenue range to $16.766-$16.926 billion, while keeping organic growth at 3%-4% and operating margin at 26.5%-27.5%. The tornado impact is called immaterial going forward, and Welding orders are running ahead of shipments, with management guiding Welding back to strong growth in Q4 and into 2027.
At the time of this announcement, ITW was trading at $274.04 on NYSE in the Manufacturing sector, with a market capitalization of approximately $78B. The 52-week trading range was $238.82 to $303.16. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Benzinga.