Illinois Tool Works Q4 Results Top Street View, Provides FY22 Guidance

Illinois Tool Works Inc. ITW reported fourth-quarter FY21 revenue growth of 5.9% year-over-year to $3.68 billion, +5.3% on an organic basis, beating the consensus of $3.55 billion.
GAAP EPS was $1.93, including $(0.02) of MTS acquisition impact.
Automotive OEM revenue was $633 million (-17 Y/Y), and operating margin declined by 710 bps to 16.8%
Food Equipment revenue was $569 million (+21% Y/Y), and the operating margin expanded by 60 bps to 22.9%.
Test & Measurement and Electronics revenue were $636 million (+19% Y/Y), and the operating margin contracted by 220 bps to 26.4%.
Welding revenue was $422 million (+15% Y/Y), and operating margin expanded by 110 bps to 30%.
Polymers & Fluids revenue was $447 million (+2% Y/Y), and operating margin contracted by 130 bps to 24.1%.
Construction Products revenue was $480 million (+12% Y/Y), and operating margin contracted 40 bps to 25.8%.
Specialty Products revenue was $467 million (+6% Y/Y) and the operating margin contracted by 50 bps to 26.5%.
The operating income decreased 5.5% Y/Y to $834 million, and the operating margin was 22.7%, and 23.1%, excluding 40 basis points of margin dilution impact from MTS.
ITW's operating cash flow for FY21 was $2.56 billion compared to $2.81 billion a year ago, and free cash flow was $2.3 billion with a conversion of 84% of net income.
The company repurchased $1 billion shares in the fiscal.
FY22 Guidance (including MTS): ITW expects total revenue growth of 7.5% - 10.5%, with 6% - 9% organic growth, and GAAP EPS of $8.90 - $9.30.
It expects an operating margin of 24% - 25%, with enterprise initiatives contributing 100 bps. The company plans to repurchase about $1.5 billion of its shares.
Price Action: ITW shares traded higher by 3.83% at $245.01 on the last check Thursday.

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