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Illinois Tool Works’ $40 Million Tornado Setback: Can Its 15.8% Electronics Growth Offset It?

Illinois Tool Works Inc. reported third-quarter 2026 revenue of $4.24 billion, representing a 4.4 percent increase compared to the same period last year. Organic growth was 3.8 percent, with a 6.0 percent increase in North America. Excluding the estimated $40 million revenue impact from a tornado affecting two Welding segment facilities, the company’s organic growth would be approximately 5 percent. Operating income reached a record $1.18 billion, up 5.9 percent year-over-year, yielding an operating margin expansion of 40 basis points to 27.8 percent. This margin improvement was supported by favorable price and cost impacts that offset rising raw material expenses. GAAP earnings per share rose 6.8 percent to $3.00. Operational cash flow for the quarter was $953 million, with free cash flow at $851 million, representing a full 100 percent conversion of net income into free cash flow.