Illinois Tool Works lifts 2025 profit forecast betting on price hikes

Illinois Tool Works

30/07/2025 15:24

July 30 (Reuters) - Illinois Tool Works ITW.N lifted the low end of its annual profit forecast range on Wednesday, as it expects pricing actions on its industrial equipment to cushion the impact of tariffs.

U.S. President Donald Trump's expansive tariffs have driven up costs of raw materials, including steel and aluminum, squeezing margins for industrial equipment makers and forcing them to raise prices to offset the impact.

Illinois Tool Works said in May that localized production, flexible operations and a diversified business mix have helped it navigate economic uncertainty.

The company, which supplies components and fasteners to major clients including Ford F.N and BMW BMWG.DE, is capitalizing on the rapid growth of the automotive sectors.

The automotive OEM segment was the biggest contributor to overall revenue with $845 million, followed by the test and electronics segment with $686 million.

Illinois Tool Works now expects 2025 profit to be in the range of $10.35 to $10.55 per share, compared with its prior projection of $10.15 to $10.55 per share. It also lifted full-year its revenue growth forecast range to between 1% and 3%, from 0% to 2%.

The company said its on-going pricing actions are projected to offset tariff cost impacts and current foreign exchange rates.

The industrial company posted second-quarter operating revenue of $4.05 billion, compared with analysts' average estimate of $4.02 billion, according to data compiled by LSEG.

It reported a quarterly profit of $2.58 per share, compared with $2.54 per share a year earlier.

 (Reporting by Apratim  Sarkar; Editing by Maju Samuel)

 ((Apratim.Sarkar@thomsonreuters.com;))