Illinois Tool Works tightens annual profit forecast on tariff headwinds

Illinois Tool Works

24/10/2025 14:16

Oct 24 (Reuters) - Illinois Tool Works ITW.N narrowed its annual profit forecast range on Friday, as the industrial parts maker expects supply chain snarls due to U.S. tariffs.

Shares of the company fell nearly 4% in premarket trading.

U.S. President Donald Trump's tariff policies have driven up prices of raw materials, forcing companies such as Illinois Tool Works to raise prices and reshore supply chains to preserve margins.

The company now expects 2025 profit between $10.40 and $10.50 per share, compared with its prior projection of $10.35 to $10.55 per share.

But it posted a third-quarter profit of $2.81 per share, beating analysts' estimates of $2.71 per share, according to data compiled by LSEG.

The automotive OEM segment was the biggest contributor to overall revenue with $830 million, compared with $772 million a year ago.

The company supplies components and fasteners to automakers including Ford F.N and BMW BMWG.DE.

Its overall quarterly revenue rose 2.3% to $4.06 billion, missing analysts' average estimate of $4.08 billion.

 (Reporting by Parth Chandna; Editing by Sahal Muhammed)

 ((Parth.Chandna@thomsonreuters.com;))