Slides
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Never stronger. Never better positioned for the future. Third Quarter 2026 Earnings Conference Call October 27, 2026
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Never stronger. Never better positioned for the future. 2 This presentation and related conference call contain forward-looking statements within the meaning of U.S. federal securities laws, including the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements regarding supply chain challenges, expected impact of inflation including raw material inflation and rising interest rates, the potential impact of tariffs, the Company’s projected pricing actions, the impact of enterprise initiatives, future financial and operating performance, free cash flow and free cash flow to net income conversion rate, organic and total revenue, contribution from Customer-Back Innovation to revenue growth, operating and incremental margin, price/cost impact, statements regarding diluted earnings per share, after-tax return on average invested capital, effective tax rates, exchange rates, expected timing and amount of share repurchases, end market economic and regulatory conditions, and the Company’s 2026 guidance. These statements are subject to certain risks, uncertainties, assumptions, and other factors, which could cause actual results to differ materially from those anticipated. Important risks that could cause actual results to differ materially from the Company’s expectations include those that are detailed in ITW’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and subsequent reports filed with the U.S. Securities and Exchange Commission. Except as required by law, the Company undertakes no obligation to update or revise any forward-looking statement to reflect new information, future events, changed circumstances, or otherwise. Non-GAAP Financial Measures This presentation contains certain non-GAAP financial measures in discussing the Company’s performance. The reconciliation of these measures to the most directly comparable GAAP measures is detailed in ITW’s press release for the third quarter of 2026, which is available on our website at www.itw.com, and should be reviewed together with this presentation. The estimated guidance of free cash flow to net income conversion rate and after-tax return on average invested capital are based on assumptions that are difficult to predict. Accordingly estimated guidance for the most directly comparable GAAP measures and a reconciliation of these forward-looking estimates to their most directly comparable GAAP estimates have been omitted due to the unreasonable efforts required in connection with such a reconciliation and the lack of reliable forward- looking cash flow and operating information. For the same reason, the Company is unable to address the potential significance of the unavailable information, which could be material to future results. Forward-Looking Statements
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Never stronger. Never better positioned for the future. 3 Q3’26 Financial Performance STRONG OPERATIONAL AND FINANCIAL PERFORMANCE HIGHLIGHTED BY ORGANIC GROWTH OF +4% COMMENTARY Revenue Operating Margin 27.4% $4.06B 27.8% $4.24B Q3'25 Q3'26 $2.81 +40 bps GAAP EPS $3.00 +7% After-tax ROIC* 29.8% 30.3% +50 bps •Accelerating demand momentum in Test & Measurement/ Electronics and Welding; Strength in Polymers & Fluids - Organic growth of +5% ex-Welding tornado impact - Meaningful increase in contribution from new products •Disciplined operational execution; margins +40 bps - Enterprise initiatives contribution +130 bps - Favorable price/cost on an income and margin basis •Free cash flow* conversion of 100% of net income - Share repurchases of $1.3B year-to-date - Dividend +7%; 63rd consecutive year of increases •GAAP EPS of $3.00, an increase of +7% - Record quarterly operating income of $1.18B, +6% * See ITW’s Q3'26 press release for the reconciliation from GAAP to non-GAAP measures +4% +4% Organic
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Never stronger. Never better positioned for the future. 4 Q3’26 Financial Performance AUTOMOTIVE OEM $830M $814M Q3'25 Q3'26 Revenue Operating Margin 21.8% Q3'25 Q3'26 (2)% •Organic revenue (2)% •North America (1)% •Europe (7)% •China (1)% 20.1% (170) bps ORGANIC GROWTH BY GEOGRAPHY •North America 53% •EMEA 24% •APAC 20% − China 8% +6% ~flat EMEA APAC +3% China North America (2)% REVENUE BY GEOGRAPHY
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Never stronger. Never better positioned for the future. 5 Q3’26 Financial Performance TEST & MEASUREMENT/ELECTRONICSFOOD EQUIPMENT $694M $698M Q3'25 Q3'26 Operating Margin 29.2% Q3'25 Q3'26 +1% •Organic revenue 1% •Equipment (2)%, Service 5% •North America (3)% •International 5% +60 bps29.8% $698M $819M 25.4% +17% •Organic revenue 16% •Test & Measurement 8% •Electronics 31% +330 bps28.7% Revenue Operating Margin Q3'25 Q3'26 Q3'25 Q3'26 Revenue
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Never stronger. Never better positioned for the future. 6 Q3’26 Financial Performance POLYMERS & FLUIDSWELDING $477M Q3'25 Q3'26 Operating Margin 32.6% Q3'25 Q3'26 +7% •Organic revenue 7%; 15% ex-tornado impact •Equipment 5%, Consumables 10% •North America 8% •International 3% +370 bps36.3% $441M $477M 28.5%+8% •Organic revenue 8% •Automotive Aftermarket 6% •Polymers 12% •Fluids 9% +280 bps31.3% Revenue Operating Margin Q3'25 Q3'26 Q3'25 Q3'26 Revenue $513M
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Never stronger. Never better positioned for the future. 7 Q3’26 Financial Performance SPECIALTY PRODUCTSCONSTRUCTION PRODUCTS $473M $472M Q3'25 Q3'26 Operating Margin 31.6% Q3'25 Q3'26 ~Flat •Organic revenue (1)% •North America ~flat •Europe (2)% •Australia/New Zealand 1% (170) bps29.9% $452M $447M Q3'25 Q3'26 32.3% Q3'25 Q3'26 (1)% •Organic revenue (1)% •North America 3% •International (8)% (90) bps31.4% Revenue Operating MarginRevenue
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Never stronger. Never better positioned for the future. 8 2026 Financial Guidance Revenue Operating Margin 26.3% $16.0B 26.5 - 27.5% 2025 2026E $11.45 - $11.55GAAP EPS $10.49 * See ITW’s Q3'26 press release for the reconciliation from GAAP to non-GAAP measures. +4.5 - 5.5% +3 - 4% Organic +9 - 10% After-tax ROIC* 29.3% 30%+ $16.8 - $16.9B STRONG OPERATIONAL AND FINANCIAL PERFORMANCE AS GROWTH MOMENTUM ACCELERATES COMMENTARY •Raised GAAP EPS guidance by $0.05 at mid-pt and narrowed range; +10% growth YoY at mid-pt of $11.50 •Accelerating capex demand momentum and meaningful increase in contribution from new products (CBI) - Implied organic growth of 5%+ in Q4 - 2026 CBI contribution of approx. 3%+ (vs. 2.4% in 2025) •Disciplined operational execution and margin expansion - Enterprise initiatives contribution of 100+ bps - Favorable price/cost on an income basis & margin neutral •Free cash flow conversion of approx. 100% of net income •Share repurchases of approx. $1.5B
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Never stronger. Never better positioned for the future. Q&A 9