Illinois Tool Works
Q2 2022 Earnings Call
Aug 02, 2022, 10:00 a.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Operator
Good morning. My name is David, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the ITW second quarter earnings conference call. [Operator instructions] Thank you.
Karen Fletcher, vice president of investor relations. You may begin your conference.
Karen Fletcher -- Vice President, Investor Relations
Thank you, David. Good morning, and welcome to ITW's second quarter 2022 conference call. I'm joined by our chairman and CEO, Scott Santi; and senior vice president and CFO, Michael Larsen. During today's call, we will discuss ITW's second quarter financial results and update our guidance for full year 2022.
Slide 2 is a reminder that this presentation contains forward-looking statements. We refer you to the company's 2021 Form 10-K and subsequent reports filed with the SEC for more detail about important risks that could cause actual results to differ materially from our expectations. This presentation uses certain non-GAAP measures and a reconciliation of those measures to the most directly comparable GAAP measures is contained in the press release. Please turn to Slide 3, and it's now my pleasure to turn the call over to our Chairman and CEO, Scott Santi.
Scott Santi -- Chairman and Chief Executive Officer
Thank you, Karen, and good morning, everyone. The ITW team delivered another quarter of strong operational execution and financial performance with organic growth of 10.4%, operating margin of 23.1%, after-tax return on invested capital of 27.8%, and GAAP EPS of $2.37. In the second quarter, we saw continued strong demand across our portfolio, supported by our 80/20 front-to-back driven operational capabilities. Our teams continue to do an exceptional job of delivering for our customers and aggressively executing our Win the Recovery strategy to accelerate profitable market penetration and organic growth.
As a result of our advantaged operational execution and delivery performance, we are being rewarded with meaningful additional share by our customers as evidenced by our 10.5% organic growth in the first half of this year. While input cost, inflation, and supply chain issues remain challenging, we did see some stabilization on both fronts in Q2. In fact, for the first time in two years, price/cost margin dilution headwind improved sequentially from negative 250 basis points in Q1 to negative 160 basis points in Q2 as our businesses continue to do an excellent job of adjusting price to offset input cost inflation, and the pace and magnitude of input cost increases moderated somewhat. Importantly, our teams delivered these strong operational and financial results while continuing to drive meaningful progress on the execution of our long-term enterprise strategy.