Illinois Tool Works
Q1 2022 Earnings Call
May 03, 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 would like to welcome everyone to the ITW Q1 2022 earnings conference call. Today's conference is being recorded.
[Operator instructions] Karen Fletcher, vice president of investor relations, you may begin your conference.
Karen Fletcher -- Vice President, Investor Relations
Thank you, David. Good morning, everyone, and welcome to ITW's first 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'll discuss ITW's first 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 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. So 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
Thanks, Karen, and good morning, everyone. We have talked often about the fact that the core focus of our enterprise strategy is to leverage the performance power of the ITW business model to consistently deliver top-tier performance in any environment. And our teams around the world continue to do an exceptional job of doing just that as evidenced by the 11% organic growth and 23% operating margins that they delivered in Q1. In the quarter, we saw continued strong demand almost across the board, while input cost inflation and supply chain issues remain challenging to say the least, and our business has responded.
Across the company, we continue to leverage the advantaged supply capabilities inherent in our 80/20 front-to-back operating system to support our customers and execute our Win the Recovery strategy to accelerate profitable market penetration and organic growth across our portfolio. Many of our businesses continued to receive strong feedback from their customers that their current delivery performance is truly differentiated and that they are being awarded additional share as a result. And despite another step-up in input cost inflation in Q1, we more than offset cost increases on a dollar-for-dollar basis in the quarter. Looking ahead at the remainder of 2022 based on our first quarter results and projecting current demand, supply rates and all-known cost increases through the balance of the year, we are raising our guidance for full year 2022 organic growth to 8.5% at the midpoint and GAAP EPS of $9.20 at the midpoint, which is 14% earnings growth year over year and would be an all-time record for the company.