Illinois Tool Works lifts 2026 profit forecast on strong auto parts demand

April 30 (Reuters) - Illinois Tool Works ITW.N lifted its annual profit forecast after reporting higher first-quarter results on Thursday, helped by strong demand across segments, including automotive parts.

"Positive demand trends continued in our capex-related segments, led by Welding and Test & Measurement and Electronics," CEO Christopher O'Herlihy said in a statement.

Higher vehicle prices have prompted consumers to extend the life span of their old vehicles through maintenance and repair, boosting demand for the company's automotive aftermarket maintenance services.

• The Glenview, Illinois-based company lifted its profit forecast for the year by 10 cents to a range of $11.10 to $11.50 per share, implying about 8% growth at the midpoint.

• The company said it expects all its seven segments to deliver both positive organic growth and operating margin expansion during the year.

• Quarterly revenue in the automotive OEM segment, the biggest contributor to overall revenue, rose 4.3% to $820 million. The segment supplies components and fasteners to automakers including Ford F.N and BMW BMWG.DE.

• The industrial parts and equipment maker's tariff mitigation measures such as localized manufacturing and price hikes helped it boost operating margins across seven segments.

• Illinois Tool Works' profit rose to $2.66 per share for the quarter ended March 31 from $2.38 per share a year earlier.

• The company's first-quarter revenue rose 4.6% to $4.02 billion, compared with $3.84 billion a year earlier.

• However, shares of the company were down 2.5%.