GLENVIEW, IL -- Illinois Tool Works reported first quarter revenue at its Test & Measurement and Electronics unit was up 8% year-over-year.

Overall first quarter revenue grew 11.2% to $3.9 billion with organic growth of 10.6%. The acquisition of MTS contributed 2.8% to revenue. Foreign currency translation impact reduced revenue by 2.2%.

“In what remains a challenging and dynamic environment, our ITW business teams around the world continue to do an exceptional job of leveraging the performance power of the ITW Business Model and our advantaged supply position to support our customers and execute our ‘Win the Recovery’ strategy to accelerate profitable market penetration and organic growth across our portfolio,” said E. Scott Santi, chairman and chief executive. “Our first quarter results reflect continued strong momentum in this regard, and we remain well-positioned to seize the opportunities and respond to the challenges that lie ahead as we move through the balance of 2022.”

Operating margin was 23.4%, excluding 70 basis points of margin dilution impact from the acquisition of MTS. Operating cash flow was $323 million, and free cash flow was $249 million with a conversion of 38% of net income due to higher working capital investments to support double digit revenue growth and increased inventory levels to help mitigate supply chain risk and sustain customer service levels.

Based on the company’s first quarter results and projecting current levels of demand through the balance of the year, ITW is raising its full-year organic growth guidance to seven to 10% and full-year revenue growth guidance to 8.5% to 11.5%. The acquisition of MTS is expected to add 3% to revenue.

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