Tornado Knocks $40 Million Off Illinois Tool Works Revenue — Yet Welding Sales Still Grow 7%

What happened

Illinois Tool Works reported third-quarter 2026 earnings of $3 per share, beating estimates, while revenue rose 4.4% to $4.236 billion and missed estimates. A tornado knocked $40 million off revenue, yet welding sales still grew 7%.

Confirmed

Global impact / market context

The tornado cut $40 million from revenue, showing a single weather event can reduce sales at a large manufacturer. Still, earnings beat expectations and welding grew 7%, which suggests demand held up and profit per sale improved.

Analyst inference

Revenue missed estimates even though organic revenue grew 3.8% and operating income reached a record $1.18 billion. The stock traded lower, which suggests investors focused on the sales shortfall rather than the stronger profit and welding growth.

Analyst inference

What to watch

1. Automotive OEM and Construction Products need to catch up on price versus cost, which means pricing must offset higher raw material costs after the tornado hit revenue. Confirmed
2. Watch whether Illinois Tool Works recovers the $40 million in lost revenue and whether welding sales keep growing 7% in the next quarter. Proposed
3. If price and cost catch-up improves in Automotive OEM and Construction Products, profit per sale could rise, but sales may stay below estimates. Analyst inference

Evidence

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