Illinois Tool Works Inc. Press Releases

ITW Schedules First Quarter 2026 Earnings Webcast

Fri, 10 Apr 2026 14:45:00 -0400

ITW Board of Directors Declares Quarterly Dividend

Fri, 13 Feb 2026 11:30:00 -0500

GLENVIEW, Ill., Feb. 13, 2026 (GLOBE NEWSWIRE) -- The Board of Directors of Illinois Tool Works Inc. (NYSE: ITW) declared a dividend on the company's common stock of $1.61 per share for the first quarter of 2026. The dividend equates to $6.44 per share on a full-year basis. The dividend will be paid on April 9, 2026 to shareholders of record as of March 31, 2026.

About Illinois Tool Works
ITW (NYSE: ITW) is a Fortune 300 global multi-industrial manufacturing leader with revenue of $16 billion in 2025. The company’s seven industry-leading segments leverage the unique ITW Business Model to drive solid growth with best-in-class margins and returns in markets where highly innovative, customer-focused solutions are required. ITW’s approximately 43,000 dedicated colleagues around the world thrive in the company’s decentralized and entrepreneurial culture. www.itw.com.

Investor Relations & Media Contact:
Erin Linnihan
Tel: 224.661.7431
investorrelations@itw.com | mediarelations@itw.com

Source: Illinois Tool Works Inc.

ITW Declares Quarterly Dividend

Fri, 13 Feb 2026 10:35:00 -0500

ITW Reports Fourth Quarter and Full Year 2025 Results

Tue, 03 Feb 2026 08:00:00 -0500

Fourth Quarter 2025 Highlights

Revenue of $4.1 billion, an increase of 4.1%
Operating margin of 26.5%, as enterprise initiatives contributed 140 bps
GAAP EPS of $2.72, an increase of 7%

2025 Highlights

Revenue of $16 billion, an increase of 0.9%
Customer-Back Innovation contributed 2.4% to revenue growth, an increase of 40 bps
Operating margin of 26.3%, as enterprise initiatives contributed 130 bps
GAAP EPS of $10.49 exceeded the prior guidance mid-point of $10.45

2026 Guidance

Revenue growth of 2 to 4%, organic growth of 1 to 3%
Operating margin expansion of approximately 100 bps with enterprise initiatives contributing 100 bps
GAAP EPS of $11.00 to $11.40, an increase of 7% at the mid-point

GLENVIEW, Ill., Feb. 03, 2026 (GLOBE NEWSWIRE) -- Illinois Tool Works Inc. (NYSE: ITW) today reported its fourth quarter and full year 2025 results.

“ITW delivered a solid finish to the year, marked by more than four percent revenue growth and a seven percent increase in GAAP earnings per share. As a result of our disciplined execution across all seven segments, we expanded both operating margin and income to record levels in the quarter,” said Christopher O’Herlihy, President and Chief Executive Officer.

“Our results over the past year demonstrate that ITW is well-positioned to deliver solid financial performance in any environment as we consistently exceeded market growth while improving profitability and margins. Notably, our Customer-Back Innovation initiatives were a primary catalyst, contributing 2.4 percent to revenue growth in 2025. Building on this momentum, we expect to continue outperforming our end markets in 2026 as we leverage ITW’s unique business model to drive consistent, above-market organic growth with best-in-class margins and returns. I extend my sincere gratitude to our global colleagues for their unwavering dedication to serving our customers and executing our strategy with excellence,” O’Herlihy concluded.

Fourth Quarter 2025 Results

Fourth quarter revenue of $4.1 billion increased by 4.1 percent and organic revenue growth was 1.3 percent. Foreign currency translation increased revenue by 2.5 percent and acquisitions added 0.3 percent.

GAAP EPS of $2.72 increased seven percent. Operating margin of 26.5 percent increased 30 basis points as enterprise initiatives contributed 140 basis points. Segment operating margin increased 120 basis points to 27.7 percent. Operating cash flow was $1 billion, and free cash flow was $0.9 billion with a conversion of 109 percent to net income. During the quarter, the company repurchased $375 million of its own shares and the effective tax rate was 22.8 percent.

Full Year 2025 Results

Full year revenue of $16 billion increased 0.9 percent as organic revenue was flat. Foreign currency translation increased revenue by 0.8 percent and acquisitions contributed 0.1 percent to revenues.

GAAP EPS of $10.49 exceeded the prior guidance mid-point of $10.45. Operating income was $4.2 billion and operating margin was 26.3 percent with enterprise initiatives contributing 130 basis points. Segment operating margin of 27.2 percent increased 70 basis points. Pricing and supply chain actions successfully offset the tariff impact for the year. Six of seven segments expanded operating margins with three segments achieving operating margins above 30 percent.

Operating cash flow was $3.1 billion and free cash flow was $2.7 billion, with a conversion of 88 percent to net income. The company invested approximately $0.8 billion to support the long-term growth of its highly profitable businesses and returned $3.3 billion to shareholders through dividends and share repurchases. The effective tax rate was 22.7 percent.

2026 Guidance

ITW is initiating 2026 guidance including GAAP EPS in the range of $11.00 to $11.40 per share, which represents seven percent earnings growth at the mid-point. The company projects revenue growth of two to four percent and organic growth of one to three percent based on current levels of demand and present foreign exchange rates.

Operating margin is projected to be in the range of 26.5 to 27.5 percent, an improvement of approximately 100 basis points with enterprise initiatives contributing 100 basis points.

All seven segments are expected to deliver positive organic growth and operating margin expansion in 2026.

Free cash flow is projected to be greater than 100 percent of net income, and the company plans to repurchase approximately $1.5 billion of its own shares. The projected effective tax rate is 23.5 to 24.5 percent.

Non-GAAP Measures

This earnings release contains certain non-GAAP financial measures. A reconciliation of these measures to the most directly comparable GAAP measures is included in the attached supplemental reconciliation schedule. The estimated guidance of free cash flow to net income conversion rate is based on assumptions that are difficult to predict, and estimated guidance for the most directly comparable GAAP measure and a reconciliation of this forward-looking estimate to its most directly comparable GAAP estimate have been omitted due to the unreasonable efforts required in connection with such a reconciliation and the lack of reliable forward-looking cash flow information. For the same reasons, the company is unable to address the potential significance of the unavailable information, which could be material to future results.

Forward-Looking Statements

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements regarding the potential impact of tariffs, the Company’s projected pricing actions, the impact of enterprise initiatives, future financial and operating performance, free cash flow and free cash flow to net income conversion rate, organic and total revenue, operating and incremental margin, price/cost impact, statements regarding diluted earnings per share, after-tax return on invested capital, effective tax rates, exchange rates, expected timing and amount of share repurchases, end market economic and regulatory conditions, and the Company’s 2026 guidance. These statements are subject to certain risks, uncertainties, assumptions, and other factors, which could cause actual results to differ materially from those anticipated. Important risks that could cause actual results to differ materially from the Company’s expectations include those that are detailed in ITW’s Form 10-K for 2024 and subsequent reports filed with the SEC.

About Illinois Tool Works

ITW (NYSE: ITW) is a Fortune 300 global multi-industrial manufacturing leader with revenue of $16 billion in 2025. The company’s seven industry-leading segments leverage the unique ITW Business Model to drive solid growth with best-in-class margins and returns in markets where highly innovative, customer-focused solutions are required. ITW’s approximately 43,000 dedicated colleagues around the world thrive in the company’s decentralized and entrepreneurial culture. www.itw.com.

ILLINOIS TOOL WORKS INC. and SUBSIDIARIES STATEMENT OF INCOME (UNAUDITED)

	Three Months Ended December 31,						Twelve Months Ended December 31,
In millions except per share amounts		2025			2024			2025			2024
Operating Revenue	$	4,093		$	3,932		$	16,044		$	15,898
Cost of revenue		2,284			2,221			8,969			8,858
Selling, administrative, and research and development expenses		704			655			2,779			2,675
Amortization and impairment of intangible assets		20			25			80			101
Operating Income		1,085			1,031			4,216			4,264
Interest expense		(75	)		(68	)		(292	)		(283	)
Other income (expense)		14			20			42			441
Income Before Taxes		1,024			983			3,966			4,422
Income taxes		234			233			900			934
Net Income	$	790		$	750		$	3,066		$	3,488

Net Income Per Share:
Basic	$	2.73		$	2.55		$	10.52		$	11.75
Diluted	$	2.72		$	2.54		$	10.49		$	11.71

Cash Dividends Per Share:
Paid	$	1.61		$	1.50		$	6.11		$	5.70
Declared	$	1.61		$	1.50		$	6.22		$	5.80

Shares of Common Stock Outstanding During the Period:
Average		289.5			294.7			291.5			296.8
Average assuming dilution		290.2			295.8			292.3			297.8

ILLINOIS TOOL WORKS INC. and SUBSIDIARIES STATEMENT OF FINANCIAL POSITION (UNAUDITED)

In millions	December 31, 2025			December 31, 2024
Assets
Current Assets:
Cash and equivalents	$	851		$	948
Trade receivables		3,227			2,991
Inventories		1,659			1,605
Prepaid expenses and other current assets		463			312
Total current assets		6,200			5,856

Net plant and equipment		2,230			2,036
Goodwill		5,098			4,839
Intangible assets		591			592
Deferred income taxes		519			369
Other assets		1,510			1,375
	$	16,148		$	15,067

Liabilities and Stockholders' Equity
Current Liabilities:
Short-term debt	$	2,286		$	1,555
Accounts payable		522			519
Accrued expenses		1,636			1,576
Cash dividends payable		465			441
Income taxes payable		217			217
Total current liabilities		5,126			4,308

Noncurrent Liabilities:
Long-term debt		6,683			6,308
Deferred income taxes		154			119
Other liabilities		959			1,015
Total noncurrent liabilities		7,796			7,442

Stockholders' Equity:
Common stock		6			6
Additional paid-in-capital		1,771			1,669
Retained earnings		30,150			28,893
Common stock held in treasury		(26,875	)		(25,375	)
Accumulated other comprehensive income (loss)		(1,827	)		(1,877	)
Noncontrolling interest		1			1
Total stockholders' equity		3,226			3,317
	$	16,148		$	15,067

ILLINOIS TOOL WORKS INC. and SUBSIDIARIES SEGMENT DATA (UNAUDITED)

Three Months Ended December 31, 2025
Dollars in millions	Total Revenue			Operating Income			Operating Margin
Automotive OEM	$	827		$	180		21.8	%
Food Equipment		698			196		28.0	%
Test & Measurement and Electronics		789			221		28.1	%
Welding		462			153		33.3	%
Polymers & Fluids		457			132		29.0	%
Construction Products		431			126		29.0	%
Specialty Products		433			124		28.7	%
Intersegment		(4	)		—		—	%
Total Segments		4,093			1,132		27.7	%
Unallocated		—			(47	)	—	%
Total Company	$	4,093		$	1,085		26.5	%

Twelve Months Ended December 31, 2025
Dollars in millions	Total Revenue			Operating Income			Operating Margin
Automotive OEM	$	3,288		$	693		21.1	%
Food Equipment		2,699			753		27.9	%
Test & Measurement and Electronics		2,825			694		24.6	%
Welding		1,890			621		32.9	%
Polymers & Fluids		1,765			493		27.9	%
Construction Products		1,820			550		30.2	%
Specialty Products		1,775			553		31.2	%
Intersegment		(18	)		—		—	%
Total Segments		16,044			4,357		27.2	%
Unallocated		—			(141	)	—	%
Total Company	$	16,044		$	4,216		26.3	%

ILLINOIS TOOL WORKS INC. and SUBSIDIARIES SEGMENT DATA (UNAUDITED)

Q4 2025 vs. Q4 2024 Favorable/(Unfavorable)
Operating Revenue	Automotive OEM		Food Equipment		Test & Measurement and Electronics		Welding		Polymers & Fluids		Construction Products		Specialty Products		Total ITW
Organic	1.9	%	0.7	%	1.8	%	2.3	%	4.7	%	(3.5	)%	1.1	%	1.3	%
Acquisitions/ Divestitures	—	%	—	%	1.5	%	—	%	—	%	—	%	—	%	0.3	%
Translation	3.6	%	3.1	%	2.2	%	1.0	%	1.8	%	2.0	%	2.9	%	2.5	%
Operating Revenue	5.5	%	3.8	%	5.5	%	3.3	%	6.5	%	(1.5	)%	4.0	%	4.1	%

Q4 2025 vs. Q4 2024 Favorable/(Unfavorable)
Change in Operating Margin	Automotive OEM	Food Equipment	Test & Measurement and Electronics	Welding	Polymers & Fluids	Construction Products	Specialty Products	Total ITW
Operating Leverage	40 bps	10 bps	40 bps	40 bps	80 bps	(80) bps	30 bps	30 bps
Changes in Variable Margin & OH Costs	130 bps	70 bps	130 bps	200 bps	60 bps	190 bps	10 bps	10 bps
Total Organic	170 bps	80 bps	170 bps	240 bps	140 bps	110 bps	40 bps	40 bps
Acquisitions/ Divestitures	—	—	(60) bps	—	—	—	—	(10) bps
Restructuring/Other	30 bps	—	—	(30) bps	(30) bps	(10) bps	(10) bps	—
Total Operating Margin Change	200 bps	80 bps	110 bps	210 bps	110 bps	100 bps	30 bps	30 bps

Total Operating Margin % *	21.8%	28.0%	28.1%	33.3%	29.0%	29.0%	28.7%	26.5%

* Includes unfavorable operating margin impact of amortization expense from acquisition-related intangible assets	20 bps	10 bps	120 bps	—	130 bps	10 bps	20 bps	50 bps **
** Amortization expense from acquisition-related intangible assets had an unfavorable impact of ($0.05) on GAAP earnings per share for the fourth quarter of 2025.

ILLINOIS TOOL WORKS INC. and SUBSIDIARIES SEGMENT DATA (UNAUDITED)

Full Year 2025 vs Full Year 2024 Favorable/(Unfavorable)
Operating Revenue	Automotive OEM		Food Equipment		Test & Measurement and Electronics		Welding		Polymers & Fluids		Construction Products		Specialty Products		Total ITW
Organic	2.0	%	0.8	%	(1.4	)%	2.0	%	(0.2	)%	(5.1	)%	1.0	%	—	%
Acquisitions/ Divestitures	—	%	—	%	0.4	%	—	%	—	%	—	%	—	%	0.1	%
Translation	1.2	%	1.1	%	1.2	%	0.1	%	0.3	%	0.5	%	0.8	%	0.8	%
Operating Revenue	3.2	%	1.9	%	0.2	%	2.1	%	0.1	%	(4.6	)%	1.8	%	0.9	%

Full Year 2025 vs Full Year 2024 Favorable/(Unfavorable)
Change in Operating Margin	Automotive OEM	Food Equipment	Test & Measurement and Electronics	Welding	Polymers & Fluids	Construction Products	Specialty Products	Total ITW
Operating Leverage	40 bps	20 bps	(40) bps	30 bps	10 bps	(110) bps	20 bps	—
Changes in Variable Margin & OH Costs	110 bps	40 bps	60 bps	30 bps	50 bps	170 bps	70 bps	(50) bps
Total Organic	150 bps	60 bps	20 bps	60 bps	60 bps	60 bps	90 bps	(50) bps
Acquisitions/ Divestitures	—	—	(20) bps	—	—	—	—	—
Restructuring/Other	—	10 bps	(30) bps	—	(10) bps	30 bps	—	—
Total Operating Margin Change	150 bps	70 bps	(30) bps	60 bps	50 bps	90 bps	90 bps	(50) bps

Total Operating Margin % *	21.1%	27.9%	24.6%	32.9%	27.9%	30.2%	31.2%	26.3%

* Includes unfavorable operating margin impact of amortization expense from acquisition-related intangible assets	20 bps	10 bps	130 bps	10 bps	150 bps	10 bps	10 bps	50 bps **
** Amortization expense from acquisition-related intangible assets had an unfavorable impact of ($0.21) on GAAP earnings per share for 2025.

	ILLINOIS TOOL WORKS INC. and SUBSIDIARIES GAAP to NON-GAAP RECONCILIATIONS (UNAUDITED)

	AFTER-TAX RETURN ON AVERAGE INVESTED CAPITAL (UNAUDITED)

		Three Months Ended December 31,						Twelve Months Ended December 31,
Dollars in millions			2025			2024			2025			2024
Numerator:
Net income		$	790		$	750		$	3,066		$	3,488
Net discrete tax benefit related to the third quarter 2025			—			—			(27	)		—
Discrete tax benefit related to the first quarter 2025			—			—			(21	)		—
Net discrete tax benefit related to the third quarter 2024			—			—			—			(121	)
Interest expense, net of tax⁽¹⁾			57			51			222			215
Other (income) expense, net of tax⁽¹⁾			(10	)		(16	)		(32	)		(336	)
Operating income after taxes		$	837		$	785		$	3,208		$	3,246

Denominator:
Invested capital:
	Cash and equivalents	$	851		$	948		$	851		$	948
	Trade receivables		3,227			2,991			3,227			2,991
	Inventories		1,659			1,605			1,659			1,605
	Net plant and equipment		2,230			2,036			2,230			2,036
	Goodwill and intangible assets		5,689			5,431			5,689			5,431
	Accounts payable and accrued expenses		(2,158	)		(2,095	)		(2,158	)		(2,095	)
	Debt		(8,969	)		(7,863	)		(8,969	)		(7,863	)
	Other, net		697			264			697			264
Total net assets (stockholders' equity)			3,226			3,317			3,226			3,317
	Cash and equivalents		(851	)		(948	)		(851	)		(948	)
	Debt		8,969			7,863			8,969			7,863
Total invested capital		$	11,344		$	10,232		$	11,344		$	10,232

Average invested capital⁽²⁾		$	11,285		$	10,511		$	10,959		$	10,419

Net income to average invested capital⁽³⁾			28.0	%		28.6	%		28.0	%		33.5	%
After-tax return on average invested capital⁽³⁾			29.7	%		29.9	%		29.3	%		31.2	%

⁽¹⁾	Effective tax rate used for interest expense and other (income) expense for the three months ended December 31, 2025 and 2024 was 22.8% and 23.7%, respectively, and 23.9%, and 23.8% for the twelve months ended December 31, 2025 and 2024, respectively.

⁽²⁾	Average invested capital is calculated using the total invested capital balances at the start of the period and at the end of each quarter within each of the periods presented.

⁽³⁾	Returns for the three months ended December 31, 2025 and 2024 were converted to an annual rate by multiplying the calculated return by 4.

A reconciliation of the 2025 effective tax rate, excluding the third quarter 2025 net discrete tax benefit of $27 million, which included a favorable discrete tax benefit of $43 million related to the estimated U.S. federal tax liability for 2024, partially offset by a $16 million discrete tax expense related primarily to the resolution of a foreign tax audit, and excluding the first quarter 2025 discrete tax benefit of $21 million related to the reversal of a valuation allowance on net operating loss carryforwards, is as follows:

	Twelve Months Ended December 31, 2025
Dollars in millions	Income Taxes		Tax Rate
As reported	$	900	22.7	%
Net discrete tax benefit related to the third quarter 2025		27	0.7	%
Discrete tax benefit related to the first quarter 2025		21	0.5	%
As adjusted	$	948	23.9	%

A reconciliation of the 2024 effective tax rate excluding the third quarter 2024 net discrete tax benefit of $121 million, which included favorable discrete tax benefits of $107 million related to the utilization of capital loss carryforwards upon the sale of Wilsonart and $87 million related to a reorganization of the Company's intellectual property, partially offset by a $73 million discrete tax expense related to the remeasurement of unrecognized tax benefits associated with various intercompany transactions, is as follows:

	Twelve Months Ended December 31, 2024
Dollars in millions	Income Taxes		Tax Rate
As reported	$	934	21.1	%
Net discrete tax benefit related to the third quarter 2024		121	2.7	%
As adjusted	$	1,055	23.8	%

FREE CASH FLOW (UNAUDITED)

	Three Months Ended December 31,						Twelve Months Ended December 31,
Dollars in millions		2025			2024			2025			2024
Net cash provided by operating activities	$	963		$	1,114		$	3,126		$	3,281
Less: Additions to plant and equipment		(105	)		(118	)		(419	)		(437	)
Free cash flow	$	858		$	996		$	2,707		$	2,844

Net income	$	790		$	750		$	3,066		$	3,488

Net cash provided by operating activities to net income conversion rate		122	%		149	%		102	%		94	%
Free cash flow to net income conversion rate		109	%		133	%		88	%		82	%

	ADJUSTED NET INCOME PER SHARE - DILUTED (UNAUDITED)

		Twelve Months Ended December 31, 2024
As reported		$	11.71
Impact of sale of noncontrolling interest in Wilsonart⁽¹⁾			(1.26	)
Cumulative effect of change in inventory accounting method, net of tax⁽²⁾			(0.30	)
As adjusted		$	10.15

⁽¹⁾	Includes the $363 million pre-tax gain on the sale of noncontrolling interest in Wilsonart and related taxes.

⁽²⁾	Represents the cumulative effect of the change from the LIFO method of accounting to the FIFO method for certain U.S. businesses ($117 million pre-tax, or $88 million after-tax).

Investor Relations & Media Contact:
Erin Linnihan
Tel: 224.661.7431
investorrelations@itw.com | mediarelations@itw.com

Source: Illinois Tool Works Inc.

ITW Schedules Fourth Quarter and Full Year 2025 Earnings Webcast

Tue, 13 Jan 2026 17:13:00 -0500

GLENVIEW, Ill., Jan. 13, 2026 (GLOBE NEWSWIRE) -- Illinois Tool Works Inc. (NYSE: ITW) will issue its fourth quarter and full year 2025 results on Tuesday, February 3, 2026, at 7:00 a.m. CST. Following the release, ITW will hold its fourth quarter and full year 2025 earnings webcast at 9:00 a.m. CST.

To access the webcast for the event, please click on the following link:
ITW Q4 2025 Earnings Webcast

If you are a participant on the conference call, please dial 1-888-660-6652 (domestic) or 1-646-960-0554 (international) 10 minutes prior to the 9:00 a.m. CST start time. The passcode is “ITW.”

Following the webcast, presentation materials and an audio webcast replay will be available at http://investor.itw.com. An audio-only replay will be available from February 3 through February 10 by dialing 1-800-770-2030 (domestic) or 1-609-800-9909 (international). The passcode is 2756156.

About Illinois Tool Works

ITW (NYSE: ITW) is a Fortune 300 global multi-industrial manufacturing leader with revenue of $15.9 billion in 2024. The company’s seven industry-leading segments leverage the unique ITW Business Model to drive solid growth with best-in-class margins and returns in markets where highly innovative, customer-focused solutions are required. ITW’s approximately 44,000 dedicated colleagues around the world thrive in the company’s decentralized and entrepreneurial culture. www.itw.com

Investor Relations & Communications
Erin Linnihan
Tel: 224.661.7431
investorrelations@itw.com | mediarelations@itw.com

Source: Illinois Tool Works Inc.

ITW Board of Directors Declares Quarterly Dividend

Wed, 29 Oct 2025 10:39:00 -0400

GLENVIEW, Ill., Oct. 29, 2025 (GLOBE NEWSWIRE) -- The Board of Directors of Illinois Tool Works Inc. (NYSE: ITW) declared a dividend on the company's common stock of $1.61 per share for the fourth quarter of 2025. The dividend equates to $6.44 per share on a full-year basis. The dividend will be paid on January 9, 2026 to shareholders of record as of December 31, 2025.

About Illinois Tool Works
ITW (NYSE: ITW) is a Fortune 300 global multi-industry manufacturing leader with revenue of $15.9 billion in 2024. The company’s seven industry-leading segments leverage the unique ITW Business Model to drive solid growth with best-in-class margins and returns in markets where highly innovative, customer-focused solutions are required. ITW’s approximately 44,000 dedicated colleagues around the world thrive in the company’s decentralized and entrepreneurial culture. www.itw.com

Investor Relations & Media Contact:
Erin Linnihan
Tel: 224.661.7431
investorrelations@itw.com | mediarelations@itw.com

Source: Illinois Tool Works Inc.

ITW Declares Quarterly Dividend

Wed, 29 Oct 2025 09:35:00 -0400

ITW Reports Third Quarter 2025 Results

Fri, 24 Oct 2025 08:00:00 -0400

Revenue of $4.1 billion, an increase of 2% with organic growth of 1%
Record operating margin of 27.4%, an expansion of 90 bps as enterprise initiatives contributed 140 bps
GAAP EPS of $2.81, an increase of 6% excluding prior year divestiture gain
Operating cash flow of $1 billion; free cash flow of $0.9 billion, an increase of 15%
Narrowing full year GAAP EPS guidance range to $10.40 to $10.50 per share

GLENVIEW, Ill., Oct. 24, 2025 (GLOBE NEWSWIRE) -- Illinois Tool Works Inc. (NYSE: ITW) today reported its third quarter 2025 results.

"The ITW team concluded the third quarter with solid operational and financial execution, delivering EPS of $2.81, which grew six percent year-over-year excluding the divestiture gain, alongside record operating margin of 27.4 percent, and a 15 percent increase in free cash flow. This outcome underscores the fundamental strength of the ITW Business Model, the inherent resilience of our diversified portfolio, and the high-quality execution demonstrated by our colleagues worldwide," said Christopher A. O’Herlihy, President and Chief Executive Officer.

"We are very pleased with the significant strategic progress made throughout the year, especially how our focus on excellence in Customer-Back Innovation is enabling consistent above-market organic growth. As we head into the final quarter, we are narrowing our full year EPS guidance range, and remain committed to delivering high-quality, differentiated performance in any economic environment."

Third Quarter 2025 Results
Third quarter revenue of $4.1 billion increased by two percent as organic revenue grew one percent. Foreign currency translation impact increased revenue by two percent and product line simplification reduced revenue by one percent.

GAAP EPS of $2.81 increased six percent excluding a divestiture gain of $1.26 in the prior year quarter. Operating income of $1.1 billion increased six percent. Operating margin improved 90 basis points to 27.4 percent as enterprise initiatives contributed 140 basis points, and six of seven segments expanded margins. Operating cash flow was $1.0 billion, and free cash flow increased 15 percent to $904 million with a conversion rate of 110 percent to net income. During the quarter, the company repurchased $375 million of its own shares and raised its dividend seven percent, bringing the annualized payout to $6.44 per share. This increase marks the 62^nd consecutive year of dividend increases. The effective tax rate for the quarter was 21.8 percent.

2025 Guidance

ITW is narrowing its full year 2025 GAAP EPS guidance range to $10.40 to $10.50. The company is projecting overall revenue growth of one to three percent, which incorporates organic growth of flat to two percent. This outlook accounts for the current demand environment, adjusted for ongoing pricing and supply chain actions intended to effectively offset tariff cost impacts and for current foreign exchange rates. Operating margin is projected to be in the range of 26 to 27 percent with a projected contribution of 125 basis points or more from enterprise initiatives. Free cash flow is expected to be approximately 100 percent of net income, and the company plans to repurchase approximately $1.5 billion of its own shares. The projected effective tax rate is approximately 23 percent.

Non-GAAP Measures
This earnings release contains certain non-GAAP financial measures. A reconciliation of these measures to the most directly comparable GAAP measures is included in the attached supplemental reconciliation schedule. The estimated guidance of free cash flow to net income conversion rate is based on assumptions that are difficult to predict, and estimated guidance for the most directly comparable GAAP measure and a reconciliation of this forward-looking estimate to its most directly comparable GAAP estimate have been omitted due to the unreasonable efforts required in connection with such a reconciliation and the lack of reliable forward-looking cash flow information. For the same reasons, the company is unable to address the potential significance of the unavailable information, which could be material to future results.

Forward-looking Statements
This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements regarding the potential impact of tariffs, the Company’s projected pricing actions, the impact of enterprise initiatives, future financial and operating performance, free cash flow and free cash flow to net income conversion rate, organic and total revenue, operating and incremental margin, price/cost impact, statements regarding diluted earnings per share, after-tax return on invested capital, effective tax rates, exchange rates, expected timing and amount of share repurchases, end market economic and regulatory conditions, and the Company’s 2025 guidance. These statements are subject to certain risks, uncertainties, assumptions, and other factors, which could cause actual results to differ materially from those anticipated. Important risks that could cause actual results to differ materially from the Company’s expectations include those that are detailed in ITW’s Form 10-K for 2024 and subsequent reports filed with the SEC.

About Illinois Tool Works

ILLINOIS TOOL WORKS INC. and SUBSIDIARIES STATEMENT OF INCOME (UNAUDITED)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
In millions except per share amounts		2025			2024			2025			2024
Operating Revenue	$	4,059		$	3,966		$	11,951		$	11,966
Cost of revenue		2,253			2,230			6,685			6,637
Selling, administrative, and research and development expenses		676			658			2,075			2,020
Amortization and impairment of intangible assets		18			26			60			76
Operating Income		1,112			1,052			3,131			3,233
Interest expense		(75	)		(69	)		(217	)		(215	)
Other income (expense)		12			379			28			421
Income Before Taxes		1,049			1,362			2,942			3,439
Income Taxes		228			202			666			701
Net Income	$	821		$	1,160		$	2,276		$	2,738

Net Income Per Share:
Basic	$	2.82		$	3.92		$	7.79		$	9.20
Diluted	$	2.81		$	3.91		$	7.77		$	9.17

Cash Dividends Per Share:
Paid	$	1.50		$	1.40		$	4.50		$	4.20
Declared	$	1.61		$	1.50		$	4.61		$	4.30

Shares of Common Stock Outstanding During the Period:
Average		290.8			296.1			292.2			297.6
Average assuming dilution		291.7			297.0			293.0			298.5

ILLINOIS TOOL WORKS INC. and SUBSIDIARIES STATEMENT OF FINANCIAL POSITION (UNAUDITED)

In millions	September 30, 2025			December 31, 2024
Assets
Current Assets:
Cash and equivalents	$	924		$	948
Trade receivables		3,255			2,991
Inventories		1,725			1,605
Prepaid expenses and other current assets		416			312
Total current assets		6,320			5,856

Net plant and equipment		2,203			2,036
Goodwill		5,028			4,839
Intangible assets		540			592
Deferred income taxes		573			369
Other assets		1,471			1,375
	$	16,135		$	15,067

Liabilities and Stockholders' Equity
Current Liabilities:
Short-term debt	$	1,267		$	1,555
Accounts payable		608			519
Accrued expenses		1,567			1,576
Cash dividends payable		467			441
Income taxes payable		223			217
Total current liabilities		4,132			4,308

Noncurrent Liabilities:
Long-term debt		7,675			6,308
Deferred income taxes		149			119
Other liabilities		970			1,015
Total noncurrent liabilities		8,794			7,442

Stockholders' Equity:
Common stock		6			6
Additional paid-in-capital		1,751			1,669
Retained earnings		29,825			28,893
Common stock held in treasury		(26,498	)		(25,375	)
Accumulated other comprehensive income (loss)		(1,876	)		(1,877	)
Noncontrolling interest		1			1
Total stockholders' equity		3,209			3,317
	$	16,135		$	15,067

ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
SEGMENT DATA (UNAUDITED)

Three Months Ended September 30, 2025
Dollars in millions	Total Revenue			Operating Income			Operating Margin
Automotive OEM	$	830		$	182		21.8	%
Food Equipment		694			202		29.2	%
Test & Measurement and Electronics		698			177		25.4	%
Welding		477			156		32.6	%
Polymers & Fluids		441			126		28.5	%
Construction Products		473			149		31.6	%
Specialty Products		452			146		32.3	%
Intersegment		(6	)		—		—	%
Total Segments		4,059			1,138		28.0	%
Unallocated		—			(26	)	—	%
Total Company	$	4,059		$	1,112		27.4	%

Nine Months Ended September 30, 2025
Dollars in millions	Total Revenue			Operating Income			Operating Margin
Automotive OEM	$	2,461		$	513		20.8	%
Food Equipment		2,001			557		27.8	%
Test & Measurement and Electronics		2,036			473		23.2	%
Welding		1,428			468		32.8	%
Polymers & Fluids		1,308			361		27.6	%
Construction Products		1,389			424		30.6	%
Specialty Products		1,342			429		32.0	%
Intersegment		(14	)		—		—	%
Total Segments		11,951			3,225		27.0	%
Unallocated		—			(94	)	—	%
Total Company	$	11,951		$	3,131		26.2	%

ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
SEGMENT DATA (UNAUDITED)

Q3 2025 vs. Q3 2024 Favorable/(Unfavorable)
Operating Revenue	Automotive OEM		Food Equipment		Test & Measurement and Electronics		Welding		Polymers & Fluids		Construction Products		Specialty Products		Total ITW
Organic	5.0	%	0.7	%	(1.4	)%	2.8	%	(3.1	)%	(2.3	)%	1.6	%	0.7	%
Acquisitions/ Divestitures	—	%	—	%	—	%	—	%	—	%	—	%	—	%	—	%
Translation	2.3	%	1.8	%	1.7	%	0.5	%	1.3	%	0.9	%	1.7	%	1.6	%
Operating Revenue	7.3	%	2.5	%	0.3	%	3.3	%	(1.8	)%	(1.4	)%	3.3	%	2.3	%

Q3 2025 vs. Q3 2024 Favorable/(Unfavorable)
Change in Operating Margin	Automotive OEM	Food Equipment	Test & Measurement and Electronics	Welding	Polymers & Fluids	Construction Products	Specialty Products	Total ITW
Operating Leverage	90 bps	10 bps	(30) bps	50 bps	(60) bps	(40) bps	20 bps	20 bps
Changes in Variable Margin & OH Costs	170 bps	50 bps	60 bps	10 bps	120 bps	190 bps	100 bps	80 bps
Total Organic	260 bps	60 bps	30 bps	60 bps	60 bps	150 bps	120 bps	100 bps
Acquisitions/ Divestitures	—	—	—	—	—	—	—	—
Restructuring/Other	(20) bps	20 bps	(60) bps	(30) bps	—	(10) bps	—	(10) bps
Total Operating Margin Change	240 bps	80 bps	(30) bps	30 bps	60 bps	140 bps	120 bps	90 bps

Total Operating Margin % *	21.8%	29.2%	25.4%	32.6%	28.5%	31.6%	32.3%	27.4%

* Includes unfavorable operating margin impact of amortization expense from acquisition-related intangible assets	30 bps	—	130 bps	10 bps	140 bps	10 bps	20 bps	50 bps **
** Amortization expense from acquisition-related intangible assets had an unfavorable impact of ($0.05) on GAAP earnings per share for the third quarter of 2025.

ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
SEGMENT DATA (UNAUDITED)

YTD 2025 vs. YTD 2024 Favorable/(Unfavorable)
Operating Revenue	Automotive OEM		Food Equipment		Test & Measurement and Electronics		Welding		Polymers & Fluids		Construction Products		Specialty Products		Total ITW
Organic	2.0	%	0.9	%	(2.5	)%	1.9	%	(1.8	)%	(5.6	)%	0.9	%	(0.4	)%
Acquisitions/ Divestitures	—	%	—	%	—	%	—	%	—	%	—	%	—	%	—	%
Translation	0.4	%	0.4	%	0.9	%	(0.2	)%	(0.2	)%	—	%	0.2	%	0.3	%
Operating Revenue	2.4	%	1.3	%	(1.6	)%	1.7	%	(2.0	)%	(5.6	)%	1.1	%	(0.1	)%

YTD 2025 vs. YTD 2024 Favorable/(Unfavorable)
Change in Operating Margin	Automotive OEM	Food Equipment	Test & Measurement and Electronics	Welding	Polymers & Fluids	Construction Products	Specialty Products	Total ITW
Operating Leverage	40 bps	20 bps	(80) bps	30 bps	(30) bps	(110) bps	20 bps	(10) bps
Changes in Variable Margin & OH Costs	110 bps	30 bps	30 bps	(20) bps	60 bps	160 bps	90 bps	(60) bps
Total Organic	150 bps	50 bps	(50) bps	10 bps	30 bps	50 bps	110 bps	(70) bps
Acquisitions/ Divestitures	—	—	(10) bps	—	—	—	—	—
Restructuring/Other	(20) bps	10 bps	(40) bps	10 bps	—	50 bps	—	(10) bps
Total Operating Margin Change	130 bps	60 bps	(100) bps	20 bps	30 bps	100 bps	110 bps	(80) bps

Total Operating Margin % *	20.8%	27.8%	23.2%	32.8%	27.6%	30.6%	32.0%	26.2%

* Includes unfavorable operating margin impact of amortization expense from acquisition-related intangible assets	30 bps	20 bps	140 bps	—	150 bps	10 bps	10 bps	50 bps **
** Amortization expense from acquisition-related intangible assets had an unfavorable impact of ($0.16) on GAAP earnings per share for the first nine months of 2025.

ILLINOIS TOOL WORKS INC. and SUBSIDIARIES GAAP to NON-GAAP RECONCILIATIONS (UNAUDITED)

AFTER-TAX RETURN ON AVERAGE INVESTED CAPITAL (UNAUDITED)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
Dollars in millions		2025			2024			2025			2024
Numerator:
Net Income	$	821		$	1,160		$	2,276		$	2,738
Net discrete tax benefit related to the third quarter 2025		(27	)		—			(27	)		—
Discrete tax benefit related to the first quarter 2025		—			—			(21	)		—
Net discrete tax benefit related to the third quarter 2024		—			(121	)		—			(121	)
Interest expense, net of tax⁽¹⁾		57			53			165			164
Other (income) expense, net of tax⁽¹⁾		(10	)		(288	)		(22	)		(320	)
Operating income after taxes	$	841		$	804		$	2,371		$	2,461

Denominator:
Invested capital:
Cash and equivalents	$	924		$	947		$	924		$	947
Trade receivables		3,255			3,226			3,255			3,226
Inventories		1,725			1,817			1,725			1,817
Net plant and equipment		2,203			2,071			2,203			2,071
Goodwill and intangible assets		5,568			5,597			5,568			5,597
Accounts payable and accrued expenses		(2,175	)		(2,211	)		(2,175	)		(2,211	)
Debt		(8,942	)		(8,346	)		(8,942	)		(8,346	)
Other, net		651			291			651			291
Total net assets (stockholders' equity)		3,209			3,392			3,209			3,392
Cash and equivalents		(924	)		(947	)		(924	)		(947	)
Debt		8,942			8,346			8,942			8,346
Total invested capital	$	11,227		$	10,791		$	11,227		$	10,791

Average invested capital⁽²⁾	$	11,293		$	10,682		$	10,863		$	10,466

Net income to average invested capital⁽³⁾		29.1	%		43.4	%		27.9	%		34.9	%
After-tax return on average invested capital⁽³⁾		29.8	%		30.0	%		29.1	%		31.3	%

⁽¹⁾ Effective tax rate used for interest expense and other (income) expense for the three months ended September 30, 2025 and 2024 was 24.3% and 23.7%, respectively. Effective tax rate used for interest expense and other (income) expense for the nine months ended September 30, 2025 and 2024 was 24.3% and 23.9%, respectively.

⁽²⁾ Average invested capital is calculated using the total invested capital balances at the start of the period and at the end of each quarter within each of the periods presented.

⁽³⁾ Returns for the three months ended September 30, 2025 and 2024 were converted to an annual rate by multiplying the calculated return by 4. Returns for the nine months ended September 30, 2025 and 2024 were converted to an annual rate by dividing the calculated return by 3 and multiplying it by 4.

A reconciliation of the tax rate for the three and nine month periods ended September 30, 2025, excluding the third quarter 2025 net discrete tax benefit of $27 million, which included a favorable discrete tax benefit of $43 million related to the estimated U.S. federal tax liability for 2024, partially offset by a $16 million discrete tax expense related primarily to the resolution of a foreign tax audit, and excluding the first quarter 2025 discrete tax benefit of $21 million related to the reversal of a valuation allowance on net operating loss carryforwards, is as follows:

	Three Months Ended				Nine Months Ended
	September 30, 2025				September 30, 2025
Dollars in millions	Income Taxes		Tax Rate		Income Taxes		Tax Rate
As reported	$	228	21.8	%	$	666	22.7	%
Net Discrete tax benefit related to the third quarter 2025		27	2.5	%		27	0.9	%
Discrete tax benefit related to the first quarter 2025		—	—	%		21	0.7	%
As adjusted	$	255	24.3	%	$	714	24.3	%

After-tax ROIC for the nine months ended September 30, 2024 included 110 basis points of favorable impact related to the cumulative effect of the change from the LIFO method of accounting to the FIFO method for certain U.S. businesses ($117 million pre-tax, or $88 million after-tax) in the first quarter of 2024.

A reconciliation of the tax rate for the three and nine month periods ended September 30, 2024, excluding the third quarter 2024 net discrete tax benefit of $121 million, which included favorable discrete tax benefits of $107 million related to the utilization of capital loss carryforwards upon the sale of Wilsonart and $87 million related to a reorganization of the Company's intellectual property, partially offset by a $73 million discrete tax expense related to the remeasurement of unrecognized tax benefits associated with various intercompany transactions, is as follows:

	Three Months Ended				Nine Months Ended
	September 30, 2024				September 30, 2024
Dollars in millions	Income Taxes		Tax Rate		Income Taxes		Tax Rate
As reported	$	202	14.9	%	$	701	20.4	%
Net discrete tax benefit related to the third quarter 2024		121	8.8	%		121	3.5	%
As adjusted	$	323	23.7	%	$	822	23.9	%

AFTER-TAX RETURN ON AVERAGE INVESTED CAPITAL (UNAUDITED)

	Twelve Months Ended
Dollars in millions	December 31, 2024
Numerator:
Net income	$	3,488
Net discrete tax benefit related to the third quarter 2024		(121	)
Interest expense, net of tax⁽¹⁾		215
Other (income) expense, net of tax⁽¹⁾		(336	)
Operating income after taxes	$	3,246

Denominator:
Invested capital:
Cash and equivalents	$	948
Trade receivables		2,991
Inventories		1,605
Net plant and equipment		2,036
Goodwill and intangible assets		5,431
Accounts payable and accrued expenses		(2,095	)
Debt		(7,863	)
Other, net		264
Total net assets (stockholders' equity)		3,317
Cash and equivalents		(948	)
Debt		7,863
Total invested capital	$	10,232

Average invested capital⁽²⁾	$	10,419

Net income to average invested capital		33.5	%
After-tax return on average invested capital		31.2	%

⁽¹⁾ Effective tax rate used for interest expense and other (income) expense for the year ended December 31, 2024 was 23.8%.

⁽²⁾ Average invested capital is calculated using the total invested capital balances at the start of the period and at the end of each quarter within the period presented.

	Twelve Months Ended
	December 31, 2024
Dollars in millions	Income Taxes		Tax Rate
As reported	$	934	21.1	%
Net discrete tax benefit related to the third quarter 2024		121	2.7	%
As adjusted	$	1,055	23.8	%

FREE CASH FLOW (UNAUDITED)

	Three Months Ended						Nine Months Ended						Twelve Months Ended
	September 30,						September 30,						December 31,
Dollars in millions		2025			2024			2025			2024			2024
Net cash provided by operating activities	$	1,021		$	891		$	2,163		$	2,167		$	3,281
Less: Additions to plant and equipment		(117	)		(108	)		(314	)		(319	)		(437	)
Free cash flow	$	904		$	783		$	1,849		$	1,848		$	2,844

Net income	$	821		$	1,160		$	2,276		$	2,738		$	3,488

Net cash provided by operating activities to net income conversion rate		124	%		77	%		95	%		79	%		94	%
Free cash flow to net income conversion rate		110	%		68	%⁽¹⁾		81	%		67	%		82	%⁽²⁾

⁽¹⁾ Excluding the $363 million pre-tax gain on the sale of noncontrolling interest in Wilsonart and related taxes, and a discrete tax benefit of $87 million related to a reorganization of the Company's intellectual property, partially offset by a $73 million discrete tax expense related to the remeasurement of unrecognized tax benefits associated with various intercompany transactions, the free cash flow to net income conversion rate would have been 102% for the three months ended September 30, 2024.

⁽²⁾ Excluding the impact of the cumulative effect of the change from the LIFO method of accounting to the FIFO method for certain U.S. businesses ($117 million pre-tax, or $88 million after-tax), the $363 million pre-tax gain on the sale of noncontrolling interest in Wilsonart and related taxes, and a discrete tax benefit of $87 million related to a reorganization of the Company's intellectual property, partially offset by a $73 million discrete tax expense related to the remeasurement of unrecognized tax benefits associated with various intercompany transactions, the free cash flow to net income conversion rate would have been 94% for the twelve months ended December 31, 2024.

ADJUSTED NET INCOME PER SHARE - DILUTED (UNAUDITED)

	Three Months Ended			Twelve Months Ended
	September 30, 2024			December 31, 2024
As reported	$	3.91		$	11.71
Cumulative effect of change in inventory accounting method, net of tax⁽¹⁾		—			(0.30	)
Impact of sale of noncontrolling interest in Wilsonart⁽²⁾		(1.26	)		(1.26	)
As adjusted	$	2.65		$	10.15

⁽¹⁾ Represents the cumulative effect of the change from the LIFO method of accounting to the FIFO method for certain U.S. businesses in the first quarter of 2024 ($117 million pre-tax, or $88 million after-tax).

⁽²⁾ Includes the $363 million pre-tax gain on the sale of noncontrolling interest in Wilsonart and related taxes in the third quarter of 2024.

Investor Relations & Media Contact:
Erin Linnihan
Tel: 224.661.7431
investorrelations@itw.com | mediarelations@itw.com

Source: Illinois Tool Works Inc.

ITW Schedules Third Quarter 2025 Earnings Webcast

Fri, 10 Oct 2025 08:27:00 -0400

GLENVIEW, Ill., Oct. 10, 2025 (GLOBE NEWSWIRE) -- Illinois Tool Works Inc. (NYSE: ITW) will issue its third quarter 2025 results on Friday, October 24, 2025, at 7:00 a.m. CDT. Following the release, ITW will hold its third quarter 2025 earnings webcast at 9:00 a.m. CDT.

To access the webcast for the event, please click on the following link:
ITW Q3 2025 Earnings Webcast

If you are a participant on the conference call, please dial 1-888-660-6652 (domestic) or 1-646-960-0554 (international) 10 minutes prior to the 9:00 a.m. CDT start time. The passcode is “ITW.”

Following the webcast, presentation materials and an audio webcast replay will be available at http://investor.itw.com. An audio-only replay will be available from October 24 through October 31 by dialing 1-800-770-2030 (domestic) or 1-609-800-9909 (international). The passcode is 2756156.

About Illinois Tool Works
ITW (NYSE: ITW) is a Fortune 300 global multi-industrial manufacturing leader with revenue of $15.9 billion in 2024. The company’s seven industry-leading segments leverage the unique ITW Business Model to drive solid growth with best-in-class margins and returns in markets where highly innovative, customer-focused solutions are required. ITW’s approximately 44,000 dedicated colleagues around the world thrive in the company’s decentralized and entrepreneurial culture. www.itw.com

Investor Relations & Communications
Erin Linnihan
Tel: 224.661.7431
investorrelations@itw.com | mediarelations@itw.com

Source: Illinois Tool Works Inc.

ITW Board of Directors Approves Dividend Rate Increase

Fri, 01 Aug 2025 11:30:00 -0400

GLENVIEW, Ill., Aug. 01, 2025 (GLOBE NEWSWIRE) -- The Board of Directors of Illinois Tool Works Inc. (NYSE: ITW) authorized a seven percent increase to the dividend payout to shareholders, representing a quarterly increase of $0.11 per share – or $0.44 per share annually – versus the current dividend rate. The Board also declared a dividend on the company's common stock of $1.61 per share for the third quarter of 2025. The dividend equates to $6.44 per share on a full-year basis. The dividend will be paid on October 10, 2025 to shareholders of record as of September 30, 2025.

Investor Relations & Media Contact:
Erin Linnihan
Tel: 224.661.7431
investorrelations@itw.com | mediarelations@itw.com

Source: Illinois Tool Works Inc.