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Illinois Tool Works

ITW · Industrials

Last earnings Oct 27, 2026

Key results

Revenuequarter

$4.1 billion

Revenue of $4.1 billion, an increase of 2% with organic growth of 1%

SEC original ↗Illinois Tool Works — Earnings release (8-K exhibit)EX-99Oct 24, 2025

Record operating marginquarter

27.4%

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

SEC original ↗Illinois Tool Works — Earnings release (8-K exhibit)EX-99Oct 24, 2025

EPSquarter

$2.81

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

SEC original ↗Illinois Tool Works — Earnings release (8-K exhibit)EX-99Oct 24, 2025

Operating marginquarter

27.4 percent

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.

SEC original ↗Illinois Tool Works — Earnings release (8-K exhibit)EX-99Oct 24, 2025

Free cash flowquarter

15 percent

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.

SEC original ↗Illinois Tool Works — Earnings release (8-K exhibit)EX-99Oct 24, 2025

Third Quarter 2025 Results Third quarter revenue of $4.1 billion increased by two percent as organic revenue grew one percent.

SEC original ↗Illinois Tool Works — Earnings release (8-K exhibit)EX-99Oct 24, 2025

Operating incomequarter

$1.1 billion

Operating income of $1.1 billion increased six percent.

SEC original ↗Illinois Tool Works — Earnings release (8-K exhibit)EX-99Oct 24, 2025

Operating margin improved 90 basis points to 27.4 percent as enterprise initiatives contributed 140 basis points, and six of seven segments expanded margins.

SEC original ↗Illinois Tool Works — Earnings release (8-K exhibit)EX-99Oct 24, 2025

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.

SEC original ↗Illinois Tool Works — Earnings release (8-K exhibit)EX-99Oct 24, 2025

About Illinois Tool Works ITW (NYSE ITW) is a Fortune 300 global multi-industrial manufacturing leader with revenue of $15.9 billion in 2024.

SEC original ↗Illinois Tool Works — Earnings release (8-K exhibit)EX-99Oct 24, 2025

AI analysis

Q3 2025 · reported Oct 24, 2025

Based on: Earnings release + parent 8-K + 10-Q — transcript not held

Revenue · Q3 2025
$4.1B
EX-99 · Oct 24, 2025
EPS · Q3 2025
$2.81
EX-99 · Oct 24, 2025
Operating income · Q3 2025
$1.1B
EX-99 · Oct 24, 2025
Record operating margin · Q3 2025
27.4%
EX-99 · Oct 24, 2025

The quarter in charts

Guidance ladder — revenue

Delivered vs the company's guided range

EX-99 · Oct 24, 2025 Guide as stated by the company; range and midpoint computed from the stated figure.

Headline figures

MetricQ3 2025Prior qtrYear ago
Revenue$4.1 billion——
Record operating margin27.4%——
EPS$2.81——
Operating margin27.4 percent——
Free cash flow15 percent——
Operating income$1.1 billion——

EX-99 · Oct 24, 2025

Guidance · company-stated

Direction: Raised

Revenue$4.1 billion

“htm EX-99.1 Document Exhibit 99.1 ITW Reports Third Quarter 2025 Results 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, IL.”

Midpoint vs latest-quarter revenue0.0%computed from stated figures

Classified from the release's primary full-year outlook statement.

Next earningsNo verified date on fileNo date is estimated or imported

Margin

Record operating margin27.4%
Operating margin27.4 percent

Cash flow & capex

Free cash flow15 percent

Capital allocation

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.

What changed vs last quarter

  • Guide midpoint vs latest-quarter revenue 0.0% computed from stated figures
General educational research only — not investment advice.Every figure is as stated in the held documents; values marked “computed from stated figures” are arithmetic on those stated figures. Guidance shown is the company’s own stated guidance. No price targets, no recommendations, no consensus estimates.

Event summary

Third Quarter 2025 Results Third quarter revenue of $4.1 billion increased by two percent as organic revenue grew one percent

Based on: Earnings release + parent 8-K + 10-Q — transcript not held

Guidance & outlook

Direction: Raised

Revenue: “htm EX-99.1 Document Exhibit 99.1 ITW Reports Third Quarter 2025 Results 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, IL.”

Revenue — Raised (“increase”)
“htm EX-99.1 Document Exhibit 99.1 ITW Reports Third Quarter 2025 Results 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, IL.”

Classified from the release's primary full-year outlook statement.

Capital allocation

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.

SEC original ↗Illinois Tool Works — Earnings release (8-K exhibit)EX-99Oct 24, 2025

This increase marks the 62 nd consecutive year of dividend increases.

SEC original ↗Illinois Tool Works — Earnings release (8-K exhibit)EX-99Oct 24, 2025

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.

SEC original ↗Illinois Tool Works — Earnings release (8-K exhibit)EX-99Oct 24, 2025

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.

SEC original ↗Illinois Tool Works — Earnings release (8-K exhibit)EX-99Oct 24, 2025

12 (9) Debt Total debt as of September 30, 2026 and December 31, 2025 was as follows: In millions September 30, 2026 December 31, 2025 Short-term debt $ 2,219 $ 2,286 Long-term debt 7,153 6,683 Total debt $ 9,372 $ 8,969 Short-term debt included commercial paper of $ 369 million and $ 1.3 billion as of September 30, 2026 and December 31, 2025, respectively.

SEC original ↗Illinois Tool Works — 10-Q Quarterly report10-QOct 28, 2026

Short-term debt also included $ 1.0 billion and $ 999 million as of September 30, 2026 and December 31, 2025, respectively, related to the 2.65 % notes due November 15, 2026, which were reclassified from Long-term debt to Short-term debt in the fourth quarter of 2025.

SEC original ↗Illinois Tool Works — 10-Q Quarterly report10-QOct 28, 2026

Strategy & priorities

htm EX-99.1 Document Exhibit 99.1 ITW Reports Third Quarter 2025 Results 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

SEC original ↗Illinois Tool Works — Earnings release (8-K exhibit)EX-99Oct 24, 2025

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.

SEC original ↗Illinois Tool Works — Earnings release (8-K exhibit)EX-99Oct 24, 2025

Operating margin improved 90 basis points to 27.4 percent as enterprise initiatives contributed 140 basis points, and six of seven segments expanded margins.

SEC original ↗Illinois Tool Works — Earnings release (8-K exhibit)EX-99Oct 24, 2025

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.

SEC original ↗Illinois Tool Works — Earnings release (8-K exhibit)EX-99Oct 24, 2025

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.

SEC original ↗Illinois Tool Works — Earnings release (8-K exhibit)EX-99Oct 24, 2025

Risks & headwinds

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.

SEC original ↗Illinois Tool Works — Earnings release (8-K exhibit)EX-99Oct 24, 2025

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.

SEC original ↗Illinois Tool Works — Earnings release (8-K exhibit)EX-99Oct 24, 2025

These statements are subject to certain risks, uncertainties, assumptions, and other factors, which could cause actual results to differ materially from those anticipated.

SEC original ↗Illinois Tool Works — Earnings release (8-K exhibit)EX-99Oct 24, 2025

Legal Proceedings 39 Item 1A .

SEC original ↗Illinois Tool Works — 10-Q Quarterly report10-QOct 28, 2026

The Company intends to petition the United States Tax Court to challenge the NOD.

SEC original ↗Illinois Tool Works — 10-Q Quarterly report10-QOct 28, 2026

ITW divisions partner with their key customers to create unique solutions that solve difficult technical challenges and improve business performance.

SEC original ↗Illinois Tool Works — 10-Q Quarterly report10-QOct 28, 2026

Competitors

Competitors & peers

Same GICS sector — classification peers, not declared competitors

RELX (RELX) IndustrialsThomson Reuters (TRI) IndustrialsFedEx (FDX) IndustrialsVertiv (VRT) IndustrialsCanadian National Railway (CNI) IndustrialsAerCap Holdings (AER) IndustrialsCanadian Pacific Kansas City (CP) IndustrialsGeneral Dynamics (GD) Industrials
Documents

Filings

61 documents

Earnings releases

21 documents

Presentations

0 documents

No presentations for Illinois Tool Works are held in this edition of the library.

Transcripts

0 documents

No transcripts for Illinois Tool Works are held in this edition of the library.

Mentioned by

2 companies

Other tracked companies whose held documents mention Illinois Tool Works by name or ticker. A mention is counted once per document, from the document text the library holds.

See also the earnings calendar for every tracked company’s next earnings date.