ILLINOIS TOOL WORKS INCITW
ILLINOIS TOOL WORKS INC Financial Overview 2021–2025
Updated Jul 10, 2026Illinois Tool Works (ITW) managed to defend a massive 26.3% operating margin in FY2025, even as global industrial demand wavered and its top-line revenue faced currency headwinds. This highlights the central investment thesis for the diversified manufacturer: ITW’s decentralized "80/20" business model systematically prioritizes high-margin profitability and heavy capital returns over low-yield revenue volume, effectively insulating its bottom line from macroeconomic cyclicality.
This structural focus on operational leverage is evident over the long term, as the company's operating margin expanded from 24.1% in FY2021 to a robust 26.3% in FY2025. While operating revenue saw a much flatter trajectory—growing from $14.5 billion in FY2021 to plateau near $15.9 billion by FY2024 before dipping slightly in FY2025—underlying profitability consistently surged. This margin expansion was driven by aggressive price/cost management and targeted product line simplification, with standout segments like Welding routinely posting operating margins above 30.0%.
By shedding lower-margin operations—such as its non-controlling stake in Wilsonart for a $363 million pre-tax gain in FY2024—ITW generates excess liquidity to fund aggressive shareholder returns, including $1.5 billion in stock buybacks during FY2025. The market has placed a premium on this cash-generating consistency; at the close of FY2025, the $71.1 billion company traded at 23.5x earnings with a stock price of $246.30.
Recent Developments (Q4 2025 and Q1 2026)
ITW kicked off Q1 2026 by posting a 4.6% increase in operating revenue to $4.02 billion. Operating income grew 7.2% to $1.02 billion, pushing diluted EPS up 11.8% to $2.66. The Test & Measurement and Electronics segment posted a 9.6% revenue jump, while Automotive OEM defied industry auto build declines to expand margins by 170 basis points. Additionally, ITW secured a new $3.0 billion credit facility expiring in February 2031 and appointed Matteo C. Pigozzo as Chief Accounting Officer, effective July 1, 2026.
Bulls will point to the $528 million in Q1 2026 free cash flow supporting $375 million in quarterly stock buybacks. Conversely, bears may argue the stock is richly valued at 24.4x earnings as of May 7, 2026, leaving little room for error if employee-related expenses continue to climb.
What to watch: margin resilience in Automotive OEM amid volatile auto builds; organic growth momentum in the Test & Measurement and Electronics division.
Rev
$16.04B
FY2025
NI
$3.07B
FY2025
EPS
$10.52
FY2025
OCF
$3.13B
FY2025
Year-over-year comparison from 10-K annual reports
Data from SEC Company Facts
Recent SEC Filings
ILLINOIS TOOL WORKS INC 8-K Report, Executive Changes (May 22, 2026)
Illinois Tool Works Inc. (ITW) has announced a significant leadership transition within its accounting and finance department. Randall J. Scheuneman, the current Vice President & Chief Accounting Officer and Principal Accounting Officer, will retire effective March 1, 2027. He will step down from his current role on June 30, 2026, but will continue to serve as an advisor until his retirement, ensuring a smooth handover. Notably, Mr. Scheuneman's departure is amicable and not related to any disagreements regarding the company's financial reporting or operations. Matteo C. Pigozzo, a seasoned executive with 20 years of experience at ITW, will succeed Mr. Scheuneman as Vice President & Chief Accounting Officer and Principal Accounting Officer, effective July 1, 2026. Mr. Pigozzo has held various senior accounting and finance positions, most recently as Vice President & Corporate Controller. His appointment is part of the company's established succession planning and comes with no changes to his current compensation, indicating stability in the executive leadership team.
ILLINOIS TOOL WORKS INC 8-K Report, Shareholder Vote Results (May 12, 2026)
Illinois Tool Works Inc. (ITW) filed an 8-K on May 12, 2026, detailing the results of its 2026 Annual Meeting of Stockholders held on May 8, 2026. The primary outcomes indicate strong shareholder support for the company's leadership and strategic direction. All 13 director nominees were overwhelmingly elected, demonstrating confidence in the current board's governance. Furthermore, shareholders provided advisory approval for the executive compensation packages. The meeting also saw the ratification of Deloitte & Touche LLP as the company's independent registered public accounting firm for 2026, ensuring continued oversight of financial reporting. Notably, a non-binding stockholder proposal aimed at requiring directors to achieve a majority vote did not pass, reflecting a preference by the majority of shareholders for the existing directorial election process.
ILLINOIS TOOL WORKS INC 8-K Report, Financial Results (Apr 30, 2026)
Illinois Tool Works Inc. (ITW) filed an 8-K on April 30, 2026, announcing its first quarter 2026 financial results. The filing primarily furnishes a press release containing these results, but importantly details the Company's use and definitions of key non-GAAP financial measures that are crucial for investor understanding. These include Free Cash Flow and After-tax Return on Invested Capital (After-tax ROIC), both of which ITW believes offer valuable insights into operational performance and capital allocation effectiveness. Investors should pay close attention to how ITW defines and calculates these non-GAAP metrics, as they differ from standard GAAP measures and may vary from those used by other companies. The Company emphasizes that Free Cash Flow is a measure of cash available for dividends, share repurchases, and debt repayment, while After-tax ROIC assesses the efficiency of capital deployment in generating profits. Reconciliations for these non-GAAP figures to their closest GAAP counterparts are provided within the furnished press release, which is essential for a comprehensive financial analysis.
ILLINOIS TOOL WORKS INC 8-K Report, Material Agreement (Feb 23, 2026)
Illinois Tool Works Inc. (ITW) has announced the execution of a new $3.0 billion, five-year credit agreement, maturing on February 20, 2031. This new facility replaces the Company's existing revolving credit line, which was set to expire in October 2027. Importantly, as of the agreement date, there were no outstanding borrowings under either the new or the terminated facility, indicating a strong liquidity position for ITW at this time. The new credit agreement provides ITW with significant financial flexibility, including the option to increase the total facility size up to $5.0 billion, subject to lender approval. The terms outline various interest rate options for borrowings, including floating rates and benchmark rate options plus applicable margins that vary based on ITW's credit rating. The agreement also includes customary covenants and a minimum interest coverage ratio requirement, alongside a recurring fee for unused commitments.
ILLINOIS TOOL WORKS INC 8-K Report, Financial Results (Feb 3, 2026)
Illinois Tool Works Inc. (ITW) filed an 8-K on February 3, 2026, to report its fourth quarter and full-year 2025 financial results. The filing primarily refers to a press release (Exhibit 99.1) which details the company's operational performance and financial condition for the periods ending December 31, 2025. Investors should note that ITW emphasizes its use of non-GAAP financial measures, including Free Cash Flow and After-tax Return on Invested Capital (ROIC), to provide a clearer picture of operational efficiency and cash generation capabilities. The company uses these non-GAAP metrics to offer insights into its ability to generate cash for strategic initiatives like dividends, share repurchases, and acquisitions, as well as to assess the effectiveness of its capital deployment. The filing also mentions the presentation of adjusted diluted net income per share for the twelve months ended December 31, 2024, excluding certain discrete items and accounting changes to enhance comparability. Investors are encouraged to review the accompanying press release for detailed reconciliations and calculations of these non-GAAP measures.
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