ILLINOIS TOOL WORKS INCITW
ILLINOIS TOOL WORKS INC Financial Overview 2021–2025
In FY2024, Illinois Tool Works (ITW) grew diluted earnings per share by 20.2% to $11.71 despite a 1.3% contraction in overall revenue. This underscores the core investment thesis: the company generates substantial shareholder value not through top-line expansion, but through relentless margin protection and pricing power across its diversified industrial portfolio.
Operating revenue grew from $14.5 billion in FY2021 to a peak of $16.1 billion in FY2023, before dipping slightly in the following years due to foreign currency headwinds and strategic product line simplifications. Despite this top-line stagnation, profitability improved structurally. ITW expanded its operating margin from 24.1% in FY2021 to 26.3% in FY2025. This efficiency was largely driven by favorable price-to-cost dynamics and active portfolio optimization, including the $398 million sale of its noncontrolling equity interest in Wilsonart.
This operational discipline directly funds heavy capital returns. During FY2025, ITW executed $1.5 billion in share repurchases, increased its quarterly dividend to $1.61 per share, and maintained deep liquidity with an undrawn $3.0 billion revolving credit facility. By the close of FY2025, the market rewarded this cash-generating resilience, valuing the enterprise at a $71.1 billion market cap as the stock traded at $246.30, representing a 23.5x price-to-earnings multiple.
Recent Developments (Q3 and Q4 2025)
In Q3 2025, operating revenue increased 2.3% year-over-year to $4.06 billion, driven by a 7.3% top-line jump in the Automotive OEM segment. Automotive operating income surged 21.0% alongside favorable foreign exchange impacts. Company-wide operating income climbed 5.7% to $1.11 billion, pushing the quarterly operating margin up 90 basis points to 27.4%. To bolster its portfolio, the company completed $177 million in strategic acquisitions for the Test & Measurement and Electronics segment across 2024 and 2025.
Bulls highlight the rapid profit expansion in automotive markets and the ability to drive enterprise margin growth. Bears warn that the Test & Measurement division faces margin compression and rising restructuring costs despite a marginal 0.3% revenue increase in Q3 2025. Trading at a 28.6x price-to-earnings multiple as of February 12, 2026, the stock appears richly valued relative to its flat overall top-line performance.
What to watch: restructuring costs within the Test & Measurement segment; the execution of organic growth initiatives into 2026.
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, 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.
ILLINOIS TOOL WORKS INC 8-K Report, Financial Results (Oct 24, 2025)
Illinois Tool Works Inc. (ITW) filed an 8-K on October 24, 2025, to report its third quarter 2025 results. The filing primarily furnishes a press release containing the company's financial performance and operational highlights. While specific figures are not detailed within the 8-K itself, it directs investors to Exhibit 99.1 for comprehensive data, including non-GAAP financial measures such as free cash flow and after-tax return on invested capital (ROIC). ITW emphasizes the importance of these non-GAAP metrics for providing a clearer view of operational efficiency and cash generation available for strategic initiatives like dividends and acquisitions.
ILLINOIS TOOL WORKS INC 8-K Report, Financial Results (Jul 30, 2025)
Illinois Tool Works Inc. (ITW) filed an 8-K on July 29, 2025, to report its second quarter 2025 results of operations, as detailed in the accompanying press release (Exhibit 99.1). While the filing itself is brief and primarily references the press release for the operational and financial details, it highlights the company's use of specific non-GAAP financial measures, including free cash flow and after-tax return on invested capital (After-tax ROIC). These measures are emphasized as important for investors to understand ITW's operational efficiency and cash generation capabilities beyond standard GAAP reporting. The company also provided context on how it presents diluted earnings per share, excluding certain items from prior periods (like inventory accounting changes and divestiture impacts) for improved comparability. Investors should refer to the furnished press release for the specific quantitative results of the second quarter, including revenue, profitability, and cash flow figures, as well as detailed reconciliations of the non-GAAP measures mentioned.
ILLINOIS TOOL WORKS INC 8-K Report, Shareholder Vote Results (May 7, 2025)
Illinois Tool Works Inc. (ITW) filed an 8-K report detailing the outcomes of its annual stockholder meeting held on May 2, 2025. The report confirms the election of all twelve director nominees, indicating strong shareholder confidence in the current board. Additionally, shareholders provided an advisory vote to approve the compensation of named executive officers, which also passed. The appointment of Deloitte & Touche LLP as the company's independent registered public accounting firm for 2025 was overwhelmingly ratified, demonstrating continued trust in their audit services. However, a non-binding stockholder proposal seeking to require stockholder ratification of executive termination pay was defeated. This outcome suggests that the current compensation practices and termination pay policies, as presented to shareholders, did not garner sufficient support for an additional layer of approval. Investors should note that while director elections and executive compensation received affirmative advisory votes, the failed proposal on termination pay might be a point of discussion for future governance considerations.
ILLINOIS TOOL WORKS INC 8-K Report, Financial Results (Apr 30, 2025)
Illinois Tool Works Inc. (ITW) has filed an 8-K report announcing its first quarter 2025 financial results. The report primarily focuses on furnishing a press release that details the company's operational performance and financial condition for the period ending March 31, 2025. Investors should note that ITW emphasizes the use of non-GAAP financial measures, such as free cash flow and after-tax return on invested capital (After-tax ROIC), to provide a clearer view of operational effectiveness and cash generation available for strategic initiatives like dividends, share repurchases, and acquisitions. The company's management believes these non-GAAP metrics offer enhanced comparability and a better understanding of ITW's underlying financial performance, particularly when adjusting for certain one-time items or accounting changes from prior periods. While the press release itself is not included in the 8-K text provided, the filing indicates that detailed reconciliations of these non-GAAP measures to their nearest GAAP equivalents are available within the furnished press release, which is crucial for investors seeking a comprehensive financial analysis.
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