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ITW

Illinois Tool Works Inc.

ITW

Illinois Tool Works Inc. • NYSE
$249.28 ▲ 0.12% (+0.29)
Market Cap $72.98 B
52w High $278.98
52w Low $214.66
Dividend Yield 6.44%
P/E 24.16
Volume 452.20K
Outstanding Shares 292.75M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $4.059B ▲ $694M ▼ $821M ▲ 20.227% ▲ $2.82 ▲ $1.224B ▲
Q2-2025 $4.053B ▲ $714M ▲ $755M ▲ 18.628% ▲ $2.58 ▲ $1.171B ▲
Q1-2025 $3.839B ▼ $706M ▲ $700M ▼ 18.234% ▼ $2.38 ▼ $1.058B ▼
Q4-2024 $3.932B ▼ $655M ▼ $750M ▼ 19.074% ▼ $2.55 ▼ $1.153B ▼
Q3-2024 $3.966B $658M $1.16B 29.249% $3.92 $1.535B

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $924M ▲ $16.135B ▲ $12.926B ▲ $3.209B ▼
Q2-2025 $788M ▼ $16.048B ▲ $12.837B ▲ $3.21B ▼
Q1-2025 $873M ▼ $15.468B ▲ $12.226B ▲ $3.241B ▼
Q4-2024 $948M ▲ $15.067B ▼ $11.75B ▼ $3.316B ▼
Q3-2024 $947M $15.824B $12.432B $3.391B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $821M ▲ $1.021B ▲ $-116M ▼ $-775M ▼ $136M ▲ $904M ▲
Q2-2025 $755M ▲ $550M ▼ $-92M $-563M ▲ $-85M ▼ $449M ▼
Q1-2025 $700M ▼ $592M ▼ $-92M ▲ $-588M ▲ $-75M ▼ $496M ▼
Q4-2024 $750M ▼ $1.114B ▲ $-117M ▼ $-943M ▲ $1M ▼ $996M ▲
Q3-2024 $1.16B $891M $294M $-1.121B $85M $783M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Automotive OEM Segment
Automotive OEM Segment
 $790.00M ▲$790.00M ▲$840.00M ▲$830.00M ▼
Construction Products Segment
Construction Products Segment
 $440.00M ▲$440.00M ▲$470.00M ▲$470.00M ▲
Food Equipment Segment
Food Equipment Segment
 $670.00M ▲$630.00M ▼$680.00M ▲$690.00M ▲
Polymers and Fluids Segment
Polymers and Fluids Segment
 $430.00M ▲$430.00M ▲$440.00M ▲$440.00M ▲
Specialty Products Segment
Specialty Products Segment
 $420.00M ▲$430.00M ▲$460.00M ▲$450.00M ▼
Test and Measurement and Electronics Segment
Test and Measurement and Electronics Segment
 $750.00M ▲$650.00M ▼$690.00M ▲$700.00M ▲
Welding Segment
Welding Segment
 $450.00M ▲$470.00M ▲$480.00M ▲$480.00M ▲

Five-Year Company Overview

Income Statement

Income Statement ITW’s income statement shows a company that has kept sales broadly steady in recent years while steadily lifting profitability. Revenue has hovered in roughly the same band, but profits have grown faster than sales, which signals strong pricing power, cost control, and mix shift toward higher‑margin products. Operating and net income have both moved up over time, even through a choppy macro environment, which underlines the resilience of its business model. Earnings per share have grown meaningfully, helped not only by better margins but also likely by share repurchases, indicating disciplined capital allocation. The main watchpoint is that future profit growth may rely more on continued margin gains and efficiency than on rapid revenue expansion.

Balance Sheet

Balance Sheet The balance sheet is compact and efficient, with total assets roughly stable over the last several years. Debt is significant relative to equity, so the company is clearly using leverage as part of its capital structure rather than running a very conservative balance sheet. Equity has stayed relatively modest and has even dipped at times, which often reflects ongoing share buybacks and substantial returns of capital to shareholders. Cash balances are adequate but not excessive, implying confidence in recurring cash generation rather than a preference for hoarding liquidity. The key risk is that, in a higher‑rate or weaker industrial cycle, this level of leverage would need to be carefully managed, even though current profitability and diversification help mitigate that risk.

Cash Flow

Cash Flow Cash generation is a major strength. Operating cash flow has been consistently strong and has improved in recent years, roughly tracking the rise in earnings. Free cash flow is solidly positive after capital spending, and capital expenditures themselves are relatively modest, reflecting an asset‑light, high‑return industrial model. The company appears to generate more than enough free cash to fund investments, pay dividends, and still have room for buybacks or occasional acquisitions. One softer year in cash flow is visible in the history, but the quick recovery suggests this was cyclical rather than structural. Overall, ITW’s cash profile supports financial flexibility, even with the notable debt load.

Competitive Edge

Competitive Edge ITW holds a strong competitive position built around specialization, decentralization, and deep customer relationships. Its 80/20 business model pushes each unit to focus on the most valuable customers and products, which tends to produce high margins and entrenched positions in niche markets. The company owns a wide portfolio of respected brands and patents, and in many applications its components are deeply embedded in customers’ processes, making switching both risky and costly. Its presence across automotive, food equipment, welding, construction, and other industrial niches spreads risk and reduces dependence on any single end market. The flip side is ongoing exposure to the industrial cycle and to sectors like autos and construction, which can be sensitive to economic slowdowns.

Innovation and R&D

Innovation and R&D Innovation at ITW is very applied and customer‑driven rather than lab‑driven for its own sake. The company’s “customer‑back innovation” approach and large patent portfolio show a focus on solving specific problems and then protecting that intellectual property. It has a long record of impactful product innovation, from tools that reshaped construction workflows to advanced welding technologies, and more recently a growing lineup of clean‑technology offerings that support energy efficiency and lower emissions. Current initiatives in AI‑enabled welding, digital customer tools, and sustainability‑oriented products suggest management is actively positioning the portfolio for long‑term shifts in automation and environmental regulation. The main execution risk is keeping this innovation engine running across many decentralized units while staying ahead of rapid changes in areas like electric vehicles, robotics, and materials.

Summary

Overall, ITW looks like a mature, high‑quality industrial franchise with stable revenues, rising profitability, and strong free cash flow. Its balance sheet is deliberately leveraged but appears supported by consistent earnings and cash generation, provided economic conditions do not deteriorate sharply for an extended period. The company’s decentralized structure, disciplined 80/20 focus, and sticky customer relationships underpin a durable competitive edge and help explain its ability to sustain high margins in often‑commoditized industrial markets. At the same time, exposure to cyclical end markets and reliance on continued margin improvement are important factors to watch. Its applied, customer‑centric innovation strategy and sizable patent base position it well for themes like automation and sustainability, suggesting that long‑term value creation will depend on how effectively it can keep refreshing its portfolio while maintaining financial discipline.

NEWS

October 29, 2025 · 10:39 AM UTC

ITW Board of Directors Declares Quarterly Dividend

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October 24, 2025 · 8:00 AM UTC

ITW Reports Third Quarter 2025 Results

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October 10, 2025 · 8:27 AM UTC

ITW Schedules Third Quarter 2025 Earnings Webcast

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