Illinois Tool Works Inc

Latest Results (26.10.2025):

Illinois Tool Works Inc. reported robust financial results for the third quarter of 2025, demonstrating solid growth and enhanced profitability. The company achieved a revenue increase of 2%, a record operating margin of 27.4%, and a 6% rise in GAAP earnings per share. Additionally, free cash flow grew by 15%, and the company narrowed its full-year EPS guidance, reflecting strong operational execution and strategic progress.

Revenue Growth

In the third quarter of 2025, Illinois Tool Works Inc. reported revenue of $4.1 billion, marking a 2% increase from the previous year. This growth included a 1% rise in organic revenue, supported by a favorable foreign currency translation impact of 2%, offset by a 1% reduction due to product line simplification.

Record Operating Margin

The company achieved a record operating margin of 27.4%, up by 90 basis points compared to the same quarter last year. Enterprise initiatives contributed significantly, adding 140 basis points to the margin expansion, with six out of seven segments improving their margins.

Earnings Per Share

Illinois Tool Works Inc. reported a GAAP earnings per share (EPS) of $2.81 for Q3 2025, representing a 6% increase year-over-year when excluding the prior year's divestiture gain of $1.26 per share. This growth underscores the company's strong financial performance and effective cost management.

Free Cash Flow

Free cash flow for the third quarter reached $0.9 billion, a 15% increase from the previous year. Operating cash flow stood at $1 billion, with a conversion rate of 110% to net income, highlighting the company's enhanced cash generation capabilities.

Full-Year Guidance

Illinois Tool Works Inc. has narrowed its full-year 2025 GAAP EPS guidance to a range of $10.40 to $10.50 per share. The company anticipates overall revenue growth of 1% to 3%, factoring in flat to 2% organic growth and the impact of ongoing pricing and supply chain initiatives.