Illinois Tool Works Inc

Latest Results (12.03.2025):

Fourth Quarter 2024 Revenue

Illinois Tool Works Inc. reported a fourth quarter 2024 revenue of $3.9 billion, marking a decrease of 1.3% compared to the previous year. The decline was primarily due to a 0.5% drop in organic growth, although organic growth turned positive at 0.4% when excluding a 0.9% reduction from Product Line Simplification (PLS).

Fourth Quarter 2024 Earnings

For the fourth quarter of 2024, Illinois Tool Works Inc. achieved a GAAP EPS of $2.54, representing a 7% increase. The company also reported a record operating margin of 26.2%, which was an improvement of 140 basis points, largely driven by enterprise initiatives contributing 120 basis points.

Full Year 2024 Financial Performance

In the full year 2024, Illinois Tool Works Inc. generated a revenue of $15.9 billion, a decrease of 1.3% as organic growth declined by 0.7%. The company achieved a record GAAP EPS of $11.71, which included favorable one-time items. Excluding these items, the EPS was $10.15. Operating income grew by 6% to $4.3 billion, with an operating margin increase of 170 basis points to 26.8%.

2025 Financial Guidance

Illinois Tool Works Inc. has provided its financial guidance for 2025, projecting a GAAP EPS range of $10.15 to $10.55, which includes a foreign currency translation headwind of $0.30. The company anticipates above-market organic growth of 0 to 2%, with an expected PLS reduction of approximately 1 percentage point. Operating margin is expected to improve by approximately 100 basis points, excluding the 2024 LIFO inventory accounting change.

Cash Flow and Shareholder Returns

In 2024, Illinois Tool Works Inc. reported an operating cash flow of $3.3 billion and a free cash flow of $2.8 billion, with a conversion rate of 94% to adjusted net income. The company returned $3.2 billion to shareholders through dividends and share repurchases. For 2025, the company plans to repurchase approximately $1.5 billion of its own shares, with free cash flow projected to exceed 100% of net income.