Illinois Tool Works Inc.

Illinois Tool Works Inc. Earnings Recaps

ITW Industrials 3 recaps
Next earnings: July 29, 2026 (estimated) · full calendar
Q1 2026 May 1, 2026

ITW shares fell 3.8% following first-quarter earnings as investors appeared disappointed by muted organic growth and unchanged full-year outlook for top-line expansion. Despite management raising EPS guidance, persistent weakness in consumer-facing and Food Equipment segments, coupled with only 0.4% organic growth, weighed on sentiment.

Key takeaways
  • Total revenue increased 4.6%, but organic growth was just 0.4%, held back by product line simplification initiatives and delayed Middle East sales.
  • Operating margin improved by 60 basis points year-over-year to 25.4%, aided by enterprise initiatives.
  • Full-year organic growth projection was maintained at 1%–3%; management lifted full-year GAAP EPS guidance by $0.10 to $11.30 largely due to a lower tax rate.
  • Food Equipment organic revenue declined 3%, with North America down 5% amid institutional market softness; equipment sales fell 6%.
  • Test & Measurement and Electronics segment was a bright spot, with 5% organic growth and 10% total revenue growth—the best in three years.
Full recap
Q3 2025 Oct 25, 2025

ITW delivered strong operational results for Q3 2025, with revenue up 3% and record operating income of $1.1 billion, despite a challenging demand environment.

Key takeaways
  • Achieved GAAP EPS of $2.81, marking a 6% year-over-year increase, supported by effective pricing and cost management strategies.
  • Organic revenue growth improved to 1%, with a notable 7% growth in the Asia Pacific region, including 10% growth in China.
  • Operating margin expanded by 90 basis points to 27.4%, driven by successful enterprise initiatives contributing 140 basis points.
  • Free cash flow increased by 15% to over $900 million, with a strong conversion rate of 110%.
  • Announced a 7% increase in dividends, marking the 62nd consecutive dividend hike and reflecting ITW's long-term commitment to shareholder returns.
Full recap
Q2 2025 Aug 1, 2025

ITW reported a solid second quarter with a 1% increase in revenue, driven by effective pricing actions and strong operational execution, resulting in record operating income and EPS.

Key takeaways
  • Achieved GAAP EPS of $2.58 and an operating margin of 26.3%, both new second quarter records.
  • Revenue growth reflected 1% foreign currency benefit, offset by a 1% reduction from product line simplification (PLS).
  • Excellent performance in Asia Pacific with a 9% revenue increase, driven by a 15% rise in China.
  • Free cash flow generated at $449 million, maintaining a 59% conversion rate, on track for over 100% for the year.
  • Full-year guidance raised in anticipation of continued outperformance in a volatile market.
Full recap