Illinois Tool Works Inc. Earnings Recaps
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.
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.