Illinois Tool Works Inc. Q2 2025 Earnings Recap

ITW Q2 2025 August 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.

Earnings Per Share Beat

$2.58 vs $2.56 est.

+0.8% surprise

Revenue Beat

4053000000 vs 4024424746 est.

+0.7% surprise

Market Reaction

1-Day +0.5%

5-Day +1.85%

30-Day +3.54%

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.

This summary was generated by AI from the official earnings call transcript and is provided for informational purposes only. It does not constitute financial advice. For the complete transcript and financial data, visit ITW on AllInvestView.

Next Q3 2025