Illinois Tool Works Inc
NYSE:ITW

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Illinois Tool Works Inc
NYSE:ITW
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Price: 246.63 USD -0.6% Market Closed
Market Cap: 71.5B USD

Illinois Tool Works Inc
Investor Relations

Nestled within the bustling landscape of American manufacturing, Illinois Tool Works Inc. (ITW) has long been a paragon of innovation and measured growth. Founded over a century ago in 1912, ITW has evolved from a modest tool manufacturer into a diversified, global enterprise, consistently ranking among the Fortune 200. With an impressive portfolio encompassing more than 17,000 patents, the company thrives on its decentralized structure, empowering its distinct business segments to operate with agility and tailor solutions for niche markets. ITW operates within seven primary sectors: Automotive OEM, Food Equipment, Test & Measurement and Electronics, Welding, Polymers & Fluids, Construction Products, and Specialty Products. Each of these segments operates with an entrepreneurial spirit, focusing on specialized markets and serving as the backbone of the company’s enduring success.

The magic behind ITW’s profitability and sustained growth lies in its highly effective "80/20 business model," where 80% of revenue comes from 20% of customers, products, and suppliers. This focus allows the company to streamline its operations, honing in on high-margin products and solutions that cater to the most profitable customer needs. By continually refining its portfolio, ITW reduces complexity and fosters innovation, leading to a cycle of continuous improvement and enhanced operational efficiency. At the heart of its business strategy is a commitment to vital research and development, ensuring that ITW remains at the forefront of industry developments. With a robust financial position and strategic acquisitions, ITW continues to fortify its global footprint, reinforcing its vision of providing innovative, customer-focused solutions that drive sustainable growth.

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Last Earnings Call
Fiscal Period
Q3 2025
Call Date
Oct 24, 2025
AI Summary
Q3 2025

Revenue Growth: ITW reported Q3 revenue up 2%, with 1% organic growth despite a low single-digit decline in end markets, and noted a meaningful improvement over Q2.

Margin Expansion: Operating margin hit a record 27.4%, improving by 90 basis points year-over-year, with enterprise initiatives and pricing actions more than offsetting tariff costs.

EPS Performance: GAAP EPS reached $2.81, up 6%, and Q3 operating income was a record $1.1 billion.

Guidance Update: Full-year EPS guidance was narrowed to $10.40-$10.50, with operating margin guidance unchanged at 26%-27%. Revenue is trending toward the lower end of the guidance range.

Shareholder Returns: ITW raised its dividend for the 62nd consecutive year (up 7%) and repurchased over $1.1 billion in shares year-to-date.

Segment Highlights: Automotive OEM and Asia Pacific, particularly China, were standout performers, while Construction Products continued to improve margins despite declining revenue.

Challenging Demand: Management described the demand environment as choppy and challenging but remains confident in outperforming end markets and executing on controllable profit drivers.

Key Financials
Organic Growth
1%
GAAP EPS
$2.81
Operating Income
$1.1 billion
Operating Margin
27.4%
Free Cash Flow
More than $900 million
Free Cash Flow Conversion Rate
110%
Dividend
Up 7%
Share Repurchases
More than $1.1 billion
Automotive OEM Operating Margin
21.8%
Automotive OEM Organic Growth
5%
Asia Pacific Organic Revenue Growth
7%
China Revenue Growth
10%
Food Equipment Operating Margin
29.2%
Test & Measurement and Electronics Operating Margin
25.4%
Welding Operating Margin
32.6%
Polymers & Fluids Operating Margin
28.5%
Construction Products Operating Margin
31.6%
Specialty Products Operating Margin
32.3%
Effective Tax Rate
21.8% (Q3), Projected 23% (full year), 24%-25% (Q4)
Earnings Call Recording
Other Earnings Calls

Management

Mr. Christopher A. O'Herlihy
President, CEO & Director

Christopher A. O’Herlihy is the Vice Chairman of Illinois Tool Works Inc. (ITW), a global industrial company with operations in numerous sectors, including automotive, construction products, food equipment, and more. Mr. O'Herlihy has been with ITW for many years, showcasing a career marked by significant leadership and operational roles within the company. He joined ITW in 1989 and has held various positions of increasing responsibility, distinguished by his strategic insights and strong leadership skills. Before becoming Vice Chairman in 2015, he served as Executive Vice President with responsibility for the welding segment, one of ITW's most critical business units. His career at ITW reflects a deep understanding of the company’s diverse business portfolio and a commitment to innovation and growth. As Vice Chairman, O'Herlihy plays a crucial role in the company's strategic planning and operational execution, helping to steer ITW's focus on optimizing its business model, driving profitability, and expanding its global reach. His leadership is integral to maintaining the company's position as a leader in the industrial sector.

Mr. Michael M. Larsen
Senior VP & CFO

Mr. Michael M. Larsen serves as the Senior Vice President and Chief Financial Officer (CFO) of Illinois Tool Works Inc. (ITW), a multinational company that produces engineered fasteners and components, equipment and consumable systems, and specialty products. Before joining ITW, Larsen gained extensive experience in the finance sector, particularly in roles that involved strategic planning and financial management. Previously, he was the President and CEO of Gardner Denver, Inc., and held senior financial positions at General Electric (GE), where he honed his skills in global financial operations. His tenure at GE included roles in various geographical locations, further solidifying his expertise in managing large-scale finance operations. At ITW, Larsen is responsible for overseeing the financial strategy and operations, ensuring the company's fiscal health aligns with its strategic goals. Known for his strong leadership and analytical skills, Larsen plays a crucial role in driving ITW’s growth and global financial initiatives. He holds a degree in finance, which underpins his extensive career in financial management and executive leadership.

Ms. Mary Katherine Lawler
Senior VP & Chief Human Resources Officer

Ms. Mary Katherine Lawler is the Executive Vice President and Chief Human Resources Officer at Illinois Tool Works Inc. (ITW). She is responsible for overseeing the global human resources strategy and initiatives for the company. Her role includes talent acquisition, leadership development, organizational efficiency, employee engagement, and diversity and inclusion efforts. With extensive experience in human resources, Mary Katherine Lawler has been instrumental in aligning ITW's HR strategies with its business operations, ensuring the cultivation of a diverse and competent workforce that meets the company's needs. Her leadership contributes significantly to maintaining ITW's corporate culture and supporting its long-term growth strategies. Before her tenure at ITW, she held various senior HR positions in different organizations, allowing her to bring a wealth of experience and insight to her current role. Her educational background complements her professional endeavors, providing a strong foundation for her strategic approach to human capital management.

Mr. Axel R. J. Beck
Executive Vice President of Food Equipment

Axel R. J. Beck is an executive at Illinois Tool Works Inc. (ITW), where he has held various leadership positions. As of his most recent roles, he serves as Executive Vice President of the Welding Segment at ITW. In this capacity, Beck is responsible for overseeing the strategic direction and operational management of the welding segment, which is a core division of the company providing innovative welding products and solutions. Beck has played a significant role in driving growth and innovation within the welding segment, leveraging his extensive industry experience. He has been instrumental in furthering ITW's commitment to delivering high-quality, efficient, and reliable welding solutions to its global customer base. His leadership style is marked by a focus on strategic development, operational excellence, and fostering a culture of innovation. Beck's career at ITW is marked by his dedication to enhancing business performance through streamlined operations and a customer-focused approach, contributing to the company’s longstanding reputation for excellence in industrial technology and manufacturing.

Mr. Randall J. Scheuneman
VP & Chief Accounting Officer
No Bio Available
Erin Linnihan
Vice President of Investor Relations

Erin Linnihan is an executive associated with Illinois Tool Works Inc. (ITW), which is a multinational company known for its diversified range of industrial products and equipment. As part of her role at ITW, Erin Linnihan has contributed to the company's strategic initiatives and operational management. With a strong background in business and leadership, she has been involved in overseeing various aspects of the company's operations, including financial management, organizational development, and corporate strategy. Her experience and insights have been instrumental in driving ITW’s growth and maintaining its position as a leader in the industrial sector.

Mr. Kenneth T. Escoe
Executive Vice President of Specialty Products

Kenneth T. Escoe is the Executive Vice President at Illinois Tool Works Inc. (ITW), a Fortune 200 global multi-industrial manufacturer of a diversified range of value-added industrial products and equipment. Ken Escoe has made significant contributions to ITW's growth and operational excellence. Known for his leadership and strategic vision, he has played a pivotal role in driving innovation and operational efficiency across various divisions within the company. Escoe's leadership skills have led to improved performance metrics and strengthened ITW's competitive positioning in the market. With a focus on sustainable growth, he has also been influential in ITW's efforts towards corporate responsibility and community engagement. His extensive experience and commitment to excellence continue to make a positive impact on the organization's success.

Ms. Sharon A. Szafranski
Executive Vice President of Welding

Sharon A. Szafranski is a notable executive at Illinois Tool Works Inc. (ITW), where she plays a significant role in corporate governance and strategy. At ITW, she has taken on leadership responsibilities that emphasize innovation and operational efficiency. Known for her adept management skills, Ms. Szafranski has contributed to ITW's growth and development, driving initiatives in line with the company's commitment to sustainability and technological advancement. Her career at ITW highlights a focus on strategic planning and execution across various business segments within the company, reflecting her depth of experience in industrial manufacturing and corporate leadership.

Mr. Javier Gracia Carbonell
Executive Vice President of Construction Products

Javier Gracia Carbonell is an executive associated with Illinois Tool Works Inc. (ITW), a global industrial company. He holds the position of Executive Vice President of the Automotive OEM Segment. In this role, he is responsible for overseeing the company’s operations and strategy within the automotive original equipment manufacturing sector. Gracia Carbonell has a robust background in engineering and business, which has contributed to his effective leadership in this sector. He plays a crucial role in driving growth and innovation, ensuring that ITW remains at the forefront of technological advancements and meets the changing demands of the automotive industry. His leadership is marked by a focus on operational excellence and customer-centric solutions, aligning with ITW’s overall strategic goals. Before assuming his current position, Gracia Carbonell gained extensive experience through various leadership roles within ITW, contributing to the company’s diverse and dynamic operations. His expertise and forward-thinking approach have made significant impacts on ITW's performance in the automotive industry.

Ms. Patricia A. Hartzell
Executive Vice President of Test, Measurement & Electronic

Patricia A. Hartzell is an executive from Illinois Tool Works Inc. (ITW), where she serves as the Executive Vice President and General Counsel. In her role, she oversees the company's legal and compliance functions, bringing extensive legal expertise and corporate governance experience to the organization. Her leadership at ITW includes guiding the company's legal strategies across various domains, contributing to its growth and ensuring adherence to legal standards. Hartzell holds a strong background in law, having built her career through roles that emphasize strategic legal counsel and business operations.

Contacts

Address
ILLINOIS
Glenview
155 Harlem Ave
Contacts
+18477247500.0
www.itw.com