Illinois Tool Works (ITW) reported first-quarter 2025 revenue of $3.8 billion, down 3.4% year-over-year, with organic revenue declining 1.6% (flat on an equal days basis).

Operating margin came in at 24.8%, supported by a 120 basis point contribution from enterprise initiatives. GAAP earnings per share were $2.38, slightly down from $2.73 in the prior year, which had benefited from a one-time accounting change.

Despite softer sales and unfavorable currency impacts, ITW maintained its full-year 2025 guidance of $10.15 to $10.55 in GAAP EPS, projecting flat to 2% total revenue growth and a 26.5% to 27.5% operating margin. The company expects its pricing strategies to offset rising tariff costs.

Segment results were mixed. Automotive OEM, Electronics, and Construction Products posted year-over-year revenue declines, while Food Equipment, Welding, and Polymers & Fluids showed modest organic growth. Free cash flow was $496 million, with a 71% conversion rate from net income. ITW repurchased $375 million in shares and reaffirmed plans to return $1.5 billion to shareholders through buybacks in 2025.

Illinois Tool Works Inc. (NYSE: ITW) will issue its first quarter 2025 results on Wednesday, April 30, 2025, at 7:00 a.m. CDT. Following the release, ITW will hold its first quarter 2025 earnings webcast at 9:00 a.m. CDT.

Illinois Tool Works (ITW) reported its fourth quarter and full year 2024 results, along with guidance for 2025.

Fourth Quarter 2024 Highlights:
- Revenue of $3.9 billion, a decrease of 1.3%, with organic growth down by 0.5%. Excluding the impact of Product Line Simplification (PLS), organic growth was positive at 0.4%.
- Record operating margin of 26.2%, up 140 basis points, driven by enterprise initiatives contributing 120 basis points.
- Operating cash flow of $1.1 billion and record free cash flow of $1 billion, increasing by 10%, with a conversion rate of 133%.
- GAAP EPS of $2.54, up by 7%.

Full Year 2024 Highlights:
- Revenue of $15.9 billion, down 1.3%, with organic revenue decreasing by 0.7%.
- Record operating margin of 26.8%, up by 170 basis points, with enterprise initiatives contributing 130 basis points.
- GAAP EPS of $11.71, an increase of 20%, or $10.15 excluding one-time items.
- Operating income of $4.3 billion, a 6% increase, and free cash flow of $2.8 billion, with a 94% conversion rate.
- Returned $3.2 billion to shareholders through dividends and share repurchases.

2025 Guidance:
- Projected organic growth of 0 to 2%, excluding a PLS reduction of approximately 1%.
- Operating margin expected to improve by 100 basis points, with enterprise initiatives contributing 100 basis points.
- GAAP EPS guidance is in the range of $10.15 to $10.55, including a foreign currency translation headwind of $0.30.
- Projected free cash flow to exceed 100% of net income, with a $1.5 billion share repurchase plan.

ITW's President and CEO, Christopher A. O'Herlihy, highlighted strong performance in 2024, citing solid operational and financial results, and optimism for continued growth in 2025.