Illinois Tool Works Inc.'s Stock Analysis

Illinois Tool Works Secures $3 Billion Credit Agreement

Illinois Tool Works Inc. has entered into a new five-year credit agreement worth $3.0 billion with JPMorgan Chase Bank and Citibank, among other lenders. This agreement replaces an existing credit facility scheduled to terminate in October 2027. As of the agreement date, the company had no outstanding amounts under either facility. The new credit agreement allows for borrowings in U.S. Dollars with varying interest rates based on the company's credit rating and includes a provision to potentially increase the total facility to $5.0 billion.

Additionally, the previous credit agreement from October 21, 2022, has been terminated as part of this transition. The new agreement includes customary covenants and a requirement for the company to maintain a minimum interest coverage ratio. Some lenders involved have existing relationships with the company, providing various financial services.

Feb 20, 2026 18:21:59

Illinois Tool Works Reports Fourth Quarter and Full Year Results

Illinois Tool Works Inc. reported fourth quarter 2025 revenue of $4.1 billion, marking a 4.1% increase year-over-year, with a GAAP earnings per share (EPS) of $2.72, up 7%. The operating margin for the quarter was 26.5%, benefiting from enterprise initiatives. For the full year 2025, the company achieved revenue of $16 billion, a 0.9% increase, and a GAAP EPS of $10.49, exceeding previous guidance. Operating cash flow was $3.1 billion, with free cash flow totaling $2.7 billion, reflecting a conversion rate of 88% to net income.

Looking ahead, Illinois Tool Works has set its 2026 guidance, anticipating revenue growth of 2% to 4% and GAAP EPS between $11.00 and $11.40, representing a 7% increase at the midpoint. The company expects operating margin expansion of approximately 100 basis points, driven by enterprise initiatives, and projects free cash flow to exceed 100% of net income. Share repurchases of around $1.5 billion are planned, with an effective tax rate projected to be between 23.5% and 24.5%.

Feb 03, 2026 09:48:08

Illinois Tool Works Reports Third Quarter 2025 Financial Results

Illinois Tool Works Inc. reported third quarter revenue of $4.1 billion, reflecting a 2% increase with organic growth contributing 1%. The company achieved a record operating margin of 27.4%, an improvement of 90 basis points, and a GAAP earnings per share (EPS) of $2.81, marking a 6% increase year-over-year when excluding the prior year's divestiture gain. Operating cash flow reached $1 billion, while free cash flow grew by 15% to $904 million. The company repurchased $375 million of its shares and raised its dividend by 7%, continuing a 62-year trend of dividend increases.

For the full year 2025, Illinois Tool Works narrowed its GAAP EPS guidance to a range of $10.40 to $10.50 per share. The company anticipates overall revenue growth of 1% to 3%, with organic growth expected to be flat to 2%. The operating margin is projected between 26% and 27%, with significant contributions from enterprise initiatives. Free cash flow is expected to be approximately equal to net income, and the company plans to repurchase around $1.5 billion of its shares, with an effective tax rate projected at about 23%.

Oct 24, 2025 09:43:49

Illinois Tool Works Reports Q2 2025 Financial Results

Illinois Tool Works Inc. reported second quarter 2025 revenue of $4.1 billion, reflecting a 1% increase with flat organic growth. The company's operating margin improved to 26.3%, and diluted earnings per share (EPS) reached a record $2.58. Operating cash flow was reported at $550 million, with free cash flow of $449 million, representing a conversion rate of 59% to net income. During the quarter, the company repurchased $375 million of its shares, and the effective tax rate was 24.4%.

The company has raised its full year GAAP EPS guidance by $0.10 to a range of $10.35 to $10.55 per share, projecting revenue growth of 1% to 3% and organic growth of flat to 2%. ITW anticipates operating margins between 26% and 27%, with enterprise initiatives expected to contribute significantly. Free cash flow is expected to exceed 100% of net income, and the company plans to repurchase approximately $1.5 billion of its shares throughout the year.

Jul 30, 2025 09:33:27

ITW Reports Q1 2025 Revenue Decline and Maintains Guidance

Illinois Tool Works Inc. reported a first quarter 2025 revenue of $3.8 billion, which represents a 3.4% decrease compared to the previous year, with organic growth down by 1.6%. The company achieved a GAAP EPS of $2.38, slightly below last year's $2.73, and an operating margin of 24.8%. The decline in revenue was influenced by a negative foreign currency translation impact and increased restructuring expenses. Operating cash flow was reported at $592 million, with a free cash flow of $496 million for the quarter, alongside a share repurchase of $375 million.

The company is maintaining its full-year 2025 guidance for GAAP EPS in the range of $10.15 to $10.55 per share, anticipating ongoing pricing actions to mitigate tariff cost impacts. Revenue and organic growth projections are set between zero to two percent, while operating margins are expected to range from 26.5% to 27.5%. ITW plans to repurchase approximately $1.5 billion of its shares throughout the year and projects free cash flow to exceed 100% of net income, with an effective tax rate estimated at around 24%.

Apr 30, 2025 09:29:31

ITW Reports $15.9 Billion Revenue with 20% EPS Increase

Illinois Tool Works (ITW) reported a fourth quarter revenue of $3.9 billion, marking a decline of 1.3% from the previous year. Organic growth fell by 0.5%, but when adjusted for a product line simplification reduction, it showed a slight positive growth of 0.4%. The company achieved a record operating margin of 26.2%, up 140 basis points, and reported a GAAP EPS of $2.54, which is a 7% increase. Notably, operating cash flow reached $1.1 billion, with free cash flow also hitting a record of $1 billion, representing a 10% growth year-over-year. The effective tax rate was reported at 23.7% during the quarter, and the company repurchased $375 million of its shares.

For the full year 2024, ITW's revenue was $15.9 billion, again reflecting a 1.3% decline, with organic growth down 0.7%. The GAAP EPS for the year rose by 20% to $11.71, bolstered by favorable one-time items. However, the full-year results also included a reduction in revenue due to foreign currency translation and a decline in several market segments. While operating income grew by 6% to $4.3 billion, the overall organic revenue growth was essentially flat when adjusted for product line simplification. The company invested approximately $0.8 billion for long-term growth and returned $3.2 billion to shareholders through dividends and stock repurchases.

Feb 05, 2025 09:31:18

Illinois Tool Works Third Quarter 2024 Financial Results Summary

Illinois Tool Works reported a revenue of $4.0 billion for the third quarter of 2024, marking a 2% decline from the previous year due to a 1% drop in organic growth. The operating margin remained stable at 26.5%, aided by enterprise initiatives that contributed positively. The company’s GAAP earnings per share (EPS) rose significantly to $3.91, boosted by a divestiture gain, while the adjusted EPS, excluding this gain, increased by 4% to $2.65. Additionally, ITW raised its full-year GAAP EPS guidance, reflecting confidence in its financial performance despite market challenges. Operating cash flow was strong at $891 million, and the company repurchased $375 million of its shares while increasing its dividend by 7% to $6.00 annually.

Conversely, the decline in revenue and organic growth indicates ongoing market challenges, with foreign currency translation and acquisitions having minimal positive effects. The company faced a 1.6% decrease in revenue compared to the previous year, and while operating margins were stable, the lack of significant growth in revenue raises concerns about future performance. The reliance on a divestiture gain for EPS growth could also be seen as a potential weakness, indicating that core business growth may not be as robust as desired.

Oct 30, 2024 09:27:25

ITW Reports Mixed Q2 Results with Strong Profit Growth

Illinois Tool Works reported a slight revenue decline of 1% in Q2 2024, but operating income rose by 4.5%, marking a record high. The operating margin improved significantly to 26.2%. GAAP EPS increased by 2%, with a 5% rise excluding a prior tax item. However, the company narrowed its full-year EPS guidance, reflecting current demand challenges. ITW plans to repurchase $1.5 billion of shares, indicating confidence in long-term growth despite a flat revenue outlook.

Jul 30, 2024 09:18:44

ITW Reports Strong First Quarter 2024 Results

Illinois Tool Works Inc. reported Q1 revenue of $4.0 billion, with operating income up 16%. GAAP EPS increased 17%, excluding a one-time item. Operating margin improved to 28.4%. ITW reaffirmed 2024 guidance with raised EPS and operating margin. The company changed its inventory accounting method, resulting in a $117 million benefit. ITW plans to repurchase $1.5 billion of its shares. Overall, ITW is confident in achieving its 2024 targets of positive organic growth and strong profitability.

Apr 30, 2024 09:15:34

ITW Reports Solid Financial Performance and Positive 2024 Guidance

Illinois Tool Works Inc. reported solid financial performance in Q4 and full year 2023, with revenue and operating income growth. Despite challenges, the company achieved a record year and initiated positive guidance for 2024, projecting revenue growth, increased operating margin, and higher EPS. The company also highlighted strong operational execution, cash flow growth, and significant returns to shareholders in 2023.

Feb 01, 2024 09:19:09