Illinois Tool Works ( (ITW) ) has released its Q2 earnings. Here is a breakdown of the information Illinois Tool Works presented to its investors.
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Illinois Tool Works Inc. (ITW) is a global multi-industrial manufacturing leader, operating across seven industry-leading segments to deliver innovative, customer-focused solutions with best-in-class margins and returns. The company is known for its decentralized and entrepreneurial culture, supported by approximately 44,000 employees worldwide.
In its second quarter of 2025, Illinois Tool Works reported revenue of $4.1 billion, marking a 1% increase, with flat organic growth. The company achieved a record GAAP EPS of $2.58 and an operating margin of 26.3%, driven by enterprise initiatives. ITW has raised its full-year GAAP EPS guidance, reflecting confidence in its strategic execution.
Key financial metrics for the quarter include an operating income of $1.1 billion and a free cash flow of $449 million. The company repurchased $375 million of its shares and maintained an effective tax rate of 24.4%. Segment performance varied, with notable operating margins in Welding (33.1%) and Specialty Products (32.6%).
Looking ahead, ITW projects a full-year revenue growth of 1-3% and aims to maintain an operating margin between 26-27%. The company plans to repurchase $1.5 billion of its shares, with free cash flow expected to exceed net income. ITW remains focused on executing its growth priorities to achieve above-market organic growth.
Illinois Tool Works continues to demonstrate resilience and strategic agility, positioning itself to navigate uncertain market conditions while delivering differentiated performance through 2025 and beyond.