Illinois Tool Works Inc. reported a solid finish to 2025 with strong revenue growth and increased EPS, driven by disciplined execution and enterprise initiatives. The company is well-positioned to continue outperforming its end markets in 2026, leveraging its business model for consistent growth and improved profitability.
Fourth quarter revenue increased by 4.1% to $4.1 billion, with organic revenue growth of 1.3%.
positiveGAAP EPS of $2.72 for the fourth quarter increased by 7% year-over-year.
positiveFull year 2025 GAAP EPS of $10.49 exceeded prior guidance mid-point of $10.45.
positiveOperating margin for the full year 2025 was 26.3%, with enterprise initiatives contributing 130 basis points.
positiveFull year 2025 organic revenue was flat, a deceleration from the 0.9% increase in total revenue.
attentionOperating margin in the Test & Measurement and Electronics segment decreased by 30 bps year-over-year for the full year.
attentionFree cash flow conversion to net income for the full year 2025 was 88%, down from 149% in the prior year's fourth quarter.
attentionInventories increased to $1,659 million from $1,605 million year-over-year.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Automotive OEM | N/A | — | — | — |
Food Equipment | N/A | — | — | — |
Test & Measurement and Electronics | N/A | — | — | — |
Welding | N/A | — | — | — |
Polymers & Fluids | N/A | — | — | — |
Construction Products | N/A | — | — | — |
Specialty Products | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
ITW delivered a solid finish to the year, marked by more than four percent revenue growth and a seven percent increase in GAAP earnings per share.
As a result of our disciplined execution across all seven segments, we expanded both operating margin and income to record levels in the quarter.
Our results over the past year demonstrate that ITW is well-positioned to deliver solid financial performance in any environment as we consistently exceeded market growth while improving profitability and margins.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.