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Illinois Tool Works Inc.

ITW Industrials Specialty Industrial Machinery

Illinois Tool Works Inc.’s revenue for fiscal 2025 (year ended December 2025) was $16.0 billion, up 0.92% from fiscal 2024.

Revenue
+4.36%
EPS
+6.53%
Free cash flow
−5.57%
Total debt
+4.81%

Quarter to September 2026, against a year earlier

285.33 8.12 −2.77%
Market cap
$81.1B
P/E
25.4×
Fwd P/E
24.3×
Dividend yield
2.30%
F-score
4/9
Altman Z
7.88
Beneish M
−2.43
Dividend safety
76/100
Overview Business Profile Earnings & Analysis
Financials
Income Statement Balance Sheet Cash Flow Metrics & Ratios
Segments Valuation Filings

Revenue by segment Fiscal 2025

  • Automotive OEM
  • Test & Measurement and Electronics
  • Food Equipment
  • Welding
  • Construction Products
  • Specialty Products
  • Polymers and Fluids
  • Polymers & Fluids

Every year since 2008 →

Insider Decisions last twelve months

Bought, $m 1.88
Sold, $m 66.93
Trades a month
Jan 26 Apr 26 Jul 26 Oct 26
Buy 1 — — — — — 1 — — — — —
Sell — — 3 — — — — — 2 — — —
Insider Ownership 0.52%

Capital & Financial Ratios $m

Size
Market Cap 81,110.00
Revenue ttm 16,646.00
Net income ttm 3,228.00
Free cash flow ttm 2,879.00
Net debt Q 8,563.00
Valuation
P/E 25.38
Forward P/E 24.30
Price / sales 4.88
Forward P/S Powerpack
Price / FCF 28.21
Price / book 25.85 (above 6: high)
Financial health
Current ratio Q 1.29
Debt / equity Q 2.98 (above 2: weak)
Interest coverage Q 14.18
Growth
Revenue growth Q +4.36% (above 0%: growing)
Operating income growth Q +5.85% (above 0%: growing)
EPS, this year +9.42%
EPS, next year A +6.96%
Revenue, next year A +4.95%
EPS, past 5 yrs +9.61%
EPS, next 5 yrs A +7.57%

Green and red mark values outside typical ranges; (Q) is the latest quarter, (A) analysts’ estimates. How we judge →

Valuation vs history

EV/Sales, ten years
EV/Sales is 5.4×, against a ten-year median of 4.8×; over the ten years it ranged from 2.8× in 2016 to 6.1× in 2021.
P/E against its own 10 years 73.27%
10-year low 10-year high
P/S against its own 10 years 81.66%
10-year low 10-year high
P/B against its own 10 years 93.51%
10-year low 10-year high
EV/Sales against its own 10 years 84.45%
10-year low 10-year high
EV/FCF against its own 10 years 76.60%
10-year low 10-year high

Dividends raised every year since 2017

Yield
2.30%
Annual rate
6.55
Payout ratio
58.4%
Growth, 2017–25
+10.2%/yr
  1. 2.86 ’17
  2. 3.56 ’18 +24
  3. 4.14 ’19 +16
  4. 4.42 ’20 +7
  5. 4.72 ’21 +7
  6. 5.06 ’22 +7
  7. 5.42 ’23 +7
  8. 5.80 ’24 +7
  9. 6.22 ’25 +7
  10. 6.43 ’26e +3
paid forecast change on the year, % Powerpack

Assets vs Liabilities $m

2023 2024 2025 Q'26
Cash 1,065 948 851 809
Receivables 3,123 2,991 3,227 3,516
Inventory 1,707 1,605 1,659 1,823
Other — — — —
6,235 5,856 6,200 6,598
2023 2024 2025 Q'26
Payables 581 519 522 623
ST’ Debt 1,825 1,555 2,286 2,219
Other — — — —
4,675 4,308 5,126 5,100

Compound Annual Growth %

10y 5y 3y
Sales 1.81% 4.99% 0.23%
Cash Flow 3.12% 2.18% 10.01%
Earnings 4.91% 7.77% 0.35%
Book Value (4.71%) 0.28% 1.46%

Earnings Trends EPS, adjusted, against the consensus

Q3 FY26 Estimate 2.99 Actual 3.00

Earnings per share against the consensus, by quarter
Quarter Estimate Reported Result
Q4 FY25 2.68 2.72 Beat by 0.04
Q1 FY26 2.55 2.66 Beat by 0.11
Q2 FY26 2.80 2.84 Beat by 0.04
Q3 FY26 2.99 3.00 Beat by 0.01
Q4 FY26 2.97 — Reports 2 February 2027

EPS $

Mar Jun Sep Dec Year
’26 2.66 2.84 3.00 — —
’25 2.38 2.58 2.81 2.72 10.49
’24 2.73 2.54 3.91 2.54 11.71
’23 2.33 2.48 2.55 2.38 9.74
’22 2.11 2.37 2.35 2.95 9.77
’21 2.11 2.45 2.02 1.93 8.51
’20 1.77 1.01 1.83 2.02 6.63
Fiscal quarters ending in the months shown.

Revenue $m

Mar Jun Sep Dec Year
’26 4,016 4,301 4,236 — —
’25 3,839 4,053 4,059 4,093 16,044
’24 3,973 4,027 3,966 3,932 15,898
’23 4,019 4,074 4,031 3,983 16,107
’22 3,939 4,011 4,011 3,971 15,932
’21 3,544 3,676 3,556 3,679 14,455
’20 3,228 2,564 3,307 3,475 12,574
Fiscal quarters ending in the months shown.

Operating Cash Flow $m

Mar Jun Sep Dec Year
’26 623 723 953 — —
’25 592 550 1,021 963 3,126
’24 589 687 891 1,114 3,281
’23 728 790 982 1,039 3,539
’22 323 501 713 811 2,348
’21 609 555 619 774 2,557
’20 614 737 683 773 2,807
Fiscal quarters ending in the months shown.

Free Cash Flow $m

Mar Jun Sep Dec Year
’26 530 633 847 — —
’25 499 453 897 869 2,718
’24 496 574 788 998 2,856
’23 618 707 862 917 3,104
’22 251 423 615 662 1,951
’21 543 478 551 697 2,269
’20 557 683 634 707 2,581
Fiscal quarters ending in the months shown.

Valuation

The price implies free cash flow after share-based pay growing 12.0% a year for ten years. It grew 3.5% a year over the last ten.

Implied
12.0%
10 years, reported
3.5%
Open the model

Target Price Range

Analyst price targets

Recommendation Rating

3.3
1Buy 2 3Hold 4 5Sell

Ten years at a glance Fiscal years to December

Ten-year view Analyst estimates Powerpack
Group Line 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 TTM Sep ’26 Trend 10 yrs 2026e 2027e 2028e Next 3/yr
Income, $m
Income, $m Revenue 13,599 14,314 14,768 14,109 12,574 14,455 15,932 16,107 15,898 16,044 16,646 +1.9% 16,838 17,448 18,035 +4.0%
Gross margin, % 41.85 41.97 41.74 41.97 41.35 41.27 40.82 42.16 44.28 44.10 44.32 +2.3 pt
EBT 2,908 3,270 3,394 3,288 2,704 3,326 3,842 3,823 4,422 3,966 4,202 +3.5%
EBT margin, % 21.38 22.84 22.98 23.30 21.50 23.01 24.11 23.74 27.81 24.72 25.24 +3.3 pt
Net income 2,035 1,687 2,563 2,521 2,109 2,694 3,034 2,957 3,488 3,066 3,228 +4.7%
Per share, $
Per share, $ Revenue 38.31 41.60 44.08 43.56 39.68 45.87 51.46 53.23 53.56 55.04 58.49 +4.1%
Earnings 5.73 4.90 7.65 7.78 6.66 8.55 9.80 9.77 11.75 10.52 11.24 +7.0%
Cash flow 6.48 6.98 8.39 9.25 8.86 8.11 7.58 11.70 11.05 10.72 11.46 +5.7%
Capex (0.72) (0.82) (1.01) (0.93) (0.71) (0.91) (1.28) (1.44) (1.43) (1.40) (1.35) +7.6%
Free cash flow 5.76 6.16 7.38 8.32 8.14 7.20 6.30 10.26 9.62 9.32 10.12 +5.5%
Book value 12.00 13.34 9.73 9.35 10.04 11.51 9.98 9.96 11.18 11.07 11.04 (0.9%)
Shares, m 355 344 335 324 317 315 310 303 297 292 288 (2.2%)
Valuation, ×
Valuation, × P/E 21.38 33.80 16.56 23.06 30.61 28.87 22.46 26.67 21.56 23.41 25.38 24.8
P/S 3.20 3.97 2.87 4.12 5.14 5.38 4.28 4.90 4.73 4.48 4.88 4.3
P/B 10.21 12.39 13.03 19.20 20.30 21.45 22.08 26.17 22.69 22.26 25.85 19.0
EV/Sales 3.59 4.34 3.27 4.53 5.58 5.81 4.72 5.34 5.17 4.98 5.39 4.7
EV/FCF 23.89 29.31 19.54 23.74 27.19 36.99 38.58 27.69 28.77 29.40 31.18 28.5
Cash, $m
Cash, $m Operating cash flow 2,302 2,402 2,811 2,995 2,807 2,557 2,348 3,539 3,281 3,126 3,262 +3.5%
Capex (257) (283) (338) (301) (226) (288) (397) (435) (425) (408) (383) +5.3%
Free cash flow 2,045 2,119 2,473 2,694 2,581 2,269 1,951 3,104 2,856 2,718 2,879 +3.2%
Balance, $m
Balance, $m Working capital 3,363 4,225 2,236 4,099 3,934 2,904 1,810 1,560 1,548 1,074 1,498 (11.9%)
Net debt 5,357 5,234 5,876 5,777 5,558 6,160 7,055 7,099 6,915 8,118 8,563 +4.7%
Shareholders’ equity 4,259 4,589 3,258 3,030 3,182 3,626 3,089 3,013 3,317 3,226 3,142 (3.0%)
Returns, %
Returns, % ROA 13.16 10.55 16.20 16.84 13.75 17.00 19.26 19.11 22.81 19.64 19.78 +6.5 pt
ROIC 19.86 22.17 24.52 24.14 20.61 22.21 23.35 24.97 26.05 23.23 23.65 +3.4 pt
ROE 42.90 38.13 65.32 80.18 67.90 79.14 90.36 96.92 110.21 93.72 101.65 +50.8 pt
People
People Employees 50,000 50,000 48,000 45,000 43,000 45,000 46,000 45,000 44,000 43,000 — (1.7%)
Revenue/emp, $m 0.27 0.29 0.31 0.31 0.29 0.32 0.35 0.36 0.36 0.37 — +3.6%
Negative figures in brackets.
estimates

All 10 years →

Fiscal years to Dec 2025 · latest quarter Sep 2026 · fundamentals updated 2 Nov 2026

Business profile

Updated

Illinois Tool Works (ITW) is a global manufacturer of industrial products and equipment. Founded in 1912, it is headquartered in Glenview and led by President and Chief Executive Officer Christopher A. O’Herlihy. ITW has 88 divisions in 49 countries and employed 43,000 people at December 31, 2025.

The company sells specialized products rather than a single integrated system. Its Automotive OEM businesses make components, fasteners and assemblies for vehicle manufacturers and their suppliers. Food Equipment supplies commercial kitchens and food-service operators with cooking, refrigeration, warewashing, food-processing and ventilation equipment, alongside service, maintenance and repair.

Where the money comes from and where it goes Fiscal 2025

Fiscal 2025: revenue by segment, and margins
Automotive OEM 3,288 20.49%
Test & Measurement and Electronics 2,825 17.61%
Food Equipment 2,699 16.82%
Welding 1,890 11.78%
Construction Products 1,820 11.34%
Specialty Products 1,775 11.06%
Polymers and Fluids 1,765 11.00%
Polymers & Fluids 1,765 11.00%
Gross margin 44.10%
Operating margin 26.28%
Pre-tax margin 24.72%

Revenue by segment since 2008

Illinois Tool Works Inc. vs peers in Specialty Industrial Machinery (Q) = latest quarter vs a year earlier

Company Market cap P/E Fwd P/E Revenue growth (Q) EPS growth (Q) FCF growth (Q) Gross margin (Q) EBIT margin (Q) Compare
GEV GE Vernova Inc. $203.9B 20.1× 27.3× +26.81% (above 0%: growing) +191.92% (above 0%: growing) +640.03% (above 0%: growing) 24.57% 11.03% Compare
ETN Eaton Corporation, PLC $127.1B 32.6× 32.9× +28.03% (above 0%: growing) +6.79% (above 0%: growing) −11.00% (below 0%: shrinking) 34.70% 17.76% Compare
PH Parker-Hannifin Corporation $112.5B 30.5× 29.1× +17.86% (above 0%: growing) +9.70% (above 0%: growing) +7.58% (above 0%: growing) 37.73% 0.00% Compare
EMR Emerson Electric Co. $90.7B 35.7× 33.6× +7.10% (above 0%: growing) +23.08% (above 0%: growing) +8.91% (above 0%: growing) 52.68% 25.90% Compare
ITW Illinois Tool Works Inc. $81.1B 25.4× 24.3× +4.36% (above 0%: growing) +6.53% (above 0%: growing) −5.57% (below 0%: shrinking) 45.09% 27.79%
CMI Cummins Inc. $61.8B 18.6× 17.8× +13.48% (above 0%: growing) +113.66% (above 0%: growing) +9.43% (above 0%: growing) 27.71% 15.30% Compare
AME AMETEK, Inc. $51.1B 31.4× 32.8× +17.31% (above 0%: growing) +15.55% (above 0%: growing) +25.59% (above 0%: growing) 36.50% 26.35% Compare
ROK Rockwell Automation, Inc. $42.3B 35.6× 33.8× +7.88% (above 0%: growing) +40.38% (above 0%: growing) +33.74% (above 0%: growing) 49.46% 21.75% Compare
IR Ingersoll Rand Inc. $31.4B 22.9× 32.9× +5.62% (above 0%: growing) +180.65% (above 0%: growing) +91.49% (above 0%: growing) 44.76% 37.90% Compare
Median of peers $76.2B 30.9× 32.8× +15.40% +31.73% +17.51% 37.12% 19.76%

All 79 Specialty Industrial Machinery stocks →

From the latest earnings call

Updated

  • CEO Chris O’Herlihy said a tornado reduced third-quarter revenue by about $40 million, but welding order growth was running ahead of revenue.
  • CFO Michael Larsen said order growth accelerated in welding and test and measurement and electronics, while price increases offset higher raw-material costs.

Analyst rating changes each firm’s latest, last six months

Firm Date Action Rating Target
JPMorgan Oct 19, 2026 Target cut — —

Largest institutional holders 13F, quarter to 30 June 2026

Held by institutions 85.23%
Held by the ten largest 50.04%
Holder Shares Stake Change
Vanguard 27.32m 9.59% +242.75k
Briar Hall Management LLC 25.81m 9.06% −24.32k
BlackRock 23.28m 8.17% −94.40k
State Farm 21.03m 7.38% 0.00
State Street 12.79m 4.49% +128.09k
Northern Trust 11.06m 3.88% −140.17k
Geode Capital Management 7.08m 2.49% +25.03k
Morgan Stanley 4.90m 1.72% −504.27k
Capital Group 4.88m 1.71% +120.76k
Wells Fargo 4.37m 1.53% −266.15k
13F filings for the quarter to 30 June 2026: long positions in US-listed shares reported by managers with $100m or more, ~45 days after the quarter.

Pay and ownership Proxy statement filed 27 March 2026

Chief executive’s pay

Year Total pay Actually paid $100 invested
2025 15.21m 14.92m 135.62
2024 10.93m 10.96m 136.21
2023 22.51m 34.77m 137.55
2022 22.23m 18.73m 113.16
2021 20.79m 41.77m 123.60

Ownership

Directors and executive officers, together less than 1%
The Vanguard Group 9.10%
Briar Hall Management LLC 8.90%
State Farm Mutual Automobile Insurance Company 7.60%
BlackRock, Inc. 7.40%
Total pay is as the Summary Compensation Table states it; actually paid revalues the year’s share awards at its end, as the SEC’s pay-versus-performance rule asks. $100 invested is what $100 in the company’s shares at the start of the earliest year shown was worth at each year’s end. Ownership is the proxy’s own table: the directors and officers as a group, and every holder of 5% or more. Read the proxy statement

Illinois Tool Works Inc. (ITW) Latest News

31 Oct

Impact 3 · · StockStory

29 Oct

Impact 3 · · Zacks

28 Oct

Impact 4 · · The Motley Fool
Impact 3 · · Trefis
Impact 3 · · Zacks

27 Oct

Impact 4 · · MarketBeat
Impact 4 · · Moby
Impact 4 · · The Motley Fool transcript
Impact 4 · · GlobeNewswire earnings
Impact 3 · · Simply Wall St.
Impact 3 · · Zacks
Impact 3 · · Zacks
Impact 3 · · StockStory
Impact 3 · · Zacks earnings
Impact 3 · · Associated Press

26 Oct

Impact 3 · · Zacks
Impact 3 · · StockStory

23 Oct

Impact 3 · · Simply Wall St.
Impact 3 · · Simply Wall St.

22 Oct

Impact 3 · · Zacks

20 Oct

Impact 3 · · Trefis
Impact 3 · · Zacks

19 Oct

Impact 3 · · MarketBeat

12 Oct

Impact 3 · · Insider Monkey

6 Oct

Impact 3 · · Barchart

1 Oct

Impact 3 ·

30 Sep

Impact 3 · · Simply Wall St.

29 Sep

Impact 3 · · Zacks

23 Sep

Impact 3 · · StockStory

18 Sep

Impact 3 ·

ITW metrics, ten years each

stockrow.com/ITW · Data as of Nov 2, 2026 · For information only; not investment advice. · © 2026 stockrow.com