Companies /Industrials

Illinois Tool Works Inc

NYSE: ITW Specialty Industrial Machinery
$281.11
▼ $4.41 (−1.54%) today
Markets open · 1:39pm ET

Q1 2025 Earnings

Reported Apr 30, 2025, 9:29am ET · SEC source
$2.38
Beat +1.14%
EPS · est. $2.35
$3.8B
Miss −0.10%
Revenue · est. $3.8B
−5.7%
Trailing market
ITW vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−2%0+2%+4%Apr 30May 1report 9:29am ETearnings+2.8%+2.5%
−2%0+2%+4%Apr 30May 1earnings+2.8%+2.5%
ITW +2.5%S&P 500 +2.8%
−2%0+2%+4%Apr 30May 1report 9:29am ETearnings+3.9%+2.5%
−2%0+2%+4%Apr 30May 1earnings+3.9%+2.5%
ITW +2.5%NASDAQ +3.9%
0+2%+4%Apr 29May 8report 9:29am ETearnings+3.8%+4.9%
0+2%+4%Apr 29May 8earnings+3.8%+4.9%
ITW +4.9%S&P 500 +3.8%
0+2%+4%+6%Apr 29May 8report 9:29am ETearnings+4.8%+4.9%
0+2%+4%+6%Apr 29May 8earnings+4.8%+4.9%
ITW +4.9%NASDAQ +4.8%
−0.76%
Day of report
−0.28%
Next session
+0.17%
One week
+1.14%
30 days

S&P 500 over the same 30 days: +6.88%.

Did ITW Beat Earnings? Q1 2025 Results

Illinois Tool Works delivered a modest but meaningful earnings beat in the first quarter of 2025, with GAAP diluted EPS of $2.38 edging past the $2.35 consensus estimate by 1.14%, even as revenue of $3.84 billion came in just 0.10% below expectations and declined 3.4% year-over-year. The top-line pressure was largely attributable to foreign currency translation, which alone accounted for 1.8 percentage points of the revenue decline, while organic revenue fell a comparatively contained 1.6%, and was essentially flat on an equal days' basis. Operating margin of 24.8% contracted 60 basis points on an adjusted basis, as 120 basis points of enterprise initiative contributions were absorbed by elevated restructuring costs tied to ITW's 80/20 Front-to-Back projects. Despite the headwinds, management held firm on full-year 2025 GAAP EPS guidance of $10.15 to $10.55, projecting that ongoing pricing actions will offset tariff-related cost pressures, with organic revenue growth of zero to two percent and operating margin targeted at 26.5% to 27.5%.

Key Takeaways
  • Enterprise Initiatives contributed 120 basis points to operating margin
  • Results ahead of plan expectations despite uncertain external environment
  • Organic revenue essentially flat on an equal days' basis
  • Foreign currency translation reduced revenue by 1.8%
  • Discrete tax benefit of $21 million from reversal of valuation allowances on net operating loss carryforwards

“ITW commenced 2025 with solid execution, achieving financial results ahead of plan expectations as we continued to outperform underlying end markets.”

Illinois Tool Works CEO, on the earnings call

Forward Guidance & Outlook

ITW is maintaining its full year 2025 GAAP EPS guidance range of $10.15 to $10.55 per share, with ongoing pricing actions projected to offset tariff cost impacts. The company projects revenue and organic growth of zero to two percent based on current demand levels, adjusted for incremental pricing associated with tariffs and current foreign exchange rates. Operating margin is projected at 26.5% to 27.5%, with enterprise initiatives contributing 100 basis points or more. Free cash flow is expected to exceed 100% of net income, and the company plans to repurchase approximately $1.5 billion of its own shares. The projected effective tax rate is approximately 24%.

ITW YoY Financials

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$0$2.0B$4.0B$4.0B$3.8BRevenue$1.8B$1.7BGross Profit$1.1B$951.0MOperating Income$819.0M$700.0MNet Income
$0$2.0B$4.0BRevenueGross ProfitOperating IncomeNet Income

ITW Revenue by Segment

Automotive OEM$786.0M−3.7%
Test & Measurement and Electronics$652.0M−6.3%
Food Equipment$627.0M−0.7%
Welding$472.0M−0.9%
Construction Products$443.0M−9.2%
Polymers & Fluids$429.0M−0.8%
Specialty Products$435.0M−1.0%

Figures from SEC filings and company reports. Not investment advice.