Companies /Industrials

Illinois Tool Works Inc

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

Q2 2025 Earnings

Reported Jul 30, 2025, 9:33am ET · SEC source
$2.58
Beat +0.89%
EPS · est. $2.56
$4.1B
Beat +0.71%
Revenue · est. $4.0B
+2.7%
Beating market
ITW vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−0.6%0+0.6%+1.2%Jul 30Jul 31report 9:33am ETearnings−0.5%+0.9%
−0.6%0+0.6%+1.2%Jul 30Jul 31earnings−0.5%+0.9%
ITW +0.9%S&P 500 −0.5%
−0.6%0+0.6%+1.2%Jul 30Jul 31report 9:33am ETearnings−0.5%+0.9%
−0.6%0+0.6%+1.2%Jul 30Jul 31earnings−0.5%+0.9%
ITW +0.9%NASDAQ −0.5%
−2%0+2%Jul 29Aug 7report 9:33am ETearnings−0.5%+1.9%
−2%0+2%Jul 29Aug 7earnings−0.5%+1.9%
ITW +1.9%S&P 500 −0.5%
−2%0+2%Jul 29Aug 7report 9:33am ETearnings+0.4%+1.9%
−2%0+2%Jul 29Aug 7earnings+0.4%+1.9%
ITW +1.9%NASDAQ +0.4%
−2.25%
Day of report
+0.91%
Next session
+1.51%
One week
+4.33%
30 days

S&P 500 over the same 30 days: +1.67%.

Did ITW Beat Earnings? Q2 2025 Results

Illinois Tool Works posted a clean beat in the second quarter of 2025, with GAAP EPS of $2.58 edging past the $2.56 consensus estimate by 0.89% and marking a new Q2 record for the industrial manufacturer. Revenue of $4.05 billion rose 0.7% year over year, nudging ahead of the $4.02 billion analyst estimate by 0.71%, with foreign currency translation providing roughly one percentage point of lift as underlying organic growth remained essentially flat. The clearest driver behind the margin story was ITW's own enterprise initiatives, which contributed 130 basis points to an operating margin of 26.3%, even as softer segments like Construction Products, down 6.9% organically, created headwinds across the portfolio. Management's confidence in its pricing-led response to tariff pressures was underscored by a guidance raise, with full-year 2025 GAAP EPS now expected in the $10.35 to $10.55 range, up $0.10 at the midpoint. The company also announced a 7% dividend increase, lifting the quarterly payout to $1.61 per share, signaling continued commitment to returning capital alongside roughly $1.5 billion in planned share repurchases for the year.

Key Takeaways
  • Enterprise initiatives contributed 130 basis points to operating margin
  • Organic growth was essentially flat while total revenue increased 1% aided by favorable FX translation of 1%
  • Operating margin expanded 10 basis points to 26.3%, a Q2 record
  • Pricing actions projected to offset tariff cost impacts
  • Automotive OEM organic growth of 2.4% and Welding organic growth of 2.8% led segments

“The ITW team outpaced underlying end market growth and delivered solid financial performance in the second quarter, achieving EPS of $2.58, operating income of $1.1 billion, and operating margin of 26.3 percent, all second-quarter records. Our results are a direct outcome of the strength of the ITW Business Model, the quality of our diversified and resilient portfolio, and the unwavering dedication of our global ITW colleagues to serving our customers and executing our strategy with excellence.”

Illinois Tool Works CEO, on the earnings call

Forward Guidance & Outlook

ITW raised and narrowed its full-year 2025 GAAP EPS guidance by $0.10 at the midpoint to $10.35–$10.55 per share. Revenue growth is projected at 1–3% with organic growth of flat to 2%, based on current demand levels adjusted for pricing actions expected to offset tariff cost impacts. Operating margin is projected at 26–27% with enterprise initiatives contributing 100+ basis points. Free cash flow is expected to exceed 100% of net income. The company plans approximately $1.5 billion in share repurchases. The projected effective tax rate is approximately 24%.

ITW YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$2.0B$4.0B$4.0B$4.1BRevenue$1.7B$1.8BGross Profit$1.1B$1.1BOperating Income$759.0M$755.0MNet Income
$0$2.0B$4.0BRevenueGross ProfitOperating IncomeNet Income

ITW Revenue by Segment

Automotive OEM$845.0M+3.8%
Test & Measurement and Electronics$686.0M+1.2%
Food Equipment$680.0M+2.1%
Welding$479.0M+2.9%
Construction Products$473.0M−6.1%
Polymers & Fluids$438.0M−3.4%
Specialty Products$455.0M+1.1%

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