Illinois Tool Works Inc. (ITW) is listed on NYSE and operates in the Industrial - Machinery industry (Industrials sector).
Illinois Tool Works Inc. manufactures and sells industrial products and equipment worldwide. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products. The Automotive OEM segment offers plastic and metal components, fasteners, and assemblies for automobiles, light trucks, and other industrial uses. The Food Equipment segment provides warewashing, refrigeration, cooking, and food processing equipment; kitchen exhaust, ventilation, and pollution control systems; and food equipment maintenance and repair services. The Test & Measurement and Electronics segment produces and sells equipment, consumables, and related software for testing and measuring of materials and structures, as well as equipment and consumables used in the production of electronic subassemblies and microelectronics. The Welding segment produces arc welding equipment; and metal arc welding consumables and related accessories. The Polymers & Fluids segment produces adhesives, sealants, lubrication and cutting fluids, and fluids and polymers for auto aftermarket maintenance and appearance. The Construction Products segment offers engineered fastening systems and solutions for the residential construction, renovation/remodel, and commercial construction markets. The Specialty Products segment offers beverage packaging equipment and consumables, product coding and marking equipment and consumab...
| Rating | Analysts |
|---|---|
| Strong Buy | 0 |
| Buy | 6 |
| Hold | 13 |
| Sell | 9 |
| Strong Sell | 0 |
Illinois Tool Works Inc., founded in 1912 and headquartered in Glenview, Illinois, manufactures and sells industrial products and equipment globally. The company operates through seven segments: Automotive OEM, Food Equipment, Test & Measurement and Electronics, Welding, Polymers & Fluids, Construction Products, and Specialty Products. The Automotive OEM segment provides components and assemblies for vehicles and industrial applications. The Food Equipment segment offers equipment and services for warewashing, refrigeration, cooking, and food processing. The Test & Measurement and Electronics segment supplies equipment and software for material testing and electronics production. The Welding segment focuses on arc welding equipment and consumables. The Polymers & Fluids segment produces adhesives, sealants, and maintenance fluids. The Construction Products segment delivers fastening systems for construction markets. The Specialty Products segment includes beverage packaging, product coding, and appliance components. Illinois Tool Works serves various end markets, including automotive, commercial food equipment, construction, and general industrial sectors. Products are distributed directly to manufacturers and through independent distributors.
Over the past three fiscal years, the company has demonstrated a mixed performance across various financial metrics. Revenue showed an inconsistent trend, slightly declining from $16.11 billion in 2023 to $16.04 billion in 2025, reflecting a marginal CAGR of -0.2%. Despite this, the company managed to improve its profitability, with gross margins consistently increasing by 2.6 percentage points from 41.5% to 44.1%, and operating margins showing a modest rise of 1.2 percentage points to 26.3%. Net margins also improved by 0.8 percentage points, reaching 19.1% by 2025. Earnings per share (EPS) grew at a CAGR of 3.8%, rising from $9.74 to $10.49, partly due to a 3.7% reduction in share count, which enhanced per-share value. However, cash generation faced challenges, as both operating cash flow (OCF) and free cash flow (FCF) consistently decreased, with OCF dropping from $3.54 billion to $3.13 billion and FCF from $3.08 billion to $2.71 billion. The company's net debt increased from $7.31 billion to $8.12 billion, indicating a higher leverage position. Despite these challenges, the company maintained a solid interest coverage ratio of 14.6x, suggesting strong capacity to meet interest obligations. Additionally, the company's capital efficiency remained stable, with a consistent asset turnover ratio around 1.03, and a low capex intensity of 2.6%, indicating a capital-light business model.
Recent developments for Illinois Tool Works (ITW) focus on institutional trading activity and analyst actions. Alley Investment Management Company LLC sold 36,172 shares of ITW, reducing its holdings by 9% in the fourth quarter, with the remaining shares valued at $476,000. Meanwhile, Argo Wealth Advisory LLC acquired 9,650 shares, valued at approximately $2,377,000, indicating varied institutional interest. Additionally, analysts have provided mixed signals; Wells Fargo & Company lowered their price target for ITW, while Wolfe Research and Citigroup increased theirs, reflecting a consensus recommendation of "Reduce" with an average price target of $270. In other news, ITW has continued its impressive dividend growth, marking its 63rd consecutive increase, nearly tripling payouts since 2016. Looking ahead, ITW's upcoming earnings report is anticipated, with speculation on whether the company will surpass estimates once again. These activities and analyses suggest a dynamic period for ITW, with institutional adjustments and analyst evaluations shaping investor perspectives.