Core Viewpoint - Illinois Tool Works (ITW) is recognized as a Dividend King with a history of increasing dividends for 61 consecutive years, despite facing a challenging operating environment that has led to stagnation in stock price and earnings [1] Group 1: Shareholder Goals and Management Strategy - ITW has established clear goals that reward shareholders, combining short-term, medium-term, and long-term targets to build a solid investment thesis [3] - The company has successfully implemented its Enterprise Strategy from 2012 to 2023, resulting in a 9 percentage point increase in operating margin, a tripling of earnings per share (EPS), and a 3.7 times increase in dividends [4] Group 2: Future Growth Focus - From 2024 to 2030, ITW aims for organic growth through its Customer-Back Innovation process, focusing on customer needs and leveraging existing brands rather than relying heavily on mergers and acquisitions [5] - ITW's structure allows flexibility across its seven key segments, enabling them to adapt to changing market demands and economic conditions [6] Group 3: Financial Projections and Performance - By 2030, ITW targets a 30% operating margin and an average annual EPS growth of 9% to 10%, supporting a 7% annual increase in dividends [7] - In the first quarter of 2025, ITW experienced a 3.4% decline in revenue and a decrease in operating margin to 24.8%, but maintained its full-year guidance for GAAP EPS between $10.15 and $10.55 [8][9] Group 4: Investment Value and Dividend Reliability - Despite recent challenges, ITW remains a compelling investment due to its steady dividend growth and affordability [10] - The company has consistently increased its EPS and free cash flow per share, supporting dividend growth and share buybacks, which have reduced the share count and accelerated EPS growth [12] - With a projected price-to-earnings ratio of 23.7 based on 2025 guidance, ITW is considered a reasonable investment for a high-quality business [13] Group 5: Market Confidence and Passive Income Potential - ITW is viewed as a safe stock to invest in, demonstrating resilience amid tariff uncertainties and reaffirming its full-year guidance [14] - The company generates sufficient earnings and cash flow to cover dividend payments while maintaining capacity for stock buybacks, making it a solid choice for passive income portfolios with a 2.5% yield [15]

A month has gone by since the last earnings report for Illinois Tool Works (ITW) . Shares have added about 2.7% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Illinois Tool Works due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.How Have Estimates Been Moving Since ...

Illinois Tool Works Inc. (ITW) is benefiting from positive momentum in the Food Equipment segment. Growth in the institutional end markets in North America, along with higher service revenues and strong demand in the European warewashing equipment end market, has been aiding the segment’s performance. Organic revenues from the segment increased 1.2% in the first quarter of 2025.The company is also benefiting from strength in the Specialty Products segment. The segment is being driven by strong momentum in t ...

Financial Performance - Operating revenue for Q1 2025 was $3.839 billion, a decrease of 3.4% compared to $3.973 billion in Q1 2024[97]. - Operating income for Q1 2025 was $951 million, down 15.6% from $1.127 billion in Q1 2024, resulting in an operating margin of 24.8%[97]. - Organic revenue decreased by 1.6% in Q1 2025, with declines in the Test & Measurement and Electronics, Construction Products, and Automotive OEM segments[98]. - Total operating revenue for Q1 2025 was $3,839 million, a decrease from $3,973 million in Q1 2024, while operating income fell to $951 million, down 15.6%[100]. - Automotive OEM segment operating revenue decreased 3.7% to $786 million, with operating income down 6.4% to $151 million, resulting in an operating margin of 19.3%[102]. - Food Equipment segment operating revenue was $627 million, a slight decrease of 0.7%, but operating income increased 1.5% to $166 million, leading to an operating margin of 26.5%[104]. - Test & Measurement and Electronics segment operating revenue decreased 6.3% to $652 million, with operating income down 14.6% to $139 million, resulting in an operating margin of 21.4%[108]. - Welding segment operating revenue was $472 million, a decrease of 0.9%, with operating income of $153 million, leading to an operating margin of 32.5%[112]. - Polymers & Fluids segment operating revenue for Q1 2025 was $429 million, a decrease of 0.8% from $432 million in Q1 2024, primarily due to unfavorable foreign currency translation[113]. - Construction Products segment operating revenue decreased by 9.2% to $443 million in Q1 2025 from $488 million in Q1 2024, with organic revenue down 7.4% due to lower demand across all major regions[119]. - Specialty Products segment operating revenue was $435 million in Q1 2025, down 1.0% from $440 million in Q1 2024, with organic revenue increasing by 0.9%[123]. - Operating income for the Specialty Products segment increased by 3.2% to $135 million in Q1 2025, compared to $130 million in Q1 2024, reflecting improved operational efficiency[123]. - Diluted earnings per share (EPS) for Q1 2025 was $2.38, a decrease of 12.8% compared to the previous year[101]. Expenses and Costs - Cost of revenue for Q1 2025 was $2.161 billion, representing 56.3% of operating revenue, compared to 54.0% in Q1 2024[94]. - Selling, administrative, and research and development expenses increased to $706 million in Q1 2025 from $676 million in Q1 2024, accounting for 18.4% of operating revenue[95]. - Interest expense decreased to $68 million in Q1 2025 from $71 million in Q1 2024, indicating better debt management[126]. Cash Flow and Liquidity - The Company reported free cash flow of $496 million for Q1 2025, compared to $494 million in Q1 2024, indicating stable cash generation capabilities[128]. - As of March 31, 2025, the Company had $873 million in cash and equivalents and no outstanding borrowings under its $3.0 billion revolving credit facility, ensuring strong liquidity[125]. - The company has a $3.0 billion revolving credit facility available for additional liquidity, with no amounts outstanding as of March 31, 2025[139]. Tax and Equity - The effective tax rate for Q1 2025 was 21.7%, down from 23.6% in Q1 2024, including a discrete tax benefit of $21 million related to net operating loss carryforwards[101]. - Stockholders' equity decreased to $3,242 million as of March 31, 2025, from $3,317 million at the end of 2024, impacted by net income and stock repurchases[141]. Strategic Initiatives - The company completed two acquisitions in the Test & Measurement and Electronics segment for a total of $116 million in early 2024[88]. - The company’s decentralized entrepreneurial culture is a key competitive advantage, allowing for rapid adaptation to market changes[79]. - The company continues to focus on customer-back innovation to drive organic growth and maintain high-quality financial performance[80]. - The company’s portfolio management strategy includes divesting commoditized businesses and focusing on sustainable differentiation[75]. - The Company announced a new stock repurchase program allowing for the repurchase of up to $5.0 billion of common stock, with approximately $3.1 billion remaining as of March 31, 2025[129]. Market and Risk Factors - Forward-looking statements indicate potential risks including market downturns, supply chain challenges, and regulatory changes that could impact future performance[142]. - ITW practices fair disclosure for all interested parties, ensuring no material non-public information is shared with analysts[144]. - There have been no material changes to exposures to market risk as reported in the Company's 2024 Annual Report on Form 10-K[145].

Illinois Tool Works Inc. (ITW) reported first-quarter 2025 adjusted earnings of $2.38 per share, which surpassed the Zacks Consensus Estimate of $2.34. However, earnings decreased 2.5% year over year.Illinois Tool’s revenues of $3,839 million narrowly missed the consensus estimate of $3,842 million. The top line declined 3.4% year over year due to an unfavorable foreign currency translation of 1.8%. Also, organic sales decreased 1.6%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) ...

Illinois Tool Works (ITW -2.90%) managed to top expectations for the quarter, but tariffs and macroeconomic concerns are weighing on the company.Investors are taking a glass-half-empty approach, sending shares of the diversified manufacturer down 4% as of 10:30 a.m. ET on Wednesday.Holding ground in a difficult environmentIllinois Tool Works (ITW) earned $2.44 per share in the quarter on $3.8 billion in sales, topping the $2.35 per share consensus Wall Street estimate but falling about $40 million short on ...

Illinois Tool Works (ITW) reported $3.84 billion in revenue for the quarter ended March 2025, representing a year-over-year decline of 3.4%. EPS of $2.38 for the same period compares to $2.44 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $3.84 billion, representing a surprise of -0.08%. The company delivered an EPS surprise of +1.71%, with the consensus EPS estimate being $2.34.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- a ...

Illinois Tool Works (ITW) came out with quarterly earnings of $2.38 per share, beating the Zacks Consensus Estimate of $2.34 per share. This compares to earnings of $2.44 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.71%. A quarter ago, it was expected that this equipment manufacturer for the transportation, power, food and construction industries would post earnings of $2.49 per share when it actually produced earnings of ...

Illinois Tool Works (ITW) Q1 2025 Earnings Call April 30, 2025 10:00 AM ET Company Participants Erin Linnihan - Vice President of Investor RelationsChristopher O'Herlihy - President & CEOMichael Larsen - SVP & CFOTami Zakaria - Executive DirectorStephen Volkmann - Managing DirectorJamie Cook - Managing Director - Equity ResearchJoseph O'Dea - Managing Director Conference Call Participants Vlad Bystricky - AnalystJulian Mitchell - Equity Research AnalystNone - AnalystNicole Deblase - Lead Analyst Operator Go ...

Illinois Tool Works (ITW) Q1 2025 Earnings Call April 30, 2025 10:00 AM ET Speaker0 Good morning. My name is Lacey, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the ITW's First Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Session. And if needed, one follow-up question. You. Erin Linehan, Vice President of Investor Relations, ...