Snapshot
Illinois Tool Works Inc reported $4.05B of revenue in Q2 2025, up 0.6% year over year, with diluted EPS of $2.58 and an operating margin of 26.4%.
- Revenue
- $4.05B
- YoY growth
- +0.6%
- Diluted EPS
- $2.58
- Operating margin
- 26.4%
$4.05B
Revenue
+0.6%
YoY growth
$2.58
Diluted EPS
26.4%
Operating margin
01 Key takeaways
What management said
- •During today's call we will discuss ITW's second quarter financial results and provide an update on our outlook for full year 2025.
- •As you saw in our press release this morning, the ITW team outpaced underlying end market growth and delivered solid financial performance in the second quarter.
- •Total revenue increased 1% as foreign currency translation increased revenue by 1% while product line simplification or PLS accounted for a 1% reduction.
- •We achieved GAAP EPS of $2.58, operating income of $1.1 billion, an operating margin of 26.3% which are all second quarter records.
- •I will now turn the call over to Michael to discuss our second quarter performance in more detail as well as our updated full year guidance.
- •Our top line saw a 1% increase in total revenue, driven in part by a 1% positive impact from foreign currency translation.
- •Our organic growth rate was essentially flat, marking an improvement of over a percentage point from Q1 geographically.
- •While North America posted a 2% organic revenue decline and Europe was down 3%, Asia Pacific stood out with a 9% increase with impressive growth of 15%.
- •In China, we experienced encouraging sequential revenue growth of 6% from Q1, along with some positive signs in end markets such as semiconductors, electronics, welding, specialty products, equipment and an improved outlook for autobuilds.
- •Our enterprise initiatives were particularly effective this quarter, contributing 130 basis points to the operating margin of 26.3%.
- •Although our decisive pricing actions more than cover tariff costs and positively impacted EPS in Q2, the overall price cost dynamic was modestly dilutive to our margin.
- •Finally, we generated $449 million in free cash flow representing a 59% conversion rate.
SourcesCompany financials · earnings call
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