Snapshot
Illinois Tool Works Inc reported $4.09B of revenue in Q4 2025, up 4.1% year over year, with diluted EPS of $2.72 and an operating margin of 26.5%.
- Revenue
- $4.09B
- YoY growth
- +4.1%
- Diluted EPS
- $2.72
- Operating margin
- 26.5%
$4.09B
Revenue
+4.1%
YoY growth
$2.72
Diluted EPS
26.5%
Operating margin
01 Key takeaways
What management said
- •During today's call, we will discuss ITW's fourth quarter and full year 2025 financial results and provide guidance for full year 2026.
- •In the fourth quarter, we outperformed our underlying end markets with revenue growth of more than 4% and delivered a 7% increase in GAAP EPS to $2.72.
- •Through disciplined operational execution, we expanded operating income and margins to record levels.
- •Starting with the top line, organic growth of 1.3% marked our best quarterly performance of the year.
- •Overall, Q4 demand improved, as reflected in higher than normal sequential improvement of 4% from Q3.
- •In addition to market outperformance, the ITW team continued to execute at a high level, resulting in operating income of $1.1 billion, an increase of 5%.
- •Segment margins were 27.7%, up 120 basis points, with 140 basis point contribution from Enterprise Initiatives.
- •Throughout the year, we remained laser-focused on building above-market organic growth, fueled by Customer-Backed Innovation, or CBI, into a defining ITW strength.
- •We are pleased to have achieved 2.4% CBI-fueled revenue growth in 2025, a 40 basis point improvement, as we track toward our 2030 goal of 3%+.
- •Furthermore, I'm encouraged by a key leading indicator of CBI contribution, our patent filings, which increased by 9% last year, following an 18% increase in 2024.
- •Per our usual approach, our organic growth projection of 1%-3% reflects current demand levels adjusted for seasonality.
- •Our EPS guidance midpoint of $11.20 represents 7% growth, and we expect operating margin expansion of about 100 basis points, powered by Enterprise Initiatives.
SourcesCompany financials · earnings call
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