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Mar 31, 2025
ITW Q1 2025 Earnings Report
ITW reported a solid Q1 2025 with earnings above plan expectations amid a volatile market.
Key Takeaways
Illinois Tool Works delivered $3.8B in revenue and $2.38 EPS in Q1 2025, with strong net income despite a modest revenue decline. The company maintained its full-year guidance, citing successful pricing strategies to counteract tariffs.
GAAP EPS was $2.38, with restructuring and FX impacts totaling $0.10 per share.
Revenue declined 3.4% year-over-year to $3.8 billion; organic revenue fell 1.6%.
Net income for the quarter totaled $700 million with a 24.8% operating margin.
ITW repurchased $375 million in shares and generated $496 million in free cash flow.
Revenue by Segment
Forward Guidance
ITW reaffirmed its full-year 2025 guidance, expecting EPS between $10.15 and $10.55 and flat to 2% revenue growth.
Positive Outlook
- Ongoing pricing actions expected to offset tariff costs.
- Operating margin projected between 26.5% and 27.5%.
- Enterprise initiatives to contribute 100+ bps to margin.
- Free cash flow expected to exceed 100% of net income.
- Share repurchases of approximately $1.5 billion planned.
Challenges Ahead
- Uncertain external environment and market volatility.
- Foreign exchange rates remain a headwind.
- Tariff-related costs impacting cost structure.
- Restructuring expenses expected to persist.
- Flat organic revenue outlook at the lower end of guidance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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