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Dec 31, 2024
ITW Q4 2024 Earnings Report
ITW delivered a solid financial performance with revenue of $3.9 billion and EPS of $2.54.
Key Takeaways
ITW reported Q4 2024 results, with revenue of $3.9 billion, a decrease of 1.3%. GAAP EPS increased by 7% to $2.54. The company achieved a record operating margin of 26.2% and generated $1 billion in free cash flow, a 10% increase. ITW initiates 2025 guidance including GAAP EPS in the range of $10.15 to $10.55 per share.
Revenue decreased by 1.3% to $3.9 billion, with organic revenue declining 0.5%.
GAAP EPS increased by 7% to $2.54.
Operating margin reached a record 26.2%, an increase of 140 bps.
Free cash flow grew by 10% to $1.0 billion, with a conversion rate of 133%.
Revenue by Segment
Forward Guidance
The company is initiating 2025 guidance including GAAP EPS in the range of $10.15 to $10.55 per share which includes a foreign currency translation headwind of $0.30. The company projects above-market organic growth of zero to two percent based on current levels of demand, including an expected PLS reduction of approximately one percentage point.
Positive Outlook
- Above-market organic growth of 0 to 2% based on current levels of demand
- Organic growth of 1 to 3% excluding PLS reduction of approximately 1%-point
- Enterprise initiatives contributing approximately 100 bps to margin improvement
- Free cash flow is projected to be greater than 100 percent of net income
- The company plans to repurchase approximately $1.5 billion of its own shares
Challenges Ahead
- GAAP EPS of $10.15 to $10.55 including foreign currency translation headwind of $0.30
- Foreign currency translation is expected to reduce revenue by three percent, resulting in a projected total revenue decline of one to three percent.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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