Illinois Tool Wk Financials
This page shows Illinois Tool Wk (ITW) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 19 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Flat sales and tiny reinvestment needs turn roughly $16.0B of revenue into highly distributable cash for owners.
Revenue barely moved across the last three fiscal years, yet operating margin widened from24.1% to26.3% ; that is margin expansion without volume, which points to better mix or cost structure rather than a volume story. The less obvious consequence is that ROE near95.0% flatters the picture, because ROA was only about19.0% and the equity base is unusually thin.
The model is low-capex: capital spending was only
Capital returns are pressing harder on liquidity than the income statement suggests, because dividends plus buybacks reached about
Financial Health Signals
Based on FY2025 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →
Health score ≠ stock price. This rates the quality of Illinois Tool Wk's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Illinois Tool Wk has an operating margin of 26.3%, meaning the company retains $26 of operating profit per $100 of revenue. This strong profitability earns a score of 80/100, reflecting efficient cost management and pricing power. This is down from 26.8% the prior year.
Illinois Tool Wk's revenue grew a modest 0.9% year-over-year to $16.0B. This slow but positive growth earns a score of 33/100.
Illinois Tool Wk has a moderate D/E ratio of 2.07. This balance of debt and equity financing earns a leverage score of 60/100.
Illinois Tool Wk's current ratio of 1.21 is below the typical benchmark, resulting in a score of 19/100. This tight liquidity could limit financial flexibility if cash inflows slow.
Illinois Tool Wk converts 16.9% of revenue into free cash flow ($2.7B). This strong cash generation earns a score of 69/100.
Illinois Tool Wk earns a strong 95.0% return on equity (ROE), meaning it generates $95 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 100/100. This is down from 105.2% the prior year.
Illinois Tool Wk scores 7.90, well above the 2.99 safe threshold. This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Illinois Tool Wk passes 5 of 9 financial strength tests. 3 of 4 profitability signals pass, 2 of 3 leverage/liquidity signals pass, neither operating efficiency signal passes.
For every $1 of reported earnings, Illinois Tool Wk generates $1.02 in operating cash flow ($3.1B OCF vs $3.1B net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Illinois Tool Wk earns $14.4 in operating income for every $1 of interest expense ($4.2B vs $292.0M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Illinois Tool Wk generated $16.0B in revenue in fiscal year 2025. This represents an increase of 0.9% from the prior year.
Illinois Tool Wk's EBITDA was $4.5B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 0.7% from the prior year.
Illinois Tool Wk reported $3.1B in net income in fiscal year 2025. This represents a decrease of 12.1% from the prior year.
Illinois Tool Wk earned $10.49 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 10.4% from the prior year.
Cash & Balance Sheet
Illinois Tool Wk generated $2.7B in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 4.8% from the prior year.
Illinois Tool Wk held $851.0M in cash against $6.7B in long-term debt as of fiscal year 2025.
Illinois Tool Wk paid $6.22 per share in dividends in fiscal year 2025. This represents an increase of 7.2% from the prior year.
Illinois Tool Wk had 288M shares outstanding in fiscal year 2025. This represents a decrease of 1.8% from the prior year.
Margins & Returns
Illinois Tool Wk's gross margin was 44.1% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 0.2 percentage points from the prior year.
Illinois Tool Wk's operating margin was 26.3% in fiscal year 2025, reflecting core business profitability. This is down 0.5 percentage points from the prior year.
Illinois Tool Wk's net profit margin was 19.1% in fiscal year 2025, showing the share of revenue converted to profit. This is down 2.8 percentage points from the prior year.
Illinois Tool Wk's ROE was 95.0% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 10.1 percentage points from the prior year.
Capital Allocation
Illinois Tool Wk invested $302.0M in research and development in fiscal year 2025. This represents an increase of 3.4% from the prior year.
Illinois Tool Wk spent $1.5B on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 0.0% from the prior year.
Illinois Tool Wk invested $419.0M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 4.1% from the prior year.
ITW Income Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $4.0B-1.9% | $4.1B+0.8% | $4.1B+0.1% | $4.1B+5.6% | $3.8B-2.4% | $3.9B-0.9% | $4.0B-1.5% | $4.0B |
| Cost of Revenue | $2.3B-1.2% | $2.3B+1.4% | $2.3B-0.8% | $2.3B+5.1% | $2.2B-2.7% | $2.2B-0.4% | $2.2B-1.4% | $2.3B |
| Gross Profit | $1.8B-2.7% | $1.8B+0.2% | $1.8B+1.3% | $1.8B+6.2% | $1.7B-1.9% | $1.7B-1.4% | $1.7B-1.6% | $1.8B |
| R&D Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Operating Income | $1.0B-6.0% | $1.1B-2.4% | $1.1B+4.1% | $1.1B+12.3% | $951.0M-7.8% | $1.0B-2.0% | $1.1B-0.2% | $1.1B |
| Interest Expense | $73.0M-2.7% | $75.0M0.0% | $75.0M+1.4% | $74.0M+8.8% | $68.0M0.0% | $68.0M-1.4% | $69.0M-8.0% | $75.0M |
| Income Tax | $199.0M-15.0% | $234.0M+2.6% | $228.0M-6.2% | $243.0M+24.6% | $195.0M-16.3% | $233.0M+15.3% | $202.0M-17.9% | $246.0M |
| Net Income | $768.0M-2.8% | $790.0M-3.8% | $821.0M+8.7% | $755.0M+7.9% | $700.0M-6.7% | $750.0M-35.3% | $1.2B+52.8% | $759.0M |
| EPS (Diluted) | $2.66 | N/A | $2.81+8.9% | $2.58+8.4% | $2.38 | N/A | $3.91+53.9% | $2.54 |
ITW Balance Sheet
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $16.3B+0.7% | $16.1B+0.1% | $16.1B+0.5% | $16.0B+3.7% | $15.5B+2.7% | $15.1B-4.8% | $15.8B+1.6% | $15.6B |
| Current Assets | $6.3B+2.2% | $6.2B-1.9% | $6.3B+1.4% | $6.2B+3.3% | $6.0B+3.1% | $5.9B-7.1% | $6.3B+0.8% | $6.3B |
| Cash & Equivalents | $827.0M-2.8% | $851.0M-7.9% | $924.0M+17.3% | $788.0M-9.7% | $873.0M-7.9% | $948.0M+0.1% | $947.0M+9.9% | $862.0M |
| Inventory | $1.7B+4.0% | $1.7B-3.8% | $1.7B+0.9% | $1.7B+2.8% | $1.7B+3.6% | $1.6B-11.7% | $1.8B-0.1% | $1.8B |
| Accounts Receivable | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Goodwill | $5.1B-0.3% | $5.1B+1.4% | $5.0B-0.2% | $5.0B+2.8% | $4.9B+1.3% | $4.8B-2.8% | $5.0B+1.4% | $4.9B |
| Total Liabilities | $13.0B+0.9% | $12.9B0.0% | $12.9B+0.7% | $12.8B+5.0% | $12.2B+4.1% | $11.8B-5.5% | $12.4B-1.5% | $12.6B |
| Current Liabilities | $5.3B+4.0% | $5.1B+24.1% | $4.1B+5.1% | $3.9B+4.0% | $3.8B-12.3% | $4.3B-6.9% | $4.6B-3.7% | $4.8B |
| Long-Term Debt | $6.6B-1.2% | $6.7B-12.9% | $7.7B-0.3% | $7.7B+5.7% | $7.3B+15.4% | $6.3B-4.1% | $6.6B+2.3% | $6.4B |
| Total Equity | $3.2B+0.1% | $3.2B+0.5% | $3.2B-0.1% | $3.2B-1.0% | $3.2B-2.3% | $3.3B-2.2% | $3.4B+14.5% | $3.0B |
| Retained Earnings | $30.5B+1.0% | $30.1B+1.1% | $29.8B+1.2% | $29.5B+1.1% | $29.2B+0.9% | $28.9B+1.1% | $28.6B+2.6% | $27.9B |
ITW Cash Flow Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $623.0M-35.3% | $963.0M-5.7% | $1.0B+85.6% | $550.0M-7.1% | $592.0M-46.9% | $1.1B+25.0% | $891.0M+29.7% | $687.0M |
| Capital Expenditures | $95.0M-9.5% | $105.0M-10.3% | $117.0M+15.8% | $101.0M+5.2% | $96.0M-18.6% | $118.0M+9.3% | $108.0M-6.9% | $116.0M |
| Free Cash Flow | $528.0M-38.5% | $858.0M-5.1% | $904.0M+101.3% | $449.0M-9.5% | $496.0M-50.2% | $996.0M+27.2% | $783.0M+37.1% | $571.0M |
| Investing Cash Flow | -$99.0M+55.2% | -$221.0M-90.5% | -$116.0M-26.1% | -$92.0M0.0% | -$92.0M+21.4% | -$117.0M-139.8% | $294.0M+274.0% | -$169.0M |
| Financing Cash Flow | -$547.0M+33.1% | -$818.0M-5.5% | -$775.0M-37.7% | -$563.0M+4.3% | -$588.0M+37.6% | -$943.0M+15.9% | -$1.1B-86.5% | -$601.0M |
| Dividends Paid | $465.0M-0.4% | $467.0M+6.6% | $438.0M-0.2% | $439.0M-0.5% | $441.0M-0.5% | $443.0M+6.7% | $415.0M-0.7% | $418.0M |
| Share Buybacks | $375.0M0.0% | $375.0M0.0% | $375.0M0.0% | $375.0M0.0% | $375.0M0.0% | $375.0M0.0% | $375.0M0.0% | $375.0M |
ITW Financial Ratios
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 43.8%-0.4pp | 44.2%-0.3pp | 44.5%+0.5pp | 44.0%+0.3pp | 43.7%+0.2pp | 43.5%-0.3pp | 43.8%-0.1pp | 43.8% |
| Operating Margin | 25.4%-1.1pp | 26.5%-0.9pp | 27.4%+1.1pp | 26.4%+1.6pp | 24.8%-1.4pp | 26.2%-0.3pp | 26.5%+0.4pp | 26.2% |
| Net Margin | 19.1%-0.2pp | 19.3%-0.9pp | 20.2%+1.6pp | 18.6%+0.4pp | 18.2%-0.8pp | 19.1%-10.2pp | 29.3%+10.4pp | 18.9% |
| Return on Equity | 23.8%-0.7pp | 24.5%-1.1pp | 25.6%+2.1pp | 23.5%+1.9pp | 21.6%-1.0pp | 22.6%-11.6pp | 34.2%+8.6pp | 25.6% |
| Return on Assets | 4.7%-0.2pp | 4.9%-0.2pp | 5.1%+0.4pp | 4.7%+0.2pp | 4.5%-0.4pp | 5.0%-2.4pp | 7.3%+2.5pp | 4.9% |
| Current Ratio | 1.19-0.0 | 1.21-0.3 | 1.53-0.1 | 1.59-0.0 | 1.60+0.2 | 1.360.0 | 1.36+0.1 | 1.30 |
| Debt-to-Equity | 2.04-0.0 | 2.07-0.3 | 2.390.0 | 2.40+0.2 | 2.25+0.3 | 1.90-0.0 | 1.94-0.2 | 2.17 |
| FCF Margin | 13.2%-7.8pp | 21.0%-1.3pp | 22.3%+11.2pp | 11.1%-1.8pp | 12.9%-12.4pp | 25.3%+5.6pp | 19.7%+5.6pp | 14.2% |
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Frequently Asked Questions
What is Illinois Tool Wk's annual revenue?
Illinois Tool Wk (ITW) reported $16.0B in total revenue for fiscal year 2025. This represents a 0.9% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Illinois Tool Wk's revenue growing?
Illinois Tool Wk (ITW) revenue grew by 0.9% year-over-year, from $15.9B to $16.0B in fiscal year 2025.
Is Illinois Tool Wk profitable?
Yes, Illinois Tool Wk (ITW) reported a net income of $3.1B in fiscal year 2025, with a net profit margin of 19.1%.
What is Illinois Tool Wk's EBITDA?
Illinois Tool Wk (ITW) had EBITDA of $4.5B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Illinois Tool Wk have?
As of fiscal year 2025, Illinois Tool Wk (ITW) had $851.0M in cash and equivalents against $6.7B in long-term debt.
What is Illinois Tool Wk's gross margin?
Illinois Tool Wk (ITW) had a gross margin of 44.1% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Illinois Tool Wk's operating margin?
Illinois Tool Wk (ITW) had an operating margin of 26.3% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Illinois Tool Wk's net profit margin?
Illinois Tool Wk (ITW) had a net profit margin of 19.1% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
Does Illinois Tool Wk pay dividends?
Yes, Illinois Tool Wk (ITW) paid $6.22 per share in dividends during fiscal year 2025.
What is Illinois Tool Wk's return on equity (ROE)?
Illinois Tool Wk (ITW) has a return on equity of 95.0% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Illinois Tool Wk's free cash flow?
Illinois Tool Wk (ITW) generated $2.7B in free cash flow during fiscal year 2025. This represents a -4.8% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Illinois Tool Wk's operating cash flow?
Illinois Tool Wk (ITW) generated $3.1B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Illinois Tool Wk's total assets?
Illinois Tool Wk (ITW) had $16.1B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Illinois Tool Wk's capital expenditures?
Illinois Tool Wk (ITW) invested $419.0M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Illinois Tool Wk spend on research and development?
Illinois Tool Wk (ITW) invested $302.0M in research and development during fiscal year 2025.
What is Illinois Tool Wk's current ratio?
Illinois Tool Wk (ITW) had a current ratio of 1.21 as of fiscal year 2025, which is considered adequate.
What is Illinois Tool Wk's debt-to-equity ratio?
Illinois Tool Wk (ITW) had a debt-to-equity ratio of 2.07 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Illinois Tool Wk's return on assets (ROA)?
Illinois Tool Wk (ITW) had a return on assets of 19.0% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Illinois Tool Wk's Altman Z-Score?
Illinois Tool Wk (ITW) has an Altman Z-Score of 7.90, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Illinois Tool Wk's Piotroski F-Score?
Illinois Tool Wk (ITW) has a Piotroski F-Score of 5 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Illinois Tool Wk's earnings high quality?
Illinois Tool Wk (ITW) has an earnings quality ratio of 1.02x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Illinois Tool Wk cover its interest payments?
Illinois Tool Wk (ITW) has an interest coverage ratio of 14.4x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Illinois Tool Wk?
Illinois Tool Wk (ITW) scores 60 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.