Illinois Tool Works Inc.
- Open
- 271.56
- Day high
- 271.65
- Day low
- 269.19
- Prev close
- 269.09
- Volume
- 61K
- Mkt cap
- $76.7B
- P/E (TTM)
- 24.4
- EPS (TTM)
- $11.05
- P/B
- 26.5
- P/S
- 4.7
- Yield
- 2.39%
- Per share
- $6.44
- ▼Insiders net selling -$12.0M over the last 3 months (0 open-market buys, 5 sales)
- 🏛Institutions mixed (13F)
Illinois Tool Works Inc. (ITW) is a Industrials company listed on NYSE. The stock is up 3% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 5 sales (SEC Form 4). Drillr has 1 published research article covering ITW.
Illinois Tool Works Inc. (ITW) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 7 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
ITW earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 28, 2026 | $2.79 | $2.84 | +1.8% | $4.3B | +2.7% |
| Apr 30, 2026 | $2.57 | $2.66 | +3.5% | $4.0B | +0.2% |
| Feb 3, 2026 | $2.69 | $2.72 | +1.1% | $4.1B | +0.7% |
| Oct 24, 2025 | $2.75 | $2.81 | +2.2% | $4.1B | -0.5% |
| Jul 30, 2025 | $2.56 | $2.58 | +0.8% | $4.1B | +0.7% |
| Apr 30, 2025 | $2.34 | $2.38 | +1.7% | $3.8B | -0.1% |
| Feb 5, 2025 | $2.49 | $2.54 | +2.0% | $3.9B | -1.3% |
| Jul 30, 2024 | $2.48 | $2.54 | +2.4% | $4.0B | -1.3% |
| Apr 30, 2024 | $2.36 | $2.44 | +3.4% | $4.0B | -1.4% |
| Feb 1, 2024 | $2.41 | $2.42 | +0.4% | $4.0B | -0.7% |
| May 2, 2023 | $2.24 | $2.33 | +4.2% | $4.0B | +0.5% |
| Feb 2, 2023 | $2.57 | $2.95 | +14.8% | $4.0B | +1.8% |
ITW insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 21, 2026 | SANTI ERNEST SCOTTdirector | Sell | 8,142 | $287.35 |
| Aug 21, 2026 | SANTI ERNEST SCOTTdirector | Option | 41,431 | $187.86 |
| Aug 21, 2026 | SANTI ERNEST SCOTTdirector | Sell | 8,928 | $288.22 |
| Aug 21, 2026 | SANTI ERNEST SCOTTdirector | Sell | 22,471 | $286.37 |
| Aug 21, 2026 | SANTI ERNEST SCOTTdirector | Sell | 1,890 | $289.19 |
| Aug 17, 2026 | Pigozzo Matteo C.officer: VP & Chief Accounting Officer | Sell | 277 | $289.22 |
| Aug 11, 2026 | SMITH DAVID BYRON JRdirector | Grant | 130 | $296.66 |
| Aug 11, 2026 | SANTI ERNEST SCOTTdirector | Grant | 118 | $296.66 |
| Aug 11, 2026 | Scanlon Jennifer F.director | Grant | 118 | $296.66 |
| Aug 11, 2026 | CROWN SUSANdirector | Grant | 58 | $296.66 |
| Jun 4, 2026 | Scanlon Jennifer F.director | Buy | 806 | $247.99 |
| May 12, 2026 | SMITH DAVID BYRON JRdirector | Grant | 917 | $254.76 |
| May 12, 2026 | Henderson Jay Ldirector | Grant | 765 | $254.76 |
| May 12, 2026 | Brutto Daniel Jdirector | Grant | 765 | $254.76 |
| May 12, 2026 | STROBEL PAMELA Bdirector | Grant | 765 | $254.76 |
Source: ITW SEC Form 4 filings, latest Aug 21, 2026. For informational purposes only — not investment advice.
See the full ITW insider & 13F page →Illinois Tool Works Inc. company profile
Overview
Illinois Tool Works Inc. (NYSE:ITW) is a diversified industrial manufacturer founded in 1912 and headquartered in Glenview, Illinois. The company has evolved from a small tool and fastener manufacturer into a global industrial conglomerate operating across seven distinct business segments. ITW went public in 1973 and has built a reputation for operational excellence through its decentralized business model and focus on customer-backed innovation. The company serves diverse end markets including automotive manufacturing, commercial food service, construction, welding, and specialty industrial applications across more than 50 countries worldwide.
Business
Illinois Tool Works operates as a diversified industrial manufacturer across seven primary business segments, each serving distinct markets with specialized products and solutions. Automotive OEM (approximately 25% of revenue) manufactures plastic and metal components, fasteners, and assemblies for automobile and light truck manufacturers. This segment produces critical automotive parts including interior components, exterior trim, engine components, and various fastening systems that are integrated into vehicle assembly lines worldwide. Food Equipment (approximately 25% of revenue) provides comprehensive commercial kitchen solutions including warewashing systems, refrigeration equipment, cooking appliances, and food processing machinery. The segment also offers kitchen exhaust and ventilation systems, pollution control equipment, and ongoing maintenance and repair services to restaurants, hotels, institutional kitchens, and food processing facilities. Test & Measurement and Electronics (approximately 15% of revenue) produces sophisticated testing equipment and consumables for materials testing, structural analysis, and quality control applications. This segment also manufactures equipment and consumables used in electronic subassembly production and microelectronics manufacturing, serving industries that require precise measurement and testing capabilities. Welding (approximately 15% of revenue) manufactures arc welding equipment and metal welding consumables including electrodes, wires, and fluxes. The segment serves both industrial manufacturing and construction markets with equipment ranging from portable welding units to large-scale industrial welding systems. Polymers & Fluids (approximately 10% of revenue) produces adhesives, sealants, lubrication fluids, cutting fluids, and various polymers for industrial applications. A significant portion serves the automotive aftermarket with maintenance and appearance products for vehicles. Construction Products (approximately 7% of revenue) offers engineered fastening systems and solutions for residential construction, renovation, remodeling, and commercial construction markets. Products include specialized fasteners, anchoring systems, and construction tools. Specialty Products (approximately 3% of revenue) encompasses beverage packaging equipment and consumables, product coding and marking equipment, and appliance components and fasteners serving niche industrial markets.
Revenue model
Illinois Tool Works generates revenue primarily through direct product sales to industrial manufacturers, with some segments also providing ongoing service revenue and consumable products that create recurring revenue streams. The company's business model centers on selling engineered products and systems directly to original equipment manufacturers (OEMs) and end-users, while also distributing through independent distributors in certain markets. Food Equipment generates significant recurring revenue through service contracts and ongoing maintenance, with service revenue growing consistently at 3-5% annually. Welding benefits from a consumables model where customers require ongoing purchases of welding electrodes, wires, and other materials. Test & Measurement similarly generates recurring revenue from testing consumables and software licenses. The company's paying customers span diverse industries including automotive manufacturers like Ford and General Motors, commercial food service operators, construction companies, industrial manufacturers, and specialty niche markets. Revenue is geographically diversified with approximately 50% from North America, 30% from Europe, and 20% from Asia-Pacific regions. Factors that increase margins include successful pricing actions to offset input cost inflation, productivity improvements from enterprise initiatives (contributing 100+ basis points annually), customer-backed innovation that commands premium pricing, and operational leverage from volume growth. The company's decentralized structure allows individual business units to respond quickly to market conditions and optimize pricing strategies. Margin pressures come from commodity cost inflation, competitive pricing pressure in mature markets, tariff impacts on imported components, economic downturns that reduce industrial demand, and the need for ongoing investment in research and development. Currency fluctuations also impact margins given the company's global footprint, though natural hedging from global manufacturing helps mitigate some foreign exchange risk.
Competitive moat
Illinois Tool Works possesses a moderate but durable competitive moat built on several complementary factors, though the strength varies significantly across its diverse business segments. The company's primary moat stems from its customer intimacy and application expertise developed over decades of working closely with industrial customers. ITW's engineers collaborate directly with customers to develop specialized solutions for specific manufacturing challenges, creating switching costs and customer stickiness. This customer-backed innovation approach has resulted in highly differentiated products that often become integral to customers' production processes. Operational excellence through the company's 80/20 methodology and enterprise initiatives provides cost advantages that are difficult for competitors to replicate quickly. The decentralized business model allows each division to optimize operations for their specific markets while benefiting from shared best practices across the enterprise. Market leadership positions in several niche segments provide competitive advantages, particularly in Food Equipment where ITW holds leading positions in commercial warewashing and cooking equipment, and in certain Automotive OEM applications where the company has developed proprietary fastening technologies. However, the moat faces several challenges. Many of ITW's markets are mature with limited growth, creating intense price competition. The company competes against both large diversified competitors like 3M and Danaher, as well as focused niche players in each segment. Technological disruption poses risks, particularly in Test & Measurement where digital technologies could obsolete traditional testing methods, and in Automotive where electric vehicle adoption may reduce demand for certain traditional components. The cyclical nature of key end markets like automotive and construction limits pricing power during downturns. Additionally, the company's broad diversification, while providing stability, also means it lacks dominant positions in high-growth markets that could drive exceptional returns. Overall, ITW's moat is solid but not exceptional - sufficient to generate consistent returns above cost of capital but not wide enough to prevent gradual margin erosion during challenging periods or enable sustained high growth rates.
Risks & safety
ITW demonstrates solid financial stability with manageable risk levels, though leverage is elevated relative to historical norms. • Liquidity and Solvency: Strong current ratio of 1.60x and quick ratio of 1.16x indicate adequate short-term liquidity. Cash position of $873 million provides cushion, though free cash flow of $496 million in Q1 2025 shows seasonal variation. • Debt Levels: Debt-to-equity ratio of 2.55x is elevated but manageable for an industrial company. Interest coverage appears adequate given strong EBITDA margins of 27-28%. • Valuation Metrics: Trading at 26.0x P/E ratio and 19.0x EV/EBITDA, indicating full valuation relative to current earnings. Price-to-book ratio of 22.5x reflects significant goodwill and intangible assets from acquisitions. • Profitability: Strong ROE of 21.6% and operating margins consistently above 24% demonstrate efficient capital utilization and pricing power. • Other Considerations: Diversified revenue base across industries and geographies provides stability. Consistent dividend increases for 59+ consecutive years demonstrates commitment to shareholder returns, though high payout ratio limits flexibility during downturns.
Recent development
Over the past several years, Illinois Tool Works has undergone significant strategic transformation focused on driving organic growth and operational excellence. The company has prioritized Customer-Backed Innovation (CBI) as its primary growth engine, achieving 2% CBI revenue yield in 2024 with a target of 3% by 2030. This initiative involves working directly with customers to develop innovative solutions for their specific challenges, resulting in an 18% increase in patent filings and higher-margin product offerings. The Welding segment exemplifies this success, contributing 3% growth in 2024 through CBI initiatives. Enterprise initiatives have become a cornerstone of margin expansion, contributing over 100 basis points annually to operating margins. These initiatives focus on operational excellence, supply chain optimization, and best practice sharing across the decentralized business units. The Automotive OEM segment has seen the most significant impact with up to 190 basis points of margin improvement. The company has implemented Product Line Simplification (PLS) strategies to focus resources on higher-growth, higher-margin products while eliminating underperforming product lines. This strategic repositioning is particularly evident in the Specialty Products segment, which underwent planned reductions to improve long-term growth prospects. ITW has strengthened its "produce where we sell" manufacturing strategy to mitigate tariff risks and supply chain disruptions. This approach reduces dependency on cross-border shipments and provides greater pricing flexibility in local markets. Recent leadership transition occurred with Chris O'Herlihy succeeding Scott Santi as CEO, maintaining continuity in strategic direction while bringing fresh perspective to execution. The company has also enhanced its focus on sustainability and digital transformation initiatives across business units. Capital allocation has remained disciplined with $3.2 billion returned to shareholders in 2024 through dividends and share repurchases, while maintaining investment in growth initiatives and selective acquisitions that can leverage ITW's business model.
ITW company profile · for informational purposes only — not investment advice.
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