Illinois Tool Works Inc

Illinois Tool Works (ITW), founded in 1912, makes industrial products and equipment for other businesses. Its range includes parts for carmakers, commercial kitchen equipment, welding gear, testing instruments, adhesives and construction fasteners. As of December 31, 2025, it had about 43,000 employees and 88 divisions in 49 countries. Several segments pair equipment with repeat sales of consumables and service, such as welding supplies and kitchen equipment repair.

ITW reports seven segments. Revenue was $16.0 billion in fiscal 2025, which ended December 31, 2025. Automotive OEM was the largest segment, with 20.5% of revenue. It supplies plastic and metal components and fasteners to carmakers (OEM means original equipment manufacturer). Test & Measurement and Electronics (testing and electronics-assembly equipment) contributed 17.6%. Food Equipment (dishwashers, ovens, refrigeration and service for restaurants and food retailers) added 16.8%. Welding (11.8%), Construction Products (11.3%) and Polymers & Fluids (11%) follow. Specialty Products makes items such as plastic carriers for multi-packs of cans and bottles.

By region, the United States supplied 46.1% of fiscal 2025 revenue; Europe, the Middle East and Africa 25.9%; and Asia Pacific 19.2%. Every division uses ITW's "80/20" process. It puts its effort into its biggest customers and products (the "80") and cuts the cost and complexity tied to less profitable ones (the "20"). ITW also designs products around specific customer problems and holds about 21,800 granted and pending patents.

• In Q3 FY2026 (ended Sep 30, 2026), revenue was $4.24B, up 4.4% from a year earlier, and net income was $855.0M (+4.1%).
• For fiscal 2025, revenue was $16.04B (+0.9% year over year; +5.0% a year from FY2020 to FY2025) with a 19.1% net margin.

• Over FY2021–FY2025: $7.25B in buybacks and $8.10B in dividends.
• At least 9 consecutive annual increases: every fiscal year in the SEC data (FY2016–FY2025) shows an increase; the true streak may be longer.
• Regular dividends per share grew +7.1% a year over 5 years (FY2020–FY2025).
• Dividends took 58.2% of earnings and 65.9% of free cash flow in the latest fiscal year.
• Shares outstanding changed -9.2% from Jan 31, 2022 to Sep 30, 2026.

Rank among 1514 US companies

Market value at each year end

Illinois Tool Works’s market value went from $42.98B at the end of 2016 to $82.43B on Nov 2, 2026, up 92%; since the end of 2025 it is up 15%.

Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 1 open-market purchases ($200K) and 5 sales ($12.0M).

Large shareholders (13G filings)

ETFs with the most weight in ITW

1. The 80/20 strategy may fall short. ITW runs every division on its 80/20 process, which includes cutting product lines and customers. The company warns the benefits may be smaller than expected and it could miss long-term financial targets.
2. Growth depends on new products. ITW's plan through 2030 relies on customer-driven innovation for organic growth (growth without acquisitions). Revenue rose just 0.9% in fiscal 2025 after dipping in fiscal 2024. If new products disappoint, growth could stall.
3. Exposure to auto and industrial cycles. Automotive OEM, the largest segment at 20.5% of fiscal 2025 revenue, depends on economic health. So do ITW's businesses serving factories and builders. Downturns or higher interest rates can cut orders and strain customers' finances.
4. Tariffs and trade tensions. More than half of ITW's sales come from customers outside the US. New tariffs, retaliatory trade measures, US-China tensions, sanctions and political instability across its 49 countries could raise costs or reduce demand.
5. A stronger dollar shrinks foreign profits. ITW reports in dollars, but a large share of its sales and costs are in other currencies, led by Europe. A rising dollar shrinks those results when converted and has hurt profits before.
6. Raw material costs and shortages. ITW makes goods from metals, plastics and chemicals. The company says global trade tensions have already pushed raw material costs up. Further price jumps or shortages could squeeze profit margins.

• Oct 27, 2026 Quarterly results released
• Aug 13, 2026 Other company announcement
• Jul 28, 2026 Quarterly results released
• May 22, 2026 Executive or board change
• May 12, 2026 Shareholder vote results
• Apr 30, 2026 Quarterly results released
• Feb 23, 2026 Major agreement signed; Major agreement ended; New debt or financial obligation
• Feb 3, 2026 Quarterly results released

SEC filings show at least nine dividend increases in a row through fiscal 2025, and the true streak may be longer. Dividends per share rose from $4.42 in fiscal 2020 to $6.22 in fiscal 2025, about 7.1% a year. The fiscal 2025 dividend used 58.2% of earnings and 65.9% of free cash flow (cash from operations left after capital spending). The yield was 2.37% as of October 28, 2026. ITW also spent $7.25 billion repurchasing its own shares over fiscal 2021–2025. Its share count fell 9.2% from January 2022 to September 2026.

The shares have fallen sharply in past downturns. They dropped 54.9% during the 2008 financial crisis and took about 22 months from the low to regain their peak. They fell 37.8% in the 2020 COVID crash and recovered in about four months. In the 2022 bear market they lost 28% and recovered in about seven months. A single stock carries more risk than a diversified fund.