ITW ILLINOIS TOOL WORKS INC

Overview and Growth

ILLINOIS TOOL WORKS INC generated $16.04B of revenue in fiscal 2025. Revenue of $16.04B sets the scale for evaluating how effectively sales translated into profit and cash during the year. The top line expanded 0.9% from $15.90B in fiscal 2024, increasing the company’s operating scale. On a per-share basis, diluted EPS was $10.49, which connects the reported earnings outcome with the company’s diluted share count. Diluted EPS decreased by 10.4% from $11.71 in fiscal 2024, showing how the earnings change reached shareholders on a per-share basis. The diluted weighted-average share count was 292.30M, linking total earnings with the per-share result received by shareholders. Total assets stood at $16.15B, showing the scale of resources supporting revenue, earnings, liquidity, and financing. Revenue equaled 0.99x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

Gross profit was $7.08B, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. Gross margin was 44.1%, so that share of each revenue unit remained after the cost of revenue reported for the period. Operating income was $4.22B, the earnings remaining from reported operations after the company’s recognized operating cost structure. Operating margin measured 26.3%, showing the portion of revenue preserved after the full set of operating costs. EBITDA was $4.53B, supplying an additional view of reported operating earnings before interest, taxes, depreciation, and amortization. The reported income-tax provision was $900.00M, the amount recognized between pretax income and the final net-income result.

Liquidity and Capital Structure

At period end, the $16.15B asset base was financed through $12.92B of liabilities and $3.23B of equity. At period end, current assets of $6.20B compared with current liabilities of $5.13B, defining the company’s short-term resource position. Current assets covered current liabilities by 1.21x, leaving a positive buffer for near-term obligations. Cash and equivalents totaled $851.00M, identifying the most liquid reported component available within the broader current-asset balance. Measured only with cash and equivalents, coverage of current liabilities was 16.6%, excluding receivables and other current assets. The company carried $8.97B of total debt at period end, which frames its leverage and debt-service burden. Against book equity, debt measured 2.78x, placing the company’s financial leverage in clear balance-sheet terms. The debt-to-assets relationship was 55.5%, comparing borrowing with the total asset balance. The equity-to-assets relationship was 20.0%, placing book capital against the total resource base. Liabilities represented 80.0% of total assets, quantifying the liability-funded share of the company’s resource base. Cash and equivalents equaled 5.3% of total assets, showing the liquid cash component within the company’s broader resource base. Compared with $15.07B in fiscal 2024, the current asset base moved 7.2% and finished higher. Reported equity changed 2.7% from $3.32B in fiscal 2024, placing the current capital base lower year over year. The reported cash balance changed 10.2% from $948.00M in fiscal 2024, ending lower year over year.

Cash Flow and Earnings Quality

The company reported $3.13B of operating cash flow, a cash inflow that shows the cash generated by operations. The cash-flow statement records $419.00M of capital expenditures, the investment amount considered after operating cash generation. Capital spending absorbed 13.4% of operating cash flow, quantifying the share of cash from operations directed to investment. The combination of operating cash flow and capital spending produced $2.71B of positive free cash flow for the period. Relative to revenue, free cash flow equaled 16.9%, showing how much sales converted into cash after investment. Measured against total assets, free cash flow represented 16.8%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.