Earnings Summary: Highlights of Illinois Tool Works’ (ITW) Q3 FY25 report

Illinois Tool Works Inc. (NYSE: ITW), a global multi-industry manufacturer that produces a wide range of products, including engineered fasteners and special products, has posted higher revenues for the third quarter of FY25.

• Third-quarter revenue increased 2% from last year to $4.1 billion; organic revenue rose 1%
• Earnings came in at $2.81 per share in Q3 compared to $3.91 per share in Q3 2024, which included a divestiture gain of $1.26 per share
• Net income was $821 million in the September quarter, vs. $1.16 billion in the prior-year quarter
• Operating margin grew by 90 bps YoY to a record high of 27.4%, with enterprise initiatives contributing 140 bps
• Operating cash flow was $1 billion during the three months; free cash flow rose 15% to $0.9 billion in Q3
• The management narrowed its full-year earnings per share guidance range to $10.40 to $10.50
• During the quarter, the company repurchased $375 million of shares and raised its dividend by 7%, bringing the annualized payout to $6.44 per share