Illinois Tool Works

ITW Q2 2025 Earnings

Reported Jul 30, 2025 at 9:33 AM ET · SEC Source

Q2 25 EPS

$2.58

BEAT +0.89%

Est. $2.56

Q2 25 Revenue

$4.05B

BEAT +0.71%

Est. $4.02B

vs S&P Since Q2 25

-11.7%

TRAILING MARKET

ITW +2.4% vs S&P +14.0%

Market Reaction

Did ITW Beat Earnings? Q2 2025 Results

Illinois Tool Works posted a clean beat in the second quarter of 2025, with GAAP EPS of $2.58 edging past the $2.56 consensus estimate by 0.89% and marking a new Q2 record for the industrial manufacturer. Revenue of $4.05 billion rose 0.7% year over … Read more Illinois Tool Works posted a clean beat in the second quarter of 2025, with GAAP EPS of $2.58 edging past the $2.56 consensus estimate by 0.89% and marking a new Q2 record for the industrial manufacturer. Revenue of $4.05 billion rose 0.7% year over year, nudging ahead of the $4.02 billion analyst estimate by 0.71%, with foreign currency translation providing roughly one percentage point of lift as underlying organic growth remained essentially flat. The clearest driver behind the margin story was ITW's own enterprise initiatives, which contributed 130 basis points to an operating margin of 26.3%, even as softer segments like Construction Products, down 6.9% organically, created headwinds across the portfolio. Management's confidence in its pricing-led response to tariff pressures was underscored by a guidance raise, with full-year 2025 GAAP EPS now expected in the $10.35 to $10.55 range, up $0.10 at the midpoint. The company also announced a 7% dividend increase, lifting the quarterly payout to $1.61 per share, signaling continued commitment to returning capital alongside roughly $1.5 billion in planned share repurchases for the year.

Key Takeaways

  • Enterprise initiatives contributed 130 basis points to operating margin
  • Organic growth was essentially flat while total revenue increased 1% aided by favorable FX translation of 1%
  • Operating margin expanded 10 basis points to 26.3%, a Q2 record
  • Pricing actions projected to offset tariff cost impacts
  • Automotive OEM organic growth of 2.4% and Welding organic growth of 2.8% led segments
24/7 Wall St

ITW YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

24/7 Wall St

ITW Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“The ITW team outpaced underlying end market growth and delivered solid financial performance in the second quarter, achieving EPS of $2.58, operating income of $1.1 billion, and operating margin of 26.3 percent, all second-quarter records. Our results are a direct outcome of the strength of the ITW Business Model, the quality of our diversified and resilient portfolio, and the unwavering dedication of our global ITW colleagues to serving our customers and executing our strategy with excellence.”

— Christopher A. O'Herlihy, Q2 2025 Earnings Press Release