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Illinois Tool Works

NYSE: ITW

Stock price

281.04 USD

(+23.33%) 5 years

Industrial Machinery & Supplies & ComponentsIndustrial - Machinery

Financial Performance

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5Y price score: 36

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The price score is a basic measure of the stock's performance against the S&P 500 Index over a five-year period.

A score of 100 indicates that the stock did as well as the S&P 500 Index.

A score below 100 means the stock underperformed the index, while a score above 100 means it outperformed the S&P 500.

10Y return: 186.1%

DATE RANGE:

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  • Free cash flow per share

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238.8

52-week range

303.1

281.037

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Required return / cost of capital
%
FCFF terminal growth rate
%

Your fair value & Margin of safety

To calculate fair value based on cost of capital and terminal growth assumptions above, please select free cash flow forecast.

Forecast:

Valuation

Free Cash Flow Yield

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FCF Yield TTM = Trailing Twelve Months free cash flow per share / current market price per shareLearn more

3.5 %

Dividend Yield TTM

2.3 %

Market cap $

$ 80,039

Price / Earnings TTM

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P/E TTM = current market price per share / Trailing Twelve Months diluted earnings per shareLearn more

25

Price / Book TTM

25.5

PEG TTM

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Price/Earnings-to-Growth ratio = P/E TTM divided by most recent annual diluted earnings per share growth rateLearn more

(2.4)

Earnings growth and return

LTM

5YR

10YR

Total return (price & dividends)

18.7 %

35.3 %

186 %

Free cash flow per share growth

(3.8) %

14.7 %

70.1 %

Earnings per share growth

6.8 %

58.2 %

104.5 %

Founded: 1,912

Employees: 44,000

Business Summary:Illinois Tool Works Inc. is a global enterprise specializing in the production and distribution of a wide array of industrial goods and specialized equipment. The company operates through seven distinct divisions: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products. The Automotive OEM division supplies plastic and metal components, various fastening solutions, and integrated assemblies for automobiles, light-duty trucks, and other industrial applications. Its Food Equipment segment delivers commercial kitchen appliances for washing, refrigeration, cooking, and food processing, alongside comprehensive kitchen exhaust, ventilation, and pollution control systems, and offers related maintenance and repair services. The Test & Measurement and Electronics unit manufactures and sells machinery, expendable supplies, and accompanying software designed for assessing materials and structural integrity, in addition to equipment and consumables critical for the creation of electronic subassemblies and microelectronic components. The Welding division focuses on arc welding apparatus, coupled with metal arc welding consumables and associated accessories. The Polymers & Fluids segment produces adhesives, sealing compounds, lubrication and cutting fluids, and various fluids and polymers intended for automotive aftermarket upkeep and cosmetic purposes. The Construction Products segment provides purpose-engineered fastening systems and comprehensive solutions for new housing, renovation projects, and commercial building industries. Lastly, the Specialty Products segment delivers machinery and supplies for beverage packaging, equipment and expendables for product identification and marking, and specialized components and fasteners for appliances. ITW's broad clientele encompasses sectors such as automotive original equipment manufacturers (OEMs) and their suppliers, the commercial food service industry, construction companies, general industrial enterprises, and the automotive aftermarket. The corporation distributes its offerings directly to industrial manufacturers and via an extensive network of independent distributors. Established in 1912, Illinois Tool Works Inc. is headquartered in Glenview, Illinois.

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Fair Value Reference Estimate

Latest Earnings Call Takeaways

2026 Q3 (Oct 27, 2026)

1) Financial Performance Overview
- ITW reported a 4.4% total revenue growth for Q3 2026, with 3.8% organic growth and contributions from foreign currency and acquisitions.
- Excluding the tornado impact, organic growth would have been approximately 4.8%.
- Operating margin expanded 40 basis points YoY to 27.8%, with operating income increasing 6%.
- GAAP EPS rose 7% to $3, exceeding estimates, despite a higher tax rate impacting results.
- Free cash flow was $851 million, representing 100% of net income, with year-to-date free cash flow growing 9% to over $2 billion.

2) Segment Highlights
- Test and Measurement & Electronics: Achieved 16% organic growth, driven by a 31% surge in electronics and strong semiconductor demand.
- Welding: Reported 7% organic growth (15% excluding tornado impact), with strong order growth expected to continue.
- Polymers and Fluids: Grew 8%, supported by market share gains and robust demand in biopharma.
- Automotive OEM: Experienced a 2% decline in organic revenue, impacted by unfavorable comparisons and inflationary pressures.
- Construction Products: Organic growth was down 1%, with North America flat and Europe declining.

3) Challenges and Headwinds
- The tornado event at a welding facility caused a revenue reduction of about $40 million or 1 percentage point in Q3.
- Inflationary pressures on raw materials and employee-related costs continue to challenge margins, particularly in automotive and construction segments.
- The automotive segment faced a 170 basis point decline in operating margin due to pricing lag and inflation impacts.

4) Strategic Initiatives and Outlook
- ITW is raising its full-year GAAP EPS guidance by $0.05 to a midpoint of $11.50, reflecting a 10% YoY growth.
- The company expects continued demand momentum in welding and test and measurement electronics, with 4%+ organic growth projected for 2027.
- Customer Back Innovation (CBI) is projected to exceed 3% for the full year, contributing significantly to revenue growth.
- ITW plans to maintain its long-term performance framework of 30% operating margins by 2030.

5) Conclusion and Missing Information
- The call provided a comprehensive overview of ITW's performance, segment results, and strategic outlook. However, specific figures regarding the impact of pricing actions and the exact underlying margins in welding were not detailed.
- Bottom line: ITW's strong operational execution and strategic initiatives position it well for continued growth, with a solid outlook for 2027 and beyond, despite facing some near-term challenges.

Annual Reports, Presentations And IR Contacts

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Annual report links (10K)
2025202420232022202120202019201820172016

Illinois Tool Works — Financial Overview, Stock Price, Market Cap

Illinois Tool Works is a company. Founded in 1912. As of October 30, 2026, the company's market capitalization is $80039368750 with a current stock price of $281.04.