Illinois Tool Works Inc.ITW
NYSE•Industrials•Specialty Industrial Machinery
Illinois Tool Works Inc. provides industrial products and equipment in North America, Europe, the Middle East, Africa, the Asia Pacific, and South America. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products. The Automotive OEM segment offers plastic and metal components, fasteners, and assemblies for automobiles, light trucks, and other industrial uses. The Food Equipment segment provides warewashing, cooking, refrigeration, and food processing equipment; kitchen exhaust, ventilation, and pollution control systems; and food equipment maintenance and repair services. The Test & Measurement and Electronics segment produce and sells test and measurement; and electronic manufacturing and maintenance, repair, and operations solutions. The Welding segment produces arc welding equipment, and metal arc welding consumables and related accessories. The Polymers & Fluids segment produces adhesives, sealants, lubrication and cutting fluids, and fluids and polymers for auto aftermarket maintenance and appearance. The Construction Products segment offers engineered fastening systems and solutions for the residential construction, renovation/remodel, and commercial construction markets. The Specialty Products segment provides beverage packaging equipment and consumables, product coding and marking equipment and consumables, and appliance components and fasteners. The company serves automotive OEM and aftermarket, commercial food equipment, construction, general industrial, industrial capital goods, consumer durables, and other markets, as well as MRO markets. It distributes its products directly to industrial manufacturers, as well as through independent distributors. Illinois Tool Works Inc. was founded in 1912 and is based in Glenview, Illinois.
Illinois Tool Works Inc. (ITW) reported trailing twelve months revenue of $16.22B as of March 2026, a 2.9% increase year-over-year. Quarterly revenue reached $4.02B, reflecting continued top-line momentum.
Illinois Tool Works Inc. generated $3.13B in TTM net income, with quarterly EBITDA of $1.10B. The operating margin expanded from 24.8% to 25.4%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (25.4%) and net margin (19.1%) indicates moderate non-operating costs. Net margin has improved from 18.2% a year ago, signaling stronger bottom-line efficiency.
ITW trades at a P/E of 23.6x (in line with broad market averages) and a P/S of 4.6x. The price-to-book ratio of 22.9x indicates a significant premium over book value.
The company generated $528.00M in free cash flow over the trailing twelve months, a 6.5% increase year-over-year, indicating cash generation ability. The balance sheet shows $16.26B in total assets with $6.60B in long-term debt against $3.23B in stockholders equity for a debt-to-equity ratio of 2.0, a relatively leveraged position. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are stable at ~26.2%, suggesting durable pricing power and cost discipline.
Consistently high ROE averaging 100.7% suggests a durable competitive advantage and efficient capital allocation.
8 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
Revenue shows resilience with 4 of 7 quarters posting growth — demand is generally stable but has seen some soft patches.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~26.4% — no sign of cost or pricing stress.
FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.
D/E ratio of 2.0 is elevated. Monitor for further debt accumulation.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 3.1% — net buybacks are reducing shares outstanding and boosting per-share value.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation