Detailed financial statements for Illinois Tool Works Inc. (ITW): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
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.
Analysis Summary
Illinois Tool Works Inc. reported revenue of $16.04B in the most recent fiscal year, growing at a 5-year CAGR of 5.0%. Net income reached $3.07B, with a 7.8% 5-year CAGR.
Trailing-twelve-month margins: gross margin 44.2%, operating margin 26.5%, net margin 19.4%. Free cash flow grew at 1.0% CAGR over 5 years.
At the current price of $264.19, ITW trades at a P/E of 23.84 and an ROE of 101.74%. Market capitalisation stands at $76.0B, placing it among large-cap names.
Balance sheet quality for ITW: current ratio of 1.2, net debt of $8.12B. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is decent: free cash flow of $2.71B represents 88% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $13.60B | $14.31B | $14.77B | $14.11B | $12.57B | $14.46B | $15.93B | $16.11B | $15.90B | $16.04B |
| Cost of Revenue | $8.12B | $8.52B | $8.79B | $8.35B | $7.53B | $8.62B | $9.56B | $9.43B | $8.96B | $8.97B |
| Gross Profit | $5.48B | $5.80B | $5.97B | $5.76B | $5.04B | $5.83B | $6.37B | $6.68B | $6.94B | $7.08B |
| Research & Development | $223.0M | $225.0M | $233.0M | $221.0M | $214.0M | $239.0M | $269.0M | $284.0M | $292.0M | 0 |
| Selling, General & Admin | $2.19B | $2.17B | $2.16B | $2.14B | $1.95B | $2.12B | $2.31B | $2.35B | $2.38B | $2.78B |
| Operating Expenses | $2.42B | $2.40B | $2.39B | $2.36B | $2.16B | $2.36B | $2.58B | $2.64B | $2.67B | $2.86B |
| Operating Income | $3.06B | $3.49B | $3.58B | $3.40B | $2.88B | $3.48B | $3.79B | $4.04B | $4.26B | $4.22B |
| EBITDA | $3.62B | $3.99B | $4.11B | $3.94B | $3.34B | $3.94B | $4.46B | $4.48B | $5.11B | $4.65B |
| Interest Expense | $237.0M | $260.0M | $257.0M | $221.0M | $206.0M | $202.0M | $203.0M | $266.0M | $283.0M | $292.0M |
| Pre-tax Income | $2.91B | $3.27B | $3.39B | $3.29B | $2.70B | $3.33B | $3.84B | $3.82B | $4.42B | $3.97B |
| Income Tax | $873.0M | $1.58B | $831.0M | $767.0M | $595.0M | $632.0M | $808.0M | $866.0M | $934.0M | $900.0M |
| Net Income | $2.04B | $1.69B | $2.56B | $2.52B | $2.11B | $2.69B | $3.03B | $2.96B | $3.49B | $3.07B |
| EPS | $5.73 | $4.90 | $7.65 | $7.78 | $6.66 | $8.55 | $9.80 | $9.77 | $11.75 | $10.52 |
| EPS (Diluted) | $5.70 | $4.86 | $7.60 | $7.74 | $6.63 | $8.51 | $9.77 | $9.74 | $11.71 | $10.49 |
| Shares Outstanding (Diluted) | $357.1M | $346.8M | $337.1M | $325.6M | $318.3M | $316.4M | $310.7M | $303.6M | $297.8M | $292.3M |
Income Statement (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Revenue | $4.06B | $4.09B | $4.02B | $4.30B |
| Gross Profit | $1.81B | $1.81B | $1.76B | $1.90B |
| Operating Income | $1.11B | $1.08B | $1.02B | $1.15B |
| EBITDA | $1.22B | $1.20B | $1.06B | $1.16B |
| Net Income | $821.0M | $790.0M | $768.0M | $815.0M |
| EPS | $2.82 | $2.72 | $2.66 | $2.85 |
| EPS (Diluted) | $2.81 | $2.72 | $2.66 | $2.84 |
Balance Sheet (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $2.47B | $3.09B | $1.50B | $1.98B | $2.56B | $1.53B | $708.0M | $1.06B | $948.0M | $851.0M |
| Short-term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Receivables | $2.36B | $2.63B | $2.62B | $2.61B | $2.62B | $2.94B | $3.27B | $3.25B | $3.10B | $3.40B |
| Inventory | $1.08B | $1.22B | $1.32B | $1.16B | $1.19B | $1.69B | $2.05B | $1.71B | $1.60B | $1.66B |
| Total Current Assets | $6.12B | $7.28B | $5.78B | $6.25B | $6.52B | $6.37B | $6.27B | $6.24B | $5.86B | $6.20B |
| Property, Plant & Equipment | $1.65B | $1.78B | $1.79B | $1.73B | $1.78B | $1.81B | $1.85B | $2.22B | $2.30B | $2.52B |
| Goodwill | $4.56B | $4.75B | $4.63B | $4.49B | $4.69B | $4.96B | $4.86B | $4.91B | $4.84B | $5.10B |
| Intangible Assets | $1.46B | $1.27B | $1.08B | $851.0M | $781.0M | $972.0M | $768.0M | $657.0M | $592.0M | $591.0M |
| Total Assets | $15.20B | $16.78B | $14.87B | $15.07B | $15.61B | $16.08B | $15.42B | $15.52B | $15.07B | $16.15B |
| Accounts Payable | $511.0M | $590.0M | $524.0M | $472.0M | $534.0M | $585.0M | $594.0M | $581.0M | $519.0M | $522.0M |
| Short-term Debt | $652.0M | $850.0M | $1.35B | $4.0M | $350.0M | $778.0M | $1.59B | $1.82B | $1.55B | $2.29B |
| Total Current Liabilities | $2.76B | $3.05B | $3.54B | $2.15B | $2.59B | $3.47B | $4.46B | $4.67B | $4.31B | $5.13B |
| Long-term Debt | $7.18B | $7.48B | $6.03B | $7.75B | $7.77B | $6.91B | $6.17B | $6.34B | $6.31B | $6.68B |
| Total Liabilities | $10.94B | $12.19B | $11.61B | $12.04B | $12.43B | $12.45B | $12.33B | $12.51B | $11.75B | $12.92B |
| Retained Earnings | $19.50B | $20.21B | $21.22B | $22.40B | $23.11B | $24.32B | $25.80B | $27.12B | $28.89B | $30.15B |
| Total Equity | $4.25B | $4.58B | $3.25B | $3.03B | $3.18B | $3.62B | $3.09B | $3.01B | $3.32B | $3.23B |
| Total Debt | $7.83B | $8.33B | $7.38B | $7.94B | $8.31B | $7.88B | $7.95B | $8.37B | $8.08B | $8.97B |
| Net Debt | $5.36B | $5.23B | $5.88B | $5.96B | $5.75B | $6.35B | $7.24B | $7.30B | $7.13B | $8.12B |
| Working Capital | $3.36B | $4.22B | $2.24B | $4.10B | $3.93B | $2.90B | $1.81B | $1.56B | $1.55B | $1.07B |
Balance Sheet (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Cash & Equivalents | $924.0M | $851.0M | $827.0M | $839.0M |
| Total Assets | $16.14B | $16.15B | $16.26B | $16.50B |
| Total Liabilities | $12.93B | $12.92B | $13.03B | $13.60B |
| Total Equity | $3.21B | $3.23B | $3.23B | $2.89B |
| Total Debt | $8.94B | $8.97B | $9.15B | $9.69B |
Cash Flow (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $2.04B | $1.69B | $2.56B | $2.52B | $2.11B | $2.69B | $3.03B | $2.96B | $3.49B | $3.07B |
| Depreciation & Amortization | $470.0M | $462.0M | $461.0M | $426.0M | $427.0M | $410.0M | $410.0M | $395.0M | $402.0M | $397.0M |
| Stock-based Compensation | $39.0M | $36.0M | $40.0M | $41.0M | $42.0M | $53.0M | $63.0M | $69.0M | $61.0M | $69.0M |
| Change in Working Capital | $38.0M | $158.0M | -$288.0M | $31.0M | $249.0M | -$438.0M | -$816.0M | $210.0M | -$18.0M | -$406.0M |
| Operating Cash Flow | $2.30B | $2.40B | $2.81B | $3.00B | $2.81B | $2.56B | $2.35B | $3.54B | $3.28B | $3.13B |
| Capital Expenditure | -$273.0M | -$297.0M | -$364.0M | -$326.0M | -$236.0M | -$296.0M | -$412.0M | -$455.0M | -$437.0M | -$419.0M |
| Acquisitions | -$450.0M | -$1.0M | $1.0M | $116.0M | $1.0M | -$731.0M | $276.0M | $27.0M | $280.0M | -$107.0M |
| Stock Repurchased | -$2.00B | -$1.00B | -$2.00B | -$1.50B | -$706.0M | -$1.00B | -$1.75B | -$1.50B | -$1.50B | -$1.50B |
| Dividends Paid | -$821.0M | -$941.0M | -$1.12B | -$1.32B | -$1.38B | -$1.46B | -$1.54B | -$1.61B | -$1.70B | -$1.78B |
| Free Cash Flow | $2.03B | $2.10B | $2.45B | $2.67B | $2.57B | $2.26B | $1.94B | $3.08B | $2.84B | $2.71B |
Cash Flow (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Operating Cash Flow | $1.02B | $963.0M | $623.0M | $723.0M |
| Capital Expenditure | -$117.0M | -$105.0M | -$95.0M | -$92.0M |
| Free Cash Flow | $904.0M | $858.0M | $528.0M | $631.0M |
| Dividends Paid | -$438.0M | -$467.0M | -$465.0M | -$463.0M |
| Stock-based Compensation | $17.0M | $17.0M | $18.0M | $22.0M |
Growth & Margins (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +5.3% | +3.2% | -4.5% | -10.9% | +15.0% | +10.2% | +1.1% | -1.3% | +0.9% | |
| Net Income Growth (YoY) | -17.1% | +51.9% | -1.6% | -16.3% | +27.7% | +12.6% | -2.5% | +18.0% | -12.1% | |
| EPS Growth (YoY) | -14.5% | +56.1% | +1.7% | -14.4% | +28.4% | +14.6% | -0.3% | +20.3% | -10.5% | |
| Shares Change (YoY) | -2.9% | -2.8% | -3.4% | -2.2% | -0.6% | -1.8% | -2.3% | -1.9% | -1.8% | |
| FCF Growth (YoY) | +3.7% | +16.2% | +9.1% | -3.7% | -12.1% | -14.4% | +59.3% | -7.8% | -4.8% | |
| Gross Margin | 40.3% | 40.5% | 40.5% | 40.8% | 40.1% | 40.4% | 40.0% | 41.5% | 43.6% | 44.1% |
| Operating Margin | 22.5% | 24.4% | 24.3% | 24.1% | 22.9% | 24.1% | 23.8% | 25.1% | 26.8% | 26.3% |
| EBITDA Margin | 26.6% | 27.9% | 27.8% | 27.9% | 26.5% | 27.2% | 28.0% | 27.8% | 32.1% | 29.0% |
| Net Margin | 15.0% | 11.8% | 17.4% | 17.9% | 16.8% | 18.6% | 19.0% | 18.4% | 21.9% | 19.1% |
| FCF Margin | 14.9% | 14.7% | 16.6% | 18.9% | 20.4% | 15.6% | 12.2% | 19.1% | 17.9% | 16.9% |
| Effective Tax Rate | 30.0% | 48.4% | 24.5% | 23.3% | 22.0% | 19.0% | 21.0% | 22.7% | 21.1% | 22.7% |
Per-Share Data (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $5.68 | $6.07 | $7.26 | $8.20 | $8.08 | $7.15 | $6.23 | $10.16 | $9.55 | $9.26 |
| Dividends Per Share | $2.30 | $2.71 | $3.33 | $4.06 | $4.33 | $4.62 | $4.96 | $5.32 | $5.69 | $6.11 |
| Shares Outstanding (Basic) | $355.0M | $344.1M | $335.0M | $323.9M | $316.9M | $315.1M | $309.6M | $302.6M | $296.8M | $292.3M |
What to look at in Industrials
Aerospace, defence, machinery, transport. Semi-cyclical. Key: backlog, operating margins, and FCF conversion.
- 5y revenue growth — Without growth, there is no long-term value creation
- Operating margin — The best indicator of operational discipline in industrials
- ROIC — Quality industrials have ROIC >15% — the rest destroy capital
- FCF conversion — FCF / Net Income — in industrials good >85%
- Net debt / EBITDA — Cyclical industrials with high debt suffer hard in recessions
- Capex / Revenue — Maintaining the machinery. <4% = possible underinvestment (future decline)
- Altman Z-Score — Bankruptcy model (NYU 1968) — combines liquidity, leverage and profitability. Key in cyclicals
Profitability
| Return on Equity | 101.74% |
| Return on Invested Capital | 24.71% |
| Return on Assets | 19.36% |
| Gross Margin | 44.16% |
| Operating Margin | 26.50% |
| Net Margin | 19.39% |
Financial Health
| Debt / Equity | 3.35 |
| Current Ratio | 1.11 |
| Piotroski F-Score | 6 |
| Altman Z-Score | 7.89 |
Key Ratios (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 21.37 | 34.05 | 16.56 | 23.09 | 30.61 | 28.87 | 22.48 | 26.81 | 21.58 | 23.41 |
| P/B | 10.22 | 12.52 | 13.04 | 19.23 | 20.31 | 21.45 | 22.09 | 26.32 | 22.69 | 22.32 |
| P/S | 3.20 | 4.01 | 2.87 | 4.12 | 5.14 | 5.38 | 4.28 | 4.92 | 4.73 | 4.49 |
| Gross Margin | 40.3% | 40.5% | 40.5% | 40.8% | 40.1% | 40.4% | 40.0% | 41.5% | 43.6% | 44.1% |
| Operating Margin | 22.5% | 24.4% | 24.3% | 24.1% | 22.9% | 24.1% | 23.8% | 25.1% | 26.8% | 26.3% |
| Net Margin | 15.0% | 11.8% | 17.4% | 17.9% | 16.8% | 18.6% | 19.0% | 18.4% | 21.9% | 19.1% |
Related companies: AME · CMI · CP · CSX · EMR · HWM · JCI
Explore sector: Industrials · Industrial - Machinery
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