Illinois Tool Works Inc. (NYSE: ITW) today reported its third-quarter 2025 results.
According to CEO Christopher O’Herlihy, "The ITW team concluded the third quarter with solid operational and financial execution, delivering EPS of $2.81, which grew 6% year-over-year excluding the divestiture gain, alongside record operating margin of 27.4 percent, and a 15% increase in free cash flow. This outcome underscores the fundamental strength of the ITW Business Model, the inherent resilience of our diversified portfolio, and the high-quality execution demonstrated by our colleagues worldwide.
Third-quarter revenue of $4.1 billion increased by 2% as organic revenue grew one percent. Foreign currency translation impact increased revenue by two percent and product line simplification reduced revenue by 1%.
GAAP EPS of $2.81 increased 6% excluding a divestiture gain of $1.26 in the prior year quarter. Operating income of $1.1 billion increased 6%. Operating margin improved 90 basis points to 27.4% as enterprise initiatives contributed 140 basis points, and six of seven segments expanded margins. Operating cash flow was $1.0 billion, and free cash flow increased 15% to $904 million with a conversion rate of 110% to net income.
As the last session of the week got underway, ITW shares dumped $8.45, or 3.3%, to $248.99.
