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Illinois Tool Works Inc. ITW

NYSEMachineryFinancials to Jun 30, 2026 · Updated Oct 6, 2026

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ITW financials
Moat score
62
ROIC
28.2%
P/E
23.6
EV/EBIT
19.3
FCF yield
3.9%
Dividend yield
2.4%
Market cap
$75.2B

Moat ranks

Score rankTied #302 of 396
Durabilitymedium
Market structureCompetitive
Pricing powermoderate

Balance sheet

6/30/26
$BDec 31Jun 30
Cash0.90.8
Securities0.00.0
Debt9.09.7
Net cash-8.1-8.9
Equity3.22.9
Leverage
Debt / EBITDA
2.03×
Debt / equity
3.35×
Leases (12/31/25)
$242M
Capital
Diluted shares
287M
Book value / share
$10.08
Price / book
26.0×
Net cash / share
−$30.85
Market cap
$75.2B
Enterprise value
$84.1B

Per-share record

Fiscal years and TTM
Scale
$0$20$40$60'16'17'18'19'20'21'22'23'2454.89'2557.38TTM
Revenue per shareCash flow per share

Key indicators

Latest: Q2 '26
IndicatorLatestVs year agoLast 8 quarters
Revenue growth6.1%+5.5 pts
Operating margin26.7%+0.3 pts
FCF margin14.7%+3.6 pts
Capex / revenue2.1%-0.4 pts
Automotive OEM organic revenue growth-0%-3 pts
Food Equipment organic revenue growth0%-1 pts
Welding organic revenue growth+14%+11 pts
Polymers & Fluids organic revenue growth+7%+11 pts
Specialty Products organic revenue growth+2%+1 pts

Margins and growth from reported quarters; company KPIs as reported in results releases.

About ITW

Illinois Tool Works owns seven groups of niche industrial businesses. Its broadest advantage is the 80/20 operating system, customer-led product development and decentralized management.

Revenue mix
Automotive OEM 19.9%Test & Measurement and Electronics 17.9%Food Equipment 16.1%Welding 12.8%Construction Products 11.5%Polymers & Fluids 11.1%Specialty Products 10.9%
  • Design In Qualification

    Vehicle-platform components are typically qualified into OEM programs; switching suppliers mid-cycle is costly (re-validation, tooling, production risk).

  • Operational Excellence

    ITW Business Model (80/20 + customer-back innovation + decentralization) is applied across divisions to reduce complexity and sustain margin/quality advantages.

  • Brand Trust

    Branded equipment franchises and reputation for reliability support spec-in and pricing; service capability reinforces trust.

  • Brand Trust

    Brand preference and technology leadership support premium positioning with distributors and end users (e.g., Miller).

Timeline
  1. Aug 13, 2026

    ITW issued $1.5 billion of 4.650% notes due 2029, extending funding while adding interest obligations after the June balance sheet.

  2. Aug 7, 2026

    ITW raised its annual dividend to $6.88 per share and approved a $6 billion repurchase program, increasing planned capital returns alongside its operating investment needs.

  3. Jul 28, 2026

    ITW raised full-year organic growth guidance to 3% to 4% and EPS guidance to $11.35 to $11.55 after industrial demand improved in the second quarter.

  4. Oct 1, 2025

    ITW acquired a Test & Measurement and Electronics business for $120 million net of acquired cash, adding sales and integration costs to the segment.

  5. Sep 30, 2024 · Gain +$363M

    ITW sold its minority stake in Wilsonart and recognized a $363 million pretax gain. This increased earnings without improving its operating businesses.

Ownership

To 10/6/26
CEO
Christopher A. O’Herlihy
Since 2024 · 2 yrs
Professional CEOSingle share class
Insider trades39
Planned sales5

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Financial record

Fiscal year2016201720182019202020212022202320242025TTMTrendChange 2016–25
Per share ($)
Revenue38.0841.2743.8143.3339.5045.6951.2853.0553.3854.8957.38+4.1%/yr
Cash flow6.456.938.349.208.828.087.5611.6611.0210.6911.60+5.8%/yr
Earnings5.704.867.607.746.638.519.779.7411.7110.4911.13+7.0%/yr
Free cash flow5.686.077.268.208.087.156.2310.169.559.2610.18+5.6%/yr
Capex0.760.861.081.000.740.941.331.501.471.431.43+7.2%/yr
Dividends2.302.713.334.064.334.624.965.325.696.116.39+11.5%/yr
Book value11.9113.229.659.299.9911.469.949.9211.1311.0310.08-0.8%/yr
Diluted shares (M)357347337326318316311304298292287-2.2%/yr
Totals ($B)
Revenue13.614.314.814.112.614.515.916.115.916.016.5+1.9%/yr
Operating income3.13.53.63.42.93.53.84.04.34.24.4+3.6%/yr
Net income2.01.72.62.52.12.73.03.03.53.13.2+4.7%/yr
Free cash flow2.02.12.42.72.62.31.93.12.82.72.9+3.3%/yr
Buybacks2.01.02.01.50.71.01.81.51.51.51.9-3.1%/yr
Dividends0.80.91.11.31.41.51.51.61.71.81.8+9.0%/yr
Net cash-5.4-5.2-5.9-5.8-5.6-6.2-7.1-7.1-6.9-8.1-8.9−$2.8B
Margins & returns (%)
Gross margin41.842.041.742.041.341.340.842.244.344.144.2+2.2 pts
Operating margin22.524.324.324.122.924.123.825.126.826.326.5+3.8 pts
Net margin15.011.817.417.916.818.619.018.421.919.119.4+4.1 pts
FCF margin14.914.716.618.920.415.612.219.117.916.917.7+2.0 pts
ROIC24.227.029.829.425.027.028.430.331.728.228.2+4.1 pts
Return on equity47.836.878.883.366.374.398.398.2105.295.1110.4+47.2 pts
R&D % of revenue1.61.61.61.61.71.71.71.81.81.9–+0.2 pts
Stock pay % of revenue0.30.30.30.30.30.40.40.40.40.40.4+0.1 pts
Capex % of revenue2.02.12.52.31.92.02.62.82.72.62.5+0.6 pts

Change uses 2016 and 2025 only: compound annual growth for amounts, points for margins and returns, and the change in amount for net cash. A dash means no 2016 base. Trend shows the fiscal years.

TTM = four quarters to Jun 30, 2026. Per-share values use diluted weighted shares.ROIC = operating income × (1 − 24.0% tax rate, the company's own over three fiscal years excluding one-offs) ÷ (equity + debt − cash and current securities). Returns show a dash when their base is negative or under 10% of revenue. Free cash flow = operating cash flow − capex. Debt is all borrowings; net cash counts long-term securities and excludes leases.

Moat

Moat scorecard

Moat score62
Strength
Confidence
Structure
Competitive
Durability
medium
Trajectory
stable
Pricing power
moderate
Segments
  • Automotive OEM19.9%
    2 claims
  • Food Equipment16.1%
    1 claim
  • Test & Measurement and Electronics17.9%
    Not scored: evidence insufficient
  • Welding12.8%
    1 claim
  • Polymers & Fluids11.1%
    1 claim
  • Construction Products11.5%
    Not scored: evidence insufficient
  • Specialty Products10.9%
    1 claim

Moat claims

Applies to
Automotive OEM
Confidence
Durability
medium
Trajectory
stableas of Jul 28, 2026
Why it holds

Vehicle-platform components are typically qualified into OEM programs; switching suppliers mid-cycle is costly (re-validation, tooling, production risk).

Why stable

Automotive organic revenue declined 0.4% against flat global auto builds in Q2 2026, including an 80 basis point product simplification drag. China outperformed local builds, but customer mix and new platforms can reset incumbency.

Indicators
  • Automotive OEM organic revenue growth-0%
Risks
  • OEM dual-sourcing / price-downs
  • Platform redesign cycles reset incumbency

Profile change log

  1. Oct 6, 2026 · business change

    ITW issued $1.5 billion of 4.650% notes due 2029, extending funding while adding interest obligations after the June balance sheet.

  2. Oct 6, 2026 · business change

    ITW raised its annual dividend to $6.88 per share and approved a $6 billion repurchase program, increasing planned capital returns alongside its operating investment needs.

  3. Oct 6, 2026 · business change

    ITW raised full-year organic growth guidance to 3% to 4% and EPS guidance to $11.35 to $11.55 after industrial demand improved in the second quarter.

  4. Oct 6, 2026 · business change

    ITW acquired a Test & Measurement and Electronics business for $120 million net of acquired cash, adding sales and integration costs to the segment.

  5. Oct 6, 2026 · business change

    ITW sold its minority stake in Wilsonart for $395 million net of transaction costs, realizing a $363 million pretax gain outside its operating businesses.

  6. Oct 6, 2026 · analyst revision

    Completed trajectories, competitive risks, management, debate and end markets. Reclassified Specialty Products from an IP choke point to patent-protected niche designs because the filing shows patent protection but no required industry technology. Test & Measurement and Construction remain without a specific claim after source review; their insufficient evidence status does not establish zero protection.

Industry & peers

Peer map

0%10%20%30%40%50%60708090100Moat scoreIndustry medianITWAMEMAS

Hover a point for its values; click a peer to compare. Dashed lines: industry medians.

Automotive engineered fasteners and components

As of Oct 6, 2026
CompetitiveHigh cyclicality

Plastic and metal fasteners, assemblies and engineered components sold to vehicle manufacturers and their suppliers. Excludes complete vehicles, powertrains and the wider automotive-parts market; the player list covers engineered fastening suppliers across their product portfolios.

  1. Illinois Tool Works
  2. Stanley Engineered Fastening
  3. Nifco
  4. LISI
  5. ARaymond
2025 leaders, no comparable shares · Stanley Black & Decker August 2025 investor presentation
StocksMoatGross m.Op. m.
ITW6244.2%26.5%
Industry median207040.3%17.4%
Sector median887637.0%17.5%
All stocks median3987652.9%19.6%

Moat medians cover every stock. Margin medians count only stocks with collected numbers and need at least three.

Drivers & risks

Demand drivers
  • Vehicle builds have a strong effect on component demand. More components per vehicle and new platform wins can lift supplier sales even when production is flat.
  • Electric vehicles and changing vehicle designs have a strong effect on product content. Existing suppliers must win new platforms; past qualification does not assure the next award.
  • Interest rates have a strong indirect effect through vehicle affordability and dealer financing. Currency has a material effect on reported international sales.
  • Local engineering and reliable delivery support supplier selection. China, India and other production regions can change the mix of customers and incumbent suppliers.
Risks
  • Automakers can use dual sourcing and annual price reductions, limiting returns despite qualification costs.
  • Platform changes, lower content at new customers and lost programs can offset industry production growth.
  • Steel, resin, wages and tariffs can raise supplier costs before customer price adjustments. Automotive OEM at ITW had a 90 basis point unfavorable price-cost effect in Q2 2026.
  • Trade restrictions and production relocation can disrupt supply and favor domestic suppliers. Weak European builds and changing Chinese OEM shares can hurt suppliers with the wrong customer mix.

Bulls & bears

Key question · as of Oct 6, 2026

Can customer-led innovation produce sustained sales growth above ITW’s end markets while operating discipline protects profit from input inflation and weaker customers?

Arguments

3 forFaded: weakening or settled3 against

What to watch

  1. 1Segment organic revenue against the disclosed auto-build and industrial demand benchmarks
  2. 2Food Equipment service revenue versus equipment revenue
  3. 3Enterprise initiative contribution and segment price-cost bridges
  4. 4Operating cash flow, dividends, buybacks and debt

Next check: Q3 2026 results: check whether the July growth acceleration and higher full-year guidance hold. The issuer date was not verified.

Sources: company filings and dated sources collected for Find My Moat; market cap as of Oct 5, 2026. Not investment advice.

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Moat Score 62/100 by <a href="https://www.findmymoat.com/stocks/XNYS:ITW">Find My Moat</a> (as of September 2026)

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