Thu, May 1, 8:17 PM (21 days ago)
### Illinois Tool Works Inc. (ITW) Q1 2025 Financial Summary **Company Overview:** Illinois Tool Works Inc. (ITW) is a diversified global manufacturer with 86 divisions across 51 countries. ITW operates in seven segments: Automotive OEM, Food Equipment, Test & Measurement and Electronics, Welding, Polymers & Fluids, Construction Products, and Specialty Products. **Q1 2025 Financial Performance:** - **Revenue:** $3.84 billion, down 3.4% from $3.97 billion in Q1 2024. - **Operating Income:** $951 million, down 15.6% from $1.13 billion in Q1 2024. - **Net Income:** $700 million, down from $819 million in Q1 2024. - **Earnings Per Share (EPS):** $2.38 (diluted), down 12.8% from $2.73 in Q1 2024. - **Operating Margin:** 24.8%, down from 28.4% in Q1 2024. - **Effective Tax Rate:** 21.7%, down from 23.6% in Q1 2024. **Segment Performance:** - **Automotive OEM:** Revenue down 3.7%, operating income down 6.4%. - **Food Equipment:** Revenue down 0.7%, operating income up 1.5%. - **Test & Measurement and Electronics:** Revenue down 6.3%, operating income down 14.6%. - **Welding:** Revenue down 0.9%, operating income down 1.4%. - **Polymers & Fluids:** Revenue down 0.8%, operating income up 2.0%. - **Construction Products:** Revenue down 9.2%, operating income down 9.8%. - **Specialty Products:** Revenue down 1.0%, operating income up 3.2%. **Cash Flow and Liquidity:** - **Operating Cash Flow:** $592 million, slightly up from $589 million in Q1 2024. - **Free Cash Flow:** $496 million, slightly up from $494 million in Q1 2024. - **Cash and Equivalents:** $873 million, down from $948 million at the end of 2024. - **Debt:** Total debt $8.26 billion, up from $7.86 billion at the end of 2024. **Future Outlook and Uncertainties:** - **Enterprise Strategy:** ITW continues to focus on organic growth, enterprise initiatives, and portfolio discipline. - **Uncertainties:** Global economic conditions, tariffs, foreign currency fluctuations, and raw material costs. - **Future Operations:** ITW aims to build organic growth into a core strength, sustain foundational strengths, and drive 80/20 Front-to-Back practice excellence. **Key Metrics and Trends:** - **Operating Leverage:** Unfavorable due to lower revenue and higher costs. - **Price/Cost:** Mixed impact due to varying market conditions. - **Product Line Simplification (PLS):** Ongoing, impacting short-term revenue but expected to drive long-term growth. **Conclusion:** ITW's Q1 2025 performance reflects challenges in revenue growth and operating margins, driven by global economic uncertainties and higher costs. However, the company remains focused on its enterprise strategy, aiming to drive organic growth and maintain financial health through strategic initiatives and portfolio discipline.