Illinois Tool Works Inc. (NYSE: ITW) has reported its fourth quarter and full-year 2024 results and initiated guidance for full-year 2025. Let's take a closer look at the specific figures and key metrics.
Fourth Quarter 2024 Highlights: Revenue: $3.9 billion, a decrease of 1.3% as organic growth declined 0.5% Operating Margin: 26.2%, an increase of 140 basis points Operating Cash Flow: $1.1 billion Free Cash Flow: $1 billion, an increase of 10% * GAAP EPS: $2.54, an increase of 7%
Full Year 2024 Highlights: Revenue: $15.9 billion, a decrease of 1.3% as organic growth declined 0.7% Operating Margin: 26.8% GAAP EPS: $11.71, an increase of 20% Operating Income: $4.3 billion, a growth of 6% Operating Cash Flow: $3.3 billion Free Cash Flow: $2.8 billion
2025 Guidance: Above-market organic growth of 0 to 2% based on current demand levels Operating Margin: projected to be in the range of 26.5 to 27.5% Free Cash Flow: projected to be greater than 100% of net income Share Repurchase: The company plans to repurchase approximately $1.5 billion of its own shares * Projected effective tax rate: 24 to 24.5%
It's notable that ITW's revenue declined in both the fourth quarter and full year of 2024, but the company reported an increase in operating margin and free cash flow. Additionally, GAAP EPS showed growth in both periods.
Looking ahead to 2025, the company is aiming for above-market organic growth, improved operating margin, and a strong focus on free cash flow generation and share repurchases.
These figures provide a clear snapshot of ITW's financial performance and its outlook for the coming year. Today the company's shares have moved -1.7% to a price of $250.37. Check out the company's full 8-K submission here.
