Illinois Tool Works Inc. (ITW) reported its second-quarter 2025 results, showing a revenue of $4.1 billion, representing a 1% increase with flat organic growth. The operating margin stood at 26.3%, with a 130 basis points contribution from enterprise initiatives. The GAAP EPS reached a new Q2 record at $2.58, marking a 2% increase from the previous period.
The company also revealed a solid performance in operating income, which reached $1.1 billion, setting a new record for the second quarter. Operating cash flow for the quarter was reported at $550 million, with free cash flow of $449 million, indicating a conversion of 59% to net income. During the quarter, ITW repurchased $375 million of its own shares, and the effective tax rate was 24.4%.
Looking ahead, ITW has raised its full-year GAAP EPS guidance by $0.10, narrowing the range to $10.35 to $10.55 per share. The company projects revenue growth of 1 to 3%, with organic growth ranging from flat to 2%. Operating margin is expected to be in the range of 26% to 27%, with enterprise initiatives contributing 100 basis points or more. Furthermore, free cash flow is anticipated to exceed 100% of net income, and the company plans to repurchase approximately $1.5 billion of its own shares.
These results and guidance reflect the company's confidence in its ability to navigate an uncertain environment and deliver differentiated performance through 2025 and beyond. Following these announcements, the company's shares moved -0.2%, and are now trading at a price of $259.50. Check out the company's full 8-K submission here.
