ILLINOIS TOOL WORKS INC recently released its 10-Q report, providing a detailed look into the company's financial performance and operations. The company is a global manufacturer of industrial products and equipment, with operations in 51 countries and 86 divisions. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products. These segments cater to various industries, including automotive OEM and aftermarket, commercial food equipment, construction, general industrial, and more.
The company's 10-Q report delves into ITEM 2, Management's Discussion and Analysis of Financial Condition and Results of Operations, providing insight into the company's business model, enterprise strategy, and the next phase of its evolution. It highlights the company's unique ITW Business Model, which consists of the 80/20 Front-to-Back process, customer-back innovation, and a decentralized, entrepreneurial culture. The report also outlines the company's enterprise strategy from 2012 to 2023, emphasizing initiatives such as portfolio management, business structure simplification, strategic sourcing, and the application of the 80/20 Front-to-Back process. Furthermore, it discusses the company's next phase from 2024 to 2030, focusing on building organic growth as a core strength and sustaining the foundational strengths built over the past decade.
The report also touches on the company's consolidated results of operations, including significant events such as the change in inventory valuation method, acquisitions, and the potential impact of tariffs and tax legislation. Despite the uncertain external environment, the company delivered solid financial results in the second quarter and year-to-date periods of 2025, attributed to successful execution of enterprise initiatives and focus on the highly differentiated ITW Business Model.
In the second quarter of 2025, the company reported operating revenue of $4.05 billion, slightly higher than the $4.03 billion reported in the same period in 2024. Cost of revenue was $2.27 billion, representing 56.0% of operating revenue, slightly lower than the 56.2% reported in the second quarter of 2024. Additionally, selling, administrative, and research and development expenses were $693 million, accounting for 17.1% of operating revenue, compared to $686 million and 17.0% in the same period last year. Amortization and impairment of intangible assets amounted to $21 million, representing 0.5% of operating revenue.
The company's 10-Q report provides a comprehensive view of its operations, financial performance, and future strategies, offering investors and stakeholders valuable insights into Illinois Tool Works Inc's business outlook and performance. As a result of these announcements, the company's shares have moved 0.91% on the market, and are now trading at a price of $255.97. Check out the company's full 10-Q submission here.
