In its recent 10-Q report, Illinois Tool Works Inc. (ITW) describes itself as a global manufacturer of industrial products and equipment, with operations in 51 countries and 86 divisions. The company operates through seven segments: Automotive OEM, Food Equipment, Test & Measurement and Electronics, Welding, Polymers & Fluids, Construction Products, and Specialty Products. These segments serve a wide range of markets, including automotive OEM and aftermarket, commercial food equipment, construction, general industrial, and consumer durables.
ITW's business model is based on three unique elements: the 80/20 Front-to-Back process, which focuses on the most profitable opportunities; customer-back innovation, which aims to solve customer problems; and a decentralized, entrepreneurial culture that allows for flexibility in serving specific customer needs.
The company's enterprise strategy, implemented from 2012 to 2023, focused on above-market organic growth, portfolio management, business structure simplification, and strategic sourcing. ITW's next phase, from 2024 to 2030, aims to further leverage its business model and enterprise strategy to achieve high-quality organic growth and maintain a resilient portfolio.
In terms of financial performance, ITW reported solid results for the third quarter and year-to-date periods of 2025. Operating revenue for the third quarter of 2025 was $4.06 billion, compared to $3.97 billion in the same period in 2024. Cost of revenue, selling, administrative, and research and development expenses, and amortization and impairment of intangible assets also saw changes, with cost of revenue as a percentage of operating revenue decreasing in the third quarter of 2025 compared to 2024.
The company also noted certain external events that could impact its operations, such as the Russian military invasion of Ukraine, additional tariffs on imported goods, and the enactment of the One Big Beautiful Bill Act in the United States. ITW believes it is well-positioned to manage the impact of these events, but acknowledges the potential for uncertainty and negative effects on overall customer demand.
As a result of these announcements, the company's shares have moved 1.77% on the market, and are now trading at a price of $257.44. For the full picture, make sure to review ILLINOIS TOOL WORKS INC's 10-Q report.
