ILLINOIS TOOL WORKS INC. has recently released its 10-Q report, providing detailed insights into its financial condition and operations. The company operates through seven segments, including Automotive OEM, Food Equipment, Test & Measurement and Electronics, Welding, Polymers & Fluids, Construction Products, and Specialty Products. It serves various markets such as automotive OEM and aftermarket, commercial food equipment, construction, general industrial, and consumer durables.
The report also highlights the company's unique business model, the ITW Business Model, which comprises three key elements: the 80/20 Front-to-Back process, customer-back innovation, and a decentralized, entrepreneurial culture. These elements have been instrumental in driving the company's value creation and competitive advantage.
The enterprise strategy of the company, spanning from 2012 to 2023, focused on leveraging the ITW Business Model to achieve consistent above-market growth and best-in-class margins. Key initiatives included portfolio management, business structure simplification, strategic sourcing, and the diligent re-application of the 80/20 Front-to-Back process.
Looking ahead to the next phase from 2024 to 2030, the company aims to sustain its foundational strengths, particularly in customer-back innovation and further drive excellence in the 80/20 Front-to-Back practice.
The report also discusses the company's consolidated results of operations, highlighting key events such as the acquisition of businesses, changes in inventory valuation methods, and the potential impact of tariffs and tax legislation on its operations.
In the third quarter and year-to-date periods of 2025, the company delivered solid financial results primarily due to successful execution of enterprise initiatives and focus on the highly differentiated ITW Business Model. Operating revenue for the third quarter of 2025 was $4.06 billion, compared to $3.97 billion in 2024, while operating revenue for the year-to-date period was $11.95 billion, slightly lower than $11.97 billion in 2024.
Cost of revenue, selling, administrative, and research and development expenses, and amortization and impairment of intangible assets were also analyzed in the report, providing insights into the company's operating expenses.
The market has reacted to these announcements by moving the company's shares 1.77% to a price of $257.44. For more information, read the company's full 10-Q submission here.
