ILLINOIS TOOL WORKS INC. recently released its 10-Q report, providing a detailed look at the company's financial performance and operations. The company, based in Glenview, Illinois, 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 markets including automotive OEM and aftermarket, commercial food equipment, construction, general industrial, and consumer durables.
The report also highlights the company's business model, which includes the 80/20 Front-to-Back process, customer-back innovation, and a decentralized, entrepreneurial culture. These elements are cited as the core source of value creation and competitive advantage for the company. The report further outlines the enterprise strategy from 2012 to 2023, focusing on initiatives such as portfolio management, business structure simplification, strategic sourcing, and the reapplication of the 80/20 Front-to-Back process.
The 10-Q report also discusses the company's consolidated results of operations, including the impact of external factors such as tariffs and changes in accounting methods. It mentions that despite the uncertain external environment, the company delivered solid financial results in the third 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 terms of specific financial figures, the report indicates that the operating revenue for the third quarter of 2025 was $4.059 billion, compared to $3.966 billion in the third quarter of 2024. Cost of revenue was $2.253 billion and $2.230 billion in the third quarter of 2025 and 2024, respectively, representing a 1.0% increase primarily due to higher revenue. Selling, administrative, and research and development expenses were $676 million and $658 million in the third quarter of 2025 and 2024, respectively. Amortization and impairment of intangible assets were $18 million and $26 million in the third quarter of 2025 and 2024, respectively.
The report also notes that the company completed the acquisition of one business in the Test & Measurement and Electronics segment for $57 million on January 2, 2024, and another business in the same segment for $59 million on April 1, 2024. Additionally, the company changed the method used to determine the cost of inventory at certain U.S. businesses from LIFO to the FIFO method in the first quarter of 2024.
The 10-Q report provides a comprehensive overview of ILLINOIS TOOL WORKS INC.'s financial performance, strategic initiatives, and operational highlights, offering investors and stakeholders valuable insights into the company's current position and future prospects. 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.
