ITW Reports First Quarter 2025 Results

Core Insights - Illinois Tool Works Inc. (ITW) reported first quarter 2025 results, achieving financial outcomes ahead of expectations while maintaining guidance for the full year 2025 [1][2] Financial Performance - First quarter revenue was $3.8 billion, a decline of 3.4% year-over-year, with organic revenue down 1.6% [3][8] - GAAP EPS for Q1 2025 was $2.38, a decrease of 2% compared to the previous year, impacted by higher restructuring expenses and unfavorable foreign currency translation [5][8] - Operating margin for Q1 2025 was 24.8%, down 60 basis points from the previous year, with enterprise initiatives contributing positively [5][8] Cash Flow and Share Repurchase - Operating cash flow was $592 million, with free cash flow at $496 million, representing a conversion rate of 71% to net income [5][28] - The company repurchased $375 million of its own shares during the quarter and plans to repurchase approximately $1.5 billion in total for 2025 [5][6] 2025 Guidance - ITW is maintaining its full year 2025 GAAP EPS guidance range of $10.15 to $10.55 per share, expecting ongoing pricing actions to offset tariff cost impacts [6][8] - Projected revenue growth for 2025 is estimated at 0% to 2%, with operating margin expected to be between 26.5% and 27.5% [6][8] Segment Performance - Total operating revenue for the segments was $3.8 billion, with notable contributions from Automotive OEM ($786 million) and Food Equipment ($627 million) [16][17] - Organic revenue changes varied across segments, with Automotive OEM down 1.2% and Food Equipment up 1.2% [19]