ITW Reports Second Quarter 2025 Results

Core Insights - Illinois Tool Works Inc. (ITW) reported strong second quarter 2025 results, achieving record EPS of $2.58, operating income of $1.1 billion, and an operating margin of 26.3% [2][4][8] - The company raised its full year 2025 GAAP EPS guidance to a range of $10.35 to $10.55 per share, reflecting confidence in navigating market uncertainties [5][8] Financial Performance - Second quarter revenue reached $4.1 billion, a 1% increase, with organic growth remaining flat [3][8] - Operating cash flow was $550 million, and free cash flow was $449 million, representing a conversion rate of 59% to net income [4][34] - The effective tax rate for the quarter was 24.4% [4][26] Strategic Initiatives - The company emphasized its commitment to "Customer-Back Innovation" as a key driver for above-market organic growth [3] - ITW repurchased $375 million of its own shares during the quarter and plans to repurchase approximately $1.5 billion for the full year [4][5] Segment Performance - The automotive OEM segment generated $845 million in revenue with an operating margin of 21.3% [17] - The food equipment segment reported revenue of $680 million and an operating margin of 27.7% [17] - The welding segment achieved the highest operating margin at 33.1% with revenue of $479 million [17] Guidance and Outlook - ITW projects full year revenue growth of 1% to 3% and organic growth of flat to 2% [5] - Operating margin is expected to be in the range of 26% to 27%, with enterprise initiatives contributing at least 100 basis points [5]