ITW(US:ITW) Benzinga·2025-10-27 17:08Core Insights - Illinois Tool Works Inc. reported mixed third-quarter fiscal 2025 results, with revenue of $4.06 billion, a 2.3% year-over-year increase, but below the expected $4.08 billion [1] - The company narrowed its full-year 2025 GAAP EPS guidance to $10.40-$10.50, aligning with consensus, and projected sales between $16.057 billion and $16.375 billion [2] - The CEO highlighted a record operating margin of 27.4% and a 15% increase in free cash flow, indicating strong operational execution [3] Financial Performance - Revenue increased by 2.3% year-over-year to $4.06 billion, missing analyst expectations [1] - Earnings per share (EPS) were reported at $2.81, down from $3.91 a year ago, but above the consensus estimate of $2.71 [1] - The company achieved a record operating margin of 27.4% and a 15% increase in free cash flow [3] Guidance and Projections - Full-year 2025 GAAP EPS guidance was tightened to $10.40-$10.50 from a previous range of $10.35-$10.55 [2] - Projected full-year 2025 sales are between $16.057 billion and $16.375 billion, slightly below the consensus of $16.076 billion [2] Market Reaction - Following the earnings announcement, Illinois Tool Works shares rose by 1.1% to $248.45 [4] - Analysts adjusted their price targets, with a consensus price target of $253.29, the highest at $295.00, and the lowest at $181.00 [5] Analyst Ratings - Wells Fargo maintained an Underweight rating and lowered the price target from $250 to $245 [7] - Truist Securities maintained a Hold rating and reduced the price target from $298 to $275 [7] - Barclays also maintained an Underweight rating, raising the price target from $243 to $244 [7]