ITW posts higher Q3 revenue, narrows FY profit forecast

Illinois Tool Works

24/10/2025 13:12

Overview

ITW Q3 revenue grows 2% to $4.06 bln, slightly below analyst expectations

GAAP EPS for Q3 rises 6% to $2.81, excluding divestiture gain

Company repurchased $375 mln of shares, raised dividend by 7% in Q3

Outlook

ITW narrows full-year GAAP EPS guidance to $10.40-$10.50 per share

Company projects 2025 revenue growth of 1% to 3%

ITW expects 2025 operating margin between 26% and 27%

Result Drivers

OPERATING MARGIN - Record operating margin of 27.4% driven by enterprise initiatives contributing 140 bps

ORGANIC GROWTH - Organic revenue growth of 1% supported by customer-back innovation

FOREIGN CURRENCY IMPACT - Revenue increased by 2% due to positive foreign currency translation

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight miss*
$4.06 bln
$4.08 bln (13 Analysts)
Q3 EPS
$2.81


*Applies to a deviation of less than 1%; not applicable for per share numbers

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 11 "hold" and 6 "sell" or "strong sell"

The average consensus recommendation for the consumer goods conglomerates peer group is "buy."

Wall Street's median 12-month price target for Illinois Tool Works Inc is $260.50, about 1.2% above its October 23 closing price of $257.44

The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 23 three months ago

Press Release: ID:nGNX9Nrp1T

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)