Illinois Tool Works (ITW) FY2025 results: revenue $16.0 billion, up 0.9% on the year

Illinois Tool Works manufactures a diversified range of industrial products and equipment through 88 divisions in 49 countries. It was founded in 1912 and incorporated in 1915, and employed approximately 43,000 people at 31 December 2025. Operations are organised by product offering and end market and reported as seven segments.

What the seven segments make

Automotive OEM supplies plastic and metal components, fasteners and assemblies to vehicle manufacturers and their tiers. Food Equipment makes warewashing, cooking, refrigeration and food processing equipment, kitchen exhaust, ventilation and pollution control systems, and the service, maintenance and repair around them, for food service, food retail and institutional customers. Test & Measurement and Electronics makes equipment, consumables and software for testing materials, structures, gases and fluids, electronic assembly equipment, electronic components and packaging, static control for clean rooms, and pressure sensitive adhesives. Welding makes arc welding equipment, consumables and accessories for fabrication, shipbuilding, construction, energy and general industry. Polymers & Fluids makes adhesives, sealants, lubrication and cutting fluids, epoxy and resin coatings, hand wipes and cleaners, and fluids, fillers and putties for vehicle aftermarket maintenance and body repair. Construction Products makes fasteners and fastening tools for wood, metal and concrete, metal plate truss components with their equipment and software, and packaged hardware for retail. Specialty Products makes conveyor systems and line automation for food and beverage, plastic consumables that multi-pack cans and bottles, decorative foil and film, product coding and marking equipment and consumables, plastic and metal closures for appliances, airport ground support equipment and components for medical devices.

The business model

The filing describes three elements. The first is 80/20 Front-to-Back, an operating system introduced as a manufacturing efficiency tool in the 1980s and since widened into a business management process: the company concentrates on its largest opportunities, the 80, and strips out cost and complexity attached to the less profitable 20. The second is what the company calls customer-back innovation, working from the insight the 80/20 process produces to solve problems for those largest customers, which the company connects to a portfolio of approximately 21,800 granted and pending patents. The third is a decentralised, entrepreneurial culture, in which divisions have latitude to adapt their approach inside the model's framework.

The strategy since 2012

In late 2012 the company began a strategic framework built around that model, with four initiatives. Portfolio management meant exiting businesses in commoditised markets and exiting commoditised product lines and customers inside divisions that were otherwise kept. Business structure simplification scaled the operating structure up into the present 88 divisions, with more engineering, marketing and sales resource behind each. Strategic sourcing was built as a core capability and the filing states it has delivered an average of one percent reduction in spend each year since 2013. The last step was reapplying 80/20 to the scaled-up divisions to prepare them for organic growth. The company notes that these initiatives can also lead to restructuring that reduces costs.

The next phase

The company frames 2024 to 2030 as a next phase in which the focus is to build organic growth into a core strength alongside its financial performance, arguing that a decentralised culture lets it read, react and adapt quickly as volatility and the pace of change increase. Separately, on 5 August 2024 it agreed to sell its noncontrolling equity interest in Wilsonart International Holdings LLC to affiliates of Clayton, Dubilier & Rice for $398 million, a transaction that closed immediately on signing.

From Illinois Tool Works' annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 13 February 2026: read the full 10-K.