Illinois Tool Works Reports $15.9 Billion Revenue, Increases Operating Income to $4.3 Billion

Illinois Tool Works Inc. (ITW) reported a consolidated operating revenue of $15.9 billion for the fiscal year ending December 31, 2024, a decrease of 1.3% from $16.1 billion in 2023. The company's operating income increased to $4.3 billion, reflecting a 5.5% rise from $4.0 billion in the previous year, resulting in an operating margin of 26.8%, up from 25.1% in 2023. The increase in operating income was attributed to the favorable impact of a change in inventory accounting methods and benefits from enterprise initiatives, despite a decline in organic revenue of 0.7%.

In terms of strategic developments, ITW completed two acquisitions in the Test & Measurement and Electronics segment in early 2024, totaling $116 million. Additionally, the company divested a noncontrolling equity interest in Wilsonart International Holdings LLC for $398 million, resulting in a pre-tax gain of $363 million. These transactions are part of ITW's ongoing portfolio management strategy, which includes exiting commoditized markets and focusing on high-quality businesses.

Operationally, ITW employed approximately 44,000 people as of December 31, 2024, with a significant presence in North America and Europe. The company reported a decline in organic revenue across several segments, including Automotive OEM and Construction Products, while segments such as Specialty Products and Food Equipment showed growth. The company’s geographic expansion efforts continue, with notable organic revenue growth in the Asia Pacific region, particularly in China, where organic revenue increased by 6.9%.

The filing also highlighted the company's focus on maintaining a strong balance sheet, with cash and equivalents totaling $948 million and no outstanding borrowings under its $3.0 billion revolving credit facility as of year-end. ITW's capital allocation priorities include internal investments, dividends, and share repurchases, with approximately $3.5 billion remaining under its current stock repurchase program. The company increased its quarterly dividend from $1.40 to $1.50 per share in 2024, reflecting its commitment to returning value to shareholders.

Looking ahead, ITW aims to enhance its organic growth capabilities while leveraging its differentiated business model. The company anticipates that its decentralized, entrepreneurial culture will enable it to adapt quickly to market changes and continue to drive operational excellence. The management remains focused on executing its enterprise strategy, which emphasizes customer-back innovation and portfolio discipline, to achieve sustainable long-term growth.