Illinois Tool Works Inc (0J8W.L) Q2 2025: 0j8w L

Executive Summary

Paragraph 1: Illinois Tool Works reported a solid QQ2 2025, with revenue of $4.053 billion, up 0.65% year over year and 5.57% quarter over quarter. The company delivered a robust gross margin of 43.97% and an operating margin of 26.35%, underscoring consistent pricing power and favorable mix across its diversified portfolio of seven segments. Net income of $0.755 billion and earnings per share of $2.58 reflect disciplined cost management alongside topline resiliency in a market characterized by ongoing macro headwinds for industrials.

Key Performance Indicators

Revenue

4.05B

QoQ: 5.57% | YoY:0.65%

Gross Profit

1.78B

43.97% margin

QoQ: 7.54% | YoY:2.41%

Operating Income

1.07B

QoQ: 12.30% | YoY:1.33%

Net Income

755.00M

QoQ: 7.86% | YoY:-0.53%

EPS

2.58

QoQ: 8.40% | YoY:1.18%

Revenue Trend

Margin Analysis

Key Insights

Gross Profit: $1.782B; Gross Margin: 43.97%
Operating Income: $1.068B; Operating Margin: 26.35%
Net Income: $0.755B; Net Margin: 18.63%
EBITDA: $1.171B; EBITDA Margin: 28.89%
EPS: $2.58; Diluted EPS: $2.58; WeightAvg Shares: 292.3–292.9M

Financial Highlights

Revenue: $4.053B (YoY +0.65%, QoQ +5.57%)
- Gross Profit: $1.782B; Gross Margin: 43.97%
- Operating Income: $1.068B; Operating Margin: 26.35%
- Net Income: $0.755B; Net Margin: 18.63%
- EBITDA: $1.171B; EBITDA Margin: 28.89%
- EPS: $2.58; Diluted EPS: $2.58; WeightAvg Shares: 292.3–292.9M

Cash Flow and Balance Sheet:
- Operating Cash Flow: $0.550B; Free Cash Flow: $0.449B
- Cash and Cash Equivalents: $0.788B; Total Debt: $8.937B; Net Debt: $8.149B
- Total Assets: $16.048B; Net Debt = Gross Debt minus Cash
- Interest Coverage: 14.43x; Debt/Capitalization: 0.736; Dividend Payout: 58.1%
- Cash Conversion Cycle: 117.2 days; ROA: 4.70%; ROE: 23.5%; ROCE: 8.81%

Valuation and Multiples:
- Price/Earnings: 23.93x; Price/Book: 22.51x; EV/EBITDA: 68.68x; Price/Sales: 17.83x
- Dividend Yield: ~0.61%
- ITW vs peers shows premium multiples reflecting strong cash flow quality and portfolio diversity (see peer benchmarks below).

Income Statement

Metric	Value	YoY Change	QoQ Change
Revenue	4.05B	0.65%	5.57%
Gross Profit	1.78B	2.41%	7.54%
Operating Income	1.07B	1.33%	12.30%
Net Income	755.00M	-0.53%	7.86%
EPS	2.58	1.18%	8.40%

Key Financial Ratios

currentRatio

1.59

grossProfitMargin

44%

operatingProfitMargin

26.4%

netProfitMargin

18.6%

returnOnAssets

4.7%

returnOnEquity

23.5%

debtEquityRatio

2.78

operatingCashFlowPerShare

$1.88

freeCashFlowPerShare

$1.54

dividendPayoutRatio

58.1%

priceToBookRatio

22.51

priceEarningsRatio

23.93

Net Income vs. Revenue

Expense Breakdown

Competitive Position

Company	Gross Margin	Operating Margin	Return on Equity	P/E Ratio
0J8W.L Focus	43.97%	26.40%	23.50%	23.93%
0JT5.L	47.40%	30.50%	13.50%	19.34%
0J1R.L	15.90%	15.90%	-37.60%	14.02%
0M3Q.L	72.30%	40.20%	14.40%	24.17%
0KYY.L	70.20%	41.30%	3.20%	37.62%

Period	Revenue ($M)	EPS ($)	YoY Growth	Report
Q3 2025	4,059.00	2.81	+2.3%	View
Q2 2025	4,053.00	2.58	+0.7%	View
Q1 2025	3,839.00	2.38	-3.4%	View
Q4 2024	3,932.00	2.54	-1.3%	View
Q3 2024	3,966.00	3.91	-1.6%	View

Illinois Tool Works Inc (0J8W.L) Q2 2025 Earnings Report

Earnings Highlights

Illinois Tool Works Inc (0J8W.L) QQ2 2025 Results – Durable profitability, steady demand and strong free cash flow amid modest revenue growth

Executive Summary

Key Performance Indicators

Revenue

Gross Profit

Operating Income

Net Income

EPS

Revenue Trend

Margin Analysis

Key Insights

Financial Highlights

Income Statement

Key Financial Ratios

Net Income vs. Revenue

Expense Breakdown

Management Commentary

Forward Guidance

Competitive Position

Gross Profit Margin

Operating Profit Margin

Return on Equity

P/E Ratio Comparison

Investment Outlook

Key Investment Factors

Growth Potential

Profitability Risk

Financial Position

SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

Historical Earnings Comparison

Illinois Tool Works Inc (0J8W.L) Q2 2025 Earnings Report

Earnings Highlights

Executive Summary

Key Performance Indicators

Revenue

Gross Profit

Operating Income

Net Income

EPS

Revenue Trend

Margin Analysis

Key Insights

Financial Highlights

Income Statement

Key Financial Ratios

Net Income vs. Revenue

Expense Breakdown

Management Commentary

Forward Guidance

Competitive Position

Gross Profit Margin

Operating Profit Margin

Return on Equity

P/E Ratio Comparison

Investment Outlook

Key Investment Factors

Growth Potential

Profitability Risk

Financial Position

SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

Historical Earnings Comparison

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