Illinois Tool Works Reports Q4 Revenue Decline, Beats EPS Estimates

Illinois Tool Works Inc. (ITW) reported fourth-quarter revenue of $3.932 billion, a 1.3% decline year-over-year, which fell short of analyst expectations of $3.99 billion. The company achieved earnings of $2.54 per share, exceeding the consensus estimate of $2.50. Despite the revenue miss, ITW saw a 4.4% increase in operating income and a 140 basis point improvement in operating margin, reaching 26.2%. Looking ahead, ITW projects its 2025 earnings per share to be between $10.15 and $10.55, lower than the Wall Street estimate of $10.62. The ongoing challenges from high borrowing rates and inflation are impacting customer investment in industrial equipment, leading to a cautious outlook. CEO Christopher A. O’Herlihy highlighted the company's solid operational performance despite these economic pressures, emphasizing a focus on innovation and efficiency in the coming year.