Illinois Tool Works Q1 Revenue, Margin, Net Income Fall

Illinois Tool Works (ITW) reported first quarter revenue of $3.84 billion, a 3.4% year-over-year decline, and net income of $700 million, down from $819 million last year. The company attributed the decreases to challenging market conditions, lower organic demand, and unfavorable foreign currency impacts. Adjusted earnings per share were $2.38, surpassing analyst expectations, though revenue narrowly missed consensus estimates. Operating margin contracted by 360 basis points to 24.8%, with all segments declining and the construction products segment falling the most at 9.2%. Despite these challenges, ITW reaffirmed its 2025 EPS guidance of $10.15 to $10.55, citing confidence in its pricing strategies to offset tariff-related costs. Shares have fallen about 4.7% year-to-date, but management remains focused on maintaining the full-year outlook amid ongoing economic uncertainty.