ITW Q2 Earnings Beat, Raises 2025 Guidance

Illinois Tool Works (ITW) posted second-quarter 2025 earnings that slightly beat analyst expectations, with adjusted EPS of $2.58 and revenue of $4.05 billion, aided by favorable foreign currency and strength in its automotive and electronics segments. The company raised its full-year profit guidance to $10.35–$10.55 per share and now expects 1%–3% annual revenue growth, citing price increases to offset tariffs and higher costs. Operating margins remained strong at about 26.3%, though the free cash flow margin declined year-over-year. ITW’s share price has climbed 8% over the past quarter and dividends were confirmed, but its growth has lagged the S&P 500 and US machinery sector over the past year. The company has benefited from a diversified business model and localized production, which have helped manage ongoing tariff and demand risks. Analysts forecast moderate revenue growth ahead, with the stock currently trading slightly above consensus price targets.