ITW Reports Record Q3 Performance, Boosts Dividend and Share Repurchases
Illinois Tool Works LLC (ITW) has reported robust operational and financial performance in Q3 2025, with organic growth of 1% and a 6% increase in operating income to a record $1.1 billion. The LLC also announced its 62nd consecutive dividend increase and over $1.1 billion in share repurchases year-to-date.
ITW delivered a 3% increase in revenue, excluding a 1% reduction related to strategic product line simplification efforts. The LLC narrowed its EPS guidance to a range of $10.40 to $10.50, including a benefit from a lower projected tax rate of approximately 23% for the full year. Management expressed confidence in meeting the $10.45 midpoint EPS target.
Segment highlights included Automotive OEM leading with 7% revenue growth and 5% organic growth, and Construction Products' operating margin increasing 140 basis points to 31.6%. ITW achieved a 90 basis point improvement in operating margin to 27.4%, with a GAAP EPS of $2.81. The LLC reported a 15% increase in free cash flow to over $900 million, with a conversion rate of 110%. Operating margin guidance remains at 26% to 27%, with enterprise initiatives expected to contribute 125 basis points for the full year.
Despite limited public information about its most important customers in Asia in 2025, ITW has demonstrated strong financial performance and commitment to shareholder value. The LLC maintained its full-year organic growth guidance of 0% to 2% and total revenue growth of 1% to 3.
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