ITW · 10-Q · 2026Q2

ILLINOIS TOOL WORKS INC

Filed 2026-08-06 · Industrials · View original filing on EDGAR

Ranked Events

• Capital Return ProgramImportance 76 · Surprise 56
  ITW repurchased $1.125 billion of common stock during the six months ended June 30, 2026, compared with $750 million in the prior-year period. The company paid $928 million in cash dividends during the same period and…
• Guidance and OutlookImportance 68 · Surprise 42
  ITW's 2024–2030 Next Phase enterprise strategy prioritizes above-market organic growth through Customer-Back Innovation, underlying market growth and market-share gains. Management identifies organic growth of 4% or…
• Liquidity and Debt PositionImportance 61 · Surprise 32
  Total debt increased to $9,694 million at June 30, 2026 from $8,969 million at December 31, 2025, while the trailing-twelve-month total-debt-to-EBITDA ratio rose to 2.0 from 1.9.
• Trade Policy and TariffsImportance 49 · Surprise 68
  U.S. tariff policy changed materially during 2026 after the Supreme Court invalidated many tariffs imposed under the International Emergency Economic Powers Act on February 20, 2026. A temporary 10% global tariff under…
• End-Market Demand TrendsImportance 49 · Surprise 32
  Second-quarter organic revenue increased 4.5%, led by Test & Measurement and Electronics, Welding, and Polymers & Fluids, while product line simplification reduced organic revenue by 60 basis points. North American…
• Operating Expense TrendsImportance 49 · Surprise 32
  Second-quarter selling, administrative, and research and development expense increased 6.1% to $735 million, while year-to-date expense increased 4.1% to approximately $1.5 billion. The expense ratio was 17.1% in the…
• Operating Margin DriversImportance 49 · Surprise 32
  Consolidated operating income increased 7.4% to $1.147 billion in the second quarter and 7.3% to $2.167 billion year to date. Operating margin expanded 40 basis points to 26.7% in the quarter and 50 basis points to…
• Revenue Performance and MixImportance 49 · Surprise 32
  Operating revenue increased 6.1% to $4.301 billion in the second quarter of 2026 and 5.4% to $8.317 billion year to date, driven by organic growth, acquisitions and favorable foreign-currency translation. Organic…
• Acquisition / Partnership / DivestitureImportance 47 · Surprise 60
  ITW completed the acquisition of one Test & Measurement and Electronics business on October 1, 2025. The purchase price was $120 million net of cash acquired and remains subject to closing adjustments. Purchase-price…
• Welding Market DemandImportance 42 · Surprise 40
  Welding organic revenue grew 13.9% in the second quarter and 10.0% year to date, with equipment growth of 18.7% and 13.4%, respectively. North American organic revenue increased 18.5% in the quarter and 13.5% year to…
• Semiconductor Electronics DemandImportance 42 · Surprise 40
  Test & Measurement and Electronics organic revenue increased 10.0% in the second quarter and 7.4% year to date, primarily because of higher semiconductor and electronics demand. Test and measurement revenue grew 4.2%…
• Revolving Credit FacilityImportance 40 · Surprise 42
  On February 20, 2026, ITW entered into a new $3.0 billion five-year revolving credit facility terminating February 20, 2031. The facility replaced the prior $3.0 billion facility scheduled to terminate October 21,…
• Automotive OEM Market TrendsImportance 37 · Surprise 32
  Automotive OEM organic revenue declined 0.4% in the second quarter and 0.6% year to date, compared with worldwide auto-build declines of flat and 1%, respectively. European organic revenue fell 5.3% in the quarter and…
• Liquidity and Cash PositionImportance 37 · Surprise 6
  ITW identified free cash flow and short-term credit facilities as its primary liquidity sources as of June 30, 2026. Cash and equivalents totaled $839 million at quarter end. The Company reported no outstanding…
• Food Equipment Demand WeaknessImportance 31 · Surprise 32
  Food Equipment organic revenue was flat in the second quarter and declined 1.3% year to date. Equipment revenue decreased 2.4% in the quarter and 4.1% year to date, while service revenue grew 5.0% and 4.1%,…
• Income Tax Rate ChangesImportance 28 · Surprise 42
  ITW recorded a $34 million discrete tax benefit in the first quarter of 2026, primarily related to resolution of a U.S. tax audit. Excluding that benefit, the effective tax rate for the six months ended June 30, 2026…

Revenue by Product (in millions)