Illinois Tool Works ( (ITW) ) has released its Q4 earnings. Here is a breakdown of the information Illinois Tool Works presented to its investors.
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Illinois Tool Works (ITW) is a global multi-industrial manufacturing leader, operating across seven industry-leading segments to provide innovative, customer-focused solutions. The company reported its fourth-quarter and full-year 2024 results, showing a slight decline in revenue but achieving record operating margins and earnings per share (EPS) growth.
In the fourth quarter of 2024, ITW’s revenue was $3.9 billion, reflecting a 1.3% decrease, primarily due to a 0.5% decline in organic growth. However, adjusted for product line simplification (PLS) reductions, organic growth was positive at 0.4%. The company achieved a record operating margin of 26.2%, thanks to enterprise initiatives, and generated a record free cash flow of $1 billion. For the full year of 2024, ITW reported a revenue of $15.9 billion, a 1.3% decline, with a record operating margin of 26.8% and a 20% increase in GAAP EPS to $11.71.
Looking forward to 2025, ITW projects above-market organic growth between 0% to 2%, or 1% to 3% excluding PLS reductions. The company anticipates a GAAP EPS in the range of $10.15 to $10.55, accounting for a foreign currency translation headwind. ITW plans to continue its strong financial performance by leveraging its enterprise initiatives to enhance margins by approximately 100 basis points.
In conclusion, Illinois Tool Works continues to demonstrate robust operational and financial performance, with a strategic focus on maintaining above-market growth and improving profitability. The company’s forward-looking projections suggest a steady path of organic growth and sustained shareholder value in 2025.
