Exhibit 99.1 ITW Reports Second Quarter 2025 Results • Revenue of $4.1 billion, an increase of 1% with flat organic growth • Operating margin of 26.3% as enterprise initiatives contributed 130 bps • GAAP EPS of $2.58, a new Q2 record • Raising full year 2025 GAAP EPS guidance by $0.10; narrowing the range to $10.35 to $10.55 per share GLENVIEW, IL., July 30, 2025 - Illinois Tool Works Inc. (NYSE: ITW) today reported its second quarter 2025 results and updated guidance for full year 2025. “The ITW team outpaced underlying end market growth and delivered solid financial performance in the second quarter, achieving EPS of $2.58, operating income of $1.1 billion, and operating margin of 26.3 percent, all second-quarter records. Our results are a direct outcome of the strength of the ITW Business Model, the quality of our diversified and resilient portfolio, and the unwavering dedication of our global ITW colleagues to serving our customers and executing our strategy with excellence,” said Christopher A. O’Herlihy, President and Chief Executive Officer. “I am very encouraged by the meaningful strategic progress we made in the first half of the year, diligently executing our Next Phase growth priorities to make consistent above-market organic growth powered by Customer-Back Innovation a defining ITW strength. Looking ahead, we are raising our full year guidance, confident in our ability to successfully navigate an uncertain environment and deliver differentiated performance through 2025 and beyond.” Second Quarter 2025 Results Second quarter revenue of $4.1 billion increased by one percent as organic growth was essentially flat. Foreign currency translation impact increased revenue by one percent. GAAP EPS of $2.58 increased two percent. Operating margin expanded 10 basis points to 26.3 percent as enterprise initiatives contributed 130 basis points. Operating cash flow was $550 million, and free cash flow was $449 million with a conversion of 59 percent to net income. During the quarter, the company repurchased $375 million of its own shares, and the effective tax rate was 24.4 percent. 2025 Guidance ITW is raising its full year GAAP EPS guidance range of $10.15 to $10.55 per share by $0.10 or one percent at the midpoint to a narrower range of $10.35 to $10.55 per share. The company is projecting revenue growth of one to three percent and organic growth of flat to two percent based on current levels of demand adjusted for on-going pricing actions that are projected to offset tariff cost impacts and current foreign exchange rates. Operating margin is projected to be in the range of 26 to 27 percent as enterprise initiatives are expected to contribute 100 basis points or more. Free cash flow is expected to exceed 100 percent of net income, and the company plans to repurchase approximately $1.5 billion of its own shares. The projected effective tax rate is approximately 24 percent. Non-GAAP Measures This earnings release contains certain non-GAAP financial measures. A reconciliation of these measures to the most directly comparable GAAP measures is included in the attached supplemental reconciliation schedule. The estimated guidance of free cash flow to net income conversion rate is based on assumptions that are difficult to predict, and estimated guidance for the most directly comparable GAAP measure and a reconciliation of this forward-looking estimate to its most directly comparable GAAP estimate have been omitted due to the unreasonable efforts required in connection with such a reconciliation and the lack of reliable forward-looking cash flow information. For the same reasons, the company is unable to address the potential significance of the unavailable information, which could be material to future results. Forward-looking Statements This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements regarding the potential impact of tariffs, the Company’s projected pricing actions, the impact of enterprise initiatives, future financial and operating performance, free cash flow and free cash flow to net income conversion rate, organic and total revenue, operating and incremental margin, price/cost impact, statements regarding diluted earnings per share, after-tax return on invested capital, effective tax rates, exchange rates, expected timing and amount of share repurchases, end market economic and regulatory conditions, and the Company’s 2025 guidance. These statements are subject to certain risks, uncertainties, assumptions, and other factors, which could cause actual results to differ materially from those anticipated. Important risks that could cause actual results to differ materially from the Company’s expectations include those that are detailed in ITW’s Form 10-K for 2024 and subsequent reports filed with the SEC. About Illinois Tool Works ITW (NYSE: ITW) is a Fortune 300 global multi-industrial manufacturing leader with revenue of $15.9 billion in 2024. The company’s seven industry-leading segments leverage the unique ITW Business Model to drive solid growth with best-in-class margins and returns in markets where highly innovative, customer-focused solutions are required. ITW’s approximately 44,000 dedicated colleagues around the world thrive in the company’s decentralized and entrepreneurial culture. www.itw.com ILLINOIS TOOL WORKS INC. and SUBSIDIARIES STATEMENT OF INCOME (UNAUDITED) Three Months Ended Six Months Ended June 30, June 30, In millions except per share amounts 2025 2024 2025 2024 Operating Revenue $ 4,053 $ 4,027 $ 7,892 $ 8,000 Cost of revenue 2,271 2,262 4,432 4,407 Selling, administrative, and research and development expenses 693 686 1,399 1,362 Amortization and impairment of intangible assets 21 25 42 50 Operating Income 1,068 1,054 2,019 2,181 Interest expense (74) (75) (142) (146) Other income (expense) 4 26 16 42 Income Before Taxes 998 1,005 1,893 2,077 Income Taxes 243 246 438 499 Net Income $ 755 $ 759 $ 1,455 $ 1,578 Net Income Per Share: Basic $ 2.58 $ 2.55 $ 4.97 $ 5.29 Diluted $ 2.58 $ 2.54 $ 4.95 $ 5.27 Cash Dividends Per Share: Paid $ 1.50 $ 1.40 $ 3.00 $ 2.80 Declared $ 1.50 $ 1.40 $ 3.00 $ 2.80 Shares of Common Stock Outstanding During the Period: Average 292.3 297.6 292.9 298.3 Average assuming dilution 292.9 298.5 293.7 299.3 ILLINOIS TOOL WORKS INC. and SUBSIDIARIES STATEMENT OF FINANCIAL POSITION (UNAUDITED) In millions June 30, 2025 December 31, 2024 Assets Current Assets: Cash and equivalents $ 788 $ 948 Trade receivables 3,320 2,991 Inventories 1,710 1,605 Prepaid expenses and other current assets 416 312 Total current assets 6,234 5,856 Net plant and equipment 2,177 2,036 Goodwill 5,038 4,839 Intangible assets 558 592 Deferred income taxes 564 369 Other assets 1,477 1,375 $ 16,048 $ 15,067 Liabilities and Stockholders' Equity Current Liabilities: Short-term debt $ 1,242 $ 1,555 Accounts payable 613 519 Accrued expenses 1,544 1,576 Cash dividends payable 437 441 Income taxes payable 96 217 Total current liabilities 3,932 4,308 Noncurrent Liabilities: Long-term debt 7,695 6,308 Deferred income taxes 144 119 Other liabilities 1,066 1,015 Total noncurrent liabilities 8,905 7,442 Stockholders' Equity: Common stock 6 6 Additional paid-in-capital 1,725 1,669 Retained earnings 29,471 28,893 Common stock held in treasury (26,124) (25,375) Accumulated other comprehensive income (loss) (1,868) (1,877) Noncontrolling interest 1 1 Total stockholders' equity 3,211 3,317 $ 16,048 $ 15,067 ILLINOIS TOOL WORKS INC. and SUBSIDIARIES SEGMENT DATA (UNAUDITED) Three Months Ended June 30, 2025 Dollars in millions Total Revenue Operating Income Operating Margin Automotive OEM $ 845 $ 180 21.3 % Food Equipment 680 189 27.7 % Test & Measurement and Electronics 686 157 22.8 % Welding 479 159 33.1 % Polymers & Fluids 438 121 27.7 % Construction Products 473 145 30.8 % Specialty Products 455 148 32.6 % Intersegment (3) — — % Total Segments 4,053 1,099 27.1 % Unallocated — (31) — % Total Company $ 4,053 $ 1,068 26.3 % Six Months Ended June 30, 2025 Dollars in millions Total Revenue Operating Income Operating Margin Automotive OEM $ 1,631 $ 331 20.3 % Food Equipment 1,307 355 27.1 % Test & Measurement and Electronics 1,338 296 22.1 % Welding 951 312 32.8 % Polymers & Fluids 867 235 27.1 % Construction Products 916 275 30.0 % Specialty Products 890 283 31.8 % Intersegment (8) — — % Total Segments 7,892 2,087 26.4 % Unallocated — (68) — % Total Company $ 7,892 $ 2,019 25.6 % ILLINOIS TOOL WORKS INC. and SUBSIDIARIES SEGMENT DATA (UNAUDITED) Q2 2025 vs. Q2 2024 Favorable/(Unfavorable) Operating Revenue Automotive OEM Food Equipment Test & Measurement and Electronics Welding Polymers & Fluids Construction Products Specialty Products Total ITW Organic 2.4 % 0.8 % (0.7) % 2.8 % (3.7) % (6.9) % 0.3 % (0.4) % Acquisitions/ Divestitures — % — % — % — % — % — % — % — % Translation 1.4 % 1.3 % 1.9 % 0.1 % 0.3 % 0.8 % 0.8 % 1.1 % Operating Revenue 3.8 % 2.1 % 1.2 % 2.9 % (3.4) % (6.1) % 1.1 % 0.7 % Q2 2025 vs. Q2 2024 Favorable/(Unfavorable) Change in Operating Margin Automotive OEM Food Equipment Test & Measurement and Electronics Welding Polymers & Fluids Construction Products Specialty Products Total ITW Operating Leverage 40 bps 10 bps (20) bps 40 bps (80) bps (150) bps — (10) bps Changes in Variable Margin & OH Costs 110 bps 40 bps (50) bps (30) bps 30 bps 160 bps 40 bps (10) bps Total Organic 150 bps 50 bps (70) bps 10 bps (50) bps 10 bps 40 bps (20) bps Acquisitions/ Divestitures — — — — — — — — Restructuring/Other 40 bps 10 bps — 10 bps — 130 bps 30 bps 30 bps Total Operating Margin Change 190 bps 60 bps (70) bps 20 bps (50) bps 140 bps 70 bps 10 bps Total Operating Margin % * 21.3% 27.7% 22.8% 33.1% 27.7% 30.8% 32.6% 26.3% * Includes unfavorable operating margin impact of amortization expense from acquisition-related intangible assets 20 bps 30 bps 130 bps 10 bps 150 bps 10 bps 10 bps 60 bps ** ** Amortization expense from acquisition-related intangible assets had an unfavorable impact of ($0.05) on GAAP earnings per share for the second quarter of 2025. ILLINOIS TOOL WORKS INC. and SUBSIDIARIES SEGMENT DATA (UNAUDITED) H1 2025 vs. H1 2024 Favorable/(Unfavorable) Operating Revenue Automotive OEM Food Equipment Test & Measurement and Electronics Welding Polymers & Fluids Construction Products Specialty Products Total ITW Organic 0.6 % 1.0 % (3.1) % 1.4 % (1.1) % (7.2) % 0.6 % (1.0) % Acquisitions/ Divestitures — % — % 0.1 % — % — % — % — % — % Translation (0.5) % (0.3) % 0.4 % (0.4) % (1.0) % (0.4) % (0.5) % (0.3) % Operating Revenue 0.1 % 0.7 % (2.6) % 1.0 % (2.1) % (7.6) % 0.1 % (1.3) % H1 2025 vs. H1 2024 Favorable/(Unfavorable) Change in Operating Margin Automotive OEM Food Equipment Test & Measurement and Electronics Welding Polymers & Fluids Construction Products Specialty Products Total ITW Operating Leverage 10 bps 20 bps (80) bps 20 bps (20) bps (150) bps 10 bps (20) bps Changes in Variable Margin & OH Costs 80 bps 30 bps (10) bps (40) bps 30 bps 150 bps 90 bps (150) bps Total Organic 90 bps 50 bps (90) bps (20) bps 10 bps — 100 bps (170) bps Acquisitions/ Divestitures — — (20) bps — — — — — Restructuring/Other (20) bps 10 bps (20) bps 20 bps — 60 bps — — Total Operating Margin Change 70 bps 60 bps (130) bps — 10 bps 60 bps 100 bps (170) bps Total Operating Margin % * 20.3% 27.1% 22.1% 32.8% 27.1% 30.0% 31.8% 25.6% * Includes unfavorable operating margin impact of amortization expense from acquisition-related intangible assets 30 bps 30 bps 140 bps 10 bps 150 bps 10 bps 20 bps 50 bps ** ** Amortization expense from acquisition-related intangible assets had an unfavorable impact of ($0.11) on GAAP earnings per share for the first half of 2025. ILLINOIS TOOL WORKS INC. and SUBSIDIARIES GAAP to NON-GAAP RECONCILIATIONS (UNAUDITED) AFTER-TAX RETURN ON AVERAGE INVESTED CAPITAL (UNAUDITED) Three Months Ended Six Months Ended June 30, June 30, Dollars in millions 2025 2024 2025 2024 Numerator: Net Income $ 755 $ 759 $ 1,455 $ 1,578 Discrete tax benefit related to the first quarter 2025 — — (21) — Interest expense, net of tax (1) 56 57 108 111 Other (income) expense, net of tax (1) (3) (20) (12) (32) Operating income after taxes $ 808 $ 796 $ 1,530 $ 1,657 Denominator: Invested capital: Cash and equivalents $ 788 $ 862 $ 788 $ 862 Trade receivables 3,320 3,250 3,320 3,250 Inventories 1,710 1,819 1,710 1,819 Net plant and equipment 2,177 2,011 2,177 2,011 Goodwill and intangible assets 5,596 5,551 5,596 5,551 Accounts payable and accrued expenses (2,157) (2,191) (2,157) (2,191) Debt (8,937) (8,473) (8,937) (8,473) Other, net 714 133 714 133 Total net assets (stockholders' equity) 3,211 2,962 3,211 2,962 Cash and equivalents (788) (862) (788) (862) Debt 8,937 8,473 8,937 8,473 Total invested capital $ 11,360 $ 10,573 $ 11,360 $ 10,573 Average invested capital (2) $ 10,996 $ 10,480 $ 10,741 $ 10,357 Net income to average invested capital (3) 27.4 % 29.0 % 27.1 % 30.5 % After-tax return on average invested capital (3) 29.4 % 30.4 % 28.5 % 32.0 % (1) Effective tax rate used for interest expense and other (income) expense for the three months ended June 30, 2025 and 2024 was 24.4% in both periods. Effective tax rate used for interest expense and other (income) expense for the six months ended June 30, 2025 and 2024 was 24.2% and 24.0%, respectively. (2) Average invested capital is calculated using the total invested capital balances at the start of the period and at the end of each quarter within each of the periods presented. (3) Returns for the three months ended June 30, 2025 and 2024 were converted to an annual rate by multiplying the calculated return by 4. Returns for the six months ended June 30, 2025 and 2024 were converted to an annual rate by multiplying the calculated return by 2. After-tax ROIC for the six months ended June 30, 2024 included 170 basis points of favorable impact related to the cumulative effect of the change from the LIFO method of accounting to the FIFO method for certain U.S. businesses ($117 million pre-tax, or $88 million after-tax) in the first quarter of 2024. A reconciliation of the tax rate for the six month period ended June 30, 2025, excluding the first quarter 2025 discrete tax benefit of $21 million related to the reversal of a valuation allowance on net operating loss carryforwards, is as follows: Six Months Ended June 30, 2025 Dollars in millions Income Taxes Tax Rate As reported $ 438 23.1 % Discrete tax benefit related to the first quarter 2025 21 1.1 % As adjusted $ 459 24.2 % AFTER-TAX RETURN ON AVERAGE INVESTED CAPITAL (UNAUDITED) Twelve Months Ended Dollars in millions December 31, 2024 Numerator: Net income $ 3,488 Net discrete tax benefit related to the third quarter 2024 (121) Interest expense, net of tax (1) 215 Other (income) expense, net of tax (1) (336) Operating income after taxes $ 3,246 Denominator: Invested capital: Cash and equivalents $ 948 Trade receivables 2,991 Inventories 1,605 Net plant and equipment 2,036 Goodwill and intangible assets 5,431 Accounts payable and accrued expenses (2,095) Debt (7,863) Other, net 264 Total net assets (stockholders' equity) 3,317 Cash and equivalents (948) Debt 7,863 Total invested capital $ 10,232 Average invested capital (2) $ 10,419 Net income to average invested capital 33.5 % After-tax return on average invested capital 31.2 % (1) Effective tax rate used for interest expense and other (income) expense for the year ended December 31, 2024 was 23.8%. (2) Average invested capital is calculated using the total invested capital balances at the start of the period and at the end of each quarter within the period presented. A reconciliation of the 2024 effective tax rate excluding the third quarter 2024 net discrete tax benefit of $121 million, which included favorable discrete tax benefits of $107 million related to the utilization of capital loss carryforwards upon the sale of Wilsonart and $87 million related to a reorganization of the Company's intellectual property, partially offset by a $73 million discrete tax expense related to the remeasurement of unrecognized tax benefits associated with various intercompany transactions, is as follows: Twelve Months Ended December 31, 2024 Dollars in millions Income Taxes Tax Rate As reported $ 934 21.1 % Net discrete tax benefit related to the third quarter 2024 121 2.7 % As adjusted $ 1,055 23.8 % FREE CASH FLOW (UNAUDITED) Three Months Ended Six Months Ended June 30, June 30, Dollars in millions 2025 2024 2025 2024 Net cash provided by operating activities $ 550 $ 687 $ 1,142 $ 1,276 Less: Additions to plant and equipment (101) (116) (197) (211) Free cash flow $ 449 $ 571 $ 945 $ 1,065 Net income $ 755 $ 759 $ 1,455 $ 1,578 Net cash provided by operating activities to net income conversion rate 73 % 91 % 78 % 81 % Free cash flow to net income conversion rate 59 % 75 % 65 % 67 % ADJUSTED NET INCOME PER SHARE - DILUTED (UNAUDITED) Twelve Months Ended December 31, 2024 As reported $ 11.71 Cumulative effect of change in inventory accounting method, net of tax (1) (0.30) Impact of sale of noncontrolling interest in Wilsonart (2) (1.26) As adjusted $ 10.15 (1) Represents the cumulative effect of the change from the LIFO method of accounting to the FIFO method for certain U.S. businesses in the first quarter of 2024 ($117 million pre-tax, or $88 million after-tax). (2) Includes the $363 million pre-tax gain on the sale of noncontrolling interest in Wilsonart and related taxes in the third quarter of 2024.

the item shown at left

other guidance in this release

Text is the filed exhibit, verbatim.