Exhibit 99.1 ITW Reports Third Quarter 2025 Results • Revenue of $4.1 billion, an increase of 2% with organic growth of 1% • Record operating margin of 27.4%, an expansion of 90 bps as enterprise initiatives contributed 140 bps • GAAP EPS of $2.81, an increase of 6% excluding prior year divestiture gain • Operating cash flow of $1 billion; free cash flow of $0.9 billion, an increase of 15% • Narrowing full year GAAP EPS guidance range to $10.40 to $10.50 per share GLENVIEW, IL., October 24, 2025 - Illinois Tool Works Inc. (NYSE: ITW) today reported its third quarter 2025 results. "The ITW team concluded the third quarter with solid operational and financial execution, delivering EPS of $2.81, which grew six percent year-over-year excluding the divestiture gain, alongside record operating margin of 27.4 percent, and a 15 percent increase in free cash flow. This outcome underscores the fundamental strength of the ITW Business Model, the inherent resilience of our diversified portfolio, and the high-quality execution demonstrated by our colleagues worldwide," said Christopher A. O’Herlihy, President and Chief Executive Officer. "We are very pleased with the significant strategic progress made throughout the year, especially how our focus on excellence in Customer-Back Innovation is enabling consistent above-market organic growth. As we head into the final quarter, we are narrowing our full year EPS guidance range, and remain committed to delivering high-quality, differentiated performance in any economic environment." Third Quarter 2025 Results Third quarter revenue of $4.1 billion increased by two percent as organic revenue grew one percent. Foreign currency translation impact increased revenue by two percent and product line simplification reduced revenue by one percent. GAAP EPS of $2.81 increased six percent excluding a divestiture gain of $1.26 in the prior year quarter. Operating income of $1.1 billion increased six percent. Operating margin improved 90 basis points to 27.4 percent as enterprise initiatives contributed 140 basis points, and six of seven segments expanded margins. Operating cash flow was $1.0 billion, and free cash flow increased 15 percent to $904 million with a conversion rate of 110 percent to net income. During the quarter, the company repurchased $375 million of its own shares and raised its dividend seven percent, bringing the annualized payout to $6.44 per share. This increase marks the 62 nd consecutive year of dividend increases. The effective tax rate for the quarter was 21.8 percent. 2025 Guidance ITW is narrowing its full year 2025 GAAP EPS guidance range to $10.40 to $10.50. The company is projecting overall revenue growth of one to three percent, which incorporates organic growth of flat to two percent. This outlook accounts for the current demand environment, adjusted for ongoing pricing and supply chain actions intended to effectively offset tariff cost impacts and for current foreign exchange rates. Operating margin is projected to be in the range of 26 to 27 percent with a projected contribution of 125 basis points or more from enterprise initiatives. Free cash flow is expected to be approximately 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 23 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 Nine Months Ended September 30, September 30, In millions except per share amounts 2025 2024 2025 2024 Operating Revenue $ 4,059 $ 3,966 $ 11,951 $ 11,966 Cost of revenue 2,253 2,230 6,685 6,637 Selling, administrative, and research and development expenses 676 658 2,075 2,020 Amortization and impairment of intangible assets 18 26 60 76 Operating Income 1,112 1,052 3,131 3,233 Interest expense (75) (69) (217) (215) Other income (expense) 12 379 28 421 Income Before Taxes 1,049 1,362 2,942 3,439 Income Taxes 228 202 666 701 Net Income $ 821 $ 1,160 $ 2,276 $ 2,738 Net Income Per Share: Basic $ 2.82 $ 3.92 $ 7.79 $ 9.20 Diluted $ 2.81 $ 3.91 $ 7.77 $ 9.17 Cash Dividends Per Share: Paid $ 1.50 $ 1.40 $ 4.50 $ 4.20 Declared $ 1.61 $ 1.50 $ 4.61 $ 4.30 Shares of Common Stock Outstanding During the Period: Average 290.8 296.1 292.2 297.6 Average assuming dilution 291.7 297.0 293.0 298.5 ILLINOIS TOOL WORKS INC. and SUBSIDIARIES STATEMENT OF FINANCIAL POSITION (UNAUDITED) In millions September 30, 2025 December 31, 2024 Assets Current Assets: Cash and equivalents $ 924 $ 948 Trade receivables 3,255 2,991 Inventories 1,725 1,605 Prepaid expenses and other current assets 416 312 Total current assets 6,320 5,856 Net plant and equipment 2,203 2,036 Goodwill 5,028 4,839 Intangible assets 540 592 Deferred income taxes 573 369 Other assets 1,471 1,375 $ 16,135 $ 15,067 Liabilities and Stockholders' Equity Current Liabilities: Short-term debt $ 1,267 $ 1,555 Accounts payable 608 519 Accrued expenses 1,567 1,576 Cash dividends payable 467 441 Income taxes payable 223 217 Total current liabilities 4,132 4,308 Noncurrent Liabilities: Long-term debt 7,675 6,308 Deferred income taxes 149 119 Other liabilities 970 1,015 Total noncurrent liabilities 8,794 7,442 Stockholders' Equity: Common stock 6 6 Additional paid-in-capital 1,751 1,669 Retained earnings 29,825 28,893 Common stock held in treasury (26,498) (25,375) Accumulated other comprehensive income (loss) (1,876) (1,877) Noncontrolling interest 1 1 Total stockholders' equity 3,209 3,317 $ 16,135 $ 15,067 ILLINOIS TOOL WORKS INC. and SUBSIDIARIES SEGMENT DATA (UNAUDITED) Three Months Ended September 30, 2025 Dollars in millions Total Revenue Operating Income Operating Margin Automotive OEM $ 830 $ 182 21.8 % Food Equipment 694 202 29.2 % Test & Measurement and Electronics 698 177 25.4 % Welding 477 156 32.6 % Polymers & Fluids 441 126 28.5 % Construction Products 473 149 31.6 % Specialty Products 452 146 32.3 % Intersegment (6) — — % Total Segments 4,059 1,138 28.0 % Unallocated — (26) — % Total Company $ 4,059 $ 1,112 27.4 % Nine Months Ended September 30, 2025 Dollars in millions Total Revenue Operating Income Operating Margin Automotive OEM $ 2,461 $ 513 20.8 % Food Equipment 2,001 557 27.8 % Test & Measurement and Electronics 2,036 473 23.2 % Welding 1,428 468 32.8 % Polymers & Fluids 1,308 361 27.6 % Construction Products 1,389 424 30.6 % Specialty Products 1,342 429 32.0 % Intersegment (14) — — % Total Segments 11,951 3,225 27.0 % Unallocated — (94) — % Total Company $ 11,951 $ 3,131 26.2 % ILLINOIS TOOL WORKS INC. and SUBSIDIARIES SEGMENT DATA (UNAUDITED) Q3 2025 vs. Q3 2024 Favorable/(Unfavorable) Operating Revenue Automotive OEM Food Equipment Test & Measurement and Electronics Welding Polymers & Fluids Construction Products Specialty Products Total ITW Organic 5.0 % 0.7 % (1.4) % 2.8 % (3.1) % (2.3) % 1.6 % 0.7 % Acquisitions/ Divestitures — % — % — % — % — % — % — % — % Translation 2.3 % 1.8 % 1.7 % 0.5 % 1.3 % 0.9 % 1.7 % 1.6 % Operating Revenue 7.3 % 2.5 % 0.3 % 3.3 % (1.8) % (1.4) % 3.3 % 2.3 % Q3 2025 vs. Q3 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 90 bps 10 bps (30) bps 50 bps (60) bps (40) bps 20 bps 20 bps Changes in Variable Margin & OH Costs 170 bps 50 bps 60 bps 10 bps 120 bps 190 bps 100 bps 80 bps Total Organic 260 bps 60 bps 30 bps 60 bps 60 bps 150 bps 120 bps 100 bps Acquisitions/ Divestitures — — — — — — — — Restructuring/Other (20) bps 20 bps (60) bps (30) bps — (10) bps — (10) bps Total Operating Margin Change 240 bps 80 bps (30) bps 30 bps 60 bps 140 bps 120 bps 90 bps Total Operating Margin % * 21.8% 29.2% 25.4% 32.6% 28.5% 31.6% 32.3% 27.4% * Includes unfavorable operating margin impact of amortization expense from acquisition-related intangible assets 30 bps — 130 bps 10 bps 140 bps 10 bps 20 bps 50 bps ** ** Amortization expense from acquisition-related intangible assets had an unfavorable impact of ($0.05) on GAAP earnings per share for the third quarter of 2025. ILLINOIS TOOL WORKS INC. and SUBSIDIARIES SEGMENT DATA (UNAUDITED) YTD 2025 vs. YTD 2024 Favorable/(Unfavorable) Operating Revenue Automotive OEM Food Equipment Test & Measurement and Electronics Welding Polymers & Fluids Construction Products Specialty Products Total ITW Organic 2.0 % 0.9 % (2.5) % 1.9 % (1.8) % (5.6) % 0.9 % (0.4) % Acquisitions/ Divestitures — % — % — % — % — % — % — % — % Translation 0.4 % 0.4 % 0.9 % (0.2) % (0.2) % — % 0.2 % 0.3 % Operating Revenue 2.4 % 1.3 % (1.6) % 1.7 % (2.0) % (5.6) % 1.1 % (0.1) % YTD 2025 vs. YTD 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 20 bps (80) bps 30 bps (30) bps (110) bps 20 bps (10) bps Changes in Variable Margin & OH Costs 110 bps 30 bps 30 bps (20) bps 60 bps 160 bps 90 bps (60) bps Total Organic 150 bps 50 bps (50) bps 10 bps 30 bps 50 bps 110 bps (70) bps Acquisitions/ Divestitures — — (10) bps — — — — — Restructuring/Other (20) bps 10 bps (40) bps 10 bps — 50 bps — (10) bps Total Operating Margin Change 130 bps 60 bps (100) bps 20 bps 30 bps 100 bps 110 bps (80) bps Total Operating Margin % * 20.8% 27.8% 23.2% 32.8% 27.6% 30.6% 32.0% 26.2% * Includes unfavorable operating margin impact of amortization expense from acquisition-related intangible assets 30 bps 20 bps 140 bps — 150 bps 10 bps 10 bps 50 bps ** ** Amortization expense from acquisition-related intangible assets had an unfavorable impact of ($0.16) on GAAP earnings per share for the first nine months 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 Nine Months Ended September 30, September 30, Dollars in millions 2025 2024 2025 2024 Numerator: Net Income $ 821 $ 1,160 $ 2,276 $ 2,738 Net discrete tax benefit related to the third quarter 2025 (27) — (27) — Discrete tax benefit related to the first quarter 2025 — — (21) — Net discrete tax benefit related to the third quarter 2024 — (121) — (121) Interest expense, net of tax (1) 57 53 165 164 Other (income) expense, net of tax (1) (10) (288) (22) (320) Operating income after taxes $ 841 $ 804 $ 2,371 $ 2,461 Denominator: Invested capital: Cash and equivalents $ 924 $ 947 $ 924 $ 947 Trade receivables 3,255 3,226 3,255 3,226 Inventories 1,725 1,817 1,725 1,817 Net plant and equipment 2,203 2,071 2,203 2,071 Goodwill and intangible assets 5,568 5,597 5,568 5,597 Accounts payable and accrued expenses (2,175) (2,211) (2,175) (2,211) Debt (8,942) (8,346) (8,942) (8,346) Other, net 651 291 651 291 Total net assets (stockholders' equity) 3,209 3,392 3,209 3,392 Cash and equivalents (924) (947) (924) (947) Debt 8,942 8,346 8,942 8,346 Total invested capital $ 11,227 $ 10,791 $ 11,227 $ 10,791 Average invested capital (2) $ 11,293 $ 10,682 $ 10,863 $ 10,466 Net income to average invested capital (3) 29.1 % 43.4 % 27.9 % 34.9 % After-tax return on average invested capital (3) 29.8 % 30.0 % 29.1 % 31.3 % (1) Effective tax rate used for interest expense and other (income) expense for the three months ended September 30, 2025 and 2024 was 24.3% and 23.7%, respectively. Effective tax rate used for interest expense and other (income) expense for the nine months ended September 30, 2025 and 2024 was 24.3% and 23.9%, 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 September 30, 2025 and 2024 were converted to an annual rate by multiplying the calculated return by 4. Returns for the nine months ended September 30, 2025 and 2024 were converted to an annual rate by dividing the calculated return by 3 and multiplying it by 4. A reconciliation of the tax rate for the three and nine month periods ended September 30, 2025, excluding the third quarter 2025 net discrete tax benefit of $27 million, which included a favorable discrete tax benefit of $43 million related to the estimated U.S. federal tax liability for 2024, partially offset by a $16 million discrete tax expense related primarily to the resolution of a foreign tax audit, and 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: Three Months Ended Nine Months Ended September 30, 2025 September 30, 2025 Dollars in millions Income Taxes Tax Rate Income Taxes Tax Rate As reported $ 228 21.8 % $ 666 22.7 % Net Discrete tax benefit related to the third quarter 2025 27 2.5 % 27 0.9 % Discrete tax benefit related to the first quarter 2025 — — % 21 0.7 % As adjusted $ 255 24.3 % $ 714 24.3 % After-tax ROIC for the nine months ended September 30, 2024 included 110 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 three and nine month periods ended September 30, 2024, 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: Three Months Ended Nine Months Ended September 30, 2024 September 30, 2024 Dollars in millions Income Taxes Tax Rate Income Taxes Tax Rate As reported $ 202 14.9 % $ 701 20.4 % Net discrete tax benefit related to the third quarter 2024 121 8.8 % 121 3.5 % As adjusted $ 323 23.7 % $ 822 23.9 % 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 Nine Months Ended Twelve Months Ended September 30, September 30, December 31, Dollars in millions 2025 2024 2025 2024 2024 Net cash provided by operating activities $ 1,021 $ 891 $ 2,163 $ 2,167 $ 3,281 Less: Additions to plant and equipment (117) (108) (314) (319) (437) Free cash flow $ 904 $ 783 $ 1,849 $ 1,848 $ 2,844 Net income $ 821 $ 1,160 $ 2,276 $ 2,738 $ 3,488 Net cash provided by operating activities to net income conversion rate 124 % 77 % 95 % 79 % 94 % Free cash flow to net income conversion rate 110 % 68 % (1) 81 % 67 % 82 % (2) (1) Excluding the $363 million pre-tax gain on the sale of noncontrolling interest in Wilsonart and related taxes, and a discrete tax benefit of $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, the free cash flow to net income conversion rate would have been 102% for the three months ended September 30, 2024. (2) Excluding the impact of 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), the $363 million pre-tax gain on the sale of noncontrolling interest in Wilsonart and related taxes, and a discrete tax benefit of $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, the free cash flow to net income conversion rate would have been 94% for the twelve months ended December 31, 2024. ADJUSTED NET INCOME PER SHARE - DILUTED (UNAUDITED) Three Months Ended Twelve Months Ended September 30, 2024 December 31, 2024 As reported $ 3.91 $ 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) (1.26) As adjusted $ 2.65 $ 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.