Illinois Tool Works — Feb 3, 2026 release

Exhibit 99.1 ITW Reports Fourth Quarter and Full Year 2025 Results Fourth Quarter 2025 Highlights • Revenue of $4.1 billion, an increase of 4.1% • Operating margin of 26.5%, as enterprise initiatives contributed 140 bps • GAAP EPS of $2.72, an increase of 7% 2025 Highlights • Revenue of $16 billion, an increase of 0.9% • Customer-Back Innovation contributed 2.4% to revenue growth, an increase of 40 bps • Operating margin of 26.3%, as enterprise initiatives contributed 130 bps • GAAP EPS of $10.49 exceeded the prior guidance mid-point of $10.45 2026 Guidance • Revenue growth of 2 to 4%, organic growth of 1 to 3% • Operating margin expansion of approximately 100 bps with enterprise initiatives contributing 100 bps • GAAP EPS of $11.00 to $11.40, an increase of 7% at the mid-point GLENVIEW, IL., February 3, 2026 - Illinois Tool Works Inc. (NYSE: ITW) today reported its fourth quarter and full year 2025 results. “ITW delivered a solid finish to the year, marked by more than four percent revenue growth and a seven percent increase in GAAP earnings per share. As a result of our disciplined execution across all seven segments, we expanded both operating margin and income to record levels in the quarter,” said Christopher O’Herlihy, President and Chief Executive Officer. “Our results over the past year demonstrate that ITW is well-positioned to deliver solid financial performance in any environment as we consistently exceeded market growth while improving profitability and margins. Notably, our Customer-Back Innovation initiatives were a primary catalyst, contributing 2.4 percent to revenue growth in 2025. Building on this momentum, we expect to continue outperforming our end markets in 2026 as we leverage ITW’s unique business model to drive consistent, above-market organic growth with best-in-class margins and returns. I extend my sincere gratitude to our global colleagues for their unwavering dedication to serving our customers and executing our strategy with excellence,” O’Herlihy concluded. Fourth Quarter 2025 Results Fourth quarter revenue of $4.1 billion increased by 4.1 percent and organic revenue growth was 1.3 percent. Foreign currency translation increased revenue by 2.5 percent and acquisitions added 0.3 percent. GAAP EPS of $2.72 increased seven percent. Operating margin of 26.5 percent increased 30 basis points as enterprise initiatives contributed 140 basis points. Segment operating margin increased 120 basis points to 27.7 percent. Operating cash flow was $1 billion, and free cash flow was $0.9 billion with a conversion of 109 percent to net income. During the quarter, the company repurchased $375 million of its own shares and the effective tax rate was 22.8 percent. Full Year 2025 Results Full year revenue of $16 billion increased 0.9 percent as organic revenue was flat. Foreign currency translation increased revenue by 0.8 percent and acquisitions contributed 0.1 percent to revenues. GAAP EPS of $10.49 exceeded the prior guidance mid-point of $10.45. Operating income was $4.2 billion and operating margin was 26.3 percent with enterprise initiatives contributing 130 basis points. Segment operating margin of 27.2 percent increased 70 basis points. Pricing and supply chain actions successfully offset the tariff impact for the year. Six of seven segments expanded operating margins with three segments achieving operating margins above 30 percent. Operating cash flow was $3.1 billion and free cash flow was $2.7 billion, with a conversion of 88 percent to net income. The company invested approximately $0.8 billion to support the long-term growth of its highly profitable businesses and returned $3.3 billion to shareholders through dividends and share repurchases. The effective tax rate was 22.7 percent. 2026 Guidance ITW is initiating 2026 guidance including GAAP EPS in the range of $11.00 to $11.40 per share, which represents seven percent earnings growth at the mid-point. The company projects revenue growth of two to four percent and organic growth of one to three percent based on current levels of demand and present foreign exchange rates. Operating margin is projected to be in the range of 26.5 to 27.5 percent, an improvement of approximately 100 basis points with enterprise initiatives contributing 100 basis points. All seven segments are expected to deliver positive organic growth and operating margin expansion in 2026. Free cash flow is projected to be greater than 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 23.5 to 24.5 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 2026 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 $16 billion in 2025. 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 43,000 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 Twelve Months Ended December 31, December 31, In millions except per share amounts 2025 2024 2025 2024 Operating Revenue $ 4,093  $ 3,932  $ 16,044  $ 15,898  Cost of revenue 2,284  2,221  8,969  8,858  Selling, administrative, and research and development expenses 704  655  2,779  2,675  Amortization and impairment of intangible assets 20  25  80  101  Operating Income 1,085  1,031  4,216  4,264  Interest expense (75) (68) (292) (283) Other income (expense) 14  20  42  441  Income Before Taxes 1,024  983  3,966  4,422  Income taxes 234  233  900  934  Net Income $ 790  $ 750  $ 3,066  $ 3,488  Net Income Per Share: Basic $ 2.73  $ 2.55  $ 10.52  $ 11.75  Diluted $ 2.72  $ 2.54  $ 10.49  $ 11.71  Cash Dividends Per Share: Paid $ 1.61  $ 1.50  $ 6.11  $ 5.70  Declared $ 1.61  $ 1.50  $ 6.22  $ 5.80  Shares of Common Stock Outstanding During the Period: Average 289.5 294.7 291.5 296.8 Average assuming dilution 290.2 295.8 292.3 297.8 ILLINOIS TOOL WORKS INC. and SUBSIDIARIES STATEMENT OF FINANCIAL POSITION (UNAUDITED) In millions December 31, 2025 December 31, 2024 Assets     Current Assets:     Cash and equivalents $ 851  $ 948  Trade receivables 3,227  2,991  Inventories 1,659  1,605  Prepaid expenses and other current assets 463  312  Total current assets 6,200  5,856  Net plant and equipment 2,230  2,036  Goodwill 5,098  4,839  Intangible assets 591  592  Deferred income taxes 519  369  Other assets 1,510  1,375    $ 16,148  $ 15,067  Liabilities and Stockholders' Equity     Current Liabilities:     Short-term debt $ 2,286  $ 1,555  Accounts payable 522  519  Accrued expenses 1,636  1,576  Cash dividends payable 465  441  Income taxes payable 217  217  Total current liabilities 5,126  4,308  Noncurrent Liabilities:     Long-term debt 6,683  6,308  Deferred income taxes 154  119  Other liabilities 959  1,015  Total noncurrent liabilities 7,796  7,442  Stockholders' Equity:     Common stock 6  6  Additional paid-in-capital 1,771  1,669  Retained earnings 30,150  28,893  Common stock held in treasury (26,875) (25,375) Accumulated other comprehensive income (loss) (1,827) (1,877) Noncontrolling interest 1  1  Total stockholders' equity 3,226  3,317  $ 16,148  $ 15,067  ILLINOIS TOOL WORKS INC. and SUBSIDIARIES SEGMENT DATA (UNAUDITED) Three Months Ended December 31, 2025 Dollars in millions Total Revenue Operating Income Operating Margin Automotive OEM $ 827  $ 180  21.8  % Food Equipment 698  196  28.0  % Test & Measurement and Electronics 789  221  28.1  % Welding 462  153  33.3  % Polymers & Fluids 457  132  29.0  % Construction Products 431  126  29.0  % Specialty Products 433  124  28.7  % Intersegment (4) —  —  % Total Segments 4,093   1,132   27.7   % Unallocated —  (47) —  % Total Company $ 4,093   $ 1,085   26.5   % Twelve Months Ended December 31, 2025 Dollars in millions Total Revenue Operating Income Operating Margin Automotive OEM $ 3,288  $ 693  21.1  % Food Equipment 2,699  753  27.9  % Test & Measurement and Electronics 2,825  694  24.6  % Welding 1,890  621  32.9  % Polymers & Fluids 1,765  493  27.9  % Construction Products 1,820  550  30.2  % Specialty Products 1,775  553  31.2  % Intersegment (18) —  —  % Total Segments 16,044   4,357   27.2   % Unallocated —  (141) —  % Total Company $ 16,044   $ 4,216   26.3   % ILLINOIS TOOL WORKS INC. and SUBSIDIARIES SEGMENT DATA (UNAUDITED) Q4 2025 vs. Q4 2024 Favorable/(Unfavorable) Operating Revenue Automotive OEM Food Equipment Test & Measurement and Electronics Welding Polymers & Fluids Construction Products Specialty Products Total ITW Organic 1.9  % 0.7  % 1.8  % 2.3  % 4.7  % (3.5) % 1.1  % 1.3  % Acquisitions/ Divestitures —  % —  % 1.5  % —  % —  % —  % —  % 0.3  % Translation 3.6  % 3.1  % 2.2  % 1.0  % 1.8  % 2.0  % 2.9  % 2.5  % Operating Revenue 5.5   % 3.8   % 5.5   % 3.3   % 6.5   % (1.5) % 4.0   % 4.1   % Q4 2025 vs. Q4 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 40 bps 40 bps 80 bps (80) bps 30 bps 30 bps Changes in Variable Margin & OH Costs 130 bps 70 bps 130 bps 200 bps 60 bps 190 bps 10 bps 10 bps Total Organic 170 bps 80 bps 170 bps 240 bps 140 bps 110 bps 40 bps 40 bps Acquisitions/ Divestitures — — (60) bps — — — — (10) bps Restructuring/Other  30 bps — —  (30) bps  (30) bps  (10) bps  (10) bps — Total Operating Margin Change 200 bps 80 bps 110 bps 210 bps 110 bps 100 bps 30 bps 30 bps Total Operating Margin % * 21.8% 28.0% 28.1% 33.3% 29.0% 29.0% 28.7% 26.5% * Includes unfavorable operating margin impact of amortization expense from acquisition-related intangible assets  20 bps  10 bps  120 bps —  130 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 fourth quarter of 2025. ILLINOIS TOOL WORKS INC. and SUBSIDIARIES SEGMENT DATA (UNAUDITED) Full Year 2025 vs Full Year 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  % 0.8  % (1.4) % 2.0  % (0.2) % (5.1) % 1.0  % —  % Acquisitions/ Divestitures —  % —  % 0.4  % —  % —  % —  % —  % 0.1  % Translation 1.2  % 1.1  % 1.2  % 0.1  % 0.3  % 0.5  % 0.8  % 0.8  % Operating Revenue 3.2   % 1.9   % 0.2   % 2.1   % 0.1   % (4.6) % 1.8   % 0.9   % Full Year 2025 vs Full Year 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 (40) bps 30 bps 10 bps (110) bps 20 bps — Changes in Variable Margin & OH Costs 110 bps 40 bps 60 bps 30 bps 50 bps 170 bps 70 bps (50) bps Total Organic 150 bps 60 bps 20 bps 60 bps 60 bps 60 bps 90 bps (50) bps Acquisitions/ Divestitures — — (20) bps — — — — — Restructuring/Other —  10 bps  (30) bps —  (10) bps  30 bps — — Total Operating Margin Change 150 bps 70 bps (30) bps 60 bps 50 bps 90 bps 90 bps (50) bps Total Operating Margin % * 21.1% 27.9% 24.6% 32.9% 27.9% 30.2% 31.2% 26.3% * Includes unfavorable operating margin impact of amortization expense from acquisition-related intangible assets  20 bps  10 bps  130 bps  10 bps  150 bps  10 bps  10 bps  50 bps ** ** Amortization expense from acquisition-related intangible assets had an unfavorable impact of ($0.21) on GAAP earnings per share for 2025. ILLINOIS TOOL WORKS INC. and SUBSIDIARIES GAAP to NON-GAAP RECONCILIATIONS (UNAUDITED) AFTER-TAX RETURN ON AVERAGE INVESTED CAPITAL (UNAUDITED) Three Months Ended Twelve Months Ended December 31, December 31, Dollars in millions 2025 2024 2025 2024 Numerator: Net income $ 790  $ 750  $ 3,066  $ 3,488  Net discrete tax benefit related to the third quarter 2025 —  —  (27) —  Discrete tax benefit related to the first quarter 2025 —  —  (21) —  Net discrete tax benefit related to the third quarter 2024 —  —  —  (121) Interest expense, net of tax (1) 57  51  222  215  Other (income) expense, net of tax (1) (10) (16) (32) (336) Operating income after taxes $ 837  $ 785  $ 3,208  $ 3,246  Denominator: Invested capital: Cash and equivalents $ 851  $ 948  $ 851  $ 948  Trade receivables 3,227  2,991  3,227  2,991  Inventories 1,659  1,605  1,659  1,605  Net plant and equipment 2,230  2,036  2,230  2,036  Goodwill and intangible assets 5,689  5,431  5,689  5,431  Accounts payable and accrued expenses (2,158) (2,095) (2,158) (2,095) Debt (8,969) (7,863) (8,969) (7,863) Other, net 697  264  697  264  Total net assets (stockholders' equity) 3,226  3,317  3,226  3,317  Cash and equivalents (851) (948) (851) (948) Debt 8,969  7,863  8,969  7,863  Total invested capital $ 11,344  $ 10,232  $ 11,344  $ 10,232  Average invested capital (2) $ 11,285  $ 10,511  $ 10,959  $ 10,419  Net income to average invested capital (3) 28.0  % 28.6  % 28.0  % 33.5  % After-tax return on average invested capital (3) 29.7  % 29.9  % 29.3  % 31.2  % (1)     Effective tax rate used for interest expense and other (income) expense for the three months ended December 31, 2025 and 2024 was 22.8% and 23.7%, respectively, and 23.9%, and 23.8% for the twelve months ended December 31, 2025 and 2024, 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 December 31, 2025 and 2024 were converted to an annual rate by multiplying the calculated return by 4. A reconciliation of the 2025 effective tax rate, 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: Twelve Months Ended December 31, 2025 Dollars in millions Income Taxes Tax Rate As reported $ 900  22.7  % Net discrete tax benefit related to the third quarter 2025 27  0.7  % Discrete tax benefit related to the first quarter 2025 21  0.5  % As adjusted $ 948  23.9  % 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 Twelve Months Ended December 31, December 31, Dollars in millions 2025 2024 2025 2024 Net cash provided by operating activities $ 963  $ 1,114  $ 3,126  $ 3,281  Less: Additions to plant and equipment (105) (118) (419) (437) Free cash flow $ 858  $ 996  $ 2,707  $ 2,844  Net income $ 790  $ 750  $ 3,066  $ 3,488  Net cash provided by operating activities to net income conversion rate 122  % 149  % 102  % 94  % Free cash flow to net income conversion rate 109  % 133  % 88  % 82  % ADJUSTED NET INCOME PER SHARE - DILUTED (UNAUDITED) Twelve Months Ended December 31, 2024 As reported $ 11.71  Impact of sale of noncontrolling interest in Wilsonart (1) (1.26) Cumulative effect of change in inventory accounting method, net of tax (2) (0.30) As adjusted $ 10.15  (1)     Includes the $363 million pre-tax gain on the sale of noncontrolling interest in Wilsonart and related taxes. (2)     Represents 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).