Illinois Tool Works — Apr 30, 2026 release

Exhibit 99.1 ITW Reports First Quarter 2026 Results • Revenue of $4.02 billion, an increase of 5% • Operating margin of 25.4%, an increase of 60 bps, as Enterprise Initiatives contributed 120 bps • GAAP EPS of $2.66, an increase of 12% • Full Year 2026 GAAP EPS guidance raised by $0.10 to a range of $11.10 to $11.50 GLENVIEW, IL., April 30, 2026 - Illinois Tool Works Inc. (NYSE: ITW) today reported its first quarter 2026 results and raised full year 2026 GAAP EPS guidance. “ITW delivered a solid start to the year, marked by five percent revenue growth, margin expansion of 60 basis points to 25.4 percent, and a 12 percent increase in GAAP earnings per share to $2.66. Positive demand trends continued in our capex-related segments, led by Welding and Test & Measurement and Electronics, which delivered organic growth of six percent and five percent, respectively, this quarter,” said Christopher A. O’Herlihy, President and Chief Executive Officer. “As we move forward, ITW’s unique and resilient business model and ‘Do What We Say’ execution ensure that we are primed to deliver robust financial performance in any environment. With a disciplined focus on our organic growth and enterprise initiatives, we expect to continue to outperform our end markets in 2026, while further increasing profitability and margins,” O’Herlihy concluded. First Quarter 2026 Results First quarter revenue of $4.02 billion increased by 4.6 percent. Organic revenue growth was 0.4 percent. Foreign currency translation increased revenue by 3.9 percent and an acquisition added 0.3 percent. GAAP EPS grew 12 percent to $2.66, while operating income increased seven percent to $1.02 billion. Operating margin expanded by 60 basis points to 25.4 percent, driven by a 120-basis point contribution from enterprise initiatives. Operating cash flow was $623 million, and free cash flow was $528 million, a six percent increase representing a 69 percent conversion of net income, in line with seasonal expectations. During the quarter, the company returned capital to shareholders through the repurchase of $375 million of its own shares. The effective tax rate for the quarter was 20.6 percent. 2026 Guidance ITW is raising its full year 2026 GAAP EPS guidance by $0.10 to a range of $11.10 to $11.50 per share, representing eight percent growth at the mid-point. Based on current demand levels and prevailing foreign exchange rates, the company continues to project revenue growth of two to four percent and organic growth of one to three percent. For the full year, all seven segments are expected to deliver both positive organic growth and operating margin expansion. Operating margin is projected to reach a range of 26.5 to 27.5 percent, a year-over-year improvement of approximately 100 basis points, driven by an approximate 100-basis point contribution from enterprise initiatives. Free cash flow is projected to exceed 100 percent of net income, and the company expects to repurchase approximately $1.5 billion of its own shares. The projected effective tax rate is in the range of 23 to 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 global supply chain challenges, expected impact of inflation including raw material inflation and rising interest rates, 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 income per share, expected dividend payments, after-tax return on invested capital, effective tax rates, exchange rates, expected timing and amount of share repurchases, end market economic and regulatory conditions, the impact of recent or potential acquisitions and/or divestitures, 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 2025 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 March 31, In millions except per share amounts 2026 2025 Operating Revenue $ 4,016  $ 3,839  Cost of revenue 2,256  2,161  Selling, administrative, and research and development expenses 722  706  Amortization and impairment of intangible assets 18  21  Operating Income 1,020  951  Interest expense (73) (68) Other income (expense) 20  12  Income Before Taxes 967  895  Income Taxes 199  195  Net Income $ 768  $ 700  Net Income Per Share: Basic $ 2.66  $ 2.39  Diluted $ 2.66  $ 2.38  Cash Dividends Per Share: Paid $ 1.61  $ 1.50  Declared $ 1.61  $ 1.50  Shares of Common Stock Outstanding During the Period: Average 288.3  293.6  Average assuming dilution 289.1  294.5  ILLINOIS TOOL WORKS INC. and SUBSIDIARIES STATEMENT OF FINANCIAL POSITION (UNAUDITED) In millions March 31, 2026 December 31, 2025 Assets     Current Assets:     Cash and equivalents $ 827  $ 851  Trade receivables 3,380  3,227  Inventories 1,726  1,659  Prepaid expenses and other current assets 402  463  Total current assets 6,335  6,200  Net plant and equipment 2,230  2,230  Goodwill 5,083  5,098  Intangible assets 574  591  Deferred income taxes 505  519  Other assets 1,537  1,510    $ 16,264  $ 16,148  Liabilities and Stockholders' Equity     Current Liabilities:     Short-term debt $ 2,545  $ 2,286  Accounts payable 609  522  Accrued expenses 1,534  1,636  Cash dividends payable 463  465  Income taxes payable 180  217  Total current liabilities 5,331  5,126  Noncurrent Liabilities:     Long-term debt 6,603  6,683  Deferred income taxes 158  154  Other liabilities 942  959  Total noncurrent liabilities 7,703  7,796  Stockholders' Equity:     Common stock 6  6  Additional paid-in-capital 1,817  1,771  Retained earnings 30,454  30,150  Common stock held in treasury (27,246) (26,875) Accumulated other comprehensive income (loss) (1,802) (1,827) Noncontrolling interest 1  1  Total stockholders' equity 3,230  3,226  $ 16,264  $ 16,148  ILLINOIS TOOL WORKS INC. and SUBSIDIARIES SEGMENT DATA (UNAUDITED) Three Months Ended March 31, 2026 Dollars in millions Total Revenue Operating Income Operating Margin Automotive OEM $ 820  $ 173  21.0  % Food Equipment 637  157  24.7  % Test & Measurement and Electronics 715  164  22.9  % Welding 507  163  32.1  % Polymers & Fluids 452  126  28.0  % Construction Products 458  135  29.4  % Specialty Products 431  135  31.3  % Intersegment (4) —  —  % Total Segments 4,016   1,053   26.2   % Unallocated —  (33) —  % Total Company $ 4,016   $ 1,020   25.4   % ILLINOIS TOOL WORKS INC. and SUBSIDIARIES SEGMENT DATA (UNAUDITED) Q1 2026 vs. Q1 2025 Favorable/(Unfavorable) Operating Revenue Automotive OEM Food Equipment Test & Measurement and Electronics Welding Polymers & Fluids Construction Products Specialty Products Total ITW Organic (0.9) % (2.8) % 4.6  % 6.0  % 1.7  % (1.3) % (4.7) % 0.4  % Acquisitions/ Divestitures —  % —  % 1.8  % —  % —  % —  % —  % 0.3  % Translation 5.3  % 4.5  % 3.2  % 1.3  % 3.7  % 4.7  % 3.7  % 3.9  % Operating Revenue 4.4   % 1.7   % 9.6   % 7.3   % 5.4   % 3.4   % (1.0) % 4.6   % Q1 2026 vs. Q1 2025 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 (20) bps (60) bps 130 bps 100 bps 40 bps (20) bps (80) bps — Changes in Variable Margin & OH Costs 110 bps (130) bps 50 bps (110) bps 110 bps 30 bps 70 bps 40 bps Total Organic 90 bps (190) bps 180 bps (10) bps 150 bps 10 bps (10) bps 40 bps Acquisitions/ Divestitures — — (60) bps — — — — (10) bps Restructuring/Other 80 bps 10 bps 30 bps (30) bps — 10 bps 50 bps 30 bps Total Operating Margin Change 170 bps (180) bps 150 bps (40) bps 150 bps 20 bps 40 bps 60 bps Total Operating Margin % * 21.0% 24.7% 22.9% 32.1% 28.0% 29.4% 31.3% 25.4% * Includes unfavorable operating margin impact of amortization expense from acquisition-related intangible assets 30 bps 10 bps 140 bps 10 bps 100 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 first quarter of 2026. ILLINOIS TOOL WORKS INC. and SUBSIDIARIES GAAP to NON-GAAP RECONCILIATIONS (UNAUDITED) AFTER-TAX RETURN ON AVERAGE INVESTED CAPITAL (UNAUDITED) Three Months Ended March 31, Dollars in millions 2026 2025 Numerator: Net Income $ 768  $ 700  Discrete tax benefit related to the first quarter 2026 (34) —  Discrete tax benefit related to the first quarter 2025 —  (21) Interest expense, net of tax (1) 56  52  Other (income) expense, net of tax (1) (15) (9) Operating income after taxes $ 775  $ 722  Denominator: Invested capital: Cash and equivalents $ 827  $ 873  Trade receivables 3,380  3,153  Inventories 1,726  1,663  Net plant and equipment 2,230  2,085  Goodwill and intangible assets 5,657  5,475  Accounts payable and accrued expenses (2,143) (2,071) Debt (9,148) (8,263) Other, net 701  327  Total net assets (stockholders' equity) 3,230  3,242  Cash and equivalents (827) (873) Debt 9,148  8,263  Total invested capital $ 11,551  $ 10,632  Average invested capital (2) $ 11,447  $ 10,432  Net income to average invested capital (3) 26.8  % 26.9  % After-tax return on average invested capital (3) 27.1  % 27.7  % (1)     Effective tax rate used for interest expense and other (income) expense for the three months ended March 31, 2026 and 2025 was 24.1% 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 the periods presented. (3)     Returns for the three months ended March 31, 2026 and 2025 were converted to an annual rate by multiplying the calculated return by 4. A reconciliation of the tax rate for the three month period ended March 31, 2026, excluding the first quarter 2026 discrete tax benefit of $34 million primarily related to the resolution of a U.S. tax audit, is as follows: Three Months Ended March 31, 2026 Dollars in millions Income Taxes Tax Rate As reported $ 199  20.6  % Discrete tax benefit related to the first quarter 2026 34  3.5  % As adjusted $ 233  24.1  % A reconciliation of the tax rate for the three month period ended March 31, 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: Three Months Ended March 31, 2025 Dollars in millions Income Taxes Tax Rate As reported $ 195  21.7  % Discrete tax benefit related to the first quarter 2025 21  2.3  % As adjusted $ 216  24.0  % AFTER-TAX RETURN ON AVERAGE INVESTED CAPITAL (UNAUDITED) Twelve Months Ended Dollars in millions December 31, 2025 Numerator: Net income $ 3,066  Net discrete tax benefit related to the third quarter 2025 (27) Discrete tax benefit related to the first quarter 2025 (21) Interest expense, net of tax (1) 222  Other (income) expense, net of tax (1) (32) Operating income after taxes $ 3,208  Denominator: Invested capital: Cash and equivalents $ 851  Trade receivables 3,227  Inventories 1,659  Net plant and equipment 2,230  Goodwill and intangible assets 5,689  Accounts payable and accrued expenses (2,158) Debt (8,969) Other, net 697  Total net assets (stockholders' equity) 3,226  Cash and equivalents (851) Debt 8,969  Total invested capital $ 11,344  Average invested capital (2) $ 10,959  Net income to average invested capital 28.0  % After-tax return on average invested capital 29.3  % (1)     Effective tax rate used for interest expense and other (income) expense for the year ended December 31, 2025 was 23.9%. (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 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  % FREE CASH FLOW (UNAUDITED) Three Months Ended March 31, Dollars in millions 2026 2025 Net cash provided by operating activities $ 623  $ 592  Less: Additions to plant and equipment (95) (96) Free cash flow $ 528  $ 496  Net income $ 768  $ 700  Net cash provided by operating activities to net income conversion rate 81  % 85  % Free cash flow to net income conversion rate 69  % 71  %