Form 8-K

8-K — ILLINOIS TOOL WORKS INC

Accession: 0000049826-26-000047

Filed: 2026-07-28

Period: 2026-07-28

CIK: 0000049826

SIC: 3560 (GENERAL INDUSTRIAL MACHINERY & EQUIPMENT)

Item: Results of Operations and Financial Condition

Item: Financial Statements and Exhibits

Documents

8-K — itw-20260728.htm (Primary)

EX-99.1 (a20260630-2q26ex991pressre.htm)

XML — IDEA: XBRL DOCUMENT (R1.htm)

8-K

8-K (Primary)

Filename: itw-20260728.htm · Sequence: 1

itw-20260728

0000049826false00000498262026-07-282026-07-280000049826us-gaap:CommonStockMemberexch:XNYS2026-07-282026-07-280000049826itw:A0.625EuroNotesdue2027Memberexch:XNYS2026-07-282026-07-280000049826itw:A3.250EuroNotesDue2028Memberexch:XNYS2026-07-282026-07-280000049826itw:A2.125EuroNotesdue2030Memberexch:XNYS2026-07-282026-07-280000049826itw:A1.00EuroNotesdue2031Memberexch:XNYS2026-07-282026-07-280000049826itw:A3.375EuroNotesDue2032Memberexch:XNYS2026-07-282026-07-280000049826itw:A3.00EuroNotesdue2034Memberexch:XNYS2026-07-282026-07-28

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________________________________________

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): July 28, 2026

_________________________

ILLINOIS TOOL WORKS INC.

(Exact name of registrant as specified in its charter)

Delaware 1-4797 36-1258310

(State or other jurisdiction of incorporation) (Commission File No.) (I.R.S. Employer Identification No.)

155 Harlem Avenue Glenview IL 60025

(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code: 847-724-7500

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered

Common Stock ITW New York Stock Exchange

0.625% Euro Notes due 2027 ITW27 New York Stock Exchange

3.250% Euro Notes due 2028 ITW28 New York Stock Exchange

2.125% Euro Notes due 2030 ITW30 New York Stock Exchange

1.00% Euro Notes due 2031 ITW31 New York Stock Exchange

3.375% Euro Notes due 2032 ITW32 New York Stock Exchange

3.00% Euro Notes due 2034 ITW34 New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition

On July 28, 2026, Illinois Tool Works Inc. (the "Company") announced its 2026 second quarter results of operations in the press release furnished as Exhibit 99.1.

Non-GAAP Financial Measures

The Company uses free cash flow to measure cash flow generated by operations that is available for dividends, share repurchases, acquisitions and debt repayment. The Company believes this non-GAAP financial measure, along with free cash flow to net income conversion rate, are useful to investors in evaluating the Company’s financial performance and measures the Company's ability to generate cash internally to fund Company initiatives. Free cash flow represents net cash provided by operating activities less additions to plant and equipment. Free cash flow is a measurement that is not the same as net cash flow from operating activities per the statement of cash flows and may not be consistent with similarly titled measures used by other companies. A reconciliation of free cash flow to net cash provided by operating activities is included in the press release furnished as Exhibit 99.1.

The Company uses after-tax return on average invested capital ("After-tax ROIC") to measure the effectiveness of its operations' use of invested capital to generate profits. After-tax ROIC is not defined under U.S. generally accepted accounting principles ("GAAP"). After-tax ROIC is a non-GAAP financial measure that the Company believes is a meaningful metric to investors in evaluating the Company's ability to generate returns from cash invested in its operations and may be different than the method used by other companies to calculate After-tax ROIC. The Company defines After-tax ROIC as operating income after taxes divided by average invested capital, which is annualized when presented in interim periods. Operating income after taxes is a non-GAAP measure consisting of net income before interest expense and other income (expense), on an after-tax basis, which are excluded as they do not represent returns generated by the Company's operations. For comparability, the Company also excluded the discrete tax benefit of $34 million in the first quarter of 2026 from net income and the effective tax rate for the six months ended June 30, 2026. Additionally, for comparability, the Company also excluded the discrete tax benefit of $21 million in the first quarter of 2025 from net income and the effective tax rate for the six months ended June 30, 2025 and the year ended December 31, 2025. For comparability, the Company also excluded the net discrete tax benefit of $27 million in the third quarter of 2025 from net income and the effective tax rate for the year ended December 31, 2025. Total invested capital represents the net assets of the Company, other than cash and equivalents and outstanding debt which do not represent capital investment in the Company's operations. The most comparable GAAP measure to operating income after taxes is net income. Calculations of net income to average invested capital and After-tax ROIC are included in the press release furnished as Exhibit 99.1.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

Exhibit Number Exhibit Description

99.1

Press Release issued by Illinois Tool Works Inc. dated July 28, 2026 (furnished pursuant to Item 2.02).

104 Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

ILLINOIS TOOL WORKS INC.

Dated: July 28, 2026

By: /s/ Michael M. Larsen

Michael M. Larsen

Senior Vice President & Chief Financial Officer

EX-99.1

Filename: a20260630-2q26ex991pressre.htm · Sequence: 2

Document

Exhibit 99.1

ITW Reports Second Quarter 2026 Results and

Raises Full Year 2026 Guidance

•Revenue of $4.30 billion, increased +6.1% as organic growth accelerated to +4.5%

•Operating income of $1.15 billion grew +7.4% marking the most profitable quarter in company history

•Operating margin of 26.7% expanded 40 bps, as enterprise initiatives contributed 120 bps

•GAAP EPS of $2.84 increased +10.1%

•Operating cash flow of $723 million and free cash flow of $631 million; an increase of +41%

•Full Year 2026 guidance raised; organic revenue raised +1.5%-pts to new midpoint of 3.5% and GAAP EPS raised +$0.15 to new midpoint of $11.45

GLENVIEW, Ill., July 28, 2026 - Illinois Tool Works Inc. (NYSE: ITW) today reported its second quarter 2026 results and raised full year 2026 guidance.

“The ITW team delivered a strong operational and financial performance in the second quarter highlighted by organic growth of 4.5 percent, operating margin of 26.7 percent, and a 10 percent increase in GAAP earnings per share to $2.84,” said Christopher A. O’Herlihy, President and Chief Executive Officer.

“Our results reflect a meaningful acceleration in our capex-related segments, led by double-digit organic growth in Welding and Test & Measurement and Electronics, alongside strong performance in Polymers & Fluids. As we advance our enterprise strategy priorities, we remain well-positioned to drive consistent, above-market organic growth powered by increased contribution to revenue growth from Customer-Back Innovation while further expanding profitability and margins. As a result of our strong operational momentum, we are raising both top- and bottom-line guidance for the full year,” O’Herlihy concluded.

Second Quarter 2026 Results

Second quarter revenue of $4.30 billion increased by 6.1 percent. Organic revenue growth was 4.5 percent, led by 6.4 percent growth in North America. Foreign currency translation increased revenue by 1.4 percent and an acquisition added 0.2 percent.

GAAP EPS grew 10.1 percent to $2.84, while operating income increased 7.4 percent to $1.15 billion, marking the most profitable quarter in the history of the company. Operating margin expanded by 40 basis points to 26.7 percent as enterprise initiatives contributed 120 basis points. In the quarter, price increases more than offset higher raw material costs in dollar terms, though timing lags between inflation and price adjustments modestly diluted margins. Operating cash flow was $723 million, and free cash flow was $631 million, a 41 percent increase representing a 77 percent conversion of net income. During the quarter, the company returned over $1.2 billion to shareholders through dividends and share repurchases of $750 million. The effective tax rate for the quarter was 24.4 percent.

2026 Guidance

ITW is raising its full year 2026 GAAP EPS guidance by $0.15 to a narrowed range of $11.35 to $11.55 per share, representing 9 percent growth at the midpoint. Based on current demand levels and prevailing foreign exchange rates, the company is raising revenue growth guidance to a new range of 4 to 5 percent and raising organic growth guidance to 3 to 4 percent, a 1.5 percentage point increase at the midpoint.

Operating margin is projected to be in the range of 26.5 to 27.5 percent, with enterprise initiatives contributing more than 100 basis points. 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 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.

Investor Relations & Media Contact:

Erin Linnihan

Tel: 224.661.7431

investorrelations@itw.com | mediarelations@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 2026 2025 2026 2025

Operating Revenue $ 4,301 $ 4,053 $ 8,317 $ 7,892

Cost of revenue 2,403 2,271 4,659 4,432

Selling, administrative, and research and development expenses 735 693 1,457 1,399

Amortization and impairment of intangible assets 16 21 34 42

Operating Income 1,147 1,068 2,167 2,019

Interest expense (79) (74) (152) (142)

Other income (expense) 12 4 32 16

Income Before Taxes 1,080 998 2,047 1,893

Income Taxes 265 243 464 438

Net Income $ 815 $ 755 $ 1,583 $ 1,455

Net Income Per Share:

Basic

$ 2.85 $ 2.58 $ 5.51 $ 4.97

Diluted

$ 2.84 $ 2.58 $ 5.50 $ 4.95

Cash Dividends Per Share:

Paid

$ 1.61 $ 1.50 $ 3.22 $ 3.00

Declared

$ 1.61 $ 1.50 $ 3.22 $ 3.00

Shares of Common Stock Outstanding During the Period:

Average

286.4 292.3 287.3 292.9

Average assuming dilution

287.0 292.9 288.1 293.7

ILLINOIS TOOL WORKS INC. and SUBSIDIARIES

STATEMENT OF FINANCIAL POSITION (UNAUDITED)

In millions June 30, 2026 December 31, 2025

Assets

Current Assets:

Cash and equivalents $ 839 $ 851

Trade receivables 3,564 3,227

Inventories 1,756 1,659

Prepaid expenses and other current assets 441 463

Total current assets 6,600 6,200

Net plant and equipment 2,235 2,230

Goodwill 5,074 5,098

Intangible assets 558 591

Deferred income taxes 489 519

Other assets 1,538 1,510

$ 16,494 $ 16,148

Liabilities and Stockholders' Equity

Current Liabilities:

Short-term debt $ 3,145 $ 2,286

Accounts payable 636 522

Accrued expenses 1,592 1,636

Cash dividends payable 457 465

Income taxes payable 123 217

Total current liabilities 5,953 5,126

Noncurrent Liabilities:

Long-term debt 6,549 6,683

Deferred income taxes 162 154

Other liabilities 935 959

Total noncurrent liabilities 7,646 7,796

Stockholders' Equity:

Common stock 6 6

Additional paid-in-capital 1,838 1,771

Retained earnings 30,812 30,150

Common stock held in treasury (28,004) (26,875)

Accumulated other comprehensive income (loss) (1,758) (1,827)

Noncontrolling interest 1 1

Total stockholders' equity 2,895 3,226

$ 16,494 $ 16,148

ILLINOIS TOOL WORKS INC. and SUBSIDIARIES

SEGMENT DATA (UNAUDITED)

Three Months Ended June 30, 2026

Dollars in millions Total Revenue Operating Income Operating Margin

Automotive OEM $ 857 $ 185 21.6 %

Food Equipment 692 188 27.1 %

Test & Measurement and Electronics 769 193 25.2 %

Welding 549 178 32.4 %

Polymers & Fluids 476 140 29.3 %

Construction Products 494 151 30.6 %

Specialty Products 468 148 31.5 %

Intersegment (4) — — %

Total Segments 4,301 1,183 27.5 %

Unallocated — (36) — %

Total Company $ 4,301 $ 1,147 26.7 %

Six Months Ended June 30, 2026

Dollars in millions Total Revenue Operating Income Operating Margin

Automotive OEM $ 1,677 $ 358 21.3 %

Food Equipment 1,329 345 26.0 %

Test & Measurement and Electronics 1,484 357 24.1 %

Welding 1,056 341 32.3 %

Polymers & Fluids 928 266 28.7 %

Construction Products 952 286 30.0 %

Specialty Products 899 283 31.4 %

Intersegment (8) — — %

Total Segments 8,317 2,236 26.9 %

Unallocated — (69) — %

Total Company $ 8,317 $ 2,167 26.1 %

ILLINOIS TOOL WORKS INC. and SUBSIDIARIES

SEGMENT DATA (UNAUDITED)

Q2 2026 vs. Q2 2025 Favorable/(Unfavorable)

Operating

Revenue Automotive OEM Food Equipment Test & Measurement and Electronics Welding Polymers & Fluids Construction Products Specialty Products Total ITW

Organic (0.4) % — % 10.0 % 13.9 % 7.3 % 2.0 % 1.6 % 4.5 %

Acquisitions/

Divestitures — % — % 1.3 % — % — % — % — % 0.2 %

Translation 1.7 % 1.6 % 0.8 % 0.8 % 1.5 % 2.3 % 1.4 % 1.4 %

Operating

Revenue 1.3 % 1.6 % 12.1 % 14.7 % 8.8 % 4.3 % 3.0 % 6.1 %

Q2 2026 vs. Q2 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 (10) bps — 250 bps 220 bps 140 bps 40 bps 20 bps 90 bps

Changes in Variable

Margin & OH Costs 20 bps (60) bps — (250) bps 40 bps (40) bps (150) bps (50) bps

Total Organic 10 bps (60) bps 250 bps (30) bps 180 bps — (130) bps 40 bps

Acquisitions/

Divestitures — — (20) bps — — — — —

Restructuring/Other 20 bps — 10 bps (40) bps (20) bps (20) bps 20 bps —

Total Operating

Margin Change 30 bps (60) bps 240 bps (70) bps 160 bps (20) bps (110) bps 40 bps

Total Operating

Margin % * 21.6% 27.1% 25.2% 32.4% 29.3% 30.6% 31.5% 26.7%

* Includes unfavorable operating margin impact of amortization expense from acquisition-related intangible assets 20 bps 10 bps 120 bps — 80 bps 10 bps 20 bps 40 bps **

** Amortization expense from acquisition-related intangible assets had an unfavorable impact of ($0.04) on GAAP earnings per share for the second quarter of 2026.

ILLINOIS TOOL WORKS INC. and SUBSIDIARIES

SEGMENT DATA (UNAUDITED)

H1 2026 vs. H1 2025 Favorable/(Unfavorable)

Operating

Revenue Automotive OEM Food Equipment Test & Measurement and Electronics Welding Polymers & Fluids Construction Products Specialty Products Total ITW

Organic (0.6) % (1.3) % 7.4 % 10.0 % 4.6 % 0.4 % (1.5) % 2.5 %

Acquisitions/

Divestitures — % — % 1.5 % — % — % — % — % 0.3 %

Translation 3.4 % 2.9 % 2.0 % 1.0 % 2.5 % 3.5 % 2.6 % 2.6 %

Operating

Revenue 2.8 % 1.6 % 10.9 % 11.0 % 7.1 % 3.9 % 1.1 % 5.4 %

H1 2026 vs. H1 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 (10) bps (20) bps 200 bps 160 bps 90 bps 20 bps (30) bps 50 bps

Changes in Variable

Margin & OH Costs 70 bps (100) bps 20 bps (180) bps 80 bps (10) bps (40) bps (10) bps

Total Organic 60 bps (120) bps 220 bps (20) bps 170 bps 10 bps (70) bps 40 bps

Acquisitions/

Divestitures — — (40) bps — — — — —

Restructuring/Other 40 bps 10 bps 20 bps (30) bps (10) bps (10) bps 30 bps 10 bps

Total Operating

Margin Change 100 bps (110) bps 200 bps (50) bps 160 bps — (40) bps 50 bps

Total Operating

Margin % * 21.3% 26.0% 24.1% 32.3% 28.7% 30.0% 31.4% 26.1%

* Includes unfavorable operating margin impact of amortization expense from acquisition-related intangible assets 20 bps — 130 bps — 90 bps 10 bps 20 bps 40 bps **

** Amortization expense from acquisition-related intangible assets had an unfavorable impact of ($0.09) on GAAP earnings per share for the first half 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 Six Months Ended

June 30, June 30,

Dollars in millions 2026 2025 2026 2025

Numerator:

Net Income $ 815 $ 755 $ 1,583 $ 1,455

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)

59 56 115 108

Other (income) expense, net of tax (1)

(9) (3) (24) (12)

Operating income after taxes $ 865 $ 808 $ 1,640 $ 1,530

Denominator:

Invested capital:

Cash and equivalents $ 839 $ 788 $ 839 $ 788

Trade receivables 3,564 3,320 3,564 3,320

Inventories 1,756 1,710 1,756 1,710

Net plant and equipment 2,235 2,177 2,235 2,177

Goodwill and intangible assets 5,632 5,596 5,632 5,596

Accounts payable and accrued expenses (2,228) (2,157) (2,228) (2,157)

Debt (9,694) (8,937) (9,694) (8,937)

Other, net 791 714 791 714

Total net assets (stockholders' equity) 2,895 3,211 2,895 3,211

Cash and equivalents (839) (788) (839) (788)

Debt 9,694 8,937 9,694 8,937

Total invested capital $ 11,750 $ 11,360 $ 11,750 $ 11,360

Average invested capital (2)

$ 11,650 $ 10,996 $ 11,548 $ 10,741

Net income to average invested capital (3)

28.0 % 27.4 % 27.4 % 27.1 %

After-tax return on average invested capital (3)

29.7 % 29.4 % 28.4 % 28.5 %

(1) Effective tax rate used for interest expense and other (income) expense for the three months ended June 30, 2026 and 2025 was 24.4% in both periods. Effective tax rate used for interest expense and other (income) expense for the six months ended June 30, 2026 and 2025 was 24.3% and 24.2%, 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, 2026 and 2025 were converted to an annual rate by multiplying the calculated return by 4. Returns for the six months ended June 30, 2026 and 2025 were converted to an annual rate by multiplying the calculated return by 2.

A reconciliation of the tax rate for the six month period ended June 30, 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:

Six Months Ended

June 30, 2026

Dollars in millions Income Taxes Tax Rate

As reported $ 464 22.6 %

Discrete tax benefit related to the first quarter 2026 34 1.7 %

As adjusted $ 498 24.3 %

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, 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 Six Months Ended

June 30, June 30,

Dollars in millions 2026 2025 2026 2025

Net cash provided by operating activities $ 723 $ 550 $ 1,346 $ 1,142

Less: Additions to plant and equipment (92) (101) (187) (197)

Free cash flow $ 631 $ 449 $ 1,159 $ 945

Net income $ 815 $ 755 $ 1,583 $ 1,455

Net cash provided by operating activities to net income conversion rate 89 % 73 % 85 % 78 %

Free cash flow to net income conversion rate 77 % 59 % 73 % 65 %

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v3.26.1

Document and Entity Information Document

Jul. 28, 2026

Entity Information [Line Items]

Document Type

8-K

Document Period End Date

Jul. 28, 2026

Entity Registrant Name

ILLINOIS TOOL WORKS INC.

Entity Incorporation, State or Country Code

Entity File Number

1-4797

Entity Tax Identification Number

36-1258310

Entity Address, Address Line One

155 Harlem Avenue

Entity Address, City or Town

Glenview

Entity Address, State or Province

Entity Address, Postal Zip Code

60025

City Area Code

847

Local Phone Number

724-7500

Written Communications

false

Soliciting Material

false

Pre-commencement Tender Offer

false

Pre-commencement Issuer Tender Offer

false

Entity Emerging Growth Company

false

Entity Central Index Key

0000049826

Amendment Flag

false

NEW YORK STOCK EXCHANGE, INC. | Common Stock

Entity Information [Line Items]

Title of 12(b) Security

Common Stock

Trading Symbol

ITW

Security Exchange Name

NYSE

NEW YORK STOCK EXCHANGE, INC. | 0.625% Euro Notes due 2027

Entity Information [Line Items]

Title of 12(b) Security

0.625% Euro Notes due 2027

Trading Symbol

ITW27

Security Exchange Name

NYSE

NEW YORK STOCK EXCHANGE, INC. | 3.250% Euro Notes due 2028

Entity Information [Line Items]

Title of 12(b) Security

3.250% Euro Notes due 2028

Trading Symbol

ITW28

Security Exchange Name

NYSE

NEW YORK STOCK EXCHANGE, INC. | 2.125% Euro Notes due 2030

Entity Information [Line Items]

Title of 12(b) Security

2.125% Euro Notes due 2030

Trading Symbol

ITW30

Security Exchange Name

NYSE

NEW YORK STOCK EXCHANGE, INC. | 1.00% Euro Notes due 2031

Entity Information [Line Items]

Title of 12(b) Security

1.00% Euro Notes due 2031

Trading Symbol

ITW31

Security Exchange Name

NYSE

NEW YORK STOCK EXCHANGE, INC. | 3.375% Euro Notes due 2032

Entity Information [Line Items]

Title of 12(b) Security

3.375% Euro Notes due 2032

Trading Symbol

ITW32

Security Exchange Name

NYSE

NEW YORK STOCK EXCHANGE, INC. | 3.00% Euro Notes due 2034

Entity Information [Line Items]

Title of 12(b) Security

3.00% Euro Notes due 2034

Trading Symbol

ITW34

Security Exchange Name

NYSE

- Definition

Boolean flag that is true when the XBRL content amends previously-filed or accepted submission.

+ References

No definition available.

+ Details

Name:

dei_AmendmentFlag

Namespace Prefix:

dei_

Data Type:

xbrli:booleanItemType

Balance Type:

Period Type:

duration

- Definition

Area code of city

+ References

No definition available.

+ Details

Name:

dei_CityAreaCode

Namespace Prefix:

dei_

Data Type:

xbrli:normalizedStringItemType

Balance Type:

Period Type:

duration

- Definition

For the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.

+ References

No definition available.

+ Details

Name:

dei_DocumentPeriodEndDate

Namespace Prefix:

dei_

Data Type:

xbrli:dateItemType

Balance Type:

Period Type:

duration

- Definition

The type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.

+ References

No definition available.

+ Details

Name:

dei_DocumentType

Namespace Prefix:

dei_

Data Type:

dei:submissionTypeItemType

Balance Type:

Period Type:

duration

- Definition

Address Line 1 such as Attn, Building Name, Street Name

+ References

No definition available.

+ Details

Name:

dei_EntityAddressAddressLine1

Namespace Prefix:

dei_

Data Type:

xbrli:normalizedStringItemType

Balance Type:

Period Type:

duration

- Definition

Name of the City or Town

+ References

No definition available.

+ Details

Name:

dei_EntityAddressCityOrTown

Namespace Prefix:

dei_

Data Type:

xbrli:normalizedStringItemType

Balance Type:

Period Type:

duration

- Definition

Code for the postal or zip code

+ References

No definition available.

+ Details

Name:

dei_EntityAddressPostalZipCode

Namespace Prefix:

dei_

Data Type:

xbrli:normalizedStringItemType

Balance Type:

Period Type:

duration

- Definition

Name of the state or province.

+ References

No definition available.

+ Details

Name:

dei_EntityAddressStateOrProvince

Namespace Prefix:

dei_

Data Type:

dei:stateOrProvinceItemType

Balance Type:

Period Type:

duration

- Definition

A unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 12

-Subsection b-2

+ Details

Name:

dei_EntityCentralIndexKey

Namespace Prefix:

dei_

Data Type:

dei:centralIndexKeyItemType

Balance Type:

Period Type:

duration

- Definition

Indicate if registrant meets the emerging growth company criteria.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 12

-Subsection b-2

+ Details

Name:

dei_EntityEmergingGrowthCompany

Namespace Prefix:

dei_

Data Type:

xbrli:booleanItemType

Balance Type:

Period Type:

duration

- Definition

Commission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.

+ References

No definition available.

+ Details

Name:

dei_EntityFileNumber

Namespace Prefix:

dei_

Data Type:

dei:fileNumberItemType

Balance Type:

Period Type:

duration

- Definition

Two-character EDGAR code representing the state or country of incorporation.

+ References

No definition available.

+ Details

Name:

dei_EntityIncorporationStateCountryCode

Namespace Prefix:

dei_

Data Type:

dei:edgarStateCountryItemType

Balance Type:

Period Type:

duration

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

No definition available.

+ Details

Name:

dei_EntityInformationLineItems

Namespace Prefix:

dei_

Data Type:

xbrli:stringItemType

Balance Type:

Period Type:

duration

- Definition

The exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 12

-Subsection b-2

+ Details

Name:

dei_EntityRegistrantName

Namespace Prefix:

dei_

Data Type:

xbrli:normalizedStringItemType

Balance Type:

Period Type:

duration

- Definition

The Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 12

-Subsection b-2

+ Details

Name:

dei_EntityTaxIdentificationNumber

Namespace Prefix:

dei_

Data Type:

dei:employerIdItemType

Balance Type:

Period Type:

duration

- Definition

Local phone number for entity.

+ References

No definition available.

+ Details

Name:

dei_LocalPhoneNumber

Namespace Prefix:

dei_

Data Type:

xbrli:normalizedStringItemType

Balance Type:

Period Type:

duration

- Definition

Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 13e

-Subsection 4c

+ Details

Name:

dei_PreCommencementIssuerTenderOffer

Namespace Prefix:

dei_

Data Type:

xbrli:booleanItemType

Balance Type:

Period Type:

duration

- Definition

Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 14d

-Subsection 2b

+ Details

Name:

dei_PreCommencementTenderOffer

Namespace Prefix:

dei_

Data Type:

xbrli:booleanItemType

Balance Type:

Period Type:

duration

- Definition

Title of a 12(b) registered security.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 12

-Subsection b

+ Details

Name:

dei_Security12bTitle

Namespace Prefix:

dei_

Data Type:

dei:securityTitleItemType

Balance Type:

Period Type:

duration

- Definition

Name of the Exchange on which a security is registered.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 12

-Subsection d1-1

+ Details

Name:

dei_SecurityExchangeName

Namespace Prefix:

dei_

Data Type:

dei:edgarExchangeCodeItemType

Balance Type:

Period Type:

duration

- Definition

Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 14a

-Subsection 12

+ Details

Name:

dei_SolicitingMaterial

Namespace Prefix:

dei_

Data Type:

xbrli:booleanItemType

Balance Type:

Period Type:

duration

- Definition

Trading symbol of an instrument as listed on an exchange.

+ References

No definition available.

+ Details

Name:

dei_TradingSymbol

Namespace Prefix:

dei_

Data Type:

dei:tradingSymbolItemType

Balance Type:

Period Type:

duration

- Definition

Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Securities Act

-Number 230

-Section 425

+ Details

Name:

dei_WrittenCommunications

Namespace Prefix:

dei_

Data Type:

xbrli:booleanItemType

Balance Type:

Period Type:

duration

- Details

Name:

dei_EntityListingsExchangeAxis=exch_XNYS

Namespace Prefix:

Data Type:

Balance Type:

Period Type:

- Details

Name:

us-gaap_StatementClassOfStockAxis=us-gaap_CommonStockMember

Namespace Prefix:

Data Type:

Balance Type:

Period Type:

- Details

Name:

us-gaap_StatementClassOfStockAxis=itw_A0.625EuroNotesdue2027Member

Namespace Prefix:

Data Type:

Balance Type:

Period Type:

- Details

Name:

us-gaap_StatementClassOfStockAxis=itw_A3.250EuroNotesDue2028Member

Namespace Prefix:

Data Type:

Balance Type:

Period Type:

- Details

Name:

us-gaap_StatementClassOfStockAxis=itw_A2.125EuroNotesdue2030Member

Namespace Prefix:

Data Type:

Balance Type:

Period Type:

- Details

Name:

us-gaap_StatementClassOfStockAxis=itw_A1.00EuroNotesdue2031Member

Namespace Prefix:

Data Type:

Balance Type:

Period Type:

- Details

Name:

us-gaap_StatementClassOfStockAxis=itw_A3.375EuroNotesDue2032Member

Namespace Prefix:

Data Type:

Balance Type:

Period Type:

- Details

Name:

us-gaap_StatementClassOfStockAxis=itw_A3.00EuroNotesdue2034Member

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