$ITW

ILLINOIS TOOL WORKS INC

CIK:0000049826|SEC Filings

Statement of Income (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
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 (in dollars per share)	$ 2.85	$ 2.58	$ 5.51	$ 4.97
Diluted (in dollars per share)	$ 2.84	$ 2.58	$ 5.50	$ 4.95
Shares of Common Stock Outstanding During the Period:
Average (in shares)	286.4	292.3	287.3	292.9
Average assuming dilution (in shares)	287.0	292.9	288.1	293.7

Statement of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
Statement of Cash Flows (Unaudited) - USD ($) $ in Millions	Jun. 30, 2026	Jun. 30, 2025
Cash Provided by (Used for) Operating Activities:
Net income	$ 1,583	$ 1,455
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	163	152
Amortization and impairment of intangible assets	34	42
Change in deferred income taxes	7	(30)
Net provision for (recoveries of) uncollectible accounts	2	3
(Income) loss from investments	1	0
(Gain) loss on sale of plant and equipment	0	2
Stock-based compensation expense	40	35
Other non-cash items, net	10	4
(Increase) decrease in-
Trade receivables	(349)	(190)
Inventories	(107)	(30)
Prepaid expenses and other assets	(1)	(63)
Increase (decrease) in-
Accounts payable	118	61
Accrued expenses and other liabilities	(43)	(105)
Income taxes	(112)	(194)
Net cash provided by operating activities	1,346	1,142
Cash Provided by (Used for) Investing Activities:
Acquisition of businesses (excluding cash and equivalents)	0	1
Additions to plant and equipment	(187)	(197)
Proceeds from investments	1	5
Proceeds from sale of plant and equipment	4	7
Proceeds from sale of operations and affiliates	0	1
Other, net	(2)	(1)
Net cash provided by (used for) investing activities	(184)	(184)
Cash Provided by (Used for) Financing Activities:
Cash dividends paid	(928)	(880)
Issuance of common stock	52	47
Repurchases of common stock	(1,125)	(750)
Net proceeds from (repayments of) debt with original maturities of three months or less	855	464
Other, net	(33)	(32)
Net cash provided by (used for) financing activities	(1,179)	(1,151)
Effect of Exchange Rate Changes on Cash and Equivalents	5	33
Cash and Equivalents:
Increase (decrease) during the period	(12)	(160)
Beginning of period	851	948
End of period	839	788
Supplementary Cash Flow Information:
Cash Paid During the Period for Interest	189	181
Cash Paid During the Period for Income Taxes, Net of Refunds	$ 568	$ 662

Statement of Financial Position (Unaudited) - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
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
Total assets	16,494	16,148
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 (Authorized- 700.0 shares; par value of $0.01 per share): Issued- 550.0 shares in 2026 and 2025 Outstanding- 0.0 shares in 2026 and 288.6 shares in 2025	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
Total liabilities and stockholders' equity	$ 16,494	$ 16,148