Illinois Tool Works · Earnings release · 8-K Exhibit 99

ITW Reports Fourth Quarter and Full Year 2025 Results

Fourth Quarter 2025 Highlights

•Revenue of $4.1 billion, an increase of 4.1%

•T1Operating margin of 26.5%, as enterprise initiatives contributed 140 bps

•GAAP EPS of $2.72, an increase of 7%

•Revenue of $16 billion, an increase of 0.9%

•T2Customer-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

•G1Revenue growth of 2 to 4%, organic growth of 1 to 3%

•G2Operating margin expansion of approximately 100 bps with enterprise initiatives contributing 100 bps

•G3GAAP 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, T3the company repurchased $375 million of its own shares and the effective tax rate was 22.8 percent.

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. T4Pricing 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.

T5ITW 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.

G4Operating 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.

T6Free 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. G5The 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

In millions except per share amounts

Operating Revenue

$

$

$

$

Cost of revenue

Selling, administrative, and research and development expenses

Amortization and impairment of intangible assets

Operating Income

Interest expense

Other income (expense)

Income Before Taxes

Income taxes

Net Income

$

$

$

$

Net Income Per Share:

Basic

$

$

$

$

Diluted

$

$

$

$

Cash Dividends Per Share:

Paid

$

$

$

$

Declared

$

$

$

$

Shares of Common Stock Outstanding During the Period:

Average

Average assuming dilution

ILLINOIS TOOL WORKS INC. and SUBSIDIARIES

STATEMENT OF FINANCIAL POSITION (UNAUDITED)

In millions

Assets

Current Assets:

Cash and equivalents

$

$

Trade receivables

Inventories

Prepaid expenses and other current assets

Total current assets

Net plant and equipment

Goodwill

Intangible assets

Deferred income taxes

Other assets

$

$

Liabilities and Stockholders' Equity

Current Liabilities:

Short-term debt

$

$

Accounts payable

Accrued expenses

Cash dividends payable

Income taxes payable

Total current liabilities

Noncurrent Liabilities:

Long-term debt

Deferred income taxes

Other liabilities

Total noncurrent liabilities

Stockholders' Equity:

Common stock

6

6

Additional paid-in-capital

Retained earnings

Common stock held in treasury

Accumulated other comprehensive income (loss)

Noncontrolling interest

1

1

Total stockholders' equity

$

$

ILLINOIS TOOL WORKS INC. and SUBSIDIARIES

SEGMENT DATA (UNAUDITED)

Dollars in millions

Total Revenue

Operating Income

Operating Margin

Automotive OEM

$

$

%

Food Equipment

%

Test & Measurement and Electronics

%

Welding

%

Polymers & Fluids

%

Construction Products

%

Specialty Products

%

Intersegment

(4)

—

—

%

Total Segments

%

Unallocated

—

—

%

Total Company

$

$

%

Dollars in millions

Total Revenue

Operating Income

Operating Margin

Automotive OEM

$

$

%

Food Equipment

%

Test & Measurement and Electronics

%

Welding

%

Polymers & Fluids

%

Construction Products

%

Specialty Products

%

Intersegment

—

—

%

Total Segments

%

Unallocated

—

—

%

Total Company

$

$

%

ILLINOIS TOOL WORKS INC. and SUBSIDIARIES

SEGMENT DATA (UNAUDITED)

Operating Revenue

Automotive OEM

Food Equipment

Test & Measurement and Electronics

Welding

Polymers & Fluids

Construction Products

Specialty Products

Total ITW

Organic

%

%

%

%

%

%

%

%

Acquisitions/

Divestitures

—

%

—

%

%

—

%

—

%

—

%

—

%

%

Translation

%

%

%

%

%

%

%

%

Operating Revenue

%

%

%

%

%

%

%

%

Change in Operating Margin

Automotive OEM

Food Equipment

Test & Measurement and Electronics

Welding

Polymers & Fluids

Construction Products

Specialty Products

Total ITW

Operating Leverage

Changes in Variable Margin & OH Costs

Total Organic

Acquisitions/

Divestitures

—

—

—

—

—

—

Restructuring/Other

—

—

—

Total Operating Margin Change

Total Operating Margin % *

* Includes unfavorable operating margin impact of amortization expense from acquisition-related intangible assets

—

** 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

%

%

%

%

%

%

%

—

%

Acquisitions/

Divestitures

—

%

—

%

%

—

%

—

%

—

%

—

%

%

Translation

%

%

%

%

%

%

%

%

Operating Revenue

%

%

%

%

%

%

%

%

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

—

Changes in Variable Margin & OH Costs

Total Organic

Acquisitions/

Divestitures

—

—

—

—

—

—

—

Restructuring/Other

—

—

—

—

Total Operating Margin Change

Total Operating Margin % *

* Includes unfavorable operating margin impact of amortization expense from acquisition-related intangible assets

** 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

Dollars in millions

Numerator:

Net income

$

$

$

$

Net discrete tax benefit related to the third quarter 2025

—

—

—

Discrete tax benefit related to the first quarter 2025

—

—

—

Net discrete tax benefit related to the third quarter 2024

—

—

—

Interest expense, net of tax (1)

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

Operating income after taxes

$

$

$

$

Denominator:

Invested capital:

Cash and equivalents

$

$

$

$

Trade receivables

Inventories

Net plant and equipment

Goodwill and intangible assets

Accounts payable and accrued expenses

Debt

Other, net

Total net assets (stockholders' equity)

Cash and equivalents

Debt

Total invested capital

$

$

$

$

Average invested capital (2)

$

$

$

$

Net income to average invested capital (3)

%

%

%

%

After-tax return on average invested capital (3)

%

%

%

%

(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

Dollars in millions

Income Taxes

Tax Rate

As reported

$

%

Net discrete tax benefit related to the third quarter 2025

%

Discrete tax benefit related to the first quarter 2025

%

As adjusted

$

%

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

Dollars in millions

Income Taxes

Tax Rate

As reported

$

%

Net discrete tax benefit related to the third quarter 2024

%

As adjusted

$

%

FREE CASH FLOW (UNAUDITED)

Three Months Ended

Twelve Months Ended

Dollars in millions

Net cash provided by operating activities

$

$

$

$

Less: Additions to plant and equipment

Free cash flow

$

$

$

$

Net income

$

$

$

$

Net cash provided by operating activities to net income conversion rate

%

%

%

%

Free cash flow to net income conversion rate

%

%

%

%

ADJUSTED NET INCOME PER SHARE - DILUTED (UNAUDITED)

Twelve Months Ended

As reported

$

Impact of sale of noncontrolling interest in Wilsonart (1)

Cumulative effect of change in inventory accounting method, net of tax (2)

As adjusted

$

(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).