Illinois Tool Works

Illinois Tool Works Inc. (ITW) stands as a Fortune 300 global manufacturing powerhouse with a rich 112-year history of innovation, engineering excellence, and operational discipline. Headquartered in Glenview, Illinois, a suburb of Chicago, ITW has evolved from a small tool-making startup founded in 1912 into a diversified industrial manufacturing leader operating across seven industry-leading business segments with revenues of $15.9 billion in 2024. The company's approximately 44,000 dedicated colleagues around the world thrive in ITW's distinctive decentralized and entrepreneurial culture, which empowers teams to innovate, make decisions quickly, and respond directly to customer needs while maintaining operational excellence.

ITW's business model is built on the foundation of what the company calls the ITW Business Model, a proven framework that drives solid growth with best-in-class margins and returns in markets where highly innovative, customer-focused solutions are required. This model emphasizes decentralization, customer-back innovation, focused organic and inorganic growth, and operational excellence through the company's proprietary 80/20 process. The company operates seven distinct business segments: Automotive OEM, Food Equipment, Test & Measurement and Electronics, Welding, Polymers & Fluids, Construction Products, and Specialty Products. Each segment holds strong market positions in specialized niches where ITW's engineering capabilities, brand strength, and customer relationships create sustainable competitive advantages.

The company's strategic evolution reflects a deliberate transformation from a sprawling conglomerate to a more focused industrial manufacturer. Under previous leadership, ITW dramatically simplified its portfolio, divesting non-core businesses and consolidating operations from over 800 business units to fewer than 85 highly focused divisions. This strategic repositioning has enabled ITW to achieve industry-leading financial performance, including a record operating margin of 26.8% in 2024 despite facing revenue headwinds. The company generated record GAAP earnings per share of $11.71 in 2024, demonstrating its ability to drive profitability through operational excellence even in challenging market conditions.

ITW's commitment to innovation manifests through its customer-back innovation approach, where the company works closely with customers to understand their specific needs and develops tailored solutions that deliver measurable value. This approach has led to the development of numerous market-leading products across its segments, from advanced welding equipment and food service solutions to specialized automotive components and testing equipment. The company holds over 20,900 granted and pending patent applications worldwide, reflecting its deep technical expertise and continuous investment in research and development. Notable brands in the ITW portfolio include Hobart food equipment, Miller Electric welding systems, Paslode fastening tools, and Permatex adhesives, each holding leading positions in their respective markets.

In 2024, ITW launched the Next Phase of its Enterprise Strategy, placing organic growth as the company's highest priority with an ambitious goal to build organic growth into a core ITW strength by 2030. This strategic shift recognizes that while ITW has historically excelled at operational excellence and margin expansion, the company must now focus on driving above-market organic revenue growth through enhanced innovation capabilities, expanded market penetration, and accelerated product development cycles. The company's capital allocation strategy balances investments in organic growth, selective high-quality acquisitions that supplement long-term growth potential, and disciplined capital returns to shareholders through dividends and share repurchases. With a current market capitalization of $76.4 billion and a strong balance sheet, ITW is well-positioned to execute its growth strategy while maintaining its commitment to operational excellence and shareholder value creation.