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

ITW Reports First Quarter 2025 Results

•Revenue of $3.8 billion, down 3.4%; organic growth down 1.6%, flat on an equal days’ basis

•T1Operating margin of 24.8%; Enterprise Initiatives contribute 120 bps

•GAAP EPS of $2.38, ahead of plan expectations

•Maintaining full year 2025 guidance; ongoing pricing actions offset tariff cost impacts

GLENVIEW, IL., April 30, 2025 - Illinois Tool Works Inc. (NYSE: ITW) today reported its first quarter 2025 results and maintained guidance for full year 2025.

“ITW commenced 2025 with solid execution, achieving financial results ahead of plan expectations as we continued to outperform underlying end markets,” said Christopher A. O’Herlihy, President and Chief Executive Officer. “T2Acknowledging the uncertain external environment, we are maintaining our full year 2025 guidance as we expect our T3ongoing pricing actions to offset tariff cost impacts. ITW is built to outperform in today's volatile environment. Our largely “produce where we sell” manufacturing strategy, decentralized operating culture which enables rapid “read and react” response, and diversified high-quality business portfolio all provide resilience during times of volatility and uncertainty. Our strong financial profile allows us to maintain our strategic investments and focus on driving continued progress on our long-term strategy to make above-market organic growth, fueled by Customer-back Innovation, into a core ITW strength,” O’Herlihy concluded.

First quarter revenue of $3.8 billion declined by 3.4 percent as organic revenue declined by 1.6 percent. On an equal days’ basis, organic revenue was essentially flat. Foreign currency translation impact reduced revenue by 1.8 percent.

First quarter 2024 GAAP EPS of $2.73 and operating margin of 28.4 percent included a one-time inventory accounting change which benefited EPS by $0.29 and operating margin by 300 basis points. For comparison purposes, the following year-over-year references exclude this one-time item.

GAAP EPS for the first quarter of 2025 of $2.38 declined two percent and included approximately $0.10 of headwind from higher restructuring expenses and T4unfavorable foreign currency translation impact. Operating margin of 24.8 percent declined 60 basis points as enterprise initiatives contributed 120 basis points, offset by T5higher restructuring expenses related to 80/20 Front-to-Back projects and other one-time items. Operating cash flow was $592 million, and free cash flow was $496 million with a conversion of 71 percent to net income. During the quarter, the company repurchased $375 million of its own shares. The effective tax rate was 21.7 percent which included a discrete tax benefit of $21 million related to the reversal of valuation allowances on net operating loss carryforwards.

G1ITW is maintaining its full year 2025 GAAP EPS guidance range of $10.15 to $10.55 per share which includes on-going pricing actions that are projected to offset tariff cost impacts. G2The Company is projecting revenue and organic growth of zero to two percent based on current levels of demand adjusted for incremental pricing associated with tariffs and current foreign exchange rates. G3Operating margin is projected to be in the range of 26.5 to 27.5 percent, with enterprise initiatives contributing 100 basis points or more. G4T6Free cash flow is expected to exceed 100 percent of net income, and G5T7the company plans to repurchase approximately $1.5 billion of its own shares. G6The projected effective tax rate is approximately 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 2025 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 $15.9 billion in 2024. 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 44,000 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

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

(5)

—

—

%

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 first quarter of 2025.

ILLINOIS TOOL WORKS INC. and SUBSIDIARIES

GAAP to NON-GAAP RECONCILIATIONS (UNAUDITED)

AFTER-TAX RETURN ON AVERAGE INVESTED CAPITAL (UNAUDITED)

Three Months Ended

Dollars in millions

Numerator:

Net Income

$

$

Discrete tax benefit related to the first quarter 2025

—

Cumulative effect of change in inventory accounting method, net of tax (1)

—

Interest expense, net of tax (2)

Other (income) expense, net of tax (2)

(9)

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 (3)

$

$

Net income to average invested capital (4)

%

%

After-tax return on average invested capital (4)

%

%

(1) Represents the cumulative effect of the change from the LIFO method of accounting to the FIFO method for certain U.S. businesses in the first quarter of 2024 ($117 million pre-tax, or $88 million after-tax).

(2) Effective tax rate used for interest expense and other (income) expense for the three months ended March 31, 2025 and 2024 was 24.0% and 23.6%, respectively.

(3) 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.

(4) Returns for the three months ended March 31, 2025 and 2024 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, 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

Dollars in millions

Income Taxes

Tax Rate

As reported

$

%

Discrete tax benefit related to the first quarter 2025

%

As adjusted

$

%

AFTER-TAX RETURN ON AVERAGE INVESTED CAPITAL (UNAUDITED)

Twelve Months Ended

Dollars in millions

Numerator:

Net income

$

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

%

After-tax return on average invested capital

%

(1) Effective tax rate used for interest expense and other (income) expense for the year ended December 31, 2024 was 23.8%.

(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 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

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(1)

%

%

(1) Excluding the impact of the cumulative effect of the change from the LIFO method of accounting to the FIFO method for certain U.S. businesses in the first quarter of 2024 ($117 million pre-tax, or $88 million after-tax), the free cash flow to net income conversion rate for the three months ended March 31, 2024 would have been 68%.

ADJUSTED NET INCOME PER SHARE - DILUTED (UNAUDITED)

Three Months Ended

Twelve Months Ended

As reported

$

$

Cumulative effect of change in inventory accounting method, net of tax (1)

Impact of sale of noncontrolling interest in Wilsonart (2)

—

As adjusted

$

$

(1) Represents the cumulative effect of the change from the LIFO method of accounting to the FIFO method for certain U.S. businesses in the first quarter of 2024 ($117 million pre-tax, or $88 million after-tax).

(2) Includes the $363 million pre-tax gain on the sale of noncontrolling interest in Wilsonart and related taxes in the third quarter of 2024.