How does Illinois Tool Works (ITW) make money?

Illinois Tool Works (ITW) primarily makes money through Automotive OEM Segment, which accounts for 20.5% of total revenue. For TTM through Q4 2025, Illinois Tool Works generated $16.04B in total revenue with a net profit margin of 19.1%.

What is Illinois Tool Works (ITW) gross profit margin?

Illinois Tool Works (ITW) reported a gross profit margin of 44% for TTM through Q4 2025, equivalent to $7.05B in gross profit. This means Illinois Tool Works retains 44% of each revenue unit after direct costs of production.

What is Illinois Tool Works (ITW) operating profit margin?

Illinois Tool Works (ITW) reported an operating profit margin of 26.3% for TTM through Q4 2025, equivalent to $4.22B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.

What is Illinois Tool Works (ITW) net profit margin?

Illinois Tool Works (ITW) reported a net profit margin of 19.1% for TTM through Q4 2025, equivalent to $3.07B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.

How much does Illinois Tool Works (ITW) invest in R&D?

Illinois Tool Works (ITW) invested $1.37B in research and development in TTM through Q4 2025 (8.5% of total revenue). R&D spending reflects investment in future products, services, and technologies.

How much does Illinois Tool Works (ITW) spend on capital expenditures?

Illinois Tool Works (ITW) spent $419.00M on capital expenditures in TTM through Q4 2025 (2.6% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.

What is Illinois Tool Works (ITW) free cash flow?

Illinois Tool Works (ITW) generated $2.71B in free cash flow for TTM through Q4 2025 (16.9% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.

What is Illinois Tool Works (ITW) effective tax rate?

Illinois Tool Works (ITW) had an effective tax rate of 22.7% for TTM through Q4 2025. This is the actual percentage of pre-tax income paid as income taxes.

How Illinois Tool Works (ITW) Makes Money: A Visual Guide

Illinois Tool Works (ITW) generated $16.04B in revenue, earning $3.07B in net profit (19.1% margin). Its largest revenue source is Automotive OEM Segment (20.5% of revenue). Below is an interactive breakdown of how revenue flows through the income statement.

Illinois Tool Works (ITW) Income Statement Flow — TTM through Q4 2025

Calculated from the four most recent reported quarters, ending December 31, 2025 (reported February 13, 2026).

Frequently asked questions

How does Illinois Tool Works (ITW) make money?: Illinois Tool Works (ITW) primarily makes money through Automotive OEM Segment, which accounts for 20.5% of total revenue. For TTM through Q4 2025, Illinois Tool Works generated $16.04B in total revenue with a net profit margin of 19.1%.
What is Illinois Tool Works (ITW) gross profit margin?: Illinois Tool Works (ITW) reported a gross profit margin of 44% for TTM through Q4 2025, equivalent to $7.05B in gross profit. This means Illinois Tool Works retains 44% of each revenue unit after direct costs of production.
What is Illinois Tool Works (ITW) operating profit margin?: Illinois Tool Works (ITW) reported an operating profit margin of 26.3% for TTM through Q4 2025, equivalent to $4.22B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.
What is Illinois Tool Works (ITW) net profit margin?: Illinois Tool Works (ITW) reported a net profit margin of 19.1% for TTM through Q4 2025, equivalent to $3.07B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.
How much does Illinois Tool Works (ITW) invest in R&D?: Illinois Tool Works (ITW) invested $1.37B in research and development in TTM through Q4 2025 (8.5% of total revenue). R&D spending reflects investment in future products, services, and technologies.
How much does Illinois Tool Works (ITW) spend on capital expenditures?: Illinois Tool Works (ITW) spent $419.00M on capital expenditures in TTM through Q4 2025 (2.6% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.
What is Illinois Tool Works (ITW) free cash flow?: Illinois Tool Works (ITW) generated $2.71B in free cash flow for TTM through Q4 2025 (16.9% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.
What is Illinois Tool Works (ITW) effective tax rate?: Illinois Tool Works (ITW) had an effective tax rate of 22.7% for TTM through Q4 2025. This is the actual percentage of pre-tax income paid as income taxes.

Data & methodology

What is a Sankey diagram?: A Sankey diagram shows how money flows through a company from revenue to net profit. The width of each flow represents its proportion.
How is the data calculated?: We use the income statement from company filings. For TTM (Trailing Twelve Months), we use a pre-aggregated twelve-month view aligned with our latest four quarterly periods. Revenue flows to cost of revenue and gross profit, then to operating expenses (R&D, S&M, G&A) and operating profit.
When was this data last updated?: Based on company filings through TTM through Q4 2025.