FX.co ★ Illinois Tool Works Issues FY25 Guidance

Illinois Tool Works (ITW) has announced its 2025 financial guidance, projecting a GAAP Earnings Per Share (EPS) between $10.15 and $10.55. This outlook accounts for a foreign currency translation headwind of $0.30. The company anticipates organic growth surpassing market averages, estimating zero to two percent growth based on current demand conditions. This prediction accommodates an anticipated reduction in the Product Line Simplification (PLS) initiative by about one percentage point, with organic revenue growth expected to be between one to three percent after adjusting for PLS effects. Consequently, the company forecasts an overall revenue decline of one to three percent, alongside plans to execute approximately $1.5 billion in share repurchases.

In the fourth quarter, ITW reported a net income of $750 million, equating to $2.54 per share, surpassing last year's figures of $717 million, or $2.38 per share. Analysts had anticipated the company would achieve earnings of $2.49 per share, typically excluding special items. Revenue was reported at $3.9 billion, marking a 1.3 percent decrease, with an organic revenue decline of 0.5 percent. However, organic revenue growth, adjusted to account for a 0.9 percent reduction from the PLS initiative, showed a positive growth of 0.4 percent.

As of Wednesday's pre-market trading, shares of Illinois Tool Works have fallen by 3%.