Illinois Tool Works Inc. · NYSE:ITW
Illinois Tool Works — Q4 2024 Earnings Presentation
12 slides from Illinois Tool Works's earnings presentation, Feb 5, 2025
Slide 1: Fourth Quarter 2024 Earnings Conference Call
Fourth Quarter 2024 February 5, 2025 Earnings Conference Call
Slide 2: Forward-Looking Statements
Forward-Looking Statements Safe Harbor Statement This presentation and related conference call contain 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 chal
Slide 3: Q4'24 Financial Performance
Q4’24 Financial Performance COMMENTARY GAAP EPS $2.38 $2.54 +7% • Outperformed underlying end markets with positive organic growth of 0.4% ex PLS reduction of 0.9% $4.0B $3.9B (1.3)% - Sequential growth Q3 to Q4 of +3.7% vs. historical +1.5% (0.5)% - FX impact of (1)%, Acquisitions +0.2% Organic Rev
Slide 4: Q4'24 Segment Performance: Free Cash Flow and Automotive OEM
Q4’24 Segment Performance FREE CASH FLOW PERFORMANCE* AUTOMOTIVE OEM $996M (4)% 19.8% +220 bps $814M $785M 17.6% $783M $571M $494M Q1’24 Q2’24 Q3’24 Q4’24 Q4'23 Q4'24 Q4'23 Q4'24 Revenue Operating Margin % to Adj 68% 75% 102% 133% Net Income • Organic revenue (2)% • Record Q4 Free Cash Flow of $996M
Slide 5: Q4'24 Segment Performance: Food Equipment and Test & Measurement/Electronics
Q4’24 Segment Performance FOOD EQUIPMENT TEST & MEASUREMENT/ELECTRONICS +3% +20 bps +2% 27.0% +170 bps 27.2% $747M $672M 27.0% $731M 25.3% $655M Q4'23 Q4'24 Q4'23 Q4'24 Q4'23 Q4'24 Q4'23 Q4'24 Revenue Operating Margin Revenue Operating Margin • Organic revenue 3% • Organic revenue 2% • Equipment 3%,
Slide 6: Q4'24 Segment Performance: Welding and Polymers & Fluids
Q4’24 Segment Performance WELDING POLYMERS & FLUIDS +160 bps 31.2% (1)% 29.6% (2)% (60) bps $451M $447M 28.5% $440M $430M 27.9% Q4'23 Q4'24 Q4'23 Q4'24 Q4'23 Q4'24 Q4'23 Q4'24 Revenue Operating Margin Revenue Operating Margin • Organic revenue flat • Organic revenue 1% • Equipment flat, Consumables
Slide 7: Q4'24 Segment Performance: Construction and Specialty Products
Q4’24 Financial Performance CONSTRUCTION PRODUCTS SPECIALTY PRODUCTS $459M (5)% +110 bps (5)% +180 bps $438M 28.0% $437M 28.4% 26.9% $416M 26.6% Q4'23 Q4'24 Q4'23 Q4'24 Q4'23 Q4'24 Q4'23 Q4'24 Revenue Operating Margin Revenue Operating Margin • Organic revenue (4)% • Organic revenue (4)%, PLS reduct
Slide 8: 2024 Financial Performance
2024 Financial Performance COMMENTARY GAAP EPS $9.74 $11.71 +20% • Consistently outperformed end markets that were down - Ex. one-time items** $10.15 +4% low to mid-single digits - ~Flat organic growth ex PLS reduction of 0.6% $16.1B $15.9B (1.3)% • Executed with discipline and delivered record resu
Slide 9: Customer-Back Innovation (CBI)
Customer-Back Innovation (CBI) Solid progress on CBI, the key driver of our ability to consistently grow above-market CBI CONTRIBUTION TO GROWTH (“YIELD”) STRONG MOMENTUM GOING INTO 2025 • Adoption of “Next Phase” CBI Framework in every division 3%+ 2.3 – 2.5% • Further improve CBI yield to 2.3 - 2.
Slide 10: 2025 Financial Guidance
2025 Financial Guidance COMMENTARY GAAP EPS $11.71 $10.15 - $10.55 - Ex. one-time items $10.15 +5% ex FX • Organic growth of 0 to 2%; 1 to 3% ex PLS reduction of 1% - Based on current levels of demand (“run rate”) $15.9B $15.4 – $15.7B (3) - (1)% - FX revenue impact of ~(3)% at current rates 0 - 2%
Slide 11: 2025 Organic Growth Rate Projections by Segment
2025 Organic Growth Rate Projections by Segment Based on current levels of demand (“run rate”) adjusted for typical seasonality Automotive Food Polymers Construction Specialty Total T&M / E Welding OEM Equipment & Fluids Products Products Company 2025 0 to 2% 0 to 2% 1 to 3% 1 to 3% 1 to 3% 0 to 2%
Slide 12: Q&A
Q&A