ILLINOIS TOOL WORKS INC (ITW)

Illinois Tool Works Inc. (ITW) is a global manufacturer of a diversified range of industrial products and equipment, founded in 1912 and incorporated in 1915. It operates 88 divisions in 49 countries and employed approximately 43,000 people at December 31, 2025. Its core operating model combines the proprietary 80/20 Front-to-Back process, customer-back innovation and a decentralized, entrepreneurial culture. The company holds approximately 4,200 unexpired U.S. patents and 10,400 unexpired foreign patents, with about 21,800 granted and pending patents in total.

ITW reports seven segments. Automotive OEM makes plastic and metal components, fasteners and assemblies for automobiles, light trucks and other industrial uses. Food Equipment makes warewashing, cooking, refrigeration and food processing equipment, kitchen exhaust and ventilation systems, and provides service, maintenance and repair. Test & Measurement and Electronics produces equipment, consumables and software for testing materials, structures, gases and fluids, plus electronic assembly equipment, components, static control products and pressure sensitive adhesives. Welding makes arc welding equipment, metal arc consumables and accessories. Polymers & Fluids supplies adhesives, sealants, lubrication and cutting fluids, coatings, cleaners, and auto aftermarket maintenance and appearance products. Construction Products supplies fasteners and fastening tools, concrete anchors, metal plate truss components and packaged hardware for retail. Specialty Products makes beverage packaging equipment and consumables, conveyor systems, product coding and marking equipment, appliance components, airport ground support equipment and medical device components. Well-known brands include Hobart, Instron, MTS, Miller, Rain-X, Permatex, Paslode and Hi-Cone.

ITW serves highly diverse end markets and geographies. These include automotive OEMs and tiers, food service and retail, electronics, general industrial, energy, industrial capital goods, consumer durables, automotive aftermarket, MRO, residential and commercial construction, renovation and remodel, food and beverage, airlines, and printing and publishing. Products are distributed primarily directly to industrial manufacturers and through independent distributors. Backlog is not considered a significant factor because delivery periods are short and inventory turns quickly.

Raw materials, mainly steel, resins and chemicals, are available from numerous commercial sources. Competitors vary by product line, end market and geography and include regional and specialized companies as well as large U.S. and non-U.S. firms. In Welding, the company names Lincoln Electric Holdings, Inc. and ESAB Corporation as global competitors. ITW differentiates itself on product innovation, quality, brand preference, service delivery and technical capability. It actively manages its portfolio through divestitures and selective acquisitions, including three Test & Measurement and Electronics acquisitions in 2024 and 2025 and the 2024 sale of its Wilsonart equity interest for $398 million.