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|8-KFeb 3, 9:48 AM ET

ILLINOIS TOOL WORKS INC 8-K

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Illinois Tool Works Inc. Reports Q4 2025 Results, Discloses Non‑GAAP Metrics

What Happened

  • Illinois Tool Works Inc. (ITW) filed a Form 8‑K (Item 2.02) on February 3, 2026 to furnish a press release reporting its 2025 fourth quarter results (Exhibit 99.1). The filing emphasizes several non‑GAAP financial measures the company uses to describe performance and cash generation.
  • The company explained its non‑GAAP definitions and comparability adjustments in the press release, including free cash flow, After‑tax ROIC, and an adjusted diluted EPS measure for the year ended December 31, 2024.

Key Details

  • Press release furnished as Exhibit 99.1 to the 8‑K on Feb 3, 2026 reporting Q4 2025 results.
  • Free cash flow = net cash provided by operating activities less additions to plant and equipment; reconciliation to GAAP cash flow is included in Exhibit 99.1.
  • After‑tax ROIC = operating income after taxes ÷ average invested capital (annualized for interim periods). For comparability, ITW excluded discrete tax benefits of $27M (Q3 2025), $21M (Q1 2025) from 2025 results and $121M (Q3 2024) from 2024 results when calculating After‑tax ROIC and related metrics.
  • ITW also presented diluted net income per share for 2024 excluding the cumulative effect of a change in inventory accounting method and the impact of the sale of its noncontrolling interest in Wilsonart International Holdings LLC; reconciliations are provided in Exhibit 99.1.

Why It Matters

  • These non‑GAAP measures (free cash flow, After‑tax ROIC, adjusted EPS) aim to show cash generation and operational returns that management believes better reflect underlying performance and comparability across periods.
  • Investors should note these metrics differ from GAAP measures and include specific tax‑related adjustments that affect year‑to‑year comparability; the reconciliations in Exhibit 99.1 are necessary to evaluate how these non‑GAAP figures relate to GAAP results.
  • Review the full press release (Exhibit 99.1) for the actual Q4/Q4‑year financial figures, reconciliations, and related discussion before making investment decisions.