ITWILLINOIS TOOL WORKS INC

General Industrial Machinery & Equipment

Revenue: $16.0B; 0.9% YoY
Operating margin: 26.3%; 2.0% YoY
EBITDA: $4.5B; 0.7% YoY
Market cap: $79.2B
Employees: 43,000; $373K revenue each
Net debt / EBITDA: 1.9×; $8.6B net debt
AI in 10-K: 1.5; mentions per 10K words

Takeover score 2 of 13

Fixable underperformance 1 of 7

TSR below peersNo
—
3+ of last 5 years
High CEO pay despite TSRNo
—
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
—
Cash flow under 80% of net income
Dilutive SBCNo
0% of revenue
Over 10% of revenue
Payouts exceed cash flowYes
105% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
31% of assets
Over 40% of assets
Shareholder dissentNo
96% lowest support
Any vote under 80% support

Buyer economics 0 of 4

Low revenue per employeeNo
$373K · 39th pct
Bottom quartile of its SIC industry
Quiet on AINo
1.5 per 10K words · 45th pct
Bottom quartile of AI mentions in 10-Ks
Net cashNo
1.9× EBITDA net debt
More cash than debt, positive EBITDA
Buyout-sizedNo
$79.2B market cap
Market cap $500M–$5B

Catalysts 1 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingYes
−$65M net
Net sales over $10M in 12 months

Financials

Metric	FY2021	FY2022	FY2023	FY2024	FY2025	YoY	Trend
Revenue	$14.5B	$15.9B	$16.1B	$15.9B	$16.0B	0.9%
Operating income	$3.5B	$3.8B	$4.0B	$4.3B	$4.2B	1.1%
Operating cash flow	$2.6B	$2.3B	$3.5B	$3.3B	$3.1B	4.7%
Capex	$296M	$412M	$455M	$437M	$419M	4.1%
Stock-based comp	$53M	$63M	$69M	$61M	$69M	13%
Buybacks	$1.0B	$1.8B	$1.5B	$1.5B	$1.5B	0.0%
Dividends	$1.5B	$1.5B	$1.6B	$1.7B	$1.8B	5.3%

Deal filings

None.

13D filers

None on file.

Insider trading

Open-market buys, 12 mo: $2M · 2
Open-market sells, 12 mo: $67M · 14
Net: −$65M

Pay vs performance

No pay-versus-performance disclosure yet.