Illinois Tool Works Inc. (ITW) is a global manufacturer of a diversified range of industrial products and equipment. The company's operations are organized into seven segments: Automotive OEM, Food Equipment, Test & Measurement and Electronics, Welding, Polymers & Fluids, Construction Products, and Specialty Products. ITW's business model focuses on its largest and best opportunities, eliminating cost and complexity, and driving innovation through customer insights. The company operates in 51 countries.

• Employees: 45,000 (as of December 31, 2023)
• Geographic Footprint: 51 countries
• Headquarters: Glenview, Illinois
• Founded: 1912
• Number of locations/facilities: 410
• Revenue: $16.1 billion (FY2023)
• Key Subsidiaries/Brands: Deltar, Shakeproof, Hobart, Instron, MTS, Miller, Rain-X, Permatex, Paslode, Hi-Cone

• CEO: Christopher A. O'Herlihy
• CFO: Michael M. Larsen
• Board Chair: E. Scott Santi
• Other Key Executives: Axel Beck (Executive Vice President), Kenneth Escoe (Executive Vice President), Javier Gracia Carbonell (Executive Vice President), Patricia A. Hartzell (Executive Vice President), Mary K. Lawler (Senior Vice President & Chief Human Resources Officer), Randall J. Scheuneman (Vice President & Chief Accounting Officer), Jennifer K. Schott (Senior Vice President, General Counsel & Secretary), Guilherme Silva (Executive Vice President), Sharon Szafranski (Executive Vice President), Michael R. Zimmerman (Executive Vice President)

Christopher A. O'Herlihy became CEO in 2024. E. Scott Santi will remain Chairman through March 1, 2024, after which he will become Non-Executive Chairman. Michael M. Larsen has been CFO since 2013.

• Annual Revenue: $16.1 billion (FY2023)
• Net Income: $3.0 billion (FY2023)
• Total Assets: $15.5 billion (as of December 31, 2023)
• Employees: 45,000 (as of December 31, 2023)
• Key Financial Highlights: Operating margin of 25.1% in 2023, increased 130 basis points year-over-year. Organic revenue increased 2.0% year-over-year.

ITW offers a diversified range of industrial products and equipment.

• Automotive OEM: Components and fasteners for automotive applications.
• Food Equipment: Commercial food equipment including warewashing, cooking, refrigeration, and food processing equipment.
• Test & Measurement and Electronics: Test and measurement equipment, electronic assembly equipment, and related consumables.
• Welding: Arc welding equipment, consumables, and accessories.
• Polymers & Fluids: Engineered adhesives, sealants, lubrication, and cutting fluids.
• Construction Products: Engineered fastening systems and solutions.
• Specialty Products: Beverage packaging equipment, product coding and marking equipment, and appliance components.

ITW's operations are divided into seven segments.

• Automotive OEM: $3.2 billion in revenue (FY2023)
• Food Equipment: $2.6 billion in revenue (FY2023)
• Test & Measurement and Electronics: $2.8 billion in revenue (FY2023)
• Welding: $1.9 billion in revenue (FY2023)
• Polymers & Fluids: $1.8 billion in revenue (FY2023)
• Construction Products: $2.0 billion in revenue (FY2023)
• Specialty Products: $1.7 billion in revenue (FY2023)

ITW's strategy focuses on leveraging its business model, which includes the 80/20 Front-to-Back process, customer-back innovation, and a decentralized entrepreneurial culture. Key initiatives include portfolio management, business structure simplification, strategic sourcing, and organic growth. The company is focused on building organic growth through customer-back innovation.

• Key strategic initiatives: Portfolio management, business structure simplification, strategic sourcing, and organic growth.
• Growth drivers: Customer-back innovation, market growth, and share gains.
• Investment priorities: Engineering, marketing, and sales resources.

ITW operates in a wide range of fragmented markets. The company competes with regional and specialized companies, as well as large U.S. and non-U.S. companies. ITW differentiates itself through product innovation, quality, brand preference, and service delivery. The company's competitive advantages are derived from its business model and decentralized operating structure.

• Market Position: ITW holds a significant position in many of its niche markets.
• Key Competitors: Lincoln Electric Holdings, Inc. and ESAB Corporation in the Welding segment.
• Industry Trends: ITW is affected by global economic conditions, raw material prices, and technological advancements.

• Economic Risks: Downturns in the markets served, global economic conditions, and rising interest rates.
• Operational Risks: Supply chain disruptions, raw material price increases, and the inability to introduce new products.
• Financial Risks: Currency fluctuations, pension plan risks, and impairment of goodwill and intangible assets.
• Regulatory Risks: Environmental regulations, trade policies, and cybersecurity laws.