ILLINOIS TOOL WORKS Business Summary

Illinois Tool Works Inc. (ITW) is a global multi-industrial manufacturer that generates revenue through the production of highly engineered components and specialized equipment across seven primary business segments: Automotive OEM, Food Equipment, Test & Measurement and Electronics, Welding, Polymers & Fluids, Construction Products, and Specialty Products. The company utilizes a proprietary "ITW Business Model," which centers on the 80/20 Front-to-Back process to focus resources on high-value opportunities and "Customer-Back Innovation" to drive organic growth. In 2025, ITW reported approximately $16 billion in revenue with record operating margins exceeding 26%. Its primary direct competitors include Lincoln Electric, Nordson Corporation, Parker-Hannifin, and A.O. Smith; ITW distinguishes itself as a high-margin, Fortune 300 leader characterized by a deeply decentralized, entrepreneurial culture that allows individual business units to operate with high autonomy. Founded in 1912 by Byron L. Smith, ITW is currently led by President and CEO Christopher A. O’Herlihy, a 35-year company veteran who assumed the role in January 2024 after serving as Vice Chairman. The executive team includes Senior Vice President and CFO Michael M. Larsen, who brings extensive industrial finance experience from Gardner Denver and GE, and Senior Vice President and General Counsel Christopher P. Rauch. The company is overseen by Non-Executive Chairman E. Scott Santi, the former CEO who transitioned to the board role in early 2024. ITW maintains a strong institutional investor base, with major holdings by The Vanguard Group, BlackRock, and State Street Global Advisors, and its board of directors features prominent leaders from organizations such as UPS, Masco Corporation, and Northern Trust.