Exhibit 99.1

ITW Reports Second Quarter 2026 Results and
Raises Full Year 2026 Guidance

•Revenue of $4.30 billion, increased +6.1% as organic growth accelerated to +4.5%
•Operating income of $1.15 billion grew +7.4% marking the most profitable quarter in company history
•Operating margin of 26.7% expanded 40 bps, as enterprise initiatives contributed 120 bps
•GAAP EPS of $2.84 increased +10.1%
•Operating cash flow of $723 million and free cash flow of $631 million; an increase of +41%
•Full Year 2026 guidance raised; organic revenue raised +1.5%-pts to new midpoint of 3.5% and GAAP EPS raised +$0.15 to new midpoint of $11.45

GLENVIEW, Ill., July 28, 2026 - Illinois Tool Works Inc. (NYSE: ITW) today reported its second quarter 2026 results and raised full year 2026 guidance.

“The ITW team delivered a strong operational and financial performance in the second quarter highlighted by organic growth of 4.5 percent, operating margin of 26.7 percent, and a 10 percent increase in GAAP earnings per share to $2.84,” said Christopher A. O’Herlihy, President and Chief Executive Officer.

“Our results reflect a meaningful acceleration in our capex-related segments, led by double-digit organic growth in Welding and Test & Measurement and Electronics, alongside strong performance in Polymers & Fluids. As we advance our enterprise strategy priorities, we remain well-positioned to drive consistent, above-market organic growth powered by increased contribution to revenue growth from Customer-Back Innovation while further expanding profitability and margins. As a result of our strong operational momentum, we are raising both top- and bottom-line guidance for the full year,” O’Herlihy concluded.

Second Quarter 2026 Results

Second quarter revenue of $4.30 billion increased by 6.1 percent. Organic revenue growth was 4.5 percent, led by 6.4 percent growth in North America. Foreign currency translation increased revenue by 1.4 percent and an acquisition added 0.2 percent.

GAAP EPS grew 10.1 percent to $2.84, while operating income increased 7.4 percent to $1.15 billion, marking the most profitable quarter in the history of the company. Operating margin expanded by 40 basis points to 26.7 percent as enterprise initiatives contributed 120 basis points. In the quarter, price increases more than offset higher raw material costs in dollar terms, though timing lags between inflation and price adjustments modestly diluted margins. Operating cash flow was $723 million, and free cash flow was $631 million, a 41 percent increase representing a 77 percent conversion of net income. During the quarter, the company returned over $1.2 billion to shareholders through dividends and share repurchases of $750 million. The effective tax rate for the quarter was 24.4 percent.

2026 Guidance

ITW is raising its full year 2026 GAAP EPS guidance by $0.15 to a narrowed range of $11.35 to $11.55 per share, representing 9 percent growth at the midpoint. Based on current demand levels and prevailing foreign exchange rates, the company is raising revenue growth guidance to a new range of 4 to 5 percent and raising organic growth guidance to 3 to 4 percent, a 1.5 percentage point increase at the midpoint.

Operating margin is projected to be in the range of 26.5 to 27.5 percent, with enterprise initiatives contributing more than 100 basis points. Free cash flow is projected to exceed 100 percent of net income, and the company expects to repurchase approximately $1.5 billion of its own shares. The projected effective tax rate is 23 to 24 percent.

Non-GAAP Measures

This earnings release contains certain non-GAAP financial measures. A reconciliation of these measures to the most directly comparable GAAP measures is included in the attached supplemental reconciliation schedule. The estimated guidance of free cash flow to net income conversion rate is based on assumptions that are difficult to predict, and estimated guidance for the most directly comparable GAAP measure and a reconciliation of this forward-looking estimate to its most directly comparable GAAP estimate have been omitted due to the unreasonable efforts required in connection with such a reconciliation and the lack


of reliable forward-looking cash flow information. For the same reasons, the company is unable to address the potential significance of the unavailable information, which could be material to future results.

Forward-looking Statements

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements regarding global supply chain challenges, expected impact of inflation including raw material inflation and rising interest rates, the potential impact of tariffs, the company’s projected pricing actions, the impact of enterprise initiatives, future financial and operating performance, free cash flow and free cash flow to net income conversion rate, organic and total revenue, operating and incremental margin, price/cost impact, statements regarding diluted income per share, expected dividend payments, after-tax return on invested capital, effective tax rates, exchange rates, expected timing and amount of share repurchases, end market economic and regulatory conditions, the impact of recent or potential acquisitions and/or divestitures, and the company’s 2026 guidance. These statements are subject to certain risks, uncertainties, assumptions, and other factors, which could cause actual results to differ materially from those anticipated. Important risks that could cause actual results to differ materially from the company’s expectations include those that are detailed in ITW’s Form 10-K for 2025 and subsequent reports filed with the SEC.

About Illinois Tool Works

ITW (NYSE: ITW) is a Fortune 300 global multi-industrial manufacturing leader with revenue of $16 billion in 2025. The company’s seven industry-leading segments leverage the unique ITW Business Model to drive solid growth with best-in-class margins and returns in markets where highly innovative, customer-focused solutions are required. ITW’s approximately 43,000 dedicated colleagues around the world thrive in the company’s decentralized and entrepreneurial culture. www.itw.com.

Investor Relations & Media Contact:
Erin Linnihan
Tel: 224.661.7431
investorrelations@itw.com | mediarelations@itw.com



ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
STATEMENT OF INCOME (UNAUDITED)

Three Months EndedSix Months Ended
June 30,June 30,
In millions except per share amounts2026202520262025
Operating Revenue$4,301 $4,053 $8,317 $7,892 
Cost of revenue2,403 2,271 4,659 4,432 
Selling, administrative, and research and development expenses735 693 1,457 1,399 
Amortization and impairment of intangible assets16 21 34 42 
Operating Income1,147 1,068 2,167 2,019 
Interest expense(79)(74)(152)(142)
Other income (expense)12 4 32 16 
Income Before Taxes1,080 998 2,047 1,893 
Income Taxes265 243 464 438 
Net Income$815 $755 $1,583 $1,455 
Net Income Per Share:
Basic
$2.85 $2.58 $5.51 $4.97 
Diluted
$2.84 $2.58 $5.50 $4.95 
Cash Dividends Per Share:
Paid
$1.61 $1.50 $3.22 $3.00 
Declared
$1.61 $1.50 $3.22 $3.00 
Shares of Common Stock Outstanding During the Period:
Average
286.4 292.3 287.3 292.9 
Average assuming dilution
287.0 292.9 288.1 293.7 



ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
STATEMENT OF FINANCIAL POSITION (UNAUDITED)

In millionsJune 30, 2026December 31, 2025
Assets
Current Assets:
Cash and equivalents$839 $851 
Trade receivables3,564 3,227 
Inventories1,756 1,659 
Prepaid expenses and other current assets441 463 
Total current assets6,600 6,200 
Net plant and equipment2,235 2,230 
Goodwill5,074 5,098 
Intangible assets558 591 
Deferred income taxes489 519 
Other assets1,538 1,510 
 $16,494 $16,148 
Liabilities and Stockholders' Equity
Current Liabilities:
Short-term debt$3,145 $2,286 
Accounts payable636 522 
Accrued expenses1,592 1,636 
Cash dividends payable457 465 
Income taxes payable123 217 
Total current liabilities5,953 5,126 
Noncurrent Liabilities:
Long-term debt6,549 6,683 
Deferred income taxes162 154 
Other liabilities935 959 
Total noncurrent liabilities7,646 7,796 
Stockholders' Equity:
Common stock6 6 
Additional paid-in-capital1,838 1,771 
Retained earnings30,812 30,150 
Common stock held in treasury(28,004)(26,875)
Accumulated other comprehensive income (loss)(1,758)(1,827)
Noncontrolling interest1 1 
Total stockholders' equity2,895 3,226 
$16,494 $16,148 



ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
SEGMENT DATA (UNAUDITED)

Three Months Ended June 30, 2026
Dollars in millionsTotal RevenueOperating IncomeOperating Margin
Automotive OEM$857 $185 21.6 %
Food Equipment692 188 27.1 %
Test & Measurement and Electronics769 193 25.2 %
Welding549 178 32.4 %
Polymers & Fluids476 140 29.3 %
Construction Products494 151 30.6 %
Specialty Products468 148 31.5 %
Intersegment(4)— — %
Total Segments4,301 1,183 27.5 %
Unallocated— (36)— %
Total Company$4,301 $1,147 26.7 %
Six Months Ended June 30, 2026
Dollars in millionsTotal RevenueOperating IncomeOperating Margin
Automotive OEM$1,677 $358 21.3 %
Food Equipment1,329 345 26.0 %
Test & Measurement and Electronics1,484 357 24.1 %
Welding1,056 341 32.3 %
Polymers & Fluids928 266 28.7 %
Construction Products952 286 30.0 %
Specialty Products899 283 31.4 %
Intersegment(8)— — %
Total Segments8,317 2,236 26.9 %
Unallocated— (69)— %
Total Company$8,317 $2,167 26.1 %


ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
SEGMENT DATA (UNAUDITED)

Q2 2026 vs. Q2 2025 Favorable/(Unfavorable)
Operating
Revenue		Automotive OEMFood EquipmentTest & Measurement and ElectronicsWeldingPolymers & FluidsConstruction ProductsSpecialty ProductsTotal ITW
Organic(0.4)%— %10.0 %13.9 %7.3 %2.0 %1.6 %4.5 %
Acquisitions/
Divestitures		— %— %1.3 %— %— %— %— %0.2 %
Translation1.7 %1.6 %0.8 %0.8 %1.5 %2.3 %1.4 %1.4 %
Operating
Revenue		1.3 %1.6 %12.1 %14.7 %8.8 %4.3 %3.0 %6.1 %
Q2 2026 vs. Q2 2025 Favorable/(Unfavorable)
Change in Operating MarginAutomotive OEMFood EquipmentTest & Measurement and ElectronicsWeldingPolymers & FluidsConstruction ProductsSpecialty ProductsTotal ITW
Operating Leverage(10) bps—250 bps220 bps140 bps40 bps20 bps90 bps
Changes in Variable
Margin & OH Costs		20 bps(60) bps—(250) bps40 bps(40) bps(150) bps(50) bps
Total Organic10 bps(60) bps250 bps(30) bps180 bps—(130) bps40 bps
Acquisitions/
Divestitures		——(20) bps—————
Restructuring/Other20 bps—10 bps(40) bps(20) bps(20) bps20 bps—
Total Operating
Margin Change		30 bps(60) bps240 bps(70) bps160 bps(20) bps(110) bps40 bps
Total Operating
Margin % *		21.6%27.1%25.2%32.4%29.3%30.6%31.5%26.7%
* Includes unfavorable operating margin impact of amortization expense from acquisition-related intangible assets20 bps10 bps120 bps—80 bps10 bps20 bps40 bps **
** Amortization expense from acquisition-related intangible assets had an unfavorable impact of ($0.04) on GAAP earnings per share for the second quarter of 2026.



ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
SEGMENT DATA (UNAUDITED)

H1 2026 vs. H1 2025 Favorable/(Unfavorable)
Operating
Revenue		Automotive OEMFood EquipmentTest & Measurement and ElectronicsWeldingPolymers & FluidsConstruction ProductsSpecialty ProductsTotal ITW
Organic(0.6)%(1.3)%7.4 %10.0 %4.6 %0.4 %(1.5)%2.5 %
Acquisitions/
Divestitures		— %— %1.5 %— %— %— %— %0.3 %
Translation3.4 %2.9 %2.0 %1.0 %2.5 %3.5 %2.6 %2.6 %
Operating
Revenue		2.8 %1.6 %10.9 %11.0 %7.1 %3.9 %1.1 %5.4 %
H1 2026 vs. H1 2025 Favorable/(Unfavorable)
Change in
Operating Margin		Automotive OEMFood EquipmentTest & Measurement and ElectronicsWeldingPolymers & FluidsConstruction ProductsSpecialty ProductsTotal ITW
Operating Leverage(10) bps(20) bps200 bps160 bps90 bps20 bps(30) bps50 bps
Changes in Variable
Margin & OH Costs		70 bps(100) bps20 bps(180) bps80 bps(10) bps(40) bps(10) bps
Total Organic60 bps(120) bps220 bps(20) bps170 bps10 bps(70) bps40 bps
Acquisitions/
Divestitures		——(40) bps—————
Restructuring/Other40 bps10 bps20 bps(30) bps(10) bps(10) bps30 bps10 bps
Total Operating
Margin Change		100 bps(110) bps200 bps(50) bps160 bps—(40) bps50 bps
Total Operating
Margin % *		21.3%26.0%24.1%32.3%28.7%30.0%31.4%26.1%
* Includes unfavorable operating margin impact of amortization expense from acquisition-related intangible assets20 bps—130 bps—90 bps10 bps20 bps40 bps **
** Amortization expense from acquisition-related intangible assets had an unfavorable impact of ($0.09) on GAAP earnings per share for the first half of 2026.







ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
GAAP to NON-GAAP RECONCILIATIONS (UNAUDITED)

AFTER-TAX RETURN ON AVERAGE INVESTED CAPITAL (UNAUDITED)
Three Months EndedSix Months Ended
June 30,June 30,
Dollars in millions2026202520262025
Numerator:
Net Income$815 $755 $1,583 $1,455 
Discrete tax benefit related to the first quarter 2026— — (34)— 
Discrete tax benefit related to the first quarter 2025— — — (21)
Interest expense, net of tax (1)
59 56 115 108 
Other (income) expense, net of tax (1)
(9)(3)(24)(12)
Operating income after taxes$865 $808 $1,640 $1,530 
Denominator:
Invested capital:
Cash and equivalents$839 $788 $839 $788 
Trade receivables3,564 3,320 3,564 3,320 
Inventories1,756 1,710 1,756 1,710 
Net plant and equipment2,235 2,177 2,235 2,177 
Goodwill and intangible assets5,632 5,596 5,632 5,596 
Accounts payable and accrued expenses(2,228)(2,157)(2,228)(2,157)
Debt(9,694)(8,937)(9,694)(8,937)
Other, net791 714 791 714 
Total net assets (stockholders' equity)2,895 3,211 2,895 3,211 
Cash and equivalents(839)(788)(839)(788)
Debt9,694 8,937 9,694 8,937 
Total invested capital$11,750 $11,360 $11,750 $11,360 
Average invested capital (2)
$11,650 $10,996 $11,548 $10,741 
Net income to average invested capital (3)
28.0 %27.4 %27.4 %27.1 %
After-tax return on average invested capital (3)
29.7 %29.4 %28.4 %28.5 %

(1)    Effective tax rate used for interest expense and other (income) expense for the three months ended June 30, 2026 and 2025 was 24.4% in both periods. Effective tax rate used for interest expense and other (income) expense for the six months ended June 30, 2026 and 2025 was 24.3% and 24.2%, respectively.

(2)    Average invested capital is calculated using the total invested capital balances at the start of the period and at the end of each quarter within each of the periods presented.

(3)    Returns for the three months ended June 30, 2026 and 2025 were converted to an annual rate by multiplying the calculated return by 4. Returns for the six months ended June 30, 2026 and 2025 were converted to an annual rate by multiplying the calculated return by 2.



A reconciliation of the tax rate for the six month period ended June 30, 2026, excluding the first quarter 2026 discrete tax benefit of $34 million primarily related to the resolution of a U.S. tax audit, is as follows:

Six Months Ended
June 30, 2026
Dollars in millionsIncome TaxesTax Rate
As reported$464 22.6 %
Discrete tax benefit related to the first quarter 202634 1.7 %
As adjusted$498 24.3 %

A reconciliation of the tax rate for the six month period ended June 30, 2025, excluding the first quarter 2025 discrete tax benefit of $21 million related to the reversal of a valuation allowance on net operating loss carryforwards, is as follows:

Six Months Ended
June 30, 2025
Dollars in millionsIncome TaxesTax Rate
As reported$438 23.1 %
Discrete tax benefit related to the first quarter 202521 1.1 %
As adjusted$459 24.2 %



AFTER-TAX RETURN ON AVERAGE INVESTED CAPITAL (UNAUDITED)

Twelve Months Ended
Dollars in millionsDecember 31, 2025
Numerator:
Net income$3,066 
Net discrete tax benefit related to the third quarter 2025(27)
Discrete tax benefit related to the first quarter 2025(21)
Interest expense, net of tax (1)
222 
Other (income) expense, net of tax (1)
(32)
Operating income after taxes$3,208 
Denominator:
Invested capital:
Cash and equivalents$851 
Trade receivables3,227 
Inventories1,659 
Net plant and equipment2,230 
Goodwill and intangible assets5,689 
Accounts payable and accrued expenses(2,158)
Debt(8,969)
Other, net697 
Total net assets (stockholders' equity)3,226 
Cash and equivalents(851)
Debt8,969 
Total invested capital$11,344 
Average invested capital (2)
$10,959 
Net income to average invested capital28.0 %
After-tax return on average invested capital29.3 %

(1)    Effective tax rate used for interest expense and other (income) expense for the year ended December 31, 2025 was 23.9%.

(2)    Average invested capital is calculated using the total invested capital balances at the start of the period and at the end of each quarter within the period presented.

A reconciliation of the 2025 effective tax rate, excluding the third quarter 2025 net discrete tax benefit of $27 million, which included a favorable discrete tax benefit of $43 million related to the estimated U.S. federal tax liability for 2024, partially offset by a $16 million discrete tax expense related primarily to the resolution of a foreign tax audit, and excluding the first quarter 2025 discrete tax benefit of $21 million related to the reversal of a valuation allowance on net operating loss carryforwards, is as follows:

Twelve Months Ended
December 31, 2025
Dollars in millionsIncome TaxesTax Rate
As reported$900 22.7 %
Net discrete tax benefit related to the third quarter 202527 0.7 %
Discrete tax benefit related to the first quarter 202521 0.5 %
As adjusted$948 23.9 %


FREE CASH FLOW (UNAUDITED)

Three Months EndedSix Months Ended
June 30,June 30,
Dollars in millions2026202520262025
Net cash provided by operating activities$723 $550 $1,346 $1,142 
Less: Additions to plant and equipment(92)(101)(187)(197)
Free cash flow$631 $449 $1,159 $945 
Net income$815 $755 $1,583 $1,455 
Net cash provided by operating activities to net income conversion rate89 %73 %85 %78 %
Free cash flow to net income conversion rate77 %59 %73 %65 %