Illinois Tool Works Inc. (ITW) Cash Flow Statement
Where ITW’s cash came from and went, 2025
December 31, 2025 · U.S. dollars- Cash from operations
- $3.13B −4.7% vs 2024
- Capital expenditures
- $419.0M 2.6% of revenue
- Free cash flow
- $2.71B 16.9% margin
- Returned to shareholders
- $3.29B 121% of free cash flow
- Change in cash
- −$97.0M cash at year-end $851.0M
Drawn to scale: where the cash came from and how it was used. Hover for values.
ITW operating cash flow, capex and free cash flow
ITW cash flow trends, 2016–2025
| Metric | Trend | Then | Latest | Change |
|---|---|---|---|---|
| Operating cash flow | $2.30B2016 | $3.13B2025 | +3.5%/yr | |
| Capital expenditures | $273.0M2016 | $419.0M2025 | +4.9%/yr | |
| Free cash flow | $2.03B2016 | $2.71B2025 | +3.3%/yr | |
| Free cash flow margin | 14.9%2016 | 16.9%2025 | +2.0 pts | |
| Operating cash flow / net income | 1.132016 | 1.022025 | −0.11 | |
| Stock-based compensation | $39.0M2016 | $69.0M2025 | +6.5%/yr | |
| Dividends paid | $821.0M2016 | $1.78B2025 | +9.0%/yr | |
| Share buybacks (net) | $2.00B2016 | $1.50B2025 | −3.1%/yr | |
| Capex / revenue | 2.0%2016 | 2.6%2025 | +0.6 pts |
Change is the average annual growth (CAGR) or the difference between the first and latest year.
ITW cash flow by activity
ITW net income vs operating cash flow
Operating cash flow above net income usually means earnings are backed by cash (depreciation and stock-based pay are non-cash expenses).
ITW cash flow statement
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating activities | ||||||||||
| Net income | $3.07B | $3.49B | $2.96B | $3.03B | $2.69B | $2.11B | $2.52B | $2.56B | $1.69B | $2.04B |
| Depreciation & amortization | $397.0M | $402.0M | $395.0M | $410.0M | $410.0M | $427.0M | $426.0M | $461.0M | $462.0M | $470.0M |
| Stock-based compensation | $69.0M | $61.0M | $69.0M | $63.0M | $53.0M | $42.0M | $41.0M | $40.0M | $36.0M | $39.0M |
| Change in working capital | −$406.0M | −$18.0M | $210.0M | −$816.0M | −$438.0M | $249.0M | $31.0M | −$288.0M | $158.0M | $38.0M |
| Other non-cash items | $0 | −$652.0M | −$92.0M | −$343.0M | −$162.0M | −$20.0M | −$24.0M | $35.0M | $59.0M | −$280.0M |
| Cash from operating activities | $3.13B | $3.28B | $3.54B | $2.35B | $2.56B | $2.81B | $3.00B | $2.81B | $2.40B | $2.30B |
| Investing activities | ||||||||||
| Capital expenditures | −$419.0M | −$437.0M | −$455.0M | −$412.0M | −$296.0M | −$236.0M | −$326.0M | −$364.0M | −$297.0M | −$273.0M |
| Investments (net) | $7.0M | −$144.0M | −$156.0M | $12.0M | $38.0M | $14.0M | $20.0M | $16.0M | $43.0M | $188.0M |
| Acquisitions & other investing | −$109.0M | $437.0M | $208.0M | $290.0M | −$726.0M | $8.0M | $123.0M | $23.0M | $3.0M | −$447.0M |
| Cash from investing activities | −$521.0M | −$144.0M | −$403.0M | −$110.0M | −$984.0M | −$214.0M | −$183.0M | −$325.0M | −$251.0M | −$532.0M |
| Financing activities | ||||||||||
| Dividends paid | −$1.78B | −$1.70B | −$1.61B | −$1.54B | −$1.46B | −$1.38B | −$1.32B | −$1.12B | −$941.0M | −$821.0M |
| Share repurchases & issuance (net) | −$1.50B | −$1.50B | −$1.50B | −$1.75B | −$1.00B | −$706.0M | −$1.50B | −$2.00B | −$1.00B | −$2.00B |
| Net borrowing (repayment) | $508.0M | −$8.0M | $294.0M | $276.0M | −$141.0M | −$4.0M | $422.0M | −$851.0M | $197.0M | $465.0M |
| Shares issued | $65.0M | $52.0M | $61.0M | $29.0M | $50.0M | $66.0M | $85.0M | $22.0M | $0 | $0 |
| Other financing | −$32.0M | −$38.0M | −$22.0M | −$13.0M | −$10.0M | −$26.0M | −$12.0M | −$11.0M | $70.0M | $101.0M |
| Cash from financing activities | −$2.74B | −$3.19B | −$2.78B | −$3.00B | −$2.56B | −$2.05B | −$2.33B | −$3.96B | −$1.67B | −$2.25B |
| Summary | ||||||||||
| Net change in cash | −$97.0M | −$117.0M | $357.0M | −$819.0M | −$1.04B | $583.0M | $477.0M | −$1.59B | $622.0M | −$618.0M |
| Cash at end of period | $851.0M | $948.0M | $1.06B | $708.0M | $1.53B | $2.56B | $1.98B | $1.50B | $3.09B | $2.47B |
| Free cash flow | $2.71B | $2.84B | $3.08B | $1.94B | $2.26B | $2.57B | $2.67B | $2.45B | $2.10B | $2.03B |
| Free cash flow margin | 16.9% | 17.9% | 19.1% | 12.2% | 15.6% | 20.4% | 18.9% | 16.6% | 14.7% | 14.9% |
| Capex / revenue | 2.6% | 2.7% | 2.8% | 2.6% | 2.0% | 1.9% | 2.3% | 2.5% | 2.1% | 2.0% |
| Operating cash flow / net income | 1.02 | 0.94 | 1.20 | 0.77 | 0.95 | 1.33 | 1.19 | 1.10 | 1.42 | 1.13 |
| Jun '26 | Mar '26 | Dec '25 | Sep '25 | Jun '25 | Mar '25 | Dec '24 | Sep '24 | Jun '24 | Mar '24 | Dec '23 | Sep '23 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating activities | ||||||||||||
| Net income | $815.0M | $768.0M | $790.0M | $821.0M | $755.0M | $700.0M | $750.0M | $1.16B | $759.0M | $819.0M | $717.0M | $772.0M |
| Depreciation & amortization | $98.0M | $99.0M | $103.0M | $100.0M | $99.0M | $95.0M | $102.0M | $104.0M | $99.0M | $97.0M | $99.0M | $97.0M |
| Stock-based compensation | $22.0M | $18.0M | $17.0M | $17.0M | $19.0M | $16.0M | $13.0M | $14.0M | $19.0M | $15.0M | $17.0M | $17.0M |
| Change in working capital | −$227.0M | −$267.0M | $24.0M | $91.0M | −$312.0M | −$209.0M | $256.0M | $187.0M | −$187.0M | −$276.0M | $303.0M | $75.0M |
| Other non-cash items | $15.0M | $5.0M | $29.0M | −$8.0M | −$11.0M | −$10.0M | −$7.0M | −$574.0M | −$3.0M | −$66.0M | −$97.0M | $21.0M |
| Cash from operating activities | $723.0M | $623.0M | $963.0M | $1.02B | $550.0M | $592.0M | $1.11B | $891.0M | $687.0M | $589.0M | $1.04B | $982.0M |
| Investing activities | ||||||||||||
| Capital expenditures | −$92.0M | −$95.0M | −$105.0M | −$117.0M | −$101.0M | −$96.0M | −$118.0M | −$108.0M | −$116.0M | −$95.0M | −$131.0M | −$126.0M |
| Investments (net) | $1.0M | $0 | $1.0M | −$116.0M | −$92.0M | −$92.0M | −$117.0M | $294.0M | −$169.0M | −$152.0M | −$120.0M | −$103.0M |
| Acquisitions & other investing | $6.0M | −$4.0M | −$117.0M | $117.0M | $101.0M | $96.0M | $118.0M | $108.0M | $116.0M | $95.0M | $131.0M | −$54.0M |
| Cash from investing activities | −$85.0M | −$99.0M | −$221.0M | −$116.0M | −$92.0M | −$92.0M | −$117.0M | $294.0M | −$169.0M | −$152.0M | −$120.0M | −$283.0M |
| Financing activities | ||||||||||||
| Dividends paid | −$463.0M | −$465.0M | −$467.0M | −$438.0M | −$439.0M | −$441.0M | −$443.0M | −$415.0M | −$418.0M | −$419.0M | −$421.0M | −$396.0M |
| Share repurchases & issuance (net) | −$750.0M | −$375.0M | −$375.0M | −$375.0M | −$375.0M | −$375.0M | −$375.0M | −$375.0M | −$375.0M | −$375.0M | −$375.0M | −$375.0M |
| Net borrowing (repayment) | $596.0M | $259.0M | $19.0M | $25.0M | $262.0M | $202.0M | −$120.0M | −$333.0M | — | — | — | −$25.0M |
| Shares issued | $0 | $52.0M | $5.0M | $13.0M | $3.0M | $44.0M | $9.0M | $2.0M | $0 | $41.0M | $4.0M | $9.0M |
| Other financing | −$15.0M | −$18.0M | $0 | $0 | −$14.0M | −$18.0M | −$14.0M | $0 | $192.0M | $229.0M | −$85.0M | −$1.0M |
| Cash from financing activities | −$632.0M | −$547.0M | −$818.0M | −$775.0M | −$563.0M | −$588.0M | −$943.0M | −$1.12B | −$601.0M | −$524.0M | −$877.0M | −$788.0M |
| Summary | ||||||||||||
| Net change in cash | $12.0M | −$24.0M | −$73.0M | $136.0M | −$85.0M | −$75.0M | $1.0M | $85.0M | −$97.0M | −$106.0M | $75.0M | $68.0M |
| Cash at end of period | $839.0M | $827.0M | $851.0M | $924.0M | $788.0M | $873.0M | $948.0M | $947.0M | $862.0M | $959.0M | $1.06B | $990.0M |
| Free cash flow | $631.0M | $528.0M | $858.0M | $904.0M | $449.0M | $496.0M | $996.0M | $783.0M | $571.0M | $494.0M | $908.0M | $856.0M |
| Free cash flow margin | 14.7% | 13.1% | 21.0% | 22.3% | 11.1% | 12.9% | 25.3% | 19.7% | 14.2% | 12.4% | 22.8% | 21.2% |
| Capex / revenue | 2.1% | 2.4% | 2.6% | 2.9% | 2.5% | 2.5% | 3.0% | 2.7% | 2.9% | 2.4% | 3.3% | 3.1% |
| Operating cash flow / net income | 0.89 | 0.81 | 1.22 | 1.24 | 0.73 | 0.85 | 1.49 | 0.77 | 0.91 | 0.72 | 1.45 | 1.27 |
Negative numbers are cash paid out. Quarterly columns are labeled by the month the quarter ended. Figures in U.S. dollars as reported; data from EODHD.
ITW cash generation
In fiscal 2025 (ended December 31, 2025), Illinois Tool Works generated $3.1 billion of cash from operations (down 4.7%) and spent $419.0 million on capital expenditures, leaving free cash flow of $2.7 billion, 16.9% of revenue. It returned $3.3 billion to shareholders through dividends ($1.8 billion) and net share buybacks ($1.5 billion). Cash and equivalents fell by $97.0 million over the year.
Related: ITW income statement, ITW balance sheet, ITW dividend history. See the ITW stock overview for the latest quote and news.
ITW cash flow FAQ
What is Illinois Tool Works's free cash flow?
Illinois Tool Works's free cash flow was $2.7 billion in fiscal 2025: $3.1 billion of operating cash flow minus $419.0 million of capital expenditures It was $2.8 billion a year earlier..
How much cash does Illinois Tool Works generate from operations?
Illinois Tool Works generated $3.1 billion of cash from operating activities in fiscal 2025, 1.02 times its net income of $3.1 billion.
How much does Illinois Tool Works spend on capital expenditures?
Illinois Tool Works spent $419.0 million on capital expenditures in fiscal 2025, 2.6% of revenue, compared with $437.0 million the year before.
How much stock does Illinois Tool Works buy back?
Illinois Tool Works spent $1.5 billion on net share repurchases in fiscal 2025.
How much does Illinois Tool Works pay in dividends?
Illinois Tool Works paid $1.8 billion in dividends in fiscal 2025, 65.9% of free cash flow.