ITW is set to benefit from solid momentum across its Food Equipment and Specialty Products segments. However, forex woes remain a concern.

Dividend Kings, or companies that have raised their payouts for at least 50 consecutive years, provide a great starting point for investors looking for reliable passive income sources. But some Dividend Kings don't consistently raise their dividends by a meaningful amount, or they have fractures in their business model that could jeopardize future raises.

Illinois Tool Works: Good Balance Between Growth And Value

I believe we're at a turning point for cyclical stocks, with improving indicators and global growth signaling potential outperformance in industrials, energy, and transportation. I'm positioning my portfolio for this shift, adding to railroads, machinery, and energy stocks. I'm confident these sectors will see strong returns and accelerating dividend growth. Of course, risks remain - geopolitical tensions, inflation, or economic slowdowns could derail this trend. But for now, the risk/reward looks favorable.

ITW's fourth-quarter 2024 results benefit from revenue growth in the Food Equipment and Test & Measurement and Electronics segments.

Illinois Tool Works Inc. (NYSE:ITW ) Q4 2024 Earnings Conference Call February 5, 2025 10:00 AM ET Company Participants Erin Linnihan - Vice President, Investor Relations Chris O'Herlihy - President & Chief Executive Officer Michael Larsen - Senior Vice President & Chief Financial Officer Conference Call Participants Stephen Volkmann - Jefferies Scott Davis - Melius Research Andrew Kaplowitz - Citi Group Jeff Sprague - Vertical Research Jamie Cook - Truist Securities Joe Ritchie - Goldman Sachs Tami Zakaria - JPMorgan Julian Mitchell - Barclays Nigel Coe - Wolfe Research Joe O'Dea - Wells Fargo Andrew Obin - Bank of America Operator My name is Tamika and I will be your conference operator today. At this time, I would like to welcome everyone to the ITW's Fourth Quarter Earnings Conference Call.

While the top- and bottom-line numbers for Illinois Tool Works (ITW) give a sense of how the business performed in the quarter ended December 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.

Illinois Tool Works (ITW) came out with quarterly earnings of $2.54 per share, beating the Zacks Consensus Estimate of $2.49 per share. This compares to earnings of $2.42 per share a year ago.

Fourth Quarter 2024 Highlights Revenue of $3.9 billion, a decrease of 1.3% as organic growth declined 0.5%; Organic growth of 0.4% turned positive excluding Product Line Simplification (PLS) reduction of 0.9% Record operating margin of 26.2%, an increase of 140 bps as enterprise initiatives contributed 120 bps Operating cash flow of $1.1B; record free cash flow of $1B, an increase of 10% with a conversion of 133% GAAP EPS of $2.54, an increase of 7% 2024 Highlights Revenue of $15.9 billion, a decrease of 1.3% as organic growth declined 0.7% in markets that were down low to mid-single digits Record operating margin of 26.8% as enterprise initiatives contributed 130 bps Record GAAP EPS of $11.71, an increase of 20% 2025 Guidance Above-market organic growth of 0 to 2% based on current levels of demand; Organic growth of 1 to 3% excluding PLS reduction of approximately 1%-point Enterprise initiatives contributing approximately 100 bps to margin improvement GAAP EPS of $10.15 to $10.55 including foreign currency translation headwind of $0.30 GLENVIEW, Ill., Feb. 05, 2025 (GLOBE NEWSWIRE) -- Illinois Tool Works Inc. (NYSE: ITW) today reported its fourth quarter and full year 2024 results and initiated guidance for full year 2025.

Looking beyond Wall Street's top -and-bottom-line estimate forecasts for Illinois Tool Works (ITW), delve into some of its key metrics to gain a deeper insight into the company's potential performance for the quarter ended December 2024.