All seven segments grew revenue and expanded operating margin sequentially, with three segments exceeding 30% margin.
Free cash flow was $449 million, representing a 59% conversion rate, modestly below historical average due to timing of onetime items but on track for 100% plus conversion for the full year.
GAAP EPS was $2.58, operating income reached $1.1 billion, and operating margin was 26.3%, all second quarter records for the company.
ITW delivered solid financial performance in Q2 2025 with total revenue increasing 1%, driven by a 1% positive impact from foreign currency translation and offset by a 1% reduction from product line simplification (PLS).
Organic growth was essentially flat but improved by over 1 percentage point from Q1, with geographic performance showing a 2% organic decline in North America, 3% decline in Europe, and 9% growth in Asia Pacific, including 15% growth in China.
Polymers & Fluids revenue declined 3% with organic revenue down 5%, and Construction Products revenue declined 6% with a 140 basis point margin improvement to 30.8%.
Segment highlights included Automotive OEM revenue up 4% with 2% organic growth and a 190 basis point margin improvement to 21.3%, Food Equipment revenue up 2%, Welding organic growth of 3%, and Specialty Products revenue up 1%.
Segment highlights included Automotive OEM revenue up 4% with 2% organic growth and a 190 basis point margin improvement to 21.3%, Food Equipment revenue up 2% with 1% organic growth, Welding delivering 3% organic growth with a 33.1% operating margin, and Construction Products revenue declining 6% but improving operating margin by 140 basis points to 30.8%.
Sequentially from Q1 to Q2, revenue grew 6%, operating income improved 12%, and operating margin expanded by 150 basis points.
Sequentially, revenue grew 6% from Q1 to Q2, operating income improved 12%, and operating margin expanded by 150 basis points.
Dafinchi