ITWMEDIUM SIGNALFINANCIAL10-K

ITW shows signs of increased financial leverage with interest expense rising 31% while cash declined and current liabilities increased meaningfully.

The combination of higher interest costs, reduced cash position, and increased short-term obligations suggests ITW may be taking on additional debt or facing higher borrowing costs in the current interest rate environment. While the company remains operationally focused with continued 80/20 practice implementation, investors should monitor whether this financial shift reflects strategic investments or potential liquidity pressures.

Comparing 2026-02-13 vs 2025-02-14View on EDGAR →
FINANCIAL ANALYSIS

ITW's financial position shows increased leverage with interest expense climbing 31% to $266 million, while cash and equivalents declined 10% to $851 million. Current liabilities grew 19% to $5.1 billion, indicating higher short-term obligations that warrant monitoring. The overall picture suggests ITW is operating with less financial cushion and higher borrowing costs compared to the prior year.

FINANCIAL STATEMENT CHANGES
Interest Expense
P&L
+31%
$203.0M→$266.0M

Interest expense surged 31% — significant debt increase or rising rates materially impacting earnings.

Current Liabilities
Balance Sheet
+19%
$4.3B→$5.1B

Current liabilities rose 19% — increased short-term obligations, watch current ratio.

Cash & Equivalents
Balance Sheet
-10.2%
$948.0M→$851.0M

Cash decreased 10.2% — monitor burn rate and upcoming capital needs.

LANGUAGE CHANGES
NEW — 2026-02-13
PRIOR — 2025-02-14
ADDED
Shares of common stock outstanding at January 31, 2026: 288.2 million.
The Company is a global manufacturer of a diversified range of industrial products and equipment with 88 divisions in 49 countries.
As of December 31, 2025, the Company employed approximately 43,000 people.
5 During the Next Phase, ITW will continue to drive 80/20 Front-to-Back practice excellence in every division in the Company, every day, further improving customer-facing performance and supporting additional structural margin expansion at the enterprise level.
Operating revenue related to this business that was included in the Company's results of operations was $9 million for the twelve months ended December 31, 2023.
The Company has completed the allocation of purchase price for both of these acquisitions.
On October 1, 2025, the Company completed the acquisition of one business in the Test Measurement and Electronics segment for $120 million, net of cash acquired, and subject to certain closing adjustments.
Intellectual Property The Company owns approximately 4,200 unexpired U.S.
patents and 10,400 unexpired foreign patents covering articles, methods and machines.
In addition, the Company has approximately 1,600 applications for patents pending in the U.S.
REMOVED
Shares of common stock outstanding at January 31, 2025: 293.5 million.
The Company is a global manufacturer of a diversified range of industrial products and equipment with 86 divisions in 51 countries.
As of December 31, 2024, the Company employed approximately 44,000 people.
In the second quarter of 2022, plans were approved to divest two businesses, including one business in the Polymers Fluids segment and one business in the Food Equipment segment.
In the fourth quarter of 2022, both of these businesses were divested.
The business in the Polymers Fluids segment was sold for $220 million, subject to certain closing adjustments, resulting in a pre-tax gain of $156 million.
The business in the Food Equipment segment was sold for $59 million, subject to certain closing adjustments, resulting in a pre-tax gain of $41 million.
Operating revenue related to these divested businesses that was included in the Company's results of operations for the twelve months ended December 31, 2022 was $106 million.
Operating revenue related to this business that was included in the Company's results of operations was $9 million and $37 million for the twelve months ended December 31, 2023 and 2022, respectively.
The purchase price for both acquisitions was subject to certain closing adjustments.
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