ILLINOIS TOOL WORKS INC
For the period ended Jun 30, 2025. Filed Aug 1, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 1, 2025
ITW$280.95-1.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-01.
0000049826-25-000014
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-01.
0000049826-25-000037
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 190 previous paragraphs and 203 current paragraphs.
113 unchanged; 58 reworded; 32 added; 19 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 17 previous and 25 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (32)
Current report
On July 4, 2025, the One Big Beautiful Bill Act (the "Act") was enacted in the United States. The provisions of the Act extend and modify certain provisions of the 2017 Tax Cuts and Jobs Act. While the provisions of the Act are not expected to have a material impact on the Company's operating results, financial position or cash flows for the twelve months ending December 31, 2025, the Company is assessing the potential impact of the Act on future periods.
Current report
•Organic revenue decreased 0.4% in the second quarter and 1.0% in the year-to-date period as a decline in the Construction Products, Polymers and Fluids and Test & Measurement and Electronics segments was partially offset by growth in the Automotive OEM, Welding, Food Equipment and Specialty Products segments. Product line simplification activities reduced organic revenue by 70 basis points and 60 basis points in the second quarter and year-to-date periods, respectively.
Current report
◦Europe, Middle East and Africa organic revenue declined 2.6% in the second quarter as a decrease in four segments was partially offset by growth in the Automotive OEM, Welding and Specialty Products segments. In the year-to-date period, organic revenue decreased 2.8% as a decline in six segments was partially offset by an increase in the Welding segment.
Current report
•Operating margin was 26.3% in the second quarter. The increase of 10 basis points was primarily due to benefits from the Company's enterprise initiatives of 130 basis points and lower restructuring expenses, partially offset by higher employee-related expenses, including higher health and welfare expenses.
Current report
•Operating revenue increased in the second quarter due to higher organic revenue and the favorable effect of foreign currency translation. In the year-to-date period, operating revenue grew due to higher organic revenue, partially offset by the unfavorable effect of foreign currency translation.
Current report
•Organic revenue increased 2.4% in the second quarter and grew 0.6% in the year-to-date period compared to worldwide auto builds which grew 3% in the second quarter and year-to-date periods. Product line simplification activities reduced organic revenue by 140 basis points in the second quarter and 120 basis points in the year-to-date period.
Current report
◦Asia Pacific organic revenue increased 17.0% and 14.6% in the second quarter and year-to-date periods, respectively. China organic revenue grew 21.6% and increased 17.9% in the second quarter and year-to-date periods, respectively, including growth in the electric vehicles market, versus China auto builds which grew 9% in the second quarter and increased 12% in the year-to-date period. The business outperformed the market primarily due to market penetration gains.
Current report
•Operating margin was 21.3% in the second quarter. The increase of 190 basis points was primarily due to benefits from the Company's enterprise initiatives, favorable operating leverage of 40 basis points, lower restructuring expenses of 40 basis points and favorable price/cost of 20 basis points, partially offset by higher employee-related expenses and continued investment in the business.
Current report
•In the year-to-date period, operating margin of 20.3% increased 70 basis points primarily driven by benefits from the Company's enterprise initiatives and favorable price/cost of 20 basis points, partially offset by higher employee-related expenses and continued investment in the business.
Current report
•Operating revenue increased in the second quarter due to the favorable effect of foreign currency translation and higher organic revenue. In the year-to-date period, operating revenue grew due to higher organic revenue, partially offset by the unfavorable effect of foreign currency translation.
Current report
•Organic revenue increased 0.8% in the second quarter as equipment organic revenue decreased 0.1% and service organic revenue grew 2.5%. In the year-to-date period, organic revenue grew 1.0% as equipment organic revenue declined 0.1% and service organic revenue increased 2.9%.
Current report
◦North American organic revenue increased 4.5% in the second quarter. Equipment organic revenue increased 3.8% primarily due to higher demand in the institutional, independent restaurant, quick serve restaurant and food retail end markets. Service organic revenue grew 5.7%. In the year-to-date period, North American organic revenue grew 2.7%. Equipment organic revenue grew 1.5% primarily due to higher demand in the institutional end market, partially offset by a decline in the full service and food retail end markets. Service organic revenue increased 4.7%.
Current report
◦International organic revenue declined 4.7% in the second quarter. Equipment organic revenue decreased 6.0% primarily due to lower demand in the European cooking, warewash and refrigeration end markets and lower demand in Asia. Service organic revenue declined 2.4%. In the year-to-date period, international organic revenue decreased 1.6%. Equipment organic revenue declined 2.4% primarily driven by lower demand in the European cooking and refrigeration end markets and lower demand in Asia, partially offset by higher demand in the European warewash end market. Service organic revenue decreased 0.2%.
Current report
•Operating margin was 27.7% in the second quarter. The increase of 60 basis points was primarily due to benefits from the Company's enterprise initiatives, partially offset by higher employee-related expenses and additional investment in the business.
Current report
•Operating revenue increased in the second quarter due to the favorable effect of foreign currency translation, partially offset by lower organic revenue. In the year-to-date period, operating revenue declined primarily due to lower organic revenue, partially offset by the favorable effect of foreign currency translation.
Current report
•Operating margin was 22.8% in the second quarter. The decrease of 70 basis points was primarily due to higher employee-related expenses, product mix, unfavorable price/cost of 30 basis points and the unfavorable operating leverage of 20 basis points, partially offset by benefits from the Company's enterprise initiatives and lower intangible asset amortization expense.
Current report
•Operating revenue grew in the second quarter due to higher organic revenue and the favorable effect of foreign currency translation. In the year-to-date period, operating revenue grew due to higher organic revenue, partially offset by the unfavorable effect of foreign currency translation.
Current report
•Organic revenue increased 2.8% in the second quarter as equipment increased 3.9% and consumables grew 1.1%. In the year-to-date period, organic revenue grew 1.4% as equipment grew 2.6%, partially offset by a decrease in consumables of 0.5%.
Current report
◦North American organic revenue increased 1.2% in the second quarter as the industrial end market grew 1.4%, partially offset by a decrease of 0.4% in the commercial end market. In the year-to-date period, organic revenue declined 0.6% as the commercial end market declined 3.1%, partially offset by an increase of 0.4%, in the industrial end market.
Current report
•In the year-to-date period, operating margin of 32.8% was flat compared to the prior year primarily due to higher employee-related expenses offset by benefits from the Company's enterprise initiatives, favorable price/cost of 20 basis points, favorable operating leverage of 20 basis points and lower restructuring expenses of 20 basis points.
Current report
•Operating revenue decreased in the second quarter due to lower organic revenue, partially offset by the favorable effect of foreign currency translation. In the year-to-date period, operating revenue declined due to lower organic revenue and the unfavorable effect of foreign currency translation.
Current report
•Organic revenue decreased 3.7% in the second quarter and declined 1.1% in the year-to-date period. Product line simplification activities reduced organic revenue by 90 basis points and 60 basis points in the second quarter and year-to-date periods, respectively.
Current report
◦Organic revenue for the polymers businesses decreased 5.3% in the second quarter due to lower demand in North America and Europe, partially offset by an increase in South America and Asia Pacific. In the year-to-date period, organic revenue was flat as an increase in South America and Asia Pacific was offset by a decrease in North America and Europe.
Current report
•Operating margin was 27.7% in the second quarter. The decrease of 50 basis points was primarily due to unfavorable operating leverage of 80 basis points and higher employee-related expenses, partially offset by benefits from the Company's enterprise initiatives.
Current report
•In the year-to-date period, operating margin of 27.1% increased 10 basis points primarily driven by benefits from the Company's enterprise initiatives, partially offset by higher employee-related expenses and unfavorable operating leverage of 20 basis points.
Current report
•Operating revenue decreased in the second quarter due to lower organic revenue, partially offset by the favorable effect of foreign currency translation. In the year-to-date period, operating revenue declined due to lower organic revenue and the unfavorable effect of foreign currency translation.
Current report
•Operating margin was 30.8% in the second quarter. The increase of 140 basis points was primarily due to benefits from the Company's enterprise initiatives and lower restructuring expenses of 140 basis points, partially offset by unfavorable operating leverage of 150 basis points, unfavorable price/cost of 100 basis points and higher employee-related expenses.
Current report
•Operating revenue increased in the second quarter due to the favorable effect of foreign currency translation and higher organic revenue. In the year-to-date period, operating revenue grew due to higher organic revenue, partially offset by the unfavorable effect of foreign currency translation.
Current report
•Organic revenue increased 0.3% in the second quarter as equipment sales grew 7.5% and consumables decreased 1.7%. In the year-to-date period, organic revenue grew 0.6% as equipment sales increased 2.0% and consumables grew 0.2%. Product line simplification activities reduced organic revenue by 120 basis points in both the second quarter and year-to-date periods.
Current report
◦North American organic revenue increased 1.2% in the second quarter primarily driven by growth in the consumer packaging and specialty films businesses, partially offset by a decline in the strength films business. In the year-to-date period, organic revenue grew 1.6% primarily due to growth in the specialty films, consumer packaging and ground support equipment businesses, partially offset by a decline in the filter medical and strength films businesses.
Current report
•In the year-to-date period, operating margin of 31.8% increased 100 basis points primarily driven by benefits from the Company's enterprise initiatives and favorable price/cost of 30 basis points, partially offset by higher employee-related expenses and product mix.
Current report
On May 17, 2024, the Company issued €650 million of 3.25% Euro notes due May 17, 2028 at 99.525% of face value and €850 million of 3.375% Euro notes due May 17, 2032 at 99.072% of face value. Proceeds from the issuance were used for general corporate purposes, including the repayment of a portion of the indebtedness under the commercial paper program and repayment of €550 million of the term loans under the Euro Credit Agreement.
Removed paragraphs (19)
Previous report
•Operating revenue decreased due to the unfavorable effect of foreign currency translation and lower organic revenue.
Previous report
•Organic revenue decreased 1.6% as a decline in the Test & Measurement and Electronics, Construction Products and Automotive OEM segments was partially offset by growth in the Food Equipment, Polymers & Fluids, Specialty Products and Welding segments. Product line simplification activities reduced organic revenue by 50 basis points.
Previous report
◦Europe, Middle East and Africa organic revenue decreased 3.0% as a decline in the Automotive OEM, Test & Measurement and Electronics, Specialty Products and Construction Products segments was partially offset by growth in the Polymers & Fluids, Food Equipment and Welding segments.
Previous report
•Operating revenue decreased due to the unfavorable effect of foreign currency translation and lower organic revenue.
Previous report
•Organic revenue decreased 1.2% compared to worldwide auto builds which grew 1%. Product line simplification activities reduced organic revenue by 90 basis points.
Previous report
◦Asia Pacific organic revenue increased 12.1%. China organic revenue increased 14.1%, including growth in the electric vehicles market, versus China auto builds which grew 11%. Auto builds of foreign automotive manufacturers in China, where the Company has higher content, declined 6%.
Previous report
•Organic revenue increased 1.2% as equipment organic revenue was flat and service organic revenue increased 3.3%.
Previous report
◦North American organic revenue increased 0.8%. Equipment organic revenue decreased 1.0% primarily due to lower demand in the food retail and independent restaurant end markets, partially offset by higher demand in the institutional end market. Service organic revenue increased 3.8%.
Previous report
◦International organic revenue increased 1.8%. Equipment organic revenue increased 1.4% primarily due to higher demand in the European and Asian warewash end markets, partially offset by lower demand in the European cooking and refrigeration end markets. Service organic revenue increased 2.4%.
Previous report
•Operating revenue decreased primarily due to lower organic revenue and the unfavorable effect of foreign currency translation.
Previous report
•Operating revenue decreased primarily due to the unfavorable effect of foreign currency translation.
Previous report
•Organic revenue was essentially flat as equipment grew 1.4% and consumables decreased 2.1%.
Previous report
◦North American organic revenue declined 2.3% as the industrial and commercial end markets decreased 0.6% and 5.7%, respectively.
Previous report
•Operating margin of 32.5% decreased 20 basis points primarily driven by higher employee-related expenses, partially offset by benefits from the Company's enterprise initiatives and favorable price/cost of 20 basis points.
Previous report
•Organic revenue increased 1.7%. Product line simplification activities reduced organic revenue by 30 basis points.
Previous report
◦Organic revenue for the polymers businesses grew 6.3% due to increases in South America, Europe and Asia Pacific, partially offset by a decrease in North America.
Previous report
•Operating margin of 26.5% increased 70 basis points primarily driven by benefits from the Company's enterprise initiatives and favorable operating leverage of 30 basis points, partially offset by higher employee-related expenses and unfavorable price/cost of 20 basis points.
Previous report
•Organic revenue increased 0.9% as consumables grew 2.2% and equipment sales decreased 3.2%. Product line simplification activities reduced organic revenue by 130 basis points.
Previous report
◦North American organic revenue grew 2.1% primarily driven by growth in the consumer packaging, specialty films, ground support equipment and appliance businesses, partially offset by a decline in the filter medical business.
Reworded paragraphs (58)
Previous wording
During the first quarter of 2022, Russian military forces invaded Ukraine. In response, the United States and several other countries imposed economic and other sanctions on Russia. The Company has four immaterial Russian subsidiaries with total assets of approximately $32 million as of March 31, 2025. The revenue for these four subsidiaries for the three months ended March 31, 2025 was approximately $5 million. These subsidiaries are not material to the Company’s results of operations or financial position.
Current wording
During the first quarter of 2022, Russian military forces invaded Ukraine. In response, the United States and several other countries imposed economic and other sanctions on Russia. The Company has four immaterial Russian subsidiaries with total assets of approximately $37 million as of June 30, 2025. The revenue for these four subsidiaries for the three and six months ended June 30, 2025 was approximately $7 million and $12 million, respectively. These subsidiaries are not material to the Company’s results of operations or financial position.
Previous wording
On April 2, 2025, the United States government announced additional tariffs on goods imported to the U.S. from numerous countries. In response, certain countries retaliated with additional counter-tariffs or may be in negotiations with the U.S government regarding tariffs. The Company believes it is well positioned to minimize the impact of these tariffs because its businesses generally manufacture products in the markets where they are sold and the Company expects to recover the increased cost of tariffs through price increases. However, current tariff policies have introduced additional uncertainty and may negatively impact overall demand from the Company's customers. The Company is currently assessing the impact of the tariffs and actions that can be taken to moderate and/or minimize their effects on the Company.
Current wording
On April 2, 2025, the United States government announced additional tariffs on goods imported to the U.S. from numerous countries. In response, certain countries retaliated with additional counter-tariffs or are working to negotiate with the U.S government regarding tariffs. Tariffs on goods from many countries were subsequently paused and are currently expected to be effective August 1, 2025. The Company believes it is well positioned to minimize the impact of these tariffs because its businesses generally manufacture products in the markets where they are sold and the Company expects to recover the increased cost of tariffs through price increases. However, current tariff policies have introduced additional uncertainty and may negatively impact overall demand from the Company's customers. The Company continues to assess the impact of the tariffs and actions that can be taken to moderate and/or minimize their effects on the Company.
Previous wording
In an uncertain external environment, the Company delivered solid financial results in the first quarter of 2025 primarily due to the continued successful execution of enterprise initiatives and continued focus on the highly differentiated ITW Business Model.
Current wording
In an uncertain external environment, the Company delivered solid financial results in the second quarter and year-to-date periods of 2025 primarily due to the continued successful execution of enterprise initiatives and continued focus on the highly differentiated ITW Business Model.
Previous wording
Refer to the "Results of Operations for Total Company" and the "Results of Operations by Segment" sections for discussion of changes in operating revenue for the first quarter of 2025 compared to 2024.
Current wording
Refer to the "Results of Operations for Total Company" and the "Results of Operations by Segment" sections for discussion of changes in operating revenue for the second quarter and year-to-date periods of 2025 compared to 2024.
Previous wording
Cost of revenue was $2.2 billion and $2.1 billion in the first quarter of 2025 and 2024, respectively, an increase of 0.7%. Cost of revenue as a percent of operating revenue was higher in 2025 compared to 2024. Excluding the first quarter 2024 LIFO accounting method change of $117 million, Cost of revenue decreased 4.5% in the first quarter of 2025 compared to 2024 primarily due to lower revenue and the effect of foreign currency translation. Cost of revenue, excluding the first quarter 2024 LIFO accounting method change, as a percent of operating revenue was lower in the first quarter of 2025 compared to 2024 primarily due to benefits from the Company's enterprise initiatives, partially offset by unfavorable operating leverage.
Current wording
Cost of revenue was $2.27 billion and $2.26 billion in the second quarter of 2025 and 2024, respectively, an increase of 0.4%, primarily due to higher revenue. Cost of revenue as a percent of operating revenue was lower in the second quarter of 2025 compared to 2024 primarily due to benefits from the Company's enterprise initiatives, partially offset by higher employee-related expenses. In the year-to-date period, Cost of revenue was $4.43 billion and $4.41 billion in 2025 and 2024, respectively, an increase of 0.6%. Excluding the first quarter 2024 LIFO accounting method change of $117 million, Cost of revenue decreased 2.0% in 2025 compared to 2024 primarily due to lower revenue and the effect of foreign currency translation. Cost of revenue, excluding the first quarter 2024 LIFO accounting method change, as a percent of operating revenue was lower in the year-to-date period of 2025 compared to 2024 primarily due to benefits from the Company's enterprise initiatives, partially offset by unfavorable operating leverage.
Previous wording
Selling, administrative, and research and development expenses were $706 million and $676 million in the first quarter of 2025 and 2024, respectively. Selling, administrative, and research and development expenses as a percent of operating revenue were higher in 2025 compared to 2024 primarily due to higher employee-related expenses, partially offset by benefits from the Company's enterprise initiatives.
Current wording
Selling, administrative, and research and development expenses were $693 million and $686 million in the second quarter of 2025 and 2024, respectively, and $1.40 billion and $1.36 billion in the year-to-date period of 2025 and 2024, respectively. Selling, administrative, and research and development expenses as a percent of operating revenue were higher in the second quarter and year-to-date periods of 2025 compared to the respective 2024 periods primarily due to higher employee-related expenses, partially offset by benefits from the Company's enterprise initiatives.
Previous wording
Amortization and impairment of intangible assets was lower in the first quarter of 2025 compared to 2024 primarily due to fully amortized intangible assets.
Current wording
Amortization and impairment of intangible assets was lower in the second quarter and year-to-date periods of 2025 compared to 2024 primarily due to fully amortized intangible assets.
Previous wording
Refer to the "Results of Operations for Total Company" and the "Results of Operation by Segment" sections for additional discussion of operating results for the first quarter of 2025 compared to 2024.
Current wording
Refer to the "Results of Operations for Total Company" and the "Results of Operation by Segment" sections for additional discussion of operating results for the second quarter and year-to-date periods of 2025 compared to 2024.
Previous wording
The Company's consolidated results of operations for the first quarter of 2025 and 2024 were as follows:
Current wording
The Company's consolidated results of operations for the second quarter and year-to-date periods of 2025 and 2024 were as follows:
Previous wording
•Operating revenue declined due to lower organic revenue and the unfavorable effect of foreign currency translation.
Current wording
•Operating revenue increased in the second quarter due to the favorable effect of foreign currency translation, partially offset by lower organic revenue. In the year-to-date period, operating revenue declined due to lower organic revenue and the unfavorable effect of foreign currency translation.
Previous wording
◦North American organic revenue decreased 3.3% as a decline in the Test & Measurement and Electronics, Construction Products, Automotive OEM, Welding and Polymers & Fluids segments was partially offset by growth in the Specialty Products and Food Equipment segments.
Current wording
◦North American organic revenue decreased 1.8% in the second quarter and declined 2.5% in the year-to-date period as a decline in the Automotive OEM, Test & Measurement and Electronics, Construction Products and Polymers & Fluids segments was partially offset by growth in the Food Equipment and Specialty Products segments. Organic revenue for the Welding segment grew 1.2% in the second quarter and declined 0.6% in the year-to-date period.
Previous wording
◦Asia Pacific organic revenue increased 6.7% primarily due to growth in the Automotive OEM segment. Organic revenue in China increased 11.7% as growth in the Automotive OEM, Welding, Specialty Products and Polymers & Fluids segments was partially offset by a decrease in the Food Equipment, Construction Products and Test & Measurement and Electronics segments.
Current wording
◦Asia Pacific organic revenue increased 9.0% in the second quarter and grew 7.9% in the year-to-date period primarily due to growth in the Automotive OEM segment. Organic revenue in China grew 14.9% in the second quarter and increased 13.4% in the year-to-date period as growth in the Automotive OEM, Test & Measurement and Electronics, Welding and Polymers and Fluids segments was partially offset by a decrease in the Food Equipment and Construction Products segments. Organic revenue for the Specialty Products segment decreased 14.2% in the second quarter and grew 8.3% in the year-to-date period.
Previous wording
•Operating income of $951 million decreased 15.6%, or 5.8% excluding the $117 million favorable impact of the first quarter 2024 LIFO accounting method change discussed previously.
Current wording
•Operating income of $1.1 billion increased 1.2% in the second quarter compared to the prior year. In the year-to-date period, operating income of $2.0 billion declined 7.4%, or declined 2.2% excluding the $117 million favorable impact of the first quarter 2024 LIFO accounting method change discussed previously.
Previous wording
•Operating margin of 24.8% decreased 360 basis points. Excluding the 300 basis points of favorable impact from the first quarter 2024 LIFO accounting method change, operating margin decreased 60 basis points compared to the prior year primarily due to unfavorable operating leverage of 30 basis points, increased restructuring expenses and higher employee-related and insurance-related expenses, partially offset by benefits from the Company's enterprise initiatives of 120 basis points.
Current wording
•In the year-to-date period, operating margin of 25.6% decreased 170 basis points. Excluding the 150 basis points of favorable impact from the first quarter 2024 LIFO accounting method change, operating margin decreased 20 basis points compared to the prior year primarily driven by higher employee-related expenses, including higher health and welfare expenses, and unfavorable operating leverage of 20 basis points, partially offset by benefits from the Company's enterprise initiatives of 120 basis points.
Previous wording
•The Company's effective tax rate for the first quarter of 2025 and 2024 was 21.7% and 23.6%, respectively. The effective tax rate for the first quarter of 2025 included a discrete tax benefit of $21 million related to the release of a valuation allowance on net operating loss carryforwards. The effective tax rates included discrete tax benefits related to excess tax benefits from stock-based compensation of $4 million and $9 million for the first quarter of 2025 and 2024, respectively.
Current wording
•The Company's effective tax rate for the second quarter of 2025 and 2024 was 24.4% in both periods, respectively, and 23.1% and 24.0% for the year-to-date periods of 2025 and 2024, respectively. The effective tax rates for 2025 and 2024 included discrete tax benefits related to excess tax benefits from stock-based compensation of $1 million for both the second quarter of 2025 and 2024 and $5 million and $10 million for the year-to-date period of 2025 and 2024, respectively. Additionally, the effective tax rate for the year-to-date period of 2025 included a discrete tax benefit of $21 million in the first quarter of 2025 related to the reversal of a valuation allowance on net operating loss carryforwards.
Previous wording
•Diluted earnings per share (EPS) of $2.38 for the first quarter of 2025 decreased 12.8%, or 2.5% excluding the favorable impact of $0.29 from the LIFO accounting method change in the first quarter of 2024.
Current wording
•Diluted earnings per share (EPS) of $2.58 for the second quarter of 2025 increased 1.6%. In the year-to-date period, EPS of $4.95 decreased 6.1%, or decreased 0.6% excluding the favorable effect of the first quarter 2024 LIFO accounting method change of $0.29.
Previous wording
•The Company repurchased approximately 1.5 million shares of its common stock in the first quarter of 2025 for approximately $375 million.
Current wording
•The Company repurchased approximately 1.5 million and 3.0 million shares of its common stock in the second quarter and year-to-date periods of 2025, respectively, for approximately $375 million and $750 million, respectively.
Previous wording
Total operating revenue and operating income for the first quarter of 2025 and 2024 were as follows:
Current wording
Total operating revenue and operating income for the second quarter and year-to-date periods of 2025 and 2024 were as follows:
Previous wording
Segments are allocated a fixed overhead charge based on the segment's revenue. Expenses not charged to the segments are reported separately as Unallocated. Because the Unallocated category includes a variety of items, it is subject to fluctuations on a quarterly and annual basis. Unallocated in the first quarter of 2025 included higher health and welfare expenses and insurance-related expenses as compared to the prior year. Unallocated in 2024 included the favorable pre-tax cumulative effect of the LIFO accounting method change of $117 million. Refer to Note 1. Significant Accounting Policies in Item 1. Financial Statements for additional information regarding this change in accounting method.
Current wording
Segments are allocated a fixed overhead charge based on the segment's revenue. Expenses not charged to the segments are reported separately as Unallocated. Because the Unallocated category includes a variety of items, it is subject to fluctuations on a quarterly and annual basis. Unallocated in the three and six months ended June 30, 2025 included higher employee-related expenses, including higher health and welfare expenses, as compared to the prior year. Unallocated in the six months ended June 30, 2024 included the favorable pre-tax cumulative effect of the LIFO accounting method change of $117 million in the first quarter of 2024. Refer to Note 1. Significant Accounting Policies in Item 1. Financial Statements for additional information regarding this change in accounting method.
Previous wording
The results of operations for the Automotive OEM segment for the first quarter of 2025 and 2024 were as follows:
Current wording
The results of operations for the Automotive OEM segment for the second quarter and year-to-date periods of 2025 and 2024 were as follows:
Previous wording
◦North American organic revenue decreased 5.5% compared to North American auto builds which declined 5%. Auto builds for the Detroit 3, where the Company has higher content, declined 10%. The business outperformed the market primarily due to market penetration gains and customer mix.
Current wording
◦North American organic revenue decreased 6.7% and 6.1% in the second quarter and year-to-date periods, respectively, compared to North American auto builds which decreased 3% in the second quarter and declined 4% in the year-to-date period, primarily due to product line simplification activities. Auto builds for the Detroit 3, where the Company has higher content, declined 6% in the second quarter and decreased 8% in the year-to-date period.
Previous wording
◦European organic revenue decreased 6.4% compared to European auto builds which declined 7%. The business outperformed the market primarily due to market penetration gains.
Current wording
◦European organic revenue grew 1.0% in the second quarter and decreased 2.8% in the year-to-date period compared to European auto builds which decreased 2% in the second quarter and declined 3% in the year-to-date period. The business outperformed the market primarily due to market penetration gains.
Previous wording
The results of operations for the Food Equipment segment for the first quarter of 2025 and 2024 were as follows:
Current wording
The results of operations for the Food Equipment segment for the second quarter and year-to-date periods of 2025 and 2024 were as follows:
Previous wording
•Operating margin of 26.5% increased 50 basis points primarily driven by benefits from the Company's enterprise initiatives, favorable price/cost of 20 basis points and favorable operating leverage of 20 basis points, partially offset by higher employee-related expenses and additional investment in the business.
Current wording
•In the year-to-date period, operating margin of 27.1% increased 60 basis points primarily driven by benefits from the Company's enterprise initiatives and favorable operating leverage of 20 basis points, partially offset by higher employee-related expenses and additional investment in the business.
Previous wording
The results of operations for the Test & Measurement and Electronics segment for the first quarter of 2025 and 2024 were as follows:
Current wording
The results of operations for the Test & Measurement and Electronics segment for the second quarter and year-to-date periods of 2025 and 2024 were as follows:
Previous wording
•Organic revenue decreased 5.4% primarily due to lower demand in the general industrial end market.
Current wording
•Organic revenue decreased 0.7% and 3.1% in the second quarter and year-to-date periods, respectively, primarily due to lower demand in the MTS Test & Simulation business and in the general industrial end market, partially offset by higher demand in the semiconductor end market.
Previous wording
◦Organic revenue for the test and measurement businesses decreased 9.2% primarily driven by a decline in the MTS Test & Simulation business, which had a challenging comparison in the prior year first quarter of 23.3% growth, and lower demand in the semiconductor end market, primarily in North America.
Current wording
◦Organic revenue for the test and measurement businesses decreased 3.1% in the second quarter and declined 6.2% in the year-to-date period primarily driven by a decline in the MTS Test & Simulation business, partially offset by higher demand in the semiconductor end market, primarily in Asia Pacific and North America. The MTS Test & Simulation business had a challenging comparison to the prior year which had 5.2% and 14.0% growth in the second quarter and year-to-date periods of 2024, respectively.
Previous wording
◦Electronics organic revenue increased 2.7% primarily due to higher demand in the consumer electronics end market, partially offset by a decline in the semiconductor end market. The electronics assembly businesses decreased 1.3% primarily due to lower demand in Asia Pacific. The other electronics businesses, which include the contamination control, static control and pressure sensitive adhesives businesses, increased 4.2% due to higher demand in Europe and Asia Pacific, partially offset by lower demand in North America.
Current wording
◦Electronics organic revenue increased 4.0% in the second quarter and grew 3.4% in the year-to-date period primarily due to higher demand in Asia Pacific, primarily in the semiconductor end market. The electronics assembly businesses declined 0.1% in the second quarter and 0.7% in the year-to-date period primarily due to lower demand in North America, partially offset by higher demand in Asia Pacific. The other electronics businesses, which include the contamination control, static control and pressure sensitive adhesives businesses, grew 5.5% and 4.8% in the second quarter and year-to-date periods, respectively, due to higher demand in Asia Pacific and North America.
Previous wording
•Operating margin of 21.4% decreased 200 basis points primarily driven by unfavorable operating leverage of 150 basis points, higher restructuring expenses of 60 basis points, the dilutive impact of an acquisition, higher employee-related expenses and product mix, partially offset by benefits from the Company's enterprise initiatives and lower intangible asset amortization expense.
Current wording
•In the year-to-date period, operating margin of 22.1% decreased 130 basis points primarily driven by unfavorable operating leverage of 80 basis points, higher employee-related expenses, product mix, higher restructuring expenses of 20 basis points and the dilutive impact from an acquisition, partially offset by benefits from the Company's enterprise initiatives and lower intangible asset amortization expense.
Previous wording
The results of operations for the Welding segment for the first quarter of 2025 and 2024 were as follows:
Current wording
The results of operations for the Welding segment for the second quarter and year-to-date periods of 2025 and 2024 were as follows:
Previous wording
◦International organic revenue increased 13.9% primarily due to higher demand in Asia Pacific and the Middle East.
Current wording
◦International organic revenue grew 11.1% in the second quarter and increased 12.4% in the year-to-date period primarily due to higher demand in Asia Pacific and the Middle East.
Previous wording
•Operating margin of 29.2% decreased 20 basis points primarily driven by unfavorable operating leverage of 140 basis points and higher employee-related expenses, partially offset by benefits from the Company's enterprise initiatives and favorable price/cost of 40 basis points.
Current wording
•Operating margin was 33.1% in the second quarter. The increase of 20 basis points was primarily due to benefits from the Company's enterprise initiatives, favorable operating leverage of 40 basis points and favorable price/cost of 20 basis points, partially offset by higher employee-related expenses.
Previous wording
The results of operations for the Polymers & Fluids segment for the first quarter of 2025 and 2024 were as follows:
Current wording
The results of operations for the Polymers & Fluids segment for the second quarter and year-to-date periods of 2025 and 2024 were as follows:
Previous wording
◦Organic revenue for the fluids businesses grew 0.3% primarily driven by higher demand in Europe, primarily due to growth in the hygiene end market, partially offset by a decline in North America.
Current wording
◦Organic revenue for the fluids businesses declined 2.9% in the second quarter primarily driven by lower demand in North America and Europe. In the year-to-date period, organic revenue decreased 1.3% primarily due to lower demand in North America, partially offset by growth in Europe, primarily due to higher demand in the hygiene end market.
Previous wording
◦Organic revenue for the automotive aftermarket businesses was essentially flat as higher demand in the North American car care business was offset by lower demand in the North American body repair business and the tire repair businesses in North America and Europe.
Current wording
◦Organic revenue for the automotive aftermarket businesses decreased 3.1% in the second quarter and declined 1.5% in the year-to-date period primarily due to lower demand in the North American body and tire repair businesses and a decline in Europe, partially offset by higher demand in the car care business in North America.
Previous wording
The results of operations for the Construction Products segment for the first quarter of 2025 and 2024 were as follows:
Current wording
The results of operations for the Construction Products segment for the second quarter and year-to-date periods of 2025 and 2024 were as follows:
Previous wording
•Organic revenue decreased 7.4% due to lower demand across all major regions. Product line simplification activities reduced organic revenue by 60 basis points.
Current wording
•Organic revenue decreased 6.9% in the second quarter and declined 7.2% in the year-to-date period due to lower demand across all major regions. Product line simplification activities reduced organic revenue by 120 basis points in the second quarter and 90 basis points in the year-to-date period.
Previous wording
◦North American organic revenue declined 9.7% primarily due to lower demand in the residential end market, partially offset by growth in the commercial end market. Organic revenue in the United States residential end market decreased 11.7% and the commercial end market grew 2.0%. Organic revenue in Canada declined 3.5%.
Current wording
◦North American organic revenue decreased 6.5% in the second quarter and declined 8.1% in the year-to-date period primarily due to lower demand in the residential and commercial end markets. Organic revenue in the United States residential end market declined 8.1% and 9.9% in the second quarter and year-to-date periods, respectively. The commercial end market decreased 1.9% in the second quarter and declined 0.1% in the year-to-date period. Organic revenue in Canada grew 7.4% in the second quarter and increased 1.8% in the year-to-date period.
Previous wording
◦International organic revenue declined 4.7%. European organic revenue decreased 2.0% primarily due to lower demand in the commercial and residential end markets. Asia Pacific organic revenue declined 8.4% primarily due to lower demand in the Australia and New Zealand residential end markets.
Current wording
◦International organic revenue decreased 7.4% in the second quarter and declined 6.1% in the year-to-date period. European organic revenue declined 5.1% in the second quarter and decreased 3.5% in the year-to-date period primarily due to lower demand in the commercial and residential end markets. Asia Pacific organic revenue decreased 10.1% in the second quarter and declined 9.3% in the year-to-date period primarily due to lower demand in the Australia and New Zealand residential end markets.
Previous wording
•Operating margin of 19.3% decreased 50 basis points primarily driven by higher restructuring expenses of 80 basis points, unfavorable operating leverage of 30 basis points, higher employee-related expenses and continued investment in the business, partially offset by benefits from the Company's enterprise initiatives.
Current wording
•In the year-to-date period, operating margin of 30.0% increased 60 basis points primarily driven by benefits from the Company's enterprise initiatives and lower restructuring expenses of 60 basis points, partially offset by unfavorable operating leverage of 150 basis points, higher employee-related expenses and unfavorable price/cost of 30 basis points.
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