---
title: "Illinois Tool Works: Business Model"
description: "Illinois Tool Works revenue by business segment from its fiscal 2025 Form 10-K, with each part's share, growth and profitability explained."
canonical: https://www.getswoopr.com/stocks/companies/illinois-tool-works/business-model/
source: "Swoopr Investment: https://www.getswoopr.com"
---

# Illinois Tool Works: Business Model & Revenue Engine

## Direct Answer

Illinois Tool Works reports revenue across 8 business segments in its fiscal 2025 Form 10-K. Automotive OEM is the largest, with $3.3 billion of revenue (20% of the total), followed by Test and Measurement and Electronics at $2.8 billion (18%).

## How Does Illinois Tool Works Make Money?

No single line supplies a majority of revenue: the largest, Automotive OEM, is 20%, which spreads Illinois Tool Works's exposure across several demand drivers. Between fiscal 2024 and 2025, Automotive OEM grew fastest (+3.1%) and Construction Products slowest (-4.7%), so the revenue mix tilts toward Automotive OEM while that gap lasts.

| Segment | FY2025 revenue | FY2024 revenue | Share of revenue | Change |
| --- | --- | --- | --- | --- |
| Automotive OEM | $3.3 billion | $3.2 billion | 20.5% | 3.1% |
| Test and Measurement and Electronics | $2.8 billion | $2.8 billion | 17.6% | 0.2% |
| Food Equipment | $2.7 billion | $2.6 billion | 16.8% | 2.0% |
| Welding | $1.9 billion | $1.9 billion | 11.8% | 2.1% |
| Construction Products | $1.8 billion | $1.9 billion | 11.3% | -4.7% |
| Specialty Products | $1.8 billion | $1.7 billion | 11.1% | 1.8% |
| Polymers and Fluids | $1.8 billion | $1.8 billion | 11.0% | 0.1% |
| Polymers and Fluids | $1.8 billion | $1.8 billion | 11.0% | 0.1% |

![Bar chart of Illinois Tool Works revenue by segment for fiscal 2025: Automotive OEM 20.5%, Test and Measurement and Electronics 17.6%, Food Equipment 16.8%, Welding 11.8%, Construction Products 11.3%, Specialty Products 11.1%, Polymers and Fluids 11.0%, Polymers and Fluids 11.0%.](https://www.getswoopr.com/images/charts/illinois-tool-works-business-model-segment-mix.webp)
*Illinois Tool Works revenue by segment as a share of total revenue, from the table above. The largest is highlighted. Select the chart to open it full size.*

## Which Illinois Tool Works Segments Earn the Most?

| Segment | FY2025 segment operating income | Segment margin |
| --- | --- | --- |
| Automotive OEM | $693 million | 21.1% |
| Test and Measurement and Electronics | $694 million | 24.6% |
| Food Equipment | $753 million | 27.9% |
| Welding | $621 million | 32.9% |
| Construction Products | $550 million | 30.2% |
| Specialty Products | $553 million | 31.2% |
| Polymers and Fluids | $493 million | 27.9% |

Segment operating income is the profit measure Illinois Tool Works reports to its chief operating decision maker for each segment. It usually leaves out corporate costs that are not allocated to a segment, so the segments usually add up to more than consolidated operating income, and margins are comparable within Illinois Tool Works more safely than against another company.

## What the Segment Figures Do Not Show

The rows above add up to 111% of Illinois Tool Works's reported revenue for fiscal 2025; the difference is intersegment eliminations, corporate revenue or items the company reports outside its segments. Segment definitions are management's choice and change when a company reorganizes, in which case it restates prior years in the next filing, so a multi-year comparison should use the figures from a single filing. Revenue shows where sales come from, not where profit or cash is earned: a small segment can carry most of the margin.

## Where These Numbers Come From

Every figure on this page is a value Illinois Tool Works reported in the segment note and revenue disclosures of its Form 10-K filed February 13, 2026 (accession 0000049826-26-000008), read from the SEC's Financial Statement Data Sets. The prior-year column is the comparative figure from that same filing, so it reflects any restatement for a change in segments. Category names are the company's own XBRL labels, lightly reformatted for reading.

Rows that only total other rows (for example a "Products" line beside the individual products) are left out so nothing is counted twice. This page is educational and describes reported history for fiscal 2025; it is not a forecast or a recommendation.

## Frequently Asked Questions

### What are Illinois Tool Works's business segments?

In its fiscal 2025 Form 10-K, Illinois Tool Works reports revenue for Automotive OEM, Test and Measurement and Electronics, Food Equipment, Welding, Construction Products, Specialty Products, Polymers and Fluids and Polymers and Fluids.

### Which part of Illinois Tool Works brings in the most revenue?

Automotive OEM, with $3.3 billion of revenue in fiscal 2025, or 20% of the total.

### Where does Illinois Tool Works report its segment results?

In the segment note to the financial statements in its Form 10-K, most recently filed February 13, 2026, alongside management's discussion of each segment's results.

## References

- [SEC EDGAR: ILLINOIS TOOL WORKS INC Form 10-K filed February 13, 2026](https://www.sec.gov/Archives/edgar/data/49826/000004982626000008/itw-20251231.htm)
- [SEC EDGAR: ILLINOIS TOOL WORKS INC annual and quarterly filings](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=49826&type=10-K)
- [SEC: EDGAR application programming interfaces (XBRL frames and submissions data)](https://www.sec.gov/search-filings/edgar-application-programming-interfaces)
- [SEC: Financial Statement Data Sets](https://www.sec.gov/data-research/sec-markets-data/financial-statement-data-sets)

## Related Pages

- [Illinois Tool Works company dossier](https://www.getswoopr.com/stocks/companies/illinois-tool-works/)
- [Illinois Tool Works financial metrics](https://www.getswoopr.com/stocks/companies/illinois-tool-works/metrics/)
- [Illinois Tool Works financial risk indicators](https://www.getswoopr.com/stocks/companies/illinois-tool-works/risks/)
- [Illinois Tool Works peer comparison](https://www.getswoopr.com/stocks/companies/illinois-tool-works/competitors/)
- [Illinois Tool Works business model and revenue mix](https://www.getswoopr.com/stocks/companies/illinois-tool-works/business-model/)
- [Fundamental analysis guides](https://www.getswoopr.com/learn/fundamental-analysis/)

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