ITW Illinois Tool Works margins

Relative Growth: Rel. Growth:

Relative Strength: Rel. Strength:

Relative Valuation: Rel. Valuation:

Relative Profitability: Rel. Profitability: 85

Gross margin

44.3%

Operating margin

26.6%

EBITDA margin

29.5%

Net margin

19.4%

For the latest period, Illinois Tool Works has a gross margin of 44.3%, an operating margin of 26.6%, an EBITDA margin of 29.5%, and a net margin of 19.4%. EBITDA margin headed the improvement across the available margins, gaining by 0.5 percentage points.

ITW margin history

Gross, operating, EBITDA and net margin trends

Illinois Tool Works's margins averaged 43.77% gross, 26.24% operating, 29.84% EBITDA, and 19.94% net over the last 3 years. For Illinois Tool Works, gross and operating margins are above their three-year averages, while EBITDA and net margins are below their three-year averages.

ITW margin expansion

Year-over-year margin changes in percentage points

The biggest expansion was in EBITDA margin, which rose by 0.5 percentage points. The other available margins also improved.

Gross margin expansion

0.4pp

Operating margin expansion

0.4pp

EBITDA margin expansion

0.5pp

Net margin expansion

0.3pp

ITW Gross margin

The average gross margin for Illinois Tool Works was 43.77% over the last 3 years. Currently, Illinois Tool Works's current gross margin is 44.3%, which is 0.5 percentage points above its three-year average. The gross margin for Illinois Tool Works moved between 42.2% in Dec 2023 and 44.3% in Sep 2026.

ITW Operating margin

The average operating margin for Illinois Tool Works was 26.24% across the past 3 years. Right now, the current operating margin for Illinois Tool Works is 26.6%, 0.4 percentage points above its three-year average. The operating margin for Illinois Tool Works moved between 25.1% in Dec 2023 and 26.8% in Dec 2024.

ITW EBITDA margin

Over the last 3 years, Illinois Tool Works had an average EBITDA margin of 29.84%. Against its three-year average, Illinois Tool Works's EBITDA margin is currently 29.5%, 0.3 percentage points below its three-year average. Looking back over the last 3 years, Illinois Tool Works's EBITDA margin reached 32.1% at its highest point in Dec 2024 and 27.8% at its lowest in Dec 2023.

ITW Net margin

The average net margin for Illinois Tool Works was 19.94% during the last 3 years. Against its three-year average, Illinois Tool Works's net margin is currently 19.4%, 0.5 percentage points below its three-year average. The net margin for Illinois Tool Works moved between 18.4% in Dec 2023 and 21.9% in Dec 2024.

ITW margin group comparison

Margins compared with peer-group, industry and sector averages

With a gross margin of 44.3%, ITW ranks higher than the Industrials sector, the industry and its peers average. In comparison with the Industrials sector average of 32.5%, Illinois Tool Works's gross margin is 36% higher.

ITW margin peer comparison

Compare margins with selected peers

Frequently asked questions

What is Illinois Tool Works's gross margin?

The current gross margin for ITW is 44.3% as of Sep 30, 2026.

What is Illinois Tool Works's operating margin?

For the period ending Sep 30, 2026, ITW recorded an operating margin of 26.6%.

What is Illinois Tool Works's EBITDA margin?

The current EBITDA margin for ITW is 29.5% as of Sep 30, 2026.

What is Illinois Tool Works's net margin?

For the period ending Sep 30, 2026, ITW recorded a net margin of 19.4%.

What are the average margins of ITW?

Illinois Tool Works's average margins over the last 3 years were 43.8% gross, 26.2% operating, 29.8% EBITDA, and 19.9% net.

What are the highest historical margins of ITW?

Illinois Tool Works's highest recorded margins during the past 5 years were 44.3% gross in Sep 2026, 26.8% operating in Dec 2024, 32.1% EBITDA in Dec 2024, and 21.9% net in Dec 2024.

What are the lowest historical margins of ITW?

Over this 5-year history, Illinois Tool Works's margins fell as low as 40.5% gross in Jun 2022, 23% operating in Jun 2022, 26.2% EBITDA in Jun 2022, and 17.4% net in Jun 2022.