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Illinois Tool Works cash flow, quarter by quarter

Latest: Q3 2026 · from the cash-flow statements filed with the SEC

Free cash flow$851M in Q3 2026 · $2.9B over twelve months

Operating cash flow$953M
Capital spending−$102M
Free cash flow+$851M
Cash / net income1.1×
Cash conversion cycle131 days

Analysis

In Q3 2026, Illinois Tool Works generated $953M of operating cash flow and spent $102M on capital projects, leaving free cash flow of $851M. That is $53.0M less than in Q3 2025 ($904M).

Over the twelve months to Sep 30, 2026, operating cash flow was $3.3B; the largest uses were dividends ($1.9B), buybacks ($1.7B), capital spending ($394M); besides operations, cash came from net borrowing (+) / repaid (−) ($600M), shares issued ($68.0M); the cash balance fell by $115M.

Operating cash flow was $953M against net income of $855M — 1.1× profit, cash ran ahead of reported earnings. The largest differences: depreciation & amortization +$84.0M, inventory −$67.0M, receivables +$49.0M.

Its cash conversion cycle was 131 days (receivables 77 + inventory 84 − payables 29).

Free cash flow

Illinois Tool Works: free cash flow by quarterIllinois Tool Works: free cash flow by quarter$996MQ4 2024$496MQ1 2025$449MQ2 2025$904MQ3 2025$858MQ4 2025$528MQ1 2026$631MQ2 2026$851MQ3 2026
Operating cash flow less capital spending.
Illinois Tool Works: operating cash flow against capital spendingIllinois Tool Works: operating cash flow against capital spendingOperating cash flowCapital spending$1.1B$118MQ4 2024$592M$96.0MQ1 2025$550M$101MQ2 2025$1.0B$117MQ3 2025$963M$105MQ4 2025$623M$95.0MQ1 2026$723M$92.0MQ2 2026$953M$102MQ3 2026
Latest (Q3 2026): Operating cash flow $953M, Capital spending $102M.

Capital allocation, year by year

Illinois Tool Works: where the cash came from (up) and went (down), by fiscal yearIllinois Tool Works: where the cash came from (up) and went (down), by fiscal yearOperating cash flowNet borrowingShares issuedAsset salesCapital spendingAcquisitionsBuybacksDividendsFY2021: Operating cash flow $2.6BFY2021: Net borrowing −$141MFY2021: Shares issued $100MFY2021: Asset sales $8.0MFY2021: Capital spending −$296MFY2021: Acquisitions −$731MFY2021: Buybacks −$1.0BFY2021: Dividends −$1.5B$2.7BFY2021FY2022: Operating cash flow $2.3BFY2022: Net borrowing $276MFY2022: Shares issued $58.0MFY2022: Asset sales $293MFY2022: Capital spending −$412MFY2022: Acquisitions −$2.0MFY2022: Buybacks −$1.8BFY2022: Dividends −$1.5B$3.0BFY2022FY2023: Operating cash flow $3.5BFY2023: Net borrowing $294MFY2023: Shares issued $106MFY2023: Asset sales $27.0MFY2023: Capital spending −$455MFY2023: Buybacks −$1.5BFY2023: Dividends −$1.6B$4.0BFY2023FY2024: Operating cash flow $3.3BFY2024: Net borrowing −$8.0MFY2024: Shares issued $104MFY2024: Asset sales $12.0MFY2024: Capital spending −$437MFY2024: Acquisitions −$115MFY2024: Buybacks −$1.5BFY2024: Dividends −$1.7B$3.4BFY2024FY2025: Operating cash flow $3.1BFY2025: Net borrowing $508MFY2025: Shares issued $130MFY2025: Asset sales $11.0MFY2025: Capital spending −$419MFY2025: Acquisitions −$119MFY2025: Buybacks −$1.5BFY2025: Dividends −$1.8B$3.8BFY2025
Over these 5 years operating cash flow totalled $14.9B; the largest uses were dividends ($8.1B) and buybacks ($7.2B). Cash-flow statements as filed.

Cash runway and the debt wall

Cash & investments$809M
Debt$9.4B
Net debt$8.6B
Due within a year$999M

Illinois Tool Works funds itself: free cash flow was $2.9B over the last twelve months, and $809M of cash and investments stands against $9.4B of debt ($999M due within a year, 0.8× covered by cash).

Illinois Tool Works: debt maturities by year (FY2025)Illinois Tool Works: debt maturities by year (FY2025)$999MYear 1$1.5BYear 2$759MYear 3$585MYear 5$3.9BAfter year 5
Principal due in each year as disclosed in the annual report, against $809M of cash and investments now.

Where the cash came from and went

Illinois Tool Works: sources (+) and uses (−) of cash, Q3 2026Illinois Tool Works: sources (+) and uses (−) of cash, Q3 2026Net borrowing (+) / repaid (−)−$1.8BOther financing$1.5BOperating cash flow$953MDividends−$458MBuybacks−$187MCapital spending−$102MCash drawn (+) / kept (−)$30.0MOther investing$28.0MShares issued$11.0MExchange rates$7.0M
Illinois Tool Works: sources (+) and uses (−) of cash, TTM to Q3 2026Illinois Tool Works: sources (+) and uses (−) of cash, TTM to Q3 2026Operating cash flow$3.3BDividends−$1.9BBuybacks−$1.7BNet borrowing (+) / repaid (−)$600MCapital spending−$394MAcquisitions−$120MCash drawn (+) / kept (−)$115MShares issued$68.0MOther financing−$41.0MOther investing$35.0MExchange rates$15.0M

From profit to cash

Illinois Tool Works: net income to operating cash flow, Q3 2026Illinois Tool Works: net income to operating cash flow, Q3 2026Net income$855MDepreciation & amortization$84.0MStock-based pay$20.0MReceivables$49.0MInventory−$67.0MPayables−$15.0MPrepaid and other assets−$11.0MIncome taxes payable$16.0MOperating cash flow$953M
Non-cash charges are added back; money tied up in receivables or inventory is subtracted.
QuarterReceivable daysInventory daysPayable daysCash conversion cycle
Q3 2026778429131
Q2 2026737828124
Q1 2026748127128
Q4 2025738127127
Q3 2025758330128
Q2 2025738029124
Q1 2025728128125
Q4 2024738426130

Every quarter

QuarterOperating cash flowCapital spendingAcquisitionsBuybacksDividendsNet borrowing (+) / repaid (−)Shares issuedCash drawn (+) / kept (−)Free cash flow
Q3 2026$953M−$102M—−$187M−$458M−$1.8B$11.0M$30.0M$851M
Q2 2026$723M−$92.0M—−$750M−$463M$596M—−$12.0M$631M
Q1 2026$623M−$95.0M—−$375M−$465M$259M$52.0M$24.0M$528M
Q4 2025$963M−$105M−$120M−$375M−$467M$19.0M$5.0M$73.0M$858M
Q3 2025$1.0B−$117M—−$375M−$438M$25.0M$13.0M−$136M$904M
Q2 2025$550M−$101M−$1.0M−$375M−$439M$262M$3.0M$85.0M$449M
Q1 2025$592M−$96.0M$2.0M−$375M−$441M$202M$44.0M$75.0M$496M
Q4 2024$1.1B−$118M—−$375M−$443M−$120M$9.0M−$1.0M$996M

Illinois Tool Works: income statement and cash flow

Illinois Tool Works, Q3 2026: revenue $4.2B (+4% year over year), operating margin 27.8%. The chart follows the revenue to costs, profit and cash.

Illinois Tool Works: every quarter, Q/Q and Y/Y → Open in the app

Read automatically from the company’s XBRL cash-flow statements; quarterly figures for the fourth quarter are the year less the first three. Errors are possible. Not investment advice.