ILLINOIS TOOL WORKS INC (ITW) FY2026 Q1 Statement of Cash Flows

Income StatementCash FlowBalance Sheet

Statement of Cash Flows

2026-01-01 to 2026-03-31

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ILLINOIS TOOL WORKS INC cash flow reconciliation, Jan 1, 2026 through Mar 31, 2026One connected Sankey reconciles operating, investing and financing net cash flows through a shared cash pool, from beginning cash to ending cash. Ribbons flow left to right on one dollar scale. Activity totals are dark gray; beginning and ending cash are blue. Cash basis for beginning and ending balances and net cash change: Cash, cash equivalents, and restricted cash. Intermediate calculation bars are lighter gray. Net income is green for profit and red for loss. Identified asset purchases, sales and maturities are blue in either cash direction. Purple identifies capital transactions such as borrowing, repayments, share issuance and dividends. Free cash flow is a separate comparison, not an added cash flow. Read chart description and values below for full signed amounts, including zero items.Net income → Net cash from operating activities: $623,000,000.00Net income → Operating adjustments reconciliation: $145,000,000.00Accounts payable → Operating adjustments reconciliation: $91,000,000.00Depreciation → Operating adjustments reconciliation: $81,000,000.00Amortization and impairment of intangible assets → Operating adjustments reconciliation: $18,000,000.00Stock-based compensation expense → Operating adjustments reconciliation: $18,000,000.00Other non-cash items, net → Operating adjustments reconciliation: $2,000,000.00Change in deferred income taxes → Operating adjustments reconciliation: $1,000,000.00Net provision for (recoveries of) uncollectible accounts → Operating adjustments reconciliation: $1,000,000.00(Income) loss from investments → Operating adjustments reconciliation: $1,000,000.00Operating adjustments reconciliation → Trade receivables: $165,000,000.00Operating adjustments reconciliation → Accrued expenses and other liabilities: $100,000,000.00Operating adjustments reconciliation → Inventories: $75,000,000.00Operating adjustments reconciliation → Prepaid expenses and other assets: $12,000,000.00Operating adjustments reconciliation → Income taxes: $6,000,000.00Proceeds from sale of plant and equipment → investing reconciliation: $2,000,000.00investing reconciliation → Additions to plant and equipment: $95,000,000.00investing reconciliation → Other, net: $6,000,000.00Net cash used in financing activities → financing reconciliation: $547,000,000.00Net proceeds from (repayments of) debt with original maturities of three months or less → financing reconciliation: $259,000,000.00Issuance of common stock → financing reconciliation: $52,000,000.00financing reconciliation → Cash dividends paid: $465,000,000.00financing reconciliation → Repurchases of common stock: $375,000,000.00financing reconciliation → Other, net: $18,000,000.00Net cash used in investing activities → investing reconciliation: $99,000,000.00Beginning cash: Cash, cash equivalents, and restricted cash → Cash sources and uses: $851,000,000.00Net cash from operating activities → Cash sources and uses: $623,000,000.00Cash sources and uses → Exchange-rate effect: $1,000,000.00Cash sources and uses → Ending cash: Cash, cash equivalents, and restricted cash: $827,000,000.00Cash sources and uses → Net cash used in investing activities: $99,000,000.00Cash sources and uses → Net cash used in financing activities: $547,000,000.00Net income: $768,000,000.00Net income+$768.00 MDepreciation: $81,000,000.00Depreciation expense+$81.00 MAmortization and impairment of intangible assets: $18,000,000.00Intangible amort. & impairment+$18.00 MChange in deferred income taxes: $1,000,000.00Deferred tax balances+$1.00 MNet provision for (recoveries of) uncollectible accounts: $1,000,000.00Credit loss provision+$1.00 M(Income) loss from investments: $1,000,000.00(Income) loss from investments+$1.00 M(Gain) loss on sale of plant and equipment: $0.00Stock-based compensation expense: $18,000,000.00Stock-based compensation+$18.00 MOther non-cash items, net: $2,000,000.00Other operating, net+$2.00 MTrade receivables: -$165,000,000.00Receivables, net−$165.00 MInventories: -$75,000,000.00Inventories−$75.00 MPrepaid expenses and other assets: -$12,000,000.00Prepaid & other assets−$12.00 MAccounts payable: $91,000,000.00Trade payables+$91.00 MAccrued expenses and other liabilities: -$100,000,000.00Other payables & accruals−$100.00 MIncome taxes: -$6,000,000.00Income taxes payable−$6.00 MOther, net: $0.00Net cash from operating activities: $623,000,000.00Operating cash+$623.00 MOperating adjustments reconciliation: $358,000,000.00Cash dividends paid: -$465,000,000.00Common dividends paid−$465.00 MIssuance of common stock: $52,000,000.00Common stock issued+$52.00 MRepurchases of common stock: -$375,000,000.00Common stock repurchases−$375.00 MNet proceeds from (repayments of) debt with original maturities of three months or less: $259,000,000.00Short-term debt ≤3 months, net+$259.00 MOther, net: -$18,000,000.00Other financing, net−$18.00 MNet cash used in financing activities: -$547,000,000.00. Cash required to fund net payments.Financing cash−$547.00 Mfinancing reconciliation: $858,000,000.00Additions to plant and equipment: -$95,000,000.00PP&E purchases−$95.00 MProceeds from sale of plant and equipment: $2,000,000.00PP&E sales+$2.00 MProceeds from investments: $0.00Other, net: -$6,000,000.00Other investing, net−$6.00 MAcquisition of businesses (excluding cash and equivalents): $0.00Net cash used in investing activities: -$99,000,000.00. Cash required to fund net payments.Investing cash−$99.00 Minvesting reconciliation: $101,000,000.00Cash sources and uses: $1,474,000,000.00Beginning cash: Cash, cash equivalents, and restricted cash: $851,000,000.00Beginning cash$851.00 MEnding cash: Cash, cash equivalents, and restricted cash: $827,000,000.00Ending cash$827.00 MExchange-rate effect: -$1,000,000.00FX effect−$1.00 MCASH RECONCILIATIONOperatingflowsInvestingflowsFinancingflowsFree cash flow$528.00 MOperating cash − cash spent on PP&ECash flow / Net income0.81×Operating cash flow ÷ net incomeNet cash change−$24.00 MEnding cash − beginning cash
Chart details

ILLINOIS TOOL WORKS INC cash flow reconciliation, Jan 1, 2026 through Mar 31, 2026

Cash flows for Jan 1, 2026 through Mar 31, 2026. Cash basis: Cash, cash equivalents, and restricted cash. Beginning cash: Dec 31, 2025. Ending cash: Mar 31, 2026. Beginning and ending cash are dated balances. Positive cash flows add cash; negative cash flows reduce it.

Beginning cash on Dec 31, 2025
851,000,000 US dollars. Beginning cash: Cash, cash equivalents, and restricted cash
Operating activities
623,000,000 US dollars. Net cash provided.
Net income
768,000,000 US dollars
Depreciation
81,000,000 US dollars
Amortization and impairment of intangible assets
18,000,000 US dollars
Change in deferred income taxes
1,000,000 US dollars
Net provision for (recoveries of) uncollectible accounts
1,000,000 US dollars
(Income) loss from investments
1,000,000 US dollars
(Gain) loss on sale of plant and equipment
0 US dollars
Stock-based compensation expense
18,000,000 US dollars
Other non-cash items, net
2,000,000 US dollars
Trade receivables
negative 165,000,000 US dollars
Inventories
negative 75,000,000 US dollars
Prepaid expenses and other assets
negative 12,000,000 US dollars
Accounts payable
91,000,000 US dollars
Accrued expenses and other liabilities
negative 100,000,000 US dollars
Income taxes
negative 6,000,000 US dollars
Other, net
0 US dollars
Investing activities
negative 99,000,000 US dollars. Net cash used.
Additions to plant and equipment
negative 95,000,000 US dollars
Proceeds from sale of plant and equipment
2,000,000 US dollars
Proceeds from investments
0 US dollars
Other, net
negative 6,000,000 US dollars
Acquisition of businesses (excluding cash and equivalents)
0 US dollars
Financing activities
negative 547,000,000 US dollars. Net cash used.
Cash dividends paid
negative 465,000,000 US dollars
Issuance of common stock
52,000,000 US dollars
Repurchases of common stock
negative 375,000,000 US dollars
Net proceeds from (repayments of) debt with original maturities of three months or less
259,000,000 US dollars
Other, net
negative 18,000,000 US dollars
Operating adjustment reconciliation
358,000,000 US dollars. Intermediate calculation joining the operating reconciliation branches. Its gross amount includes any portion of net income routed through this junction. It is not an additional cash source or use.
financing gross reconciliation
858,000,000 US dollars. Gross amount at the activity's junction before offsetting its receipts and deductions. It is not an additional cash source or use.
investing gross reconciliation
101,000,000 US dollars. Gross amount at the activity's junction before offsetting its receipts and deductions. It is not an additional cash source or use.
Exchange-rate effect
negative 1,000,000 US dollars
Ending cash on Mar 31, 2026
827,000,000 US dollars. Ending cash: Cash, cash equivalents, and restricted cash
Cash sources and uses
1,474,000,000 US dollars. Opening cash plus net sources, equal to net uses plus ending cash.
Net cash change
negative 24,000,000 US dollars. Ending cash minus beginning cash.
Cash flow / Net income
0.81×. Operating cash flow divided by reconciliation net income for the same period. Black from 0.90× through 1.10×; green above 1.10×; red below 0.90×. Color uses the unrounded ratio.
Operating cash flow
623,000,000 US dollars. Operating cash flow used in the free cash flow calculation.
Cash purchases of property, plant and equipment
95,000,000 US dollars. These cash purchases are already included in investing activities above.
Free cash flow
528,000,000 US dollars. A supplemental measure; finance-lease payments are excluded from this definition.

Chart connections

  • Beginning cash plus operating, investing and financing cash flows plus the exchange-rate effect equals ending cash. Negative amounts reduce cash.
  • Financing contributions meet at a reconciliation junction before connecting to the net cash total.
  • Investing contributions meet at a reconciliation junction before connecting to the net cash total.
  • Operating reconciliation adjustments are not all independent cash receipts.
  • Net income exceeds operating cash. The diagram allocates $623.00M of net income directly to operating cash and $145.00M to the adjustment junction, where it combines with other additions to reconcile deductions. This is an accounting presentation, not a tracing of cash receipts.
  • Each activity has one net cash bar connected to the shared cash pool. Positive activity totals enter the pool; negative activity totals leave the pool to fund that activity's net payments. The central pool does not assign a particular funding source to a particular payment.
  • The intermediate calculation bars include both sides of the displayed activity breakdowns; they are not additional cash flows.
  • Operating cash flow minus cash purchases of property, plant and equipment equals free cash flow: 623,000,000 US dollars minus 95,000,000 US dollars equals 528,000,000 US dollars.
ILLINOIS TOOL WORKS INC (ITW) FY2026 Q1 Statement of Cash Flows Sankey chart
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