Illinois Tool Works (ITW) is a diversified industrial manufacturer with 88 business divisions across seven segments: Automotive OEM, Food Equipment, Test & Measurement and Electronics, Welding, Polymers & Fluids, Construction Products, and Specialty Products. ITW makes engineered, differentiated industrial products — automotive fasteners, commercial kitchen equipment, arc welding machines, adhesives, construction fasteners, and more — that solve niche problems for industrial and commercial customers. Because ITW's products are often embedded in customers' manufacturing processes, switching is costly, giving ITW meaningful pricing power. ITW sells directly to industrial manufacturers and through independent distributors, depending on the segment. ITW's core operating philosophy is its 80/20 Front-to-Back process, which concentrates resources on the top 80% of revenue-generating products and customers while systematically exiting low-margin complexity. This drives ongoing margin improvement largely independent of revenue growth. Complementing this is Product Line Simplification, which prunes undifferentiated product lines and creates a short-term revenue headwind but improves margin quality. Customer-Back Innovation is ITW's framework for organic growth, where divisions work closely with key customers to develop tailored solutions — new products from this effort represented roughly 2.4% of revenue in FY25, targeting 3%+ by 2030. ITW's "produce where we sell" manufacturing footprint, with over 90% of revenue produced in the same geography where it is sold, limits tariff and supply chain risk. Free cash flow consistently converts at or above 100% of net income, funding a dividend raised for 62 consecutive years and roughly $1.5B in annual share buybacks.