Illinois Tool Works (ITW) risk factors, FY2024 10-K

Illinois Tool Works's FY2024 10-K, filed Feb 14, 2025, lists 18 risk factors in 3 groups. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
183 groups
Section length
4k wordsItem 1A

Illinois Tool Works's biggest risks in the FY2024 10-K

  • Over 50 percent of net sales are international, generating significant currency and geopolitical exposure.
  • The company relies on its proprietary enterprise strategy, 80/20 practices, and continuous innovation.
  • Raw material pricing pressures and supply shortages threaten operational results.

The risks most specific to Illinois Tool Works

  • The global nature of the Company's operations subjects it to political, economic and social risks that could adversely affect its business, results of operations or financial condition

    Over 50% of net sales come from outside the United States across 51 countries, exposing the company to currency fluctuations and foreign regulations.

  • A significant fluctuation between the U.S. Dollar and other currencies could adversely impact the Company's operating income

    Operating income is vulnerable to significant exchange rate movements of the U.S. Dollar against the Euro and other foreign currencies.

  • Business and Operational Risks

    The benefits from the Company's enterprise strategy may not be as expected and the Company's financial results could be adversely impacted, or the Company may not meet its long-term financial performance targets

    Failure to successfully execute the enterprise strategy and 80/20 Front-to-Back practice excellence could prevent ITW from meeting its long-term financial targets.

  • Business and Operational Risks

    If the Company is unable to successfully introduce new products, its future growth may be adversely affected

    Inability to innovate or adopt new technologies like artificial intelligence and machine learning could harm future growth and competitive position.

  • Business and Operational Risks

    Raw material price increases and supply shortages could adversely affect results

    Upward pricing pressure on specialty materials such as high labor-content fabrications and supply interruptions could adversely affect results.

  • Strategic Transaction Risks

    The Company's acquisition of businesses could negatively impact its profitability and returns

    Acquisitions may negatively impact profitability if acquired businesses fail to adapt to the ITW Business Model.

  • Strategic Transaction Risks

    Divestitures pose the risk of retained liabilities that could adversely affect the Company's financial results

    Divestitures under the portfolio management initiative pose the risk of retained liabilities affecting financial results.

  • Tax, Legal and Regulatory Risks

    The Company may incur fines or penalties, damage to its reputation or other adverse consequences if its employees, agents or business partners violate anti-bribery, competition, export and import, trade sanctions, data privacy, environmental, artificial intelligence, human rights or other laws

    The decentralized operating structure creates compliance risks regarding anti-bribery, trade sanctions, data privacy, and artificial intelligence laws.

All 18 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01The Company's results are impacted by global economic conditions. Downturns in the markets served by the Company could adversely affect its businesses, results of operations or financial condition
  2. 02The global nature of the Company's operations subjects it to political, economic and social risks that could adversely affect its business, results of operations or financial condition
  3. 03A significant fluctuation between the U.S. Dollar and other currencies could adversely impact the Company's operating income

Business and Operational Risks

  1. 04The benefits from the Company's enterprise strategy may not be as expected and the Company's financial results could be adversely impacted, or the Company may not meet its long-term financial performance targets
  2. 05The timing and amount of the Company's share repurchases are subject to a number of uncertainties
  3. 06If the Company is unable to successfully introduce new products, its future growth may be adversely affected
  4. 07If the Company is unable to adequately protect its intellectual property, its competitive position and results of operations may be adversely impacted
  5. 08The Company has significant goodwill and other intangible assets, and future impairment of these assets could have a material adverse impact on the Company's financial results
  6. 09Raw material price increases and supply shortages could adversely affect results
  7. 10The Company's defined benefit pension plans are subject to financial market risks that could adversely affect its results of operations and cash flows

Strategic Transaction Risks

  1. 11The Company's acquisition of businesses could negatively impact its profitability and returns
  2. 12Divestitures pose the risk of retained liabilities that could adversely affect the Company's financial results

Tax, Legal and Regulatory Risks

  1. 13Unfavorable tax law changes and tax authority rulings may adversely affect results
  2. 14Adverse outcomes in legal proceedings or enforcement actions may adversely affect results
  3. 15Uncertainty related to environmental regulation and industry standards, as well as physical risks of climate change, could impact the Company's results of operations and financial position
  4. 16The Company may incur fines or penalties, damage to its reputation or other adverse consequences if its employees, agents or business partners violate anti-bribery, competition, export and import, trade sanctions, data privacy, environmental, artificial intelligence, human rights or other laws
  5. 17Forward-Looking Statements
  6. 18Any forward-looking statements made by ITW speak only as of the date on which they are made. ITW is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, subsequent events or otherwise, except as required by law

Other Illinois Tool Works 10-Ks

  • FY2025 10-K risk factors
    18 risksNo changes

    This company filing contains no added, removed, or reworded risk factors for the period.

    Filed Feb 13, 2026

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.