Illinois Tool Works Inc.

Good morning. My name is Janine and I will be your conference operator for today. At this time, I would like to welcome everyone to the ITW's second quarter earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, please press star followed by the number one again. For those participating in the Q&A, you will have the opportunity to ask one question, and if needed, one follow-up question. Thank you. Erin Linehan, Vice President of Investor Relations, you may begin your conference.

Thank you, Janine. Good morning, and welcome to ITW's second quarter 2025 conference call. Today I'm joined by our President and CEO, Chris O'Herlihy, and Senior Vice President CFO, Michael Larson. During today's call, we will discuss ITW's second quarter financial results and provide an update on our outlook for full year 2025. Slide two is a reminder that this presentation contains forward-looking statements. We refer you to the company's 2024 Form 10-K, and subsequent reports filed with the SEC for more detail about important risks that could cause actual results to differ materially from our expectations. This presentation uses certain non-GAAP measures, and a reconciliation of those measures to the most directly comparable GAAP measures is contained in the press release. Please turn to slide three, and it's now my pleasure to turn the call over to our President and CEO, Chris O'Herlihy. Chris?

Thank you, Aaron, and good morning, everyone. As you saw in our press release this morning, the ITW team outpaced underlying end market growth and delivered solid financial performance in the second quarter. Total revenue increased 1% as foreign currency translation increased revenue by 1%, while product line simplification, or PLS, accounted for a 1% reduction. We achieved GAAP EPS of $2.58, operating income of $1.1 billion, an operating margin of 26.3 percent, which are all second quarter records. We continue to execute well in controlling the controllables, as evidenced by enterprise initiatives, which contributed 130 basis points to operating margin, and pricing actions that more than offset the tariff cost impact in the quarter. Furthermore, I am very encouraged by the meaningful strategic progress we made in the first half of the year. diligently advancing our next phase growth priorities to make above-market organic growth powered by customer-backed innovation a defining ITW strength. We remain firmly on track to deliver on our 2030 performance goals, including customer-backed innovation yield of 3% plus. These results are a direct testament to the strength of the ITW business model, the quality of our diversified and resilient portfolio, and the unwavering dedication of our global ITW colleagues to serving our customers and executing our strategy with excellence. Looking ahead, ITW is inherently built to outperform in uncertain and volatile environments, and therefore, we are raising our full-year guidance, confident in our ability to successfully navigate the current environment and deliver differentiated performance through 2025 and beyond. I will now turn the call over to Michael to discuss our second quarter performance in more detail, as well as our updated full year guidance. Michael.