Illinois Tool Works Inc.

Good day, everyone, and thank you for joining us for today's ITW third quarter 2025 earnings webcast. As a reminder, all phone participants have been placed in a listen-only mode to cut down on background noise, and later you will have the opportunity to ask questions during our question and answer session. Also, please be aware that today's session is being recorded. It is now my pleasure to turn the floor over to our host, Erin Linehan, Vice President of Investor Relations. Welcome.

Thank you, Jim. Good morning, and welcome to ITW's third quarter 2025 conference call. Today, I'm joined by our President and CEO, Chris O'Herlihy, and Senior Vice President and CFO, Michael Larson. During today's call, we will discuss ITW's third 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'Hare-Lahey. Chris?

Thank you, Erin, and good morning, everyone. As detailed in our press release this morning, the ITW team continues to perform at a high level, successfully outpacing underlying end market demand and delivering solid operational and financial execution within a stable yet still challenging demand environment. For the third quarter, revenue increased 3%, excluding a 1% reduction related to our ongoing strategic product line simplification efforts. Organic growth was 1%, a solid performance relative to end markets that we estimate declined low single digits and a one percentage point improvement from our second quarter growth rate. Favorable foreign currency translation contributed 2% to revenue. Focusing on the bottom line, we achieved gap EPS of $2.81, grew operating income by 6% to a record $1.1 billion, and and significantly improved our operating margin by 90 basis points to 27.4 percent. We maintained excellent execution in controlling the controllables as enterprise initiatives contributed 140 basis points, and effective pricing and supply chain actions more than covered tariff costs and positively impacted both EPS and margins in the quarter. Consistent with our long-term commitment to increasing annual cash returns to shareholders, On August 1st, we announced our 62nd consecutive dividend increase, raising our dividend by 7%. Additionally, year-to-date, we have repurchased more than $1.1 billion of our outstanding shares. Furthermore, I'm encouraged by the significant progress on our next phase strategic growth priorities. We remain laser-focused on making above-market organic growth, powered by customer-backed innovation, a defining ITW strength. The strategy is working, and we remain firmly on track to deliver on our 2030 performance goals, which include customer-backed innovation yield of 3% plus. As we stated before, ITW is built to outperform in challenging environments. As we look ahead to the balance of the year, we are narrowing our EPS guidance range, confident in our ability to continue leveraging the fundamental strength of the ITW business model, the inherent resilience of our diversified portfolio, and the high-quality execution demonstrated every day by our colleagues worldwide. I will now turn the call over to Michael to discuss our third quarter performance and full year 2025 outlook in more detail. Michael.