ITW · CIK 49826
What Illinois Tool Works Inc. told the SEC could break it.
Illinois Tool Works' disclosures center on how international its business is. More than 50% of its net sales come from customers outside the U.S., it operates in 49 countries, and its manufacturing assets tilt toward China, which held 16% of its net plant and equipment — the only country outside the U.S. above 10%. That footprint exposes it to currency swings, repatriation and price/exchange-control limits, and squarely to trade policy: it cites raw-material inflation and the risk of escalating tariffs, retaliatory trade measures, Russia sanctions and shifting U.S.-China relations worsening conditions. It also flags cyclicality in its Test & Measurement and Electronics segment, where softness in semiconductor and general-industrial end markets pressured organic revenue.
4 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Geographic concentration
- China = 16% of net plant & equipment (only country >10%)medium
ITW held 16% of its total net plant and equipment in China as of both December 31, 2025 and 2024 — the only country outside the U.S. representing more than 10% of net PP&E — concentrating manufacturing-asset exposure to Chinese political/economic/trade conditions.
“the Company had 16 % and 16 % of its total net plant and equipment in China as of December 31, 2025 and 2024, respectively. No other country represented more than 10% of the Company's net plant and equipment”
- >50% of net sales non-U.S. (operates in 49 countries) — FX, repatriation, price/exchange controlsmedium
Over 50% of ITW's net sales come from customers outside the U.S. and it operates in 49 countries (~270 of ~410 plants/offices abroad; principal foreign countries China, Germany, France, UK), exposing it to currency fluctuation, ownership limitations, price/exchange controls, repatriation limits, enforcement-of-rights limits and adverse tax consequences.
“Over 50% of the Company's net sales are derived from customers outside the United States, and the Company currently operates in 49 countries.”
Regulatory & policy
- tariffs/trade-policy + raw-material inflation; US-China trade relations + Russia sanctionsmedium
The global geopolitical/trade environment has driven raw-material inflation and risk of escalating domestic/international tariffs and retaliatory trade policies; further U.S. trade-policy changes (new/additional duties or tariffs), retaliatory actions by trade partners, sanctions against Russia, and US-China trade developments could worsen economic conditions for ITW.
“The global geopolitical and trade environment has resulted in raw material inflation and potential for increased escalation of domestic and international tariffs and retaliatory trade policies. Further changes in U.S. trade policy (including new or additional increases in duties or tariffs) and retaliatory actions by U.S. trade partners, including sanctions against Russia and developments in U.S.-China trade relations, could result in a worsening of economic conditions.”
Other disclosures
- semiconductor & general-industrial end-market cyclicality (Test & Measurement and Electronics)low
ITW's Test & Measurement and Electronics segment is exposed to cyclical end-market demand — organic revenue declined on softness in semiconductor, general-industrial and consumer-electronics end markets (notably North America and Asia Pacific), partially offset by MTS Test & Simulation and consumable-semiconductor growth.
“Organic revenue decreased 1.0% primarily due to a decline in the semiconductor and electronics end markets, partially offset by growth in the MTS Test & Simulation business.”
SEC filing →As of 2026
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