GLENVIEW, IL -- Illinois Tool Works today reported fourth quarter revenue at its Test & Measurement and Electronics segment was $747 million, up from $731 million a year ago.

Operating income was $202 million for the period, and operating margin was 27%.

ITW's Test & Measurement and Electronics segment includes ITW EAE brands such as MPM, Electrovert, Vitronics, Camalot, and Despatch.

For all of 2023, the segment saw flat revenue growth of $2.82 billion, while operating income was $703 million.

“ITW delivered a solid finish to the year as we outperformed underlying end markets, expanded operating margin by 140 basis points, generated record free cash flow, and delivered seven percent earnings per share growth in the fourth quarter,” said Christopher A. O’Herlihy, president and chief executive.

Overall fourth quarter revenue decreased 1.3% to $3.9 billion as organic revenue declined 0.5%. Organic revenue growth grew 0.4% adjusted for PLS reduction of 0.9 percent. Foreign currency translation reduced revenue by one percent and acquisitions added 0.2%.

Operating cash flow was $1.1 billion, and free cash flow grew 10% to $1.0 billion.

Full year revenue declined 1.3% to $15.9 billion as organic revenue declined 0.7%. Organic revenue growth was essentially flat adjusted for PLS reduction of 0.6%. Foreign currency translation reduced revenue 0.7% and acquisitions contributed 0.1% to revenues.

Operating income rose 6% to $4.3 billion and operating margin increased 170 basis points to 26.8% with enterprise initiatives contributing 130 basis points. Excluding 70 basis points of favorable impact from the above-mentioned LIFO inventory accounting change, operating margin increased 100 basis points to 26.1%. Six of seven segments expanded margins in 2024 with two segments achieving margins above 30%.

The company guided for organic growth of zero to 2% based on current levels of demand.

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