Illinois Tool Works reported lower first-quarter profit and revenue as economic uncertainty hurt demand for fasteners and other industrial tools and equipment supplied by the Illinois-based firm.

Q1 revenue declined 3.4% to $3.84 billion, including a 1.6% decrease in organic growth. Net income fell 14.5% to $700 million.

ITW’s Construction Products segment, including fasteners, posted the steepest drop in operating revenue, falling 9.2% to $443 million. Operating income totaled $130 million, and operating margin fell 20 basis points to 29.2%.

Automotive OEM revenue, including fasteners, slipped 3.7% to $786 million. Segment operating income totaled $151 million, and operating margin dropped 50 basis points to 19.3%.

The U.S. economy shrank in the first three months of 2025, contracting by an annualized rate of 0.3% — a stark reversal after nearly three years of steady growth, as tariff-related uncertainty raised fears of an impending recession.