Recently, it has been suggested that the many-body localized phase can be characterized by local integrals of motion. Here we introduce a Hilbert-space-preserving renormalization scheme that iteratively finds such integrals of motion exactly. Our method is based on the consecutive action of a similarity transformation using displacement operators. We show, as a proof of principle, localization and the delocalization transition in interacting fermion chains with random on-site potentials. Our scheme of consecutive displacement transformations can be used to study many-body localization in any dimension, as well as disorder-free Hamiltonians.