Stanley Black & Decker Reports 1Q 2025 Results

Rhea-AI Summary

Stanley Black & Decker reported Q1 2025 results with revenues of $3.7 billion, showing a 3% decline year-over-year but achieving 1% organic growth. The company's DEWALT brand marked its 8th consecutive quarter of revenue growth.

Key highlights include: - Gross margin improved to 29.9%, up 130 basis points - EPS reached $0.60, with adjusted EPS at $0.75 - Tools & Outdoor segment remained flat with 1% organic growth - Company implemented high-single digit price increases due to U.S. tariffs - Global Cost Reduction Program generated $130 million in savings

The company projects 2025 EPS of $3.30 (+/- $0.15) on a GAAP basis and approximately $4.50 adjusted. Management is targeting free cash flow to exceed $500 million. To address tariff impacts, the company is accelerating supply chain adjustments and implementing strategic price actions, while leveraging its North American footprint where ~60% of U.S. cost of sales is based.

Positive

• DEWALT brand achieved 8th consecutive quarter of revenue growth
• Gross margin improved to 29.9% (up 130 basis points YoY)
• Global Cost Reduction Program generated $130M in incremental pre-tax savings in Q1
• Total cost savings program has achieved $1.7B of $2B target
• Organic revenue grew 1% despite challenging environment
• North America sales increased by 2%
• Company maintains strong market position with ~60% of U.S. cost of sales in North America

Negative

• Total net sales declined 3% YoY to $3.7B
• EPS guidance reduced due to tariff impact (negative $0.75 impact)
• SG&A expenses increased to 23.2% of sales from 22.0% prior year
• Engineered Fastening sales dropped significantly (-21%)
• Rest of world regional sales declined 9%
• European sales decreased by 2%
• Implementing price increases that could affect demand
• Automotive market showing softness in Engineered Fastening segment

Insights

Financial Analyst

SWK shows margin gains despite revenue drop; proactive on tariffs with pricing actions; mixed financial picture warrants careful monitoring.

Stanley Black & Decker's Q1 2025 results present a mixed financial picture. While total revenue declined 3% to $3.7 billion, organic growth was positive at 1%, with the DEWALT brand achieving its eighth consecutive quarter of growth. This revenue decline was primarily due to currency headwinds (-2%) and the final quarter of lapping the Infrastructure divestiture (-2%).

The company demonstrated meaningful margin expansion, with gross margin increasing 130 basis points to 29.9% and adjusted gross margin rising 140 basis points to 30.4%. This improvement occurred despite freight inflation and initial tariff impacts, highlighting effective execution of the Global Cost Reduction Program which generated $130 million of incremental pre-tax run-rate savings in Q1 alone.

The ongoing tariff situation presents a significant challenge. Management estimates a $0.75 negative impact to 2025 EPS from tariffs (net of mitigation efforts). In response, the company has implemented a high-single digit price increase in April with another planned for Q3, while accelerating supply chain adjustments to reduce China tariff exposure.

For 2025, SWK projects EPS of $3.30 (±$0.15) on a GAAP basis and approximately $4.50 on an adjusted basis, with free cash flow targeted to meet or exceed $500 million. The multiple price increases signal management's concern about sustained tariff pressures while potentially risking volume impacts in a competitive market.

Manufacturing Operations Expert

SWK's supply chain transformation yields margin gains; aggressive two-pronged tariff response leverages North American manufacturing advantage.

Stanley Black & Decker's operational performance stands out in their Q1 results, with supply chain transformation driving significant margin improvements despite external pressures. The Tools & Outdoor segment showed particularly strong execution with segment margin increasing 100 basis points to 8.8% (9.6% adjusted), while the Engineered Fastening segment struggled with margin compression due to automotive market softness.

The company's Global Cost Reduction Program continues to deliver, having generated approximately $1.7 billion in pre-tax run-rate savings since mid-2022 toward its $2 billion target by year-end 2025. These efficiency gains are directly supporting the company's path toward its long-term 35%+ adjusted gross margin target.

SWK's response to tariff challenges reveals sophisticated supply chain management through a two-pronged approach: 1) implementing sequential price increases to protect margins in the near term and 2) accelerating strategic supply chain restructuring to leverage Mexico manufacturing and reduce China exposure over the next 12-24 months.

A key competitive advantage emerging in this environment is SWK's substantial North American manufacturing footprint, which accounts for approximately 60% of U.S. cost of sales. This regional manufacturing balance provides greater flexibility to navigate tariff complexities than competitors with higher dependence on Chinese manufacturing. The company is strategically balancing short-term margin protection with investments in growth initiatives, maintaining focus on both operational efficiency and future market position.

DEWALT Posts 8^th Consecutive Quarter of Revenue Growth

First Quarter Gross Margin Improves Versus Prior Year as Global Cost Reduction Program Drives Margin Expansion

Accelerates Supply Chain Adjustments & Price Actions in Response to U.S. Tariffs

NEW BRITAIN, Conn., April 30, 2025 /PRNewswire/ -- Stanley Black & Decker (NYSE: SWK), a worldwide leader in tools and outdoor, today announced first quarter 2025 financial results.  

• First Quarter Revenues of $3.7 Billion, Down 3% Versus Prior Year With 1% Organic Growth* Offset by Currency and the Final Quarter of Lapping the Infrastructure Divestiture.
• First Quarter Gross Margin Was 29.9% Up 130 Basis Points Versus Prior Year; First Quarter Adjusted Gross Margin* Was 30.4%, Up 140 Basis Points Versus Prior Year.
• First Quarter EPS Was $0.60 and Adjusted EPS* Was $0.75.
• Management Will Provide More Details Regarding Its Current 2025 Planning Assumptions and Scenario Planning on Today's Earnings Call.

Donald Allan, Jr., Stanley Black & Decker's President & CEO, commented, "Stanley Black & Decker started the year with a solid first quarter, including one point of organic revenue growth* and year-over-year gross margin expansion, both key measures of continued progress against our strategic objectives. We also extended our streak of revenue growth at our powerhouse pro-focused DEWALT brand.  As we continue to make meaningful progress on metrics primarily within our control, I want to thank the organization for staying focused on execution. 

"In light of the current environment, we are accelerating adjustments to our supply chain and exploring all options as we seek to minimize the impact of tariffs on end users while balancing the need to protect our business and our ability to innovate for years to come. With that in mind, we implemented an initial price increase in April and notified our customers that further price action is required.  We are also continuing to closely monitor shifting tariff policies as well as their potential effects on the operating and demand environments with an aim of being agile and responsive.  Against this backdrop, our top priorities remain clear: accelerating our growth culture to serve our end users and customers, generating cash and strengthening our balance sheet, and progressing the transformation to support our long term margin journey. 

"Stanley Black & Decker is built on the strength of our people, iconic brands and a powerful innovation engine, and we believe we are positioning the Company to deliver sustainable long term shareholder returns."

*Non-GAAP Financial Measure As Further Defined On Page 6

First Quarter 2025 Key Points:

• Net sales were $3.7 billion, down 3% versus prior year as volume (+1%) was more than offset by currency (-2%), and the Infrastructure business divestiture (-2%).
  
  
• Gross margin was 29.9%, up 130 basis points versus the prior year rate. Adjusted gross margin* was 30.4%, up 140 basis points versus the prior year. The year-over-year changes for gross margin and adjusted gross margin were primarily driven by the supply chain transformation efficiencies and benefits from new innovation launches that were partially offset by freight inflation and the initial impact from tariffs.
  
  
• SG&A expenses were 23.2% of sales versus 22.0% in the prior year. Excluding charges, adjusted SG&A expenses* were 22.6% of sales, up versus 21.5% in the prior year. The year-over-year changes for SG&A as a percent of sales and adjusted SG&A as a percent of sales were driven by investments in revenue generating initiatives designed to deliver increased market penetration and future market share gains.
  
  
• Net earnings were 2.4% of sales versus net earnings of 0.5% of sales in the prior year. First quarter EBITDA* as a percent of sales was 8.9% versus 7.1% in the prior year. First quarter adjusted EBITDA* was 9.7% of sales versus 8.9% of sales in the prior year.

1Q'25 Segment Results

($ in M)
	Sales	Segment Profit	Charges1	Adjusted Segment Profit*	Segment Margin	Adjusted Segment Margin*
Tools & Outdoor	$3,281	$289.2	$25.0	$314.2	8.8 %	9.6 %
Engineered Fastening2	$464	$39.0	$7.7	$  46.7	8.4 %	10.1 %

1 See Non-GAAP Adjustments On Page 5

2 Formerly known as "Industrial."  Refer to page 12 for further information.

*Non-GAAP Financial Measure As Further Defined On Page 6

• Tools & Outdoor net sales were flat versus first quarter 2024, as volume (+1%) was offset by currency (-1%). Organic revenue* was up 1%, with continued growth in DEWALT supported by professional demand as well as strong shipments in advance of the outdoor season. Regional total revenue growth was: North America (+2%), Europe (-2%) and rest of world (-9%). Regional organic revenues* were: North America (+2%), Europe (flat) and rest of world (-3%). The Tools & Outdoor segment margin was 8.8%, up 100 basis points versus prior year. Adjusted segment margin* was 9.6%, up 110 basis points versus the prior year rate. The year-over-year change in both segment margin and adjusted segment margin was primarily due to supply chain transformation efficiencies and benefits from new innovation launches, which were partially offset by freight inflation, the initial impact from tariffs and investments in growth initiatives.
  
  
• Engineered Fastening net sales were down (-21%) versus first quarter 2024. Price (+1%) was more than offset by volume (-2%), currency (-2%), the Infrastructure business divestiture (-16%), and a product line transfer to Tools & Outdoor (-2%). Organic revenues* were down (-1%), as aerospace and general industrial growth was more than offset by automotive market softness. The Engineered Fastening segment margin was 8.4% versus the prior year rate of 11.1%. Adjusted segment margin* was 10.1% versus the prior year rate of 12.1%. The year-over-year change in segment margin and adjusted segment margin was primarily due to lower volume in higher margin automotive.

Global Cost Reduction Program Supporting Gross Margin Expansion
The Company continued executing a series of initiatives that are expected to generate $2 billion of pre-tax run-rate cost savings by the end of 2025 and support its 35%+ long term adjusted gross margin* target.  The Global Cost Reduction Program generated $130 million of incremental pre-tax run-rate cost savings in first quarter 2025. Since inception of the program in mid-2022, it has generated approximately $1.7 billion in pre-tax run-rate cost savings.

*Non-GAAP Financial Measure As Further Defined On Page 6

Tariff Policy Implications
In response to the United States' recent policy actions and to safeguard gross margins, the Company has implemented a high-single digit U.S. Tools & Outdoor price increase in April, with plans to introduce a second price increase effective the beginning of the third quarter. The Company is also accelerating strategic adjustments to its supply chain with the objective of leveraging Mexico and reducing China tariff costs over the next 12-24 months. The Company expects to leverage its industry leading North American footprint as a competitive advantage (~60% of U.S. cost of sales).  Management also intends to continue proactively engaging with the U.S. administration.  The 2025 EPS impact from tariffs net of price and supply chain adjustments is currently estimated to be roughly negative $0.75 reflecting the timing required to implement mitigation countermeasures.

2025 Planning Assumptions
Patrick D. Hallinan, Executive Vice President and CFO, commented, "In a dynamic environment with reduced visibility, we are remaining nimble and planning for a range of scenarios in 2025.  We intend to implement pricing actions judiciously to preserve our long term margin journey and our ability to continue to meet the needs of our end users, while we respond decisively with operational and supply chain initiatives.  If the demand environment shifts, we expect to adjust our costs and inventory to protect earnings power and cash flow, while preserving our growth investments.  Our top priorities remain generating cash and restoring balance sheet strength, margin expansion, and to position the Company for long term growth and value creation."

The Company will review its planning scenario, including the current tariff impact net of price and supply chain adjustments, on today's earnings call with sensitivity analysis.  The 2025 EPS for this scenario is $3.30 (+/- $0.15) on a GAAP basis and approximately $4.50 on an adjusted basis.  The Company is targeting free cash flow* to meet or exceed $500 million.  During the earnings call this morning, Management will review these planning assumptions in more detail and will provide context on scenario planning. 

The difference between the 2025 GAAP and adjusted EPS* planning assumption range is approximately $1.05 to $1.35, consisting primarily of charges related to the supply chain transformation under the Global Cost Reduction Program.

*Non-GAAP Financial Measure As Further Defined On Page 6

Non-GAAP Adjustments
Total pre-tax non-GAAP adjustments in the first quarter of 2025 were $31.5 million, primarily related to footprint actions and other costs related to the supply chain transformation. Gross profit included $16.7 million of charges, while SG&A included $22.0 million. Other, net included a net benefit of $8.7 million, and Restructuring included $1.2 million of charges.  In addition, in the first quarter of 2025, the Company recognized a $0.3 million loss on the sale of a business.

Earnings Webcast
Stanley Black & Decker will host a webcast with investors today, April 30, 2025, at 8:00 am ET.  A slide presentation, which will accompany the call, will be available on the "Investors" section of the Company's website at www.stanleyblackanddecker.com/investors and will remain available after the call.

The call will be available through a live, listen-only webcast or teleconference.  Links to access the webcast, register for the teleconference, and view the accompanying slide presentation will be available on the "Investors" section of the Company's website, www.stanleyblackanddecker.com/investors under the subheading "News & Events."  A replay will also be available two hours after the call and can be accessed on the "Investors" section of Stanley Black & Decker's website.

About Stanley Black & Decker
Founded in 1843 and headquartered in the USA, Stanley Black & Decker (NYSE: SWK) is a worldwide leader in Tools and Outdoor, operating manufacturing facilities globally. The Company's approximately 48,000 employees produce innovative end-user inspired power tools, hand tools, storage, digital jobsite solutions, outdoor and lifestyle products, and engineered fasteners to support the world's builders, tradespeople and DIYers. The Company's world class portfolio of trusted brands includes DEWALT®, CRAFTSMAN®, STANLEY®, BLACK+DECKER®, and Cub Cadet®. To learn more visit: www.stanleyblackanddecker.com or follow Stanley Black & Decker on Facebook, Instagram, LinkedIn and X.

Investor Contacts:
Dennis Lange	Christina Francis
Vice President, Investor Relations	Director, Investor Relations
dennis.lange@sbdinc.com	christina.francis@sbdinc.com
(860) 827-3833	(860) 438-3470
Media Contacts:
Debora Raymond
Vice President, Public Relations
debora.raymond@sbdinc.com
(203) 640-8054

Non-GAAP Financial Measures

Organic revenue or organic sales is defined as the difference between total current and prior year sales less the impact of companies acquired and divested in the past twelve months and any foreign currency impacts. Organic revenue growth, organic sales growth or organic growth is organic revenue or organic sales divided by prior year sales. Gross profit is defined as sales less cost of sales. Gross margin is gross profit as a percent of sales. Segment profit is defined as sales less cost of sales and selling, general and administrative ("SG&A") expenses (aside from corporate overhead expense). Segment margin is segment profit as a percent of sales. EBITDA is earnings before interest, taxes, depreciation and amortization. EBITDA margin is EBITDA as a percent of sales.  Gross profit, gross margin, SG&A, segment profit, segment margin, earnings, EBITDA and EBITDA margin are adjusted for certain gains and charges, such as environmental charges, supply chain transformation costs, acquisition and divestiture-related items, asset impairments, restructuring, and other adjusting items. Management uses these metrics as key measures to assess the performance of the Company as a whole, as well as the related measures at the segment level. Adjusted earnings per share or adjusted EPS, is diluted GAAP EPS excluding certain gains and charges. Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important indicator of its liquidity, as well as its ability to fund future growth and to provide a return to the shareowners and is useful information for investors. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company's common stock and business acquisitions, among other items.  Free cash flow conversion is defined as free cash flow divided by net income. The Non-GAAP financial measures are reconciled to GAAP on pages 13 through 16 and in the appendix to the earnings conference call slides available at http://www.stanleyblackanddecker.com/investors. The Company considers the use of the Non-GAAP financial measures above relevant to aid analysis and understanding of the Company's results, business trends and outlook measures aside from the material impact of certain gains and charges and ensures appropriate comparability to operating results of prior periods.

The Company provides expectations for the non-GAAP financial measures of full-year 2025 adjusted EPS, presented on a basis excluding certain gains and charges, as well as 2025 free cash flow. Forecasted full-year 2025 adjusted EPS is reconciled to forecasted full-year 2025 GAAP EPS under "2025 Planning Assumptions". Consistent with past methodology, the forecasted full-year 2025 GAAP EPS excludes the impacts of potential acquisitions and divestitures, future regulatory changes or strategic shifts that could impact the Company's contingent liabilities or intangible assets, respectively, potential future cost actions in response to external factors that have not yet occurred, and any other items not specifically referenced under "2025 Planning Assumptions". A reconciliation of forecasted free cash flow to its most directly comparable GAAP estimate is not available without unreasonable effort due to high variability and difficulty in predicting items that impact cash flow from operations, which could be material to the Company's results in accordance with U.S. GAAP. The Company believes such a reconciliation would also imply a degree of precision that is inappropriate for this forward-looking measure.

The Company also provides multi-year strategic goals for the non-GAAP financial measures of adjusted gross margin, presented on a basis excluding certain gains and charges. A reconciliation for these non-GAAP measures is not available without unreasonable effort due to the inherent difficulty of forecasting the timing and/or amount of various items that have not yet occurred, including the high variability and low visibility with respect to certain gains or charges that would generally be excluded from non-GAAP financial measures and which could be material to the Company's results in accordance with U.S. GAAP. Additionally, estimating such GAAP measures and providing a meaningful reconciliation consistent with the Company's accounting policies for future periods requires a level of precision that is unavailable for these future multi-year periods and cannot be accomplished without unreasonable effort. The Company believes such a reconciliation would also imply a degree of precision that is inappropriate for these forward-looking measures.

CAUTIONARY STATEMENT
CONCERNING FORWARD-LOOKING STATEMENTS

This document contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws, including, but not limited to, any goals, projections, guidance or planning assumptions regarding earnings, EPS, income, revenue, margins, costs, sales, sales growth, profitability, cash flow or other financial items; any statements of the plans, strategies and objectives of management for future operations, including expectations around our ongoing transformation; future market share gain, shareholder returns, any statements concerning proposed new products, services or developments; any statements regarding future economic conditions or performance; any statements of beliefs, plans, intentions or expectations; any statements and assumptions regarding possible tariff and tariff impact projections and related mitigation plans (including price actions, supply chain adjustments and timing expectations related to such plans); and any statements of assumptions underlying any of the foregoing. Forward-looking statements may include, among others, the words "may," "will," "estimate," "intend," "could," "project," "plan," "continue," "believe," "expect," "anticipate", "run-rate", "annualized", "forecast", "commit", "goal", "target", "design", "on track", "position or positioning", "guidance," "aim," "looking forward," "multi-year" or any other similar words.

Although the Company believes that the expectations reflected in any of its forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of its forward-looking statements. The Company's future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, such as those disclosed or incorporated by reference in the Company's filings with the Securities and Exchange Commission. 

Important factors that could cause the Company's actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in its forward-looking statements include, among others, the following: (i) successfully developing, marketing and achieving sales from new products and services and the continued acceptance of current products and services; (ii) macroeconomic factors, including global and regional business conditions, commodity prices, inflation and deflation, interest rate volatility, currency exchange rates, and uncertainties in the global financial markets; (iii) laws, regulations and governmental policies affecting the Company's activities in the countries where it does business, including those related to tariffs, taxation, data privacy, anti-bribery, anti-corruption, government contracts, trade controls, including but not limited to, tariffs, import and export controls and other monetary and non-monetary trade regulations or barriers; (iv) the Company's ability to predict the timing and extent of any trade related regulations, restrictions, trade barriers and tariffs as well as its ability to successfully assess the impact to its business of, and mitigate or respond to, macroeconomic or trade and tariff changes or policies (including, but not limited to, the Company's ability to obtain price increases from its customers and complete effective supply chain adjustments within anticipated time frames), (v) the economic, political, cultural and legal environment in Europe and the emerging markets in which the Company generates sales, particularly Latin America and China; (vi) realizing the anticipated benefits of mergers, acquisitions, joint ventures, strategic alliances or divestitures; (vii) pricing pressure and other changes within competitive markets; (viii) availability and price of raw materials, component parts, freight, energy, labor and sourced finished goods; (ix) the impact that the tightened credit markets may have on the Company or its customers or suppliers; (x) the extent to which the Company has to write off accounts receivable, inventory or other assets or experiences supply chain disruptions in connection with bankruptcy filings by customers or suppliers; (xi) the Company's ability to identify and effectively execute productivity improvements and cost reductions; (xii) potential business, supply chain and distribution disruptions, including those related to physical security threats, information technology or cyber-attacks, epidemics, natural disasters or pandemics, sanctions, political unrest, war or terrorism, including the conflicts between Russia and Ukraine, and Israel and Hamas, and tensions or conflicts in South Korea, China, Taiwan and the Middle East; (xiii) the continued consolidation of customers, particularly in consumer channels, and the Company's continued reliance on significant customers; (xiv) managing franchisee relationships; (xv) the impact of poor weather conditions and climate change and risks related to the transition to a lower-carbon economy, such as the Company's ability to successfully adopt new technology, meet market-driven demands for carbon neutral and renewable energy technology, or to comply with changes in environmental regulations or requirements, which may be more stringent and complex, impacting its manufacturing facilities and business operations as well as remediation plans and costs relating to any of its current or former locations or other sites; (xvi) maintaining or improving production rates in the Company's manufacturing facilities (including leveraging its North American footprint in connection with tariff mitigation), responding to significant changes in customer preferences or expectations, product demand and fulfilling demand for new and existing products, and learning, adapting and integrating new technologies into products, services and processes; (xvii) changes in the competitive landscape in the Company's markets; (xviii) the Company's non-U.S. operations, including sales to non-U.S. customers; (xix) the Company's ability to predict the extent or timing of, and impact from, demand changes within domestic or world-wide markets associated with construction, homebuilding and remodeling, aerospace,  outdoor, engineered fastening, automotive and other markets which the Company serves; (xx) potential adverse developments in new or pending litigation and/or government investigations; (xxi) the incurrence of debt and changes in the Company's ability to obtain debt on commercially reasonable terms and at competitive rates; (xxii) substantial pension and other postretirement benefit obligations; (xxiii) potential regulatory liabilities, including environmental, privacy, data breach, workers compensation and product liabilities; (xxiv) attracting, developing and retaining senior management and other key employees, managing a workforce in many jurisdictions, labor shortages, work stoppages or other labor disruptions; (xxv) the Company's ability to keep abreast with the pace of technological change; (xxvi) changes in accounting estimates; (xxvii) the Company's ability to protect its intellectual property rights and to maintain its public reputation and the strength of its brands; (xxviii) critical or negative publicity, including on social media, whether or not accurate, concerning the Company's brands, products, culture, key employees or suppliers, or initiatives, and the Company's handling of divergent stakeholder expectations regarding the same, and (xxix) the Company's ability to implement, and achieve the expected benefits (including cost savings and reduction in working capital) from its Global Cost Reduction Program including: continuing to advance innovation, electrification and global market penetration to achieve mid-single digit organic revenue growth; streamlining and simplifying the organization, and investing in initiatives that more directly impact the Company's customers and end users; returning adjusted gross margins* to historical 35%+ levels by accelerating the supply chain transformation to leverage material productivity, drive operational excellence, rationalize manufacturing and distribution networks, including consolidating facilities and optimizing the distribution network, and reduce complexity of the product portfolio; improving fill rates and matching inventory with customer demand; prioritizing cash flow generation and inventory optimization; delivering operational excellence through efficiency, simplified organizational design; and reducing complexity through platforming products and implementing initiatives to drive a SKU reduction.

Additional factors that could cause actual results to differ materially from forward-looking statements are set forth in the Annual Report on Form 10-K and in the Quarterly Reports on Form 10-Q, including under the headings "Risk Factors," and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and in the Consolidated Financial Statements and the related Notes, and other filings with the Securities and Exchange Commission.

Forward-looking statements in this press release speak only as of the date hereof, and forward-looking statements in documents that are incorporated by reference herein speak only as of the date of those documents. The Company does not undertake any obligation or intention to update or revise any forward-looking statements, whether as a result of future events or circumstances, new information or otherwise, except as required by law.

 

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, Millions of Dollars Except Per Share Amounts)
				FIRST QUARTER
				2025		2024
	NET SALES			$             3,744.6		$       3,869.5
	COSTS AND EXPENSES
		Cost of sales		2,623.8		2,761.0
		Gross profit		1,120.8		1,108.5
		% of Net Sales		29.9 %		28.6 %
		Selling, general and administrative		867.0		851.8
		% of Net Sales		23.2 %		22.0 %
		Other - net		47.5		80.0
		Loss on sale of business		0.3		-
		Asset impairment charge		-		25.5
		Restructuring charges		1.2		15.0
		Income from operations		204.8		136.2
		Interest - net		77.2		87.9
	EARNINGS BEFORE INCOME TAXES			127.6		48.3
		Income taxes		37.2		28.8
	NET EARNINGS			$                   90.4		$            19.5
	EARNINGS PER SHARE OF COMMON STOCK
		Basic		$                   0.60		$            0.13
		Diluted		$                   0.60		$            0.13
	DIVIDENDS PER SHARE OF COMMON STOCK			$                   0.82		$            0.81
	WEIGHTED-AVERAGE SHARES OUTSTANDING (in thousands)
		Basic		151,028		150,235
		Diluted		151,699		150,941

 

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, Millions of Dollars)
			March 29,		December 28,
			2025		2024
ASSETS
	Cash and cash equivalents		$                     344.8		$                       290.5
	Accounts and notes receivable, net		1,566.0		1,153.7
	Inventories, net		4,707.1		4,536.4
	Other current assets		391.2		397.1
	Total current assets		7,009.1		6,377.7
	Property, plant and equipment, net		2,010.0		2,034.3
	Goodwill and other intangibles, net		11,649.2		11,636.4
	Other assets		1,827.9		1,800.5
	Total assets		$               22,496.2		$                  21,848.9
LIABILITIES AND SHAREOWNERS' EQUITY
	Short-term borrowings		$                  1,135.2		$                            -
	Current maturities of long-term debt		849.4		500.4
	Accounts payable		2,531.6		2,437.2
	Accrued expenses		1,832.5		1,979.3
	Total current liabilities		6,348.7		4,916.9
	Long-term debt		4,755.2		5,602.6
	Other long-term liabilities		2,550.7		2,609.5
	Shareowners' equity		8,841.6		8,719.9
	Total liabilities and shareowners' equity		$               22,496.2		$                  21,848.9

 

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
SUMMARY OF CASH FLOW ACTIVITY
(Unaudited, Millions of Dollars)
						FIRST QUARTER
						2025		2024
	OPERATING ACTIVITIES
		Net earnings				$                      90.4		$                        19.5
		Depreciation and amortization				128.4		140.2
		Loss on sale of business				0.3		-
		Asset impairment charge				-		25.5
		Changes in working capital1				(469.0)		(359.8)
		Other				(170.1)		(256.4)
		Net cash used in operating activities				(420.0)		(431.0)
	INVESTING AND FINANCING ACTIVITIES
		Capital and software expenditures				(65.0)		(65.7)
		Proceeds from sale of business, net of cash sold				5.0		-
		Payments on long-term debt				(500.0)		-
		Net short-term commercial paper borrowings				1,136.2		674.9
		Proceeds from issuances of common stock				2.7		3.8
		Purchases of common stock for treasury				(11.7)		(6.3)
		Cash dividends on common stock				(124.5)		(121.8)
		Effect of exchange rate changes on cash				31.5		(27.6)
		Other				1.6		0.5
		Net cash provided by investing and financing activities				475.8		457.8
	Increase in cash, cash equivalents and restricted cash					55.8		26.8
	Cash, cash equivalents and restricted cash, beginning of period					292.8		454.6
	Cash, cash equivalents and restricted cash, end of period					$                    348.6		$                      481.4
	Free Cash Flow Computation2
	Net cash used in operating activities					$                  (420.0)		$                    (431.0)
	Less: capital and software expenditures					(65.0)		(65.7)
	Free cash flow (before dividends)					$                  (485.0)		$                    (496.7)
	Reconciliation of Cash, Cash Equivalents and Restricted Cash
						March 29, 2025		December 28, 2024
	Cash and cash equivalents					$                    344.8		$                      290.5
	Restricted cash included in Other current assets					3.8		2.3
	Cash, cash equivalents and restricted cash					$                    348.6		$                      292.8
1	Working capital is comprised of accounts receivable, inventory, accounts payable and deferred revenue.
2	Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important measure of its liquidity, as well as its ability to fund future growth and to provide a return to the shareowners, and is useful information for investors. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company's common stock and business acquisitions, among other items.

 

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION
(Unaudited, Millions of Dollars)
			FIRST QUARTER
			2025		2024
NET SALES
	Tools & Outdoor		$              3,280.9		$                3,284.6
	Engineered Fastening1		463.7		584.9
	Total		$              3,744.6		$                3,869.5
SEGMENT PROFIT
	Tools & Outdoor		$                 289.2		$                   255.7
	Engineered Fastening1		$                   39.0		$                     65.2
CORPORATE OVERHEAD2			$                  (74.4)		$                   (64.2)
Segment Profit as a Percentage of Net Sales
	Tools & Outdoor		8.8 %		7.8 %
	Engineered Fastening1		8.4 %		11.1 %
1	In the first quarter of 2025, the Industrial segment was renamed "Engineered Fastening" as a result of a more focused portfolio following recent divestitures. The Engineered Fastening segment name change is to the name only and had no impact on the Company's consolidated financial statements or segment results. The 2024 amounts shown above for the Engineered Fastening segment include  the results of the Infrastructure business through the date of sale of April 1, 2024.
2	The corporate overhead element of SG&A, which is not allocated to the business  segments for purposes of determining segment profit, consists of the costs associated with the executive management team and expenses related to centralized functions that benefit the entire Company but are not directly  attributable to the business segments, such as legal and corporate finance  functions, as well as expenses for the world headquarters facility.

 

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars Except Per Share Amounts)
			FIRST QUARTER 2025
			GAAP		Non-GAAP Adjustments		Non-GAAP1
	Gross profit		$               1,120.8		$                     16.7		$                    1,137.5
	% of Net Sales		29.9 %				30.4 %
	Selling, general and administrative		867.0		(22.0)		845.0
	% of Net Sales		23.2 %				22.6 %
	Earnings before income taxes		127.6		31.5		159.1
	Income taxes2		37.2		7.5		44.7
	Net earnings		90.4		24.0		114.4
	Diluted earnings per share of common stock		$                     0.60		$                     0.15		$                          0.75
			FIRST QUARTER 2024
			GAAP		Non-GAAP Adjustments		Non-GAAP1
	Gross profit		$                 1,108.5		$                      14.4		$                      1,122.9
	% of Net Sales		28.6 %				29.0 %
	Selling, general and administrative		851.8		(20.1)		831.7
	% of Net Sales		22.0 %				21.5 %
	Earnings before income taxes		48.3		71.5		119.8
	Income taxes2		28.8		6.8		35.6
	Net earnings		19.5		64.7		84.2
	Diluted earnings per share of common stock		$                      0.13		$                      0.43		$                           0.56
1	The Non-GAAP 2025 and 2024 information, as reconciled to GAAP above, is considered relevant to aid analysis and understanding of the Company's results and business trends aside from the material impact of certain gains and charges and ensures appropriate comparability to operating results of prior periods. See further detail on Non-GAAP adjustments on page 15.
2	Income taxes attributable to Non-GAAP adjustments are determined by calculating income taxes on pre-tax earnings,  both inclusive and exclusive of Non-GAAP adjustments, taking into consideration the nature of the Non-GAAP adjustments and the applicable statutory income tax rates.

 

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars)
				FIRST QUARTER 2025
				GAAP		Non-GAAP Adjustments1		Non-GAAP2
	SEGMENT PROFIT
		Tools & Outdoor		$                   289.2		$                     25.0		$                   314.2
		Engineered Fastening		$                     39.0		$                       7.7		$                     46.7
	CORPORATE OVERHEAD			$                   (74.4)		$                       6.0		$                   (68.4)
	Segment Profit as a Percentage of Net Sales
		Tools & Outdoor		8.8 %				9.6 %
		Engineered Fastening		8.4 %				10.1 %
				FIRST QUARTER 2024
				GAAP		Non-GAAP Adjustments1		Non-GAAP2
	SEGMENT PROFIT
		Tools & Outdoor		$                    255.7		$                      22.9		$                    278.6
		Engineered Fastening		$                      65.2		$                        5.7		$                      70.9
	CORPORATE OVERHEAD			$                     (64.2)		$                        5.9		$                     (58.3)
	Segment Profit as a Percentage of Net Sales
		Tools & Outdoor		7.8 %				8.5 %
		Engineered Fastening		11.1 %				12.1 %
1	Non-GAAP adjustments for the business segments relate primarily to footprint actions and other costs associated with the supply chain transformation, as further discussed on page 15. Non-GAAP adjustments for Corporate overhead primarily consist of transition services costs related to previously divested businesses.
2	The Non-GAAP 2025 and 2024 business segment and corporate overhead information, as reconciled to GAAP above,  is considered relevant to aid analysis and understanding of the Company's results and business trends aside from the material impact of certain gains and charges and ensures appropriate comparability to operating results of prior periods.

 

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS TO EBITDA
(Unaudited, Millions of Dollars)
			FIRST QUARTER
			2025		2024
	Net earnings		$                90.4		$                 19.5
	% of Net Sales		2.4 %		0.5 %
	Interest - net		77.2		87.9
	Income taxes		37.2		28.8
	Depreciation		91.1		99.1
	Amortization		37.3		41.1
	EBITDA1		$             333.2		$               276.4
	% of Net Sales		8.9 %		7.1 %
	Non-GAAP adjustments before income taxes		31.5		71.5
	Less: Accelerated depreciation included in Non-GAAP Adjustments before income taxes		2.9		5.3
	Adjusted EBITDA1		$             361.8		$               342.6
	% of Net Sales		9.7 %		8.9 %
1	EBITDA is earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA represents EBITDA excluding certain gains and charges, as summarized below. EBITDA and Adjusted EBITDA, both Non-GAAP measures, are considered relevant to aid analysis and understanding of the Company's operating results and ensures appropriate comparability to prior periods.
	SUMMARY OF NON-GAAP ADJUSTMENTS BEFORE INCOME TAXES
(Unaudited, Millions of Dollars)
			FIRST QUARTER
			2025		2024
	Supply Chain Transformation Costs:
	Footprint Rationalization2		$                  6.6		$                   8.4
	Material Productivity & Operational Excellence		4.7		5.8
	Facility-related costs		-		0.7
	Other charges (gains)		5.4		(0.5)
	Gross profit		$                16.7		$                 14.4
	Supply Chain Transformation Costs:
	Footprint Rationalization2		$                  6.1		$                   7.5
	Complexity Reduction & Operational Excellence		10.0		0.3
	Acquisition & integration-related costs		-		2.8
	Transition services costs related to previously divested businesses		5.3		5.5
	Other charges		0.6		4.0
	Selling, general and administrative		$                22.0		$                 20.1
	Income related to providing transition services to previously divested businesses		$                (6.8)		$                 (5.5)
	Environmental charges		(1.1)		-
	Deal-related costs and other		(0.8)		2.0
	Other, net		$                (8.7)		$                 (3.5)
	Loss on sale of business		$                  0.3		$                     -
	Asset impairment charge3		-		25.5
	Restructuring charges		1.2		15.0
	Non-GAAP adjustments before income taxes		$                31.5		$                 71.5
2	Footprint Rationalization costs in 2025 and 2024 primarily relate to accelerated depreciation of production equipment and site transformation and re-configuration costs. Facility exit costs related to site closures are reported in Restructuring charges.
3	The $25.5 million pre-tax asset impairment charge in 2024 related to the Infrastructure business.

 

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP REVENUE GROWTH TO ORGANIC GROWTH
(Unaudited)
			FIRST QUARTER 2025
			GAAP Revenue Growth		Less: Acquisitions		Plus: Divestitures		Less: Product Line Transfer		Less: Currency		Non-GAAP Organic Growth1
	Stanley Black & Decker		-3 %		- %		2 %		- %		-2 %		1 %
	Tools & Outdoor		- %		- %		- %		- %		-1 %		1 %
	North America		2 %		- %		- %		- %		- %		2 %
	Europe		-2 %		- %		- %		- %		-2 %		- %
	Rest of World		-9 %		- %		- %		- %		-6 %		-3 %
	Engineered Fastening		-21 %		- %		16 %		-2 %		-2 %		-1 %
1	Non-GAAP Organic Growth, as reconciled to GAAP Revenue Growth above, is utilized to describe the change in the Company's sales excluding the  impacts of foreign currency fluctuations, acquisitions during their initial 12 months of ownership, and divestitures. Organic growth is also referred to as organic sales growth and organic revenue growth.

 

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SOURCE Stanley Black & Decker, Inc.

FAQ

What is Stanley Black & Decker (SWK) Q1 2025 revenue and how does it compare to last year?

Stanley Black & Decker reported Q1 2025 revenues of $3.7 billion, down 3% from the previous year. The decline was due to a 2% currency impact and 2% from the Infrastructure divestiture, partially offset by 1% organic growth.

How much did SWK's DEWALT brand grow in Q1 2025?

While specific DEWALT growth numbers weren't disclosed, the press release confirms DEWALT posted its 8th consecutive quarter of revenue growth, supported by professional demand and strong outdoor season shipments.

What is Stanley Black & Decker's (SWK) EPS guidance for 2025?

SWK's 2025 EPS guidance is $3.30 (+/- $0.15) on a GAAP basis and approximately $4.50 on an adjusted basis. The company expects tariffs to have a negative $0.75 impact on EPS.

How is SWK responding to U.S. tariffs in 2025?

SWK implemented a high-single digit U.S. Tools & Outdoor price increase in April 2025, plans a second price increase in Q3, and is accelerating supply chain adjustments to leverage Mexico operations and reduce China tariff costs over 12-24 months.

What is Stanley Black & Decker's free cash flow target for 2025?

Stanley Black & Decker is targeting free cash flow to meet or exceed $500 million for 2025.