More than three-quarters of today's younger DIYers surveyed feel confident they'll complete their planned projects in 2025 Top projects they want to complete include bathtub or shower replacements, interior painting and built-in storage and organization More than half of DIYers surveyed say a sense of accomplishment and pride pushes them to finish their projects TOWSON, Md., June 5, 2025 /PRNewswire/ -- Despite a backdrop of uncertainty, younger homeowners don't plan to hit pause on their planned home impr ...

The 2025-2026 scholarship recipients represent future tradespeople who will fill critical roles in the industry. The students reside in 24 states and three provinces in Canada and are pursuing 12 different trade careers including electrical, carpentry, construction, HVAC, and welding. "For more than a century, DEWALT has been committed to supporting the trades," said James Oh, President and General Manager of DEWALT. "As the need for skilled labor continues to rise*, we are helping empower the next generati ...

Summary of Conference Call Company Overview - The conference call pertains to **Stanley Black & Decker**, a company involved in tools and outdoor products, discussing its recent performance and strategic direction. Key Points and Arguments Financial Performance - The company reported **organic year-over-year growth** and **margin expansion** in Q1, indicating progress in its transformation efforts [1] - The impact of tariffs on the company was initially estimated at **$1.7 billion**, which has now been reduced to an annualized range of **$500 to $600 million**, reflecting a positive shift in the trade environment [2][3] - The anticipated headwind from tariffs has decreased from **75 cents** to approximately **40 cents** per share, indicating improved financial conditions [2] Strategic Initiatives - The company is focused on achieving **35% plus gross margins** and is committed to a growth culture [5] - A significant transformation in the supply chain has been implemented to enhance productivity and efficiency, which is expected to yield long-term benefits [6][9] - The organizational structure has shifted to focus on brand management, allowing for better alignment with customer needs and driving demand for core brands like **DeWalt, Stanley, and Craftsman** [10][11] Supply Chain and Production - The company is actively reducing its reliance on China for U.S. consumption, aiming to be effectively out of China within **12 to 24 months** [20] - The strategy includes leveraging production capabilities in **Mexico** and ensuring compliance with **USMCA** regulations [21][33] - The company is working to simplify its manufacturing footprint and improve inventory turnover, with current inventory days at **150**, compared to pre-pandemic levels of **120-130** [44][45] Market Conditions - There is a noted strength in the professional market segment compared to the DIY segment, which remains soft due to economic instability [29] - The company anticipates that improvements in the economy and interest rates will eventually lead to increased consumer activity in the DIY sector [30] Pricing Strategy - The pricing environment is described as volatile, with the company committed to maintaining service levels and inventory flow to support customers [18] - The company has a flexible pricing strategy that can be adjusted based on market conditions and tariff impacts [22][24] Portfolio Management - The company is in the process of portfolio cleanup, focusing on divesting non-core assets to streamline operations and improve cash generation [51][52] Additional Important Content - The company has centralized its engineering organization to enhance innovation and product development efficiency [12][13] - There is a focus on building a more diverse and flexible production strategy across various geographic locations, including **Vietnam** and **India** [33] - The management expressed confidence in the talent and team dynamics within the company, which is crucial for executing its strategic vision [14] This summary encapsulates the essential insights from the conference call, highlighting Stanley Black & Decker's financial performance, strategic initiatives, market conditions, and operational adjustments.

Core Viewpoint - Stanley Black & Decker's stock experienced a significant decline of 21.9% in April due to the impact of newly imposed tariffs, leading management to lower its full-year guidance for earnings and cash flow [1][2]. Financial Impact - The tariffs are expected to negatively affect earnings per share (EPS) by $0.75 in 2025, prompting a reduction in the full-year adjusted EPS guidance from $5.25 to $4.50 [2]. - The forecast for free cash flow in 2025 has been lowered from $750 million to $500 million [2]. - The adjusted cost of sales in the U.S. is approximately $6.8 billion, with significant portions sourced from China and Mexico, which are subject to tariffs [5]. Market Valuation - The revised estimates suggest a stock valuation of 13.6 times earnings in 2025 and 19 times free cash flow, which may be attractive if 2025 is a trough year and management's mitigation strategies are effective [3]. Supply Chain Challenges - The company faces challenges in reshaping its supply chain due to the tariffs, which will require time and effort to implement [5]. - Substantial tariffs are also affecting other Asian suppliers, complicating sourcing adjustments [6]. Sales and Inflation Concerns - Price increases already implemented by the company may negatively impact sales, while potential inflation from tariffs could lead to higher interest rates and reduced demand for tools and fasteners [7]. Investment Consideration - Despite the justified sell-off, the stock may present a decent value if the company can adapt and meet its revised full-year guidance [8].

Core Viewpoint - Stanley Black & Decker reported better-than-expected earnings but faced revenue decline and rising cost pressures due to tariffs, leading to a negative market reaction [1][2]. Financial Performance - The company earned $0.75 per share, exceeding the consensus estimate of $0.66 per share [2]. - Revenue for the quarter was $3.7 billion, down 3% year-over-year, impacted by currency headwinds and business divestitures [2][3]. - Full-year earnings per share are expected to be around $4.50, significantly below Wall Street's consensus of $4.91 [3]. Segment Performance - Sales in the tools segment, the largest for the company, remained flat [3]. - Fastener sales experienced a decline of 21% due to divestitures and weakness in the automotive sector [3]. Cost Management and Strategy - The company is on track to achieve its long-term $2 billion cost-savings plan, with $500 million expected to be realized by 2025 [4]. - Adjustments to pricing and supply chains are being made in response to tariff concerns [4][5]. Market Outlook - The CEO indicated that the company is actively monitoring tariff policies and is making necessary adjustments to minimize impacts on end users while protecting the business [5]. - Over the past year, shares of Stanley Black & Decker have decreased by 35%, and the company currently offers a 5% dividend yield [5].

Core Insights - Stanley Black & Decker, Inc. reported first-quarter 2025 adjusted earnings of 75 cents per share, exceeding the Zacks Consensus Estimate of 68 cents, with a year-over-year increase of 33.9% [1] - The company's net sales reached $3.74 billion, surpassing the consensus estimate of $3.73 billion, although it represented a decline of 3.2% year over year due to weaknesses in both segments [1] Segment Performance - Revenues from the Tools & Outdoor segment totaled $3.28 billion, a slight decrease of 0.1% year over year, compared to an estimate of $3.21 billion [2] - The Engineered Fastening segment generated revenues of $463.7 million, down 20.7% year over year, against an estimated $489.3 million [2] Margin Analysis - The cost of sales decreased by 5% year over year to $2.62 billion, while gross profit increased by 1.1% to $1.12 billion, resulting in a gross margin increase of 130 basis points to 29.9% [3] - Selling, general and administrative expenses rose by 1.8% year over year to $867.0 million, with adjusted EBITDA growing by 5.6% to $361.8 million, leading to a margin increase of 80 basis points to 9.7% [3] Balance Sheet and Cash Flow - At the end of the first quarter, cash and cash equivalents stood at $344.8 million, up from $290.5 million at the end of the fourth quarter of 2024, while long-term debt decreased to $4.76 billion from $5.6 billion [4] - Net cash used in operating activities was $420.0 million, down 2.6% year over year, with capital and software expenditures totaling $65 million, slightly down from $65.7 million a year ago [5] Future Guidance - The company anticipates total revenues to increase in low single digits and expects earnings to be around $3.30 (+/- $0.15) per share, a decrease from the previous expectation of $4.05 (+/- $0.65) [6] Zacks Rank - Stanley Black & Decker currently holds a Zacks Rank 3 (Hold) [7]

Financial Data and Key Metrics Changes - The company reported total revenue of $3.7 billion for Q1 2025, consistent with plans, with organic growth of 1% driven by solid outdoor performance [11][12] - Adjusted gross margin improved to 30.4%, up 140 basis points year-over-year, despite pressures from freight inflation and tariffs [12][13] - Adjusted earnings per share was 75 cents, reflecting a 34% increase compared to the previous year [13] Business Line Data and Key Metrics Changes - Tools and Outdoor segment revenue was approximately $3.3 billion, flat year-over-year, with organic revenue growth of 1% driven by volume, particularly from the DEWALT brand [19][20] - Engineered Fastening segment revenue decreased by 21% year-over-year, with a slight organic revenue decline of 1% due to various pressures including a divestiture and volume pressures [24][25] Market Data and Key Metrics Changes - North America recorded a 2% organic revenue increase, reflecting stable demand trends, while Europe showed flat organic growth amid a weak market backdrop [22] - The rest of the world experienced a 3% organic revenue decline, primarily due to strong growth comparisons from the previous year in Latin America [23] Company Strategy and Development Direction - The company is focused on completing its transformation in 2025, aiming for $2 billion in savings, while continuing to invest in growth and innovation [13][16] - A three-pronged execution plan is in place to address trade policy changes, including supply chain mitigation, price increases, and engagement with the US administration [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic trade environment, preparing for multiple demand scenarios while maintaining a focus on execution and cash generation [14][15] - The company anticipates significant price increases due to tariffs and is actively engaging with channel partners to manage these changes [17][35] Other Important Information - The company has reduced its manufacturing footprint in China and is leveraging flexible supply chain hubs in the US, Mexico, and Southeast Asia [8][34] - The anticipated headwind from tariffs for 2025 is estimated at approximately 75 cents on an adjusted EPS basis, with ongoing efforts to mitigate this impact [36][42] Q&A Session Summary Question: Why is Mexico only one-third USMCA compliant? - The company is operationalizing plans to increase USMCA compliance, which involves straightforward adjustments that were not previously cost-effective [56] Question: How will the $1.7 billion tariff impacts be offset? - The majority of near-term mitigation will come from price increases, with SG&A expense management also playing a role [60] Question: What is the expected impact of LIFO accounting in Q2? - The LIFO impact in Q2 is estimated to be between $200 million to $250 million, affecting the cost of goods sold [85]

Financial Data and Key Metrics Changes - The company reported total revenue of $3.7 billion for Q1 2025, consistent with plans, with organic growth of 1% driven by strong outdoor performance [11][12] - Adjusted gross margin improved to 30.4%, up 140 basis points year-over-year, attributed to supply chain efficiencies and new product innovations [12][13] - Adjusted earnings per share increased by 34% to $0.75, while adjusted EBITDA margin approached 10%, up approximately 80 basis points from the previous year [13][14] Business Line Data and Key Metrics Changes - Tools and Outdoor segment revenue was approximately $3.3 billion, flat compared to Q1 2024, with organic revenue growth of 1% driven by volume, particularly from the DEWALT brand [20][21] - Engineered Fastening segment revenue decreased by 21% year-over-year, with a slight organic revenue decline of 1%, impacted by the divestiture of the infrastructure business and volume pressures in the automotive sector [25][26] Market Data and Key Metrics Changes - North American end market demand remained stable, with a 2% organic revenue increase in the Tools and Outdoor segment [23] - European organic growth was flat, while the Rest of World segment saw a 3% decline, primarily due to tough comparisons from robust growth in Latin America last year [24] Company Strategy and Development Direction - The company is focused on completing its transformation in 2025, aiming for $2 billion in savings, while continuing to invest in growth and innovation [13][18] - A three-pronged execution plan is in place to address trade policy changes, including supply chain mitigation, price increases, and collaboration with the US administration [8][10] - The company is enhancing its supply chain flexibility, reducing reliance on China, and increasing USMCA compliance [33][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic trade environment, preparing for multiple demand scenarios while maintaining a focus on execution and cash generation [14][15] - The company anticipates significant price increases due to tariffs, with an estimated $0.75 headwind on adjusted EPS for 2025 [44][50] - Management remains committed to long-term shareholder value creation despite near-term challenges posed by tariffs [52] Other Important Information - The company achieved approximately $130 million in pretax run rate cost savings in Q1, totaling $1.7 billion since the program's inception [28] - The company is actively pursuing new commercial opportunities and enhancing service for end users, particularly in markets like Saudi Arabia [29][30] Q&A Session Summary Question: Concerns about USMCA compliance and tariff rates - Management acknowledged that current USMCA compliance is below one-third and is working on operationalizing plans to improve this [57][58] - The tariff rate for the rest of the world is currently 10%, based on existing policy [59] Question: Breakdown of tariff impacts and mitigation strategies - The majority of near-term mitigation is expected to come from price increases, with SG&A expense management also playing a role [61][62] Question: Phasing of tariff impacts and free cash flow - Significant tariff expense burden is anticipated in Q2, with pricing expected to catch up by early Q3 [69] Question: Pricing increases and retail partner conversations - A high single-digit price increase has been implemented, with further discussions ongoing for additional increases [74][76] Question: Inventory levels and potential destocking - Inventory levels are viewed as normalized, with potential destocking risks primarily focused on specific product lines and retailers [93]

First Quarter 2025 Overview April 30, 2025 Participants Don Allan President & CEO COO, EVP And President, Tools & Outdoor Pat Hallinan Vice President, Investor Relations 2 1Q 2025 Earnings Call Executive Vice President, CFO Dennis Lange Chris Nelson Cautionary Statement 1Q 2025 Key Messages A Solid First Quarter Delivering Organic Growth* And Gross Margin Expansion… Pre-Tax Run-Rate Cost Savings $130M $1.7B Quarter-To-Date Program-To-Date $3.7 Billion Total Revenue +140 Bps Adj. Gross Margin* vs. 1Q'24 $0.7 ...

Financial Performance - Net sales for Q1 2025 were $3,744.6 million, a decrease of 3.2% from $3,869.5 million in Q1 2024[2] - Gross profit increased to $1,120.8 million, representing 29.9% of net sales, compared to 28.6% in the previous year[2] - Net earnings for Q1 2025 were $90.4 million, significantly up from $19.5 million in Q1 2024, resulting in diluted earnings per share of $0.60[2] - Non-GAAP net earnings for Q1 2025 were $114.4 million, with a diluted earnings per share of $0.75 after adjustments[9] - Net earnings for Q1 2025 were $90.4 million, a significant increase from $19.5 million in Q1 2024, representing a growth of 362.3%[13] - Adjusted EBITDA for Q1 2025 was $361.8 million, up from $342.6 million in Q1 2024, reflecting an increase of 5.7%[13] Segment Performance - The Tools & Outdoor segment reported net sales of $3,280.9 million, slightly down from $3,284.6 million in Q1 2024, while segment profit increased to $289.2 million[8] - The Engineered Fastening segment saw a decline in net sales to $463.7 million from $584.9 million, with segment profit dropping to $39.0 million[8] - GAAP revenue growth for Stanley Black & Decker was -3% in Q1 2025, with organic growth at 1% after adjusting for currency and acquisitions[17] - The Engineered Fastening segment experienced a decline of 21% in GAAP revenue growth, with organic growth at -1%[17] Cash Flow and Dividends - Free cash flow before dividends for Q1 2025 was $(485.0) million, slightly improved from $(496.7) million in Q1 2024[6] - The company declared a dividend of $0.82 per share, up from $0.81 in the previous year[2] Assets and Liabilities - Total current assets rose to $7,009.1 million as of March 29, 2025, compared to $6,377.7 million at the end of 2024[4] - Total liabilities increased to $13,654.1 million from $12,528.5 million, with short-term borrowings of $1,135.2 million reported[4] Expenses and Charges - Selling, general and administrative expenses were $22.0 million in Q1 2025, up from $20.1 million in Q1 2024, reflecting an increase of 9.5%[15] - Interest expense decreased to $77.2 million in Q1 2025 from $87.9 million in Q1 2024, a reduction of 12.8%[13] - The company incurred a restructuring charge of $1.2 million in Q1 2025, compared to $15.0 million in Q1 2024, indicating a decrease of 92%[15] Other Financial Metrics - Non-GAAP adjustments before income taxes totaled $31.5 million in Q1 2025, down from $71.5 million in Q1 2024, indicating a reduction of 56%[15] - Supply Chain Transformation Costs in Q1 2025 amounted to $16.7 million, compared to $14.4 million in Q1 2024, showing an increase of 15.9%[15] - The company reported a gross profit of $16.7 million in Q1 2025, compared to $14.4 million in Q1 2024, marking a growth of 15.9%[15]