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 ...

Core Insights - Stanley Black & Decker reported its eighth consecutive quarter of revenue growth, with first quarter 2025 revenues of $3.7 billion, down 3% year-over-year, but with 1% organic growth [1][7][8] - The company achieved a gross margin of 29.9%, an increase of 130 basis points compared to the previous year, driven by supply chain efficiencies and new product innovations [7][8][10] - The company is implementing price increases and supply chain adjustments in response to U.S. tariffs, with an estimated negative impact of $0.75 on 2025 EPS due to these tariffs [3][11][12] Financial Performance - First quarter 2025 net sales were $3,744.6 million, a decrease from $3,869.5 million in the prior year, with a gross profit of $1,120.8 million [28] - The Tools & Outdoor segment reported sales of $3,280.9 million, flat compared to the previous year, while the Engineered Fastening segment saw a decline in sales to $463.7 million, down 21% year-over-year [35] - Adjusted EPS for the first quarter was $0.75, compared to $0.56 in the prior year, reflecting improved operational efficiency [39] Segment Analysis - The Tools & Outdoor segment achieved a profit of $289.2 million with a segment margin of 8.8%, up 100 basis points from the previous year [5][35] - The Engineered Fastening segment's profit was $39.0 million, with a segment margin of 8.4%, down from 11.1% in the prior year, primarily due to lower volume in higher-margin automotive [9][35] - The company’s corporate overhead was reported at $(74.4) million, impacting overall segment profitability [35] Cost Management Initiatives - The Global Cost Reduction Program is expected to generate $2 billion in pre-tax run-rate cost savings by the end of 2025, with $130 million achieved in the first quarter of 2025 [10] - The company is focusing on supply chain transformation to enhance gross margins, targeting a long-term adjusted gross margin of over 35% [10][11] - Management is actively monitoring tariff policies and adjusting pricing strategies to mitigate impacts on profitability [3][11] Future Outlook - The company is planning for a range of scenarios in 2025, with a target free cash flow of at least $500 million [12][20] - The 2025 EPS planning assumption is set at $3.30 (+/- $0.15) on a GAAP basis, with an adjusted basis of approximately $4.50 [12][20] - Management will provide further details on planning assumptions and scenario analysis during the earnings call [12][14]

Core Insights - DEWALT is recognizing high school seniors entering skilled trades on National Decision Day, encouraging them to share their trade school decisions on social media using digital banners provided by the brand [1][7] - A recent survey indicates that 77% of students in skilled trades education feel optimistic about their career choice, with 80% of parents and 71% of friends viewing trades careers positively [2][7] DEWALT's Initiatives - The announcement is part of DEWALT's Grow The Trades initiative, which includes a $30 million commitment by 2027 to address the skilled trades gap by enhancing accessibility and resources for trades training [4] - The DEWALT Trades Scholarship program will award $200,000 in scholarships to 40 students in the U.S. and Canada this month to support trades education [4] Company Background - DEWALT, a brand under Stanley Black & Decker, has been a leader in jobsite solutions for over 100 years, focusing on safety and productivity in construction [5] - Stanley Black & Decker, founded in 1843, operates globally with approximately 48,000 employees, producing a wide range of tools and solutions for builders and tradespeople [6]

Core Viewpoint - Stanley Black & Decker, Inc. is expected to report a decline in first-quarter revenues while showing an increase in adjusted earnings per share compared to the previous year [1][2]. Revenue Estimates - The consensus estimate for first-quarter revenues is $3.73 billion, reflecting a decline of 3.6% year-over-year [1]. - The Tools & Outdoor segment is anticipated to generate revenues of $3.2 billion, down 2% year-over-year, influenced by strong performance in the Engineered Fastening business but offset by weakness in the DIY market and power tool demand [3]. - The Industrial segment is expected to see revenues decline by 16% year-over-year to $489.3 million, impacted by softness in the automotive market and the divestiture of the infrastructure business [4]. Earnings Estimates - The consensus estimate for adjusted earnings is 68 cents per share, indicating a 21.4% increase from the previous year [1]. - The earnings estimate has remained stable over the past 30 days, with the company having a history of outperforming consensus estimates in the last four quarters, averaging a surprise of 16.2% [2]. Margin Performance - The company is expected to benefit from a cost-reduction program, with an anticipated adjusted gross margin of 30.5%, representing an expansion of 150 basis points year-over-year [5]. Foreign Exchange Impact - The company's operations are subject to foreign exchange headwinds, with a stronger U.S. dollar likely affecting overseas business performance [6]. Earnings Prediction Model - The earnings prediction model indicates a negative Earnings ESP of -3.02%, suggesting that the odds of an earnings beat are low this time [7][8].

Group 1 - Stanley Black & Decker announced a regular second quarter cash dividend of $0.82 per common share, extending its record for the longest consecutive annual and quarterly dividend payments among industrial companies listed on the New York Stock Exchange [1] - The dividend is payable on June 17, 2025, to shareholders of record as of the close of business on June 3, 2025 [1] Group 2 - Stanley Black & Decker, founded in 1843 and headquartered in the USA, is a global leader in Tools and Outdoor, with approximately 48,000 employees [2] - The company produces a wide range of products including power tools, hand tools, storage solutions, digital jobsite solutions, outdoor products, and engineered fasteners [2] - Stanley Black & Decker's portfolio includes trusted brands such as DEWALT®, CRAFTSMAN®, STANLEY®, BLACK+DECKER®, and Cub Cadet® [2]

Group 1: Company Performance - Stanley Black & Decker, Inc. (SWK) is experiencing strong performance in the Tools & Outdoor segment, with organic revenues increasing by 3% to $3.2 billion in Q4 2024, driven by the DEWALT business and a solid holiday season [1] - The Industrial segment, however, faced challenges, with revenues declining by 15.4% year over year to $492.9 million due to softness in the automotive end market and constrained capital expenditure [6] Group 2: Cost Reduction and Profitability - The company is implementing a multi-year global cost-reduction program aimed at achieving pre-tax run-rate cost savings of $2 billion by the end of 2025, with a long-term adjusted gross margin target of over 35% [2] - Of the $2 billion savings, $1.5 billion is expected to come from four core supply-chain transformation initiatives [2] Group 3: Shareholder Returns - In 2024, the company paid out $491.2 million in dividends, reflecting a year-over-year increase of 1.8%, and repurchased shares worth $17.7 million [3] - The quarterly dividend was increased by a penny to 82 cents per share in July 2024 [3] Group 4: Financial Health - The company has a highly leveraged balance sheet, with long-term debt at $5.6 billion and current maturities of long-term debt totaling $500.4 million as of the end of 2024 [7] - Cash and cash equivalents amount to $290.5 million, which is considered low given the high debt level [7]

Core Insights - DEWALT is focused on engineering products that enhance professional carpentry workflows, emphasizing precision and performance throughout the process [1] Product Launches - DEWALT introduced the 20V MAX* XR® 10-In. Double Bevel Fixed Miter Saw, which is the most powerful compact miter saw in its category, capable of making up to 434 cuts in 3 ¼-In. MDF Base Molding and capturing up to 97% of dust during use [4][6] - The 20V MAX* XR® 12-In. Double Bevel Sliding Miter Saw features the largest cut capacity in DEWALT's 20V Max* cordless miter saw lineup, capable of making up to 371 cuts in 3 ¼-In. MDF Base Molding and 153 cuts in pressure treated 4-In. X 4-In. timber [4][6] - New drill models include the 20V MAX* XR® Brushless Cordless 1/2-In. Drill/Driver and Hammer Drill, both equipped with the DEWALT ANTI-ROTATION System for enhanced safety [4] - DEWALT also launched a range of laser distance measurers with a range of 200-Ft and accuracy of ±1/16-In. at 32-Ft, available in lithium-ion and alkaline models [4] Availability - The new miter saws and drill models will be available in May, while the laser distance measurers will be available in June and September [4]

Group 1 - The Zacks Premium service offers tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market within a 30-day timeframe, assigning ratings from A to F based on value, growth, and momentum characteristics [2][9] Group 2 - The Value Score identifies attractive and discounted stocks using various financial ratios such as P/E, PEG, and Price/Sales, appealing to value investors [3] - The Growth Score focuses on a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow to find stocks with sustainable growth [4] - The Momentum Score helps investors capitalize on price trends by evaluating short-term price changes and earnings estimate revisions [5] Group 3 - The VGM Score combines Value, Growth, and Momentum Scores, providing a comprehensive indicator for investors who utilize multiple investment strategies [6] - The Zacks Rank, a proprietary stock-rating model, simplifies portfolio building by using earnings estimate revisions to assess stock performance [7][10] Group 4 - Stanley Black & Decker (SWK) is currently rated 3 (Hold) on the Zacks Rank, with a VGM Score of A and a Value Style Score of A, indicating attractive valuation metrics such as a forward P/E ratio of 11.49 [11] - Recent upward revisions in earnings estimates for fiscal 2025 have increased the Zacks Consensus Estimate by $0.02 to $5.14 per share, with an average earnings surprise of 16.2%, making SWK a notable consideration for investors [12]

Stanley Black & Decker (SWK -8.47%) declined by more than 11% in trading at noon ET today. The fall comes as the market sold off after a historic rally yesterday. However, the fact that the company's stock price declined so aggressively speaks to the market's view of the tools and industrial products company's exposure to trade disputes.Stanley Black & Decker and tariffsAside from its obvious exposure to any tariff-induced decline in the economy (significant, as discretionary spending on DIY tools and indus ...

Core Insights - CRAFTSMAN, a brand under Stanley Black & Decker, released a survey revealing how DIYers prepare for home improvement projects, likening the process to a football draft where teamwork and the right tools are essential [2][3] Group 1: Survey Findings - The survey indicates that more than half of DIYers consider the powered cordless screwdriver as their top tool choice, highlighting its versatility [5][7] - Spouses are the most preferred project partners, with 30% of respondents selecting them as their first overall pick, followed by best friends at 23% [6][5] - Rock music is the leading genre for DIYers to get motivated, chosen by 22% of respondents, followed by hip-hop/rap at 17% and country at 16% [4][12] Group 2: Tool Preferences - The powered cordless screwdriver is viewed as a dual-threat tool, capable of handling various tasks with precision [7] - The circular saw is recognized for its powerful cutting ability, akin to a running back breaking through defenses [7] - The hammer drill is noted for its effectiveness in penetrating tough materials like concrete and brick, serving as a hard-hitting specialist in the DIY toolkit [7] Group 3: Survey Methodology - The survey was conducted by Atomik Research, involving 1,006 adults across the United States, ensuring a representative sample based on demographic variables [9]