Financial Data and Key Metrics Changes - Full-year revenues for 2025 were $15.1 billion, down about 1% organically compared to the previous year [4] - Adjusted Gross Margin expanded by 70 basis points to 30.7% for the full year 2025 [5] - Adjusted EBITDA grew by 5%, with an Adjusted EBITDA margin improvement of 70 basis points [7] - Adjusted Earnings Per Share increased by 7% to $4.67 [7] - Free Cash Flow for 2025 was nearly $700 million, supporting dividends and debt reduction [7] Business Line Data and Key Metrics Changes - Tools and Outdoor segment revenue was approximately $3.2 billion in Q4, down 2% year-over-year, with organic revenue down 4% [9][10] - Engineered Fastening segment revenue grew 6% on a reported basis and 8% organically in Q4, with a 35% organic growth in the aerospace business [15][16] - DEWALT achieved low single-digit organic growth for the full year, overcoming broader market headwinds [14] Market Data and Key Metrics Changes - North America organic revenue declined 5%, while Europe and the rest of the world saw declines of 3% and 4%, respectively [12][13] - The overall market conditions were described as soft, particularly affecting retail channels in North America [10][11] Company Strategy and Development Direction - The company is focused on disciplined execution and targeted growth investments, particularly in DEWALT and Aerospace Fasteners [4] - A definitive agreement was announced to sell the Aerospace Fasteners business for over $1.5 billion, aimed at reducing debt and enhancing capital allocation flexibility [8][21] - The company plans to maintain a strong investment-grade credit rating while focusing on organic growth investments [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term performance despite macroeconomic uncertainties and tariff headwinds [5][6] - For 2026, adjusted earnings per share are expected to be in the range of $4.90-$5.70, reflecting growth initiatives and market conditions [24] - The company anticipates low single-digit revenue growth for 2026, with a focus on market share gains [25][30] Other Important Information - The global cost reduction program has achieved $2.1 billion in pre-tax cost savings since mid-2022 [6][19] - The company expects to transition gas-powered outdoor product lines to a licensing model, impacting revenue but enhancing margins [26][28] Q&A Session Summary Question: Inquiry about gross and operating margin performance cadence - Management expects gross margin to be around 30.5% in Q1, increasing to 34%-35% in the second half of 2026, affected by peak tariff expenses [39][40] Question: Clarification on tariff mitigation measures - Management confirmed ongoing tariff mitigation efforts, including reducing reliance on imports from China and increasing USMCA qualified products [47][49] Question: Discussion on volume expectations and share gains - Management indicated that volume is expected to improve in 2026, driven by strong professional market performance and adjustments in promotional strategies [60][61] Question: Elasticity of pricing and volume dynamics - Management acknowledged that volume declines have been steeper than anticipated due to market softness, but expects adjustments to restore a more favorable pricing-volume relationship [62][64] Question: Plans for investment in CRAFTSMAN and Stanley brands - The company plans to invest an additional $75 million-$100 million in brand initiatives for CRAFTSMAN and Stanley in 2026, anticipating sales inflections [69][70]

Stanley Black & Decker (NYSE:SWK) Q4 2025 Earnings call February 04, 2026 08:00 AM ET Company ParticipantsChris Nelson - President and CEOChris Snyder - Executive DirectorMichael Wherley - VP of Investor RelationsNigel Coe - Managing DirectorPat Hallinan - EVP, CFO, and Chief Administrative OfficerRob Wertheimer - Director of ResearchConference Call ParticipantsEric Bosshard - CEO and Consumer AnalystJoe Nolan - Associate AnalystJulian Mitchell - Equity Research AnalystTim Wojs - Senior Research AnalystOper ...

Financial Data and Key Metrics Changes - Full-year revenues for Stanley Black & Decker were $15.1 billion, down about 1% organically in 2025, with notable revenue growth in DEWALT and Aerospace Fasteners, up low single digits and 25% respectively [4][6] - Adjusted Gross Margin expanded 70 basis points to 30.7% for the full year 2025, driven by tariff mitigation actions and supply chain efficiencies [5][17] - Adjusted Earnings Per Share grew 7% in 2025 to $4.67, supported by earnings growth and working capital efficiencies, contributing to strong Free Cash Flow of almost $700 million [6][20] Business Line Data and Key Metrics Changes - Tools and Outdoor segment revenue was approximately $3.2 billion in Q4, down 2% year-over-year, with organic revenue down 4% due to volume pressure [9][10] - Engineered Fastening segment revenue grew 6% on a reported basis and 8% organically in Q4, with the aerospace business achieving 35% organic growth [14][15] - Full-year Tools and Outdoor organic revenue declined 2%, while DEWALT posted low single-digit organic growth across all product lines and regions [13] Market Data and Key Metrics Changes - In North America, organic revenue for Tools and Outdoor declined 5%, while Europe saw a 3% decline, with growth in Central Europe and Iberia offset by softer conditions elsewhere [12] - The rest of the world organic revenue declined 4%, primarily due to market softness in Asia and South America [12] Company Strategy and Development Direction - The company is focused on disciplined execution, targeted growth investments, and aggressive tariff mitigation actions to drive long-term performance [4][5] - A definitive agreement was announced to sell the Aerospace Fasteners business for over $1.5 billion, aimed at reducing debt and enhancing capital allocation flexibility [7][8] - The company plans to achieve adjusted gross margins above 35% by Q4 2026, with ongoing investments in innovation and brand activation [19][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic operating environment and highlighted the importance of operational excellence and strategic investments for sustainable growth [18][34] - For 2026, the company expects adjusted earnings per share to be in the range of $4.90-$5.70, reflecting growth despite macroeconomic uncertainties [24][25] - The company anticipates low single-digit revenue growth in 2026, with organic revenue expected to grow at a similar rate [25][30] Other Important Information - The global cost reduction program has successfully captured $2.1 billion of run rate pre-tax cost savings since its inception in mid-2022 [5][18] - The company plans to transition gas-powered walk-behind outdoor product lines to a licensing model, which will enhance margins but reduce in-year revenue by approximately $120-$140 million in 2026 [26][27] Q&A Session Summary Question: Inquiry about gross and operating margin performance cadence - Management expects gross margin to be around 30.5% in Q1, increasing to 34%-35% in Q3 and Q4, with peak tariff expenses affecting the first half of 2026 [37][38] Question: Clarification on tariff mitigation measures - Management confirmed that operational mitigation is progressing well, with plans to reduce reliance on China for U.S. consumption to less than 5% by the end of 2026 [46][47] Question: Discussion on volume expectations for 2026 - Management indicated that strong professional market performance is expected to continue, with volume opportunities anticipated as promotional adjustments are made [60][61] Question: Elasticity of pricing and volume dynamics - Management acknowledged that volume declines have been steeper than anticipated due to a softer consumer backdrop, but adjustments are being made to return to expected elasticity levels [63][64] Question: Plans for investment in CRAFTSMAN and Stanley brands - Management plans to invest an incremental $75 million-$100 million in brand initiatives in 2026, expecting significant new product launches and market share gains [67][70]

分组1 - Stanley Black & Decker reported quarterly earnings of $1.41 per share, exceeding the Zacks Consensus Estimate of $1.27 per share, but down from $1.49 per share a year ago, resulting in an earnings surprise of +11.30% [1] - The company posted revenues of $3.68 billion for the quarter ended December 2025, missing the Zacks Consensus Estimate by 2%, and down from $3.72 billion year-over-year [2] - The stock has gained about 9% since the beginning of the year, outperforming the S&P 500's gain of 1.1% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.88 on revenues of $3.83 billion, and for the current fiscal year, it is $5.46 on revenues of $15.51 billion [7] - The Manufacturing - Tools & Related Products industry is currently in the top 12% of over 250 Zacks industries, indicating a favorable outlook for the sector [8]

Fourth Quarter And Full Year 2025 Overview February 4, 2026 Participants Cautionary Statement Chris Nelson President & Chief Executive Officer Patrick Hallinan EVP, Chief Financial Officer & Chief Administrative Officer Michael Wherley Vice President, Investor Relations 2 4Q and FY 2025 Earnings Call This Presentation and related discussions contain "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 ...

Financial Performance - Net sales for Q4 2025 were $3,684.6 million, a decrease of 1.0% from $3,720.5 million in Q4 2024[2] - Net earnings from continuing operations for Q4 2025 were $158.2 million, down from $194.9 million in Q4 2024, resulting in diluted earnings per share of $1.04[2] - Year-to-date 2025, net earnings from continuing operations reached $401.9 million, with diluted earnings per share of $2.65, up from $286.3 million and $1.89 in year-to-date 2024[10] - In Q4 2025, the company reported a gross profit of $5.9 million, compared to $16.1 million in Q4 2024, reflecting a significant decline[18] Profitability Metrics - Gross profit margin improved to 33.2% in Q4 2025 from 30.8% in Q4 2024, reflecting better cost management[2] - In Q4 2025, the gross profit was $1,221.9 million, representing 33.2% of net sales, compared to $1,144.1 million and 30.8% in Q4 2024[9] - The Tools & Outdoor segment reported a profit of $418.3 million in Q4 2025, with a segment profit margin of 13.2%, compared to $298.1 million and 9.2% in Q4 2024[11] - The Engineered Fastening segment reported a profit of $63.2 million in Q4 2025, maintaining a margin of 12.1%, consistent with Q4 2024[11] Cash Flow and Liquidity - Free cash flow for Q4 2025 was $882.9 million, compared to $564.6 million in Q4 2024, indicating improved liquidity[6] - Selling, general and administrative expenses for Q4 2025 were $801.8 million, or 21.8% of net sales, down from $855.2 million and 23.0% in Q4 2024[9] Segment Performance - Tools & Outdoor segment net sales were $3,160.4 million in Q4 2025, down from $3,227.6 million in Q4 2024, while segment profit increased to $418.3 million[8] - Engineered Fastening segment net sales increased to $524.2 million in Q4 2025 from $492.9 million in Q4 2024, with segment profit rising to $63.2 million[8] - Year-to-date 2025, the Tools & Outdoor segment profit was $1,328.8 million, with a margin of 10.1%, compared to $1,197.4 million and 9.0% in year-to-date 2024[13] - The Engineered Fastening segment showed a positive growth of 6% in Q4 2025, contrasting with declines in other segments[19] Asset and Debt Management - Total assets decreased to $21,243.7 million as of January 3, 2026, from $21,848.9 million as of December 28, 2024[4] - Long-term debt decreased to $4,703.3 million as of January 3, 2026, down from $5,602.6 million as of December 28, 2024[4] Shareholder Returns - Dividends per share increased to $0.83 in Q4 2025 from $0.82 in Q4 2024, reflecting a commitment to return value to shareholders[2] Non-GAAP Measures - Adjusted EBITDA for Q4 2025 was $497.3 million, representing 13.5% of net sales, compared to $378.3 million and 10.2% in Q4 2024[16] - The company reported a non-GAAP adjusted EBITDA of $64.1 million in Q4 2025, up from $49.3 million in Q4 2024[20] - Non-GAAP organic revenue growth for the company was -3% in Q4 2025, with a notable decline of -5% in North America[19] - Non-GAAP adjustments for year-to-date 2025 included $396.2 million before income taxes, compared to $466.0 million in year-to-date 2024[16] Strategic Initiatives - The company announced a definitive agreement to sell its Consolidated Aerospace Manufacturing business, with related assets classified as held for sale[8] - The company implemented a voluntary retirement program in June 2025, resulting in costs of $11.5 million year-to-date[20] - The company incurred supply chain transformation costs of $2.4 million in Q4 2025, with year-to-date costs totaling $19.0 million, down from $66.3 million in 2024[18] - The company achieved a gain of $8.1 million from the sale of a distribution center as part of its supply chain transformation efforts[20] Environmental and Impairment Charges - Environmental charges in 2024 were recorded at $143.2 million, primarily due to regulatory changes affecting the Centredale Superfund site[20] - Asset impairment charges in 2025 totaled $20.4 million, with significant impacts from brand prioritization strategy updates[20]

* Non-GAAP financial measure as further defined on page 6 4Q 2025 Results (all comparisons versus prior year) 4Q 2025 Segment Results Solid Execution Delivers Full-Year Gross Margin and Net Income Growth Amid Dynamic Operating Environment Strong Cash Generation Supports Capital Allocation Priorities of Shareholder Dividends and Further Debt Reduction NEW BRITAIN, Conn., Feb. 4, 2026 /PRNewswire/ -- Stanley Black & Decker (NYSE: SWK), a global leader in tools and outdoor solutions, today announced fourth qua ...

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgency to invest now [1][13] - The energy demands of AI technologies are highlighted, with data centers consuming as much energy as small cities, leading to concerns about power grid strain and rising electricity prices [2][3] Investment Opportunity - A specific company is positioned as a critical player in the AI energy landscape, owning essential energy infrastructure assets that will benefit from the increasing energy demands of AI [3][7] - This company is described as a "toll booth" operator in the AI energy boom, profiting from the surge in electricity demand driven by AI advancements [4][5] Market Position - The company is noted for its unique capabilities in executing large-scale engineering, procurement, and construction (EPC) projects across various energy sectors, including nuclear energy [7][8] - It is completely debt-free and has a significant cash reserve, amounting to nearly one-third of its market capitalization, which positions it favorably compared to other heavily indebted energy firms [8][10] Growth Potential - The company also holds a substantial equity stake in another AI-related venture, providing investors with indirect exposure to multiple growth opportunities in the AI sector [9][10] - The stock is described as undervalued, trading at less than seven times earnings, which presents a compelling investment case given its ties to the booming AI and energy markets [10][11] Industry Trends - The ongoing trends of onshoring, driven by tariffs, and the surge in U.S. LNG exports are expected to further enhance the company's market position [6][14] - The influx of talent into the AI sector is anticipated to drive continuous innovation and advancements, reinforcing the long-term growth potential of investments in AI [12]

Core Viewpoint - Stanley Black & Decker, Inc. is set to report its fourth-quarter 2025 results on February 4, with expected revenues of $3.76 billion, reflecting a 1.1% year-over-year growth, while adjusted earnings are projected at $1.27 per share, indicating a 14.8% decline from the previous year [1][9]. Group 1: Earnings Estimates and Performance - The consensus estimate for earnings has remained stable over the past 60 days, with the company having a strong earnings surprise history, outperforming estimates in the last four quarters with an average surprise of 57.8% [2]. - The Tools & Outdoor segment is anticipated to see a revenue increase of 1% year-over-year to $3.26 billion, driven by strong performance in the DEWALT business and a recovery in outdoor product demand [3]. - The Engineered Fastening segment is expected to grow by 1.9% year-over-year to $502 million, supported by strength in the aerospace market and recovery in the automotive sector, despite challenges in the general industrial market [4]. Group 2: Challenges and Cost Management - The company has been facing high costs and operating expenses, which are likely to impact performance, alongside supply-chain challenges and labor shortages, particularly in the aerospace market [5]. - Despite these challenges, Stanley Black's cost-reduction program is expected to positively influence its bottom line, with anticipated healthy margin performance due to supply-chain transformation and inventory reduction efforts [6]. Group 3: Earnings Prediction Insights - The earnings prediction model indicates that Stanley Black does not conclusively show an earnings beat this time, with an Earnings ESP of -1.56%, as the most accurate estimate is $1.25 per share, lower than the consensus estimate of $1.27 [7][8].

Core Insights - The article compares Stanley Black & Decker (SWK) and Lincoln Electric Holdings (LECO) to identify which stock presents a better value opportunity for investors in the Manufacturing - Tools & Related Products sector [1] Group 1: Zacks Rank and Earnings Outlook - Stanley Black & Decker has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while Lincoln Electric Holdings has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank suggests that SWK has an improving earnings outlook, which is a critical factor for value investors [3] Group 2: Valuation Metrics - SWK has a forward P/E ratio of 14.99, significantly lower than LECO's forward P/E of 24.12, indicating that SWK may be undervalued [5] - The PEG ratio for SWK is 1.12, while LECO's PEG ratio is 1.61, suggesting that SWK offers better value when considering expected earnings growth [5] - SWK's P/B ratio is 1.41 compared to LECO's P/B of 10.02, further supporting the notion that SWK is undervalued relative to its book value [6] Group 3: Value Grades - Based on the valuation metrics, SWK has a Value grade of B, while LECO has a Value grade of D, indicating that SWK is the superior value option at this time [6]