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]

Core Insights - Stanley Black & Decker reported revenue of $3.74 billion for the quarter ended March 2025, a decrease of 3.2% year-over-year, but exceeded the Zacks Consensus Estimate by 0.37% [1] - The company's EPS was $0.75, up from $0.56 in the same quarter last year, representing a surprise of 10.29% over the consensus estimate of $0.68 [1] Financial Performance - Net Sales for Tools & Outdoor segment were $3.28 billion, slightly above the five-analyst average estimate of $3.26 billion, with a year-over-year change of -0.1% [4] - Normalized operating profit for Corporate overhead was reported at -$68.40 million, worse than the average estimate of -$60.80 million from four analysts [4] - Normalized operating profit for Tools & Outdoor was $314.20 million, exceeding the average estimate of $310.44 million from four analysts [4] Stock Performance - Shares of Stanley Black & Decker have declined by 19.5% over the past month, compared to a -0.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Company Performance - Stanley Black & Decker reported quarterly earnings of $0.75 per share, exceeding the Zacks Consensus Estimate of $0.68 per share, and up from $0.56 per share a year ago, representing an earnings surprise of 10.29% [1] - The company posted revenues of $3.74 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.37%, although this is a decline from year-ago revenues of $3.87 billion [2] - Over the last four quarters, Stanley Black & Decker has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance - Stanley Black & Decker shares have declined approximately 23.7% since the beginning of the year, compared to a decline of 5.5% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $1 on revenues of $4.02 billion, and for the current fiscal year, it is $5.14 on revenues of $15.3 billion [7] Industry Outlook - The Manufacturing - Tools & Related Products industry, to which Stanley Black & Decker belongs, is currently ranked in the bottom 23% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Stanley Black & Decker's stock may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than a factor of 2 to 1 [8]

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 ...

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]