Company Performance - Stanley Black & Decker reported quarterly earnings of $1.08 per share, exceeding the Zacks Consensus Estimate of $0.38 per share, and compared to earnings of $1.09 per share a year ago, representing an earnings surprise of +184.21% [1] - The company posted revenues of $3.95 billion for the quarter ended June 2025, missing the Zacks Consensus Estimate by 1.12%, and down from $4.02 billion year-over-year [2] - Over the last four quarters, Stanley Black & Decker has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [2] Stock Performance - Stanley Black & Decker shares have declined approximately 7.9% since the beginning of the year, while the S&P 500 has gained 8.6% [3] - The current status of estimate revisions translates into a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is $1.85 on revenues of $3.9 billion, and for the current fiscal year, it is $4.49 on revenues of $15.53 billion [7] - The outlook for the industry, specifically the Manufacturing - Tools & Related Products sector, is currently in the top 20% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

Financial Performance - The company reported total revenue of $3.9 billion, a 2% decrease compared to the prior year, attributed to a slow outdoor buying season and tariff-related shipment disruptions[6, 7] - Adjusted gross margin was 27.5%, down from the prior year, impacted by a 3-point gross impact from tariffs and lower volume, partially offset by supply chain efficiencies and price increases[6, 7] - Adjusted EPS was $1.08, inclusive of a tax rate benefit[6, 7] - Net cash from operating activities was $214 million, and free cash flow was $135 million[7] Segment Performance - Tools & Outdoor segment revenue decreased by 2% to $3.461 billion, with an adjusted segment margin of 8.0%, down year-over-year due to tariffs, lower volume, and growth investments[9] - Engineered Fastening segment revenue decreased by 2% to $484 million, with an adjusted segment margin of 10.8%, down year-over-year due to lower volume in higher margin automotive[10] Transformation and Cost Savings - The company's transformation program has achieved $150 million in quarter-to-date pre-tax run-rate cost savings and $1.8 billion program-to-date[6, 12] - The company is targeting completion of the transformation in 2025, focusing on material productivity, operational excellence, complexity reduction, and footprint rationalization[12] Tariffs and Mitigation - The company estimates an annualized gross impact of $800 million from tariffs, with a net impact of $0.65 EPS for fiscal year 2025[16] - Mitigation strategies include price increases, supply chain adjustments, and engagement with the U.S administration[15, 17] 2025 Planning Assumptions - The company's base planning scenario for 2025 includes GAAP EPS of $3.45 (+/- $0.10) and adjusted EPS of approximately $4.65[7] - The company is targeting free cash flow to approximate $600 million in 2025[7, 18]

Financial Statements [Condensed Consolidated Statements of Operations](index=1&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) In the second quarter of 2025, Stanley Black & Decker reported net sales of $3.95 billion, a slight decrease from $4.02 billion in the prior year's quarter. The company achieved a significant turnaround in profitability, with net earnings from continuing operations reaching $101.9 million, compared to a net loss of $19.2 million in Q2 2024. This improvement is also reflected in the year-to-date results, where net earnings from continuing operations rose to $192.3 million from just $0.3 million in the previous year Key Financial Metrics | Financial Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $3,945.2M | $4,024.4M | $7,689.8M | $7,893.9M | | **Gross Profit** | $1,066.5M | $1,141.2M | $2,187.3M | $2,249.7M | | **Gross Margin** | 27.0% | 28.4% | 28.4% | 28.5% | | **Income from Operations** | $106.9M | $56.3M | $311.7M | $192.5M | | **Net Earnings (Loss) from Continuing Operations** | $101.9M | $(19.2)M | $192.3M | $0.3M | | **Diluted EPS from Continuing Operations** | $0.67 | $(0.13) | $1.27 | $0.00 | [Condensed Consolidated Balance Sheets](index=2&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of June 28, 2025, the company's total assets stood at $22.49 billion, a slight increase from $21.85 billion at the end of 2024. The increase was driven by higher accounts receivable, while inventories remained relatively stable. On the liability side, total current liabilities grew significantly to $6.59 billion from $4.92 billion, mainly due to increases in short-term borrowings and current maturities of long-term debt. Long-term debt decreased from $5.60 billion to $4.76 billion Key Balance Sheet Items | Balance Sheet Item | June 28, 2025 | December 28, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $6,877.8M | $6,377.7M | | Inventories, net | $4,639.0M | $4,536.4M | | **Total Assets** | $22,492.6M | $21,848.9M | | **Total Current Liabilities** | $6,592.1M | $4,916.9M | | Long-term Debt | $4,757.8M | $5,602.6M | | **Total Shareowners' Equity** | $9,063.0M | $8,719.9M | [Summary of Cash Flow Activity](index=3&type=section&id=SUMMARY%20OF%20CASH%20FLOW%20ACTIVITY) For the first half of 2025, the company experienced a net cash outflow from operating activities of $205.7 million, a significant shift from a $142.0 million inflow in the same period of 2024, primarily due to unfavorable changes in working capital. Consequently, year-to-date free cash flow was negative at $350.3 million, compared to a negative $10.9 million in the prior year. The company paid $248.5 million in dividends year-to-date Key Cash Flow Metrics (Year-to-Date) | Cash Flow Metric (YTD) | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $(205.7)M | $142.0M | | Capital and software expenditures | $(144.6)M | $(152.9)M | | **Free cash flow (before dividends)** | $(350.3)M | $(10.9)M | | Cash dividends on common stock | $(248.5)M | $(243.6)M | - Free cash flow is defined as cash flow from operations less capital and software expenditures and is considered an important measure of liquidity and ability to fund growth and returns to shareholders[7](index=7&type=chunk) Segment Performance [Business Segment Information](index=4&type=section&id=BUSINESS%20SEGMENT%20INFORMATION) Both of the company's segments, Tools & Outdoor and Engineered Fastening, experienced year-over-year declines in net sales and segment profit for both the second quarter and year-to-date periods of 2025. The Tools & Outdoor segment's profit margin decreased to 6.9% in Q2 2025 from 9.0% in Q2 2024. The Engineered Fastening segment saw a more significant profit margin drop, from 13.5% to 7.2% in the same period. Notably, the Industrial segment was renamed to "Engineered Fastening" in Q1 2025 to reflect a more focused portfolio after recent divestitures Segment Performance Overview | Segment Performance (Q2 2025 vs Q2 2024) | Net Sales | Segment Profit | Profit Margin | | :--- | :--- | :--- | :--- | | **Tools & Outdoor** | $3,461.4M vs $3,528.7M | $238.1M vs $316.1M | 6.9% vs 9.0% | | **Engineered Fastening** | $483.8M vs $495.7M | $35.0M vs $66.8M | 7.2% vs 13.5% | - In the first quarter of 2025, the Industrial segment was renamed "Engineered Fastening" following recent divestitures. This was a name change only and did not impact financial statements or segment results[9](index=9&type=chunk) Non-GAAP Financial Measures and Reconciliations [Reconciliation of GAAP to Non-GAAP Earnings Measures](index=5&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Earnings%20Measures) The company provides Non-GAAP financial measures to aid in the analysis of business trends by excluding certain items. For Q2 2025, Non-GAAP diluted EPS from continuing operations was $1.08, substantially higher than the GAAP figure of $0.67. For the year-to-date period, Non-GAAP diluted EPS was $1.83 compared to GAAP EPS of $1.27. These adjustments primarily relate to supply chain transformation costs, a voluntary retirement program, and other charges EPS Reconciliation (Continuing Operations) | EPS Reconciliation (Continuing Operations) | Q2 2025 | YTD 2025 | | :--- | :--- | :--- | | **GAAP Diluted EPS** | $0.67 | $1.27 | | Non-GAAP Adjustments | $0.41 | $0.56 | | **Non-GAAP Diluted EPS** | $1.08 | $1.83 | [Reconciliation of GAAP to Non-GAAP Segment Profit](index=7&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Segment%20Profit) Non-GAAP adjustments significantly increased reported segment profits. In Q2 2025, the Tools & Outdoor segment's Non-GAAP profit was $276.5 million (8.0% margin) versus a GAAP profit of $238.1 million (6.9% margin). Similarly, Engineered Fastening's Non-GAAP profit was $52.3 million (10.8% margin) compared to a GAAP profit of $35.0 million (7.2% margin). Adjustments primarily stem from costs associated with a voluntary retirement program and supply chain transformation Segment Profit Reconciliation | Segment Profit Reconciliation (Q2 2025) | GAAP Profit | Non-GAAP Adjustments | Non-GAAP Profit | | :--- | :--- | :--- | :--- | | **Tools & Outdoor** | $238.1M | $38.4M | $276.5M | | **Engineered Fastening** | $35.0M | $17.3M | $52.3M | - Non-GAAP adjustments for business segments are mainly due to separation benefit costs from a voluntary retirement program, footprint actions, and other costs related to supply chain transformation[12](index=12&type=chunk)[14](index=14&type=chunk) [Reconciliation of GAAP Earnings to EBITDA](index=9&type=section&id=Reconciliation%20of%20GAAP%20Earnings%20to%20EBITDA) The company calculates EBITDA and Adjusted EBITDA to provide further insight into its operating performance. For Q2 2025, Adjusted EBITDA was $318.2 million (8.1% of net sales), a decrease from $429.3 million (10.7% of net sales) in Q2 2024. The year-to-date Adjusted EBITDA also declined to $680.0 million from $771.9 million in the prior year EBITDA Reconciliation | EBITDA Reconciliation | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **EBITDA** | $237.0M | $211.3M | $570.2M | $487.7M | | **Adjusted EBITDA** | $318.2M | $429.3M | $680.0M | $771.9M | | **Adjusted EBITDA Margin** | 8.1% | 10.7% | 8.8% | 9.8% | [Reconciliation of GAAP Revenue Growth to Organic Growth](index=10&type=section&id=Reconciliation%20of%20GAAP%20Revenue%20Growth%20to%20Organic%20Growth) To better illustrate underlying sales performance, the company provides organic growth figures, which exclude currency fluctuations, acquisitions, and divestitures. In Q2 2025, the company's reported GAAP revenue declined by 2%. After accounting for a 1% positive impact from currency, the organic revenue decline was 3%. The Tools & Outdoor segment saw a 3% organic decline, while the Engineered Fastening segment had a 1% organic decline Revenue Growth Reconciliation | Q2 2025 Growth Reconciliation | GAAP Revenue Growth | Currency Impact | Organic Growth | | :--- | :--- | :--- | :--- | | **Stanley Black & Decker** | -2% | 1% | -3% | | **Tools & Outdoor** | -2% | 1% | -3% | | **Engineered Fastening** | -2% | 2% | -1% | [Summary of Non-GAAP Adjustments](index=9&type=section&id=Summary%20of%20Non-GAAP%20Adjustments) In Q2 2025, pre-tax Non-GAAP adjustments totaled $83.0 million. The largest components were related to a voluntary retirement program implemented in June 2025, ongoing supply chain transformation costs (including footprint rationalization), and complexity reduction initiatives within the Engineered Fastening business. These adjustments were partially offset by a gain on the sale of a distribution center - Key pre-tax Non-GAAP adjustments in Q2 2025 included: - **Voluntary Retirement Program:** $51.6M in costs ($11.9M in Gross Profit, $33.5M in SG&A, $6.2M in Other, net) - **Supply Chain Transformation:** $13.7M in costs ($8.7M in Gross Profit, $5.0M in SG&A) - **Complexity Reduction & Operational Excellence:** $10.5M in costs (SG&A) - **Gain on Sale:** An $8.1 million gain on the sale of a distribution center was recorded in 'Other, net'[19](index=19&type=chunk)[21](index=21&type=chunk)

Core Insights - Stanley Black & Decker reported a solid second quarter in 2025, driven by resilient demand for its DEWALT brand, despite external pressures such as tariffs and a slow outdoor buying season [1][2][8] - The company is focused on executing a global cost reduction program aimed at achieving $2 billion in pre-tax run-rate cost savings by the end of 2025, supporting a long-term adjusted gross margin target of over 35% [6][11] - Management anticipates incremental tariff countermeasures in the second half of 2025 to further support gross margin accretion [1][11] Financial Performance - Second quarter revenues were $3.9 billion, down 2% year-over-year, primarily due to a 4% decline in volume, partially offset by a 1% increase in price and currency [8][9] - Gross margin for the second quarter was 27.0%, a decrease of 140 basis points compared to the previous year, while adjusted gross margin was 27.5%, down 170 basis points [9][32] - The company reported net earnings of $101.9 million, translating to a diluted earnings per share of $0.67, compared to a net loss of $19.2 million in the same quarter of the previous year [25][33] Segment Performance - The Tools & Outdoor segment generated net sales of $3.46 billion, down 2% from the prior year, with a segment margin of 6.9%, a decrease of 210 basis points [10][31] - The Engineered Fastening segment reported net sales of $484 million, also down 2% year-over-year, with a segment margin of 7.2%, down from 13.5% in the previous year [10][31] Cost Management and Strategy - The Global Cost Reduction Program has yielded approximately $150 million in incremental pre-tax run-rate cost savings in the second quarter of 2025, contributing to the overall financial strategy [6][11] - The company is strategically adjusting costs and inventory to protect earnings power and cash flow while maintaining investments in innovation and brand activation [7][11] Future Outlook - Management's base planning scenario for 2025 anticipates an EPS of $3.45 (+/- $0.10) on a GAAP basis and approximately $4.65 on an adjusted basis, with a target for annual free cash flow of approximately $600 million [11][12] - The gross annualized tariff impact is estimated at $800 million, with a projected negative EPS impact of approximately $0.65 after accounting for price adjustments and supply shifts [11][12]

Core Viewpoint - Stanley Black & Decker, Inc. is expected to report a decline in both revenues and adjusted earnings for the second quarter of 2025, with revenues projected at $3.99 billion, down 0.9% year-over-year, and adjusted earnings expected to fall 65.1% to 38 cents per share [1][9]. Revenue Performance - The consensus estimate for Stanley Black's second-quarter revenues is $3.99 billion, indicating a decline of 0.9% from the previous year [1][9]. - The Tools & Outdoor segment is anticipated to see a revenue increase of 1.6% year-over-year to $3.58 billion, driven by strong demand in the DEWALT business and other key brands [3][9]. - Conversely, the Industrial segment is expected to experience a revenue decline of 10.3% year-over-year to $444.9 million, impacted by softness in the automotive market and the divestiture of the infrastructure business [5][9]. Earnings Performance - The adjusted earnings consensus estimate is set at 38 cents per share, reflecting a significant decline of 65.1% from the same quarter last year [1][9]. - The company has a history of earnings surprises, having outperformed consensus estimates in the last four quarters with an average surprise of 18.4% [2]. Cost and Margin Analysis - Stanley Black's cost-reduction initiatives are expected to support its bottom line, with an anticipated EBITDA margin of 6%, representing a 70 basis points year-over-year expansion [4]. - Selling, general, and administrative (SG&A) expenses are projected to rise by 10.8% year-over-year to $887.3 million, which may pressure the company's overall profitability [6]. Foreign Exchange Impact - The company's operations are subject to foreign exchange headwinds, with a stronger U.S. dollar likely negatively affecting its overseas business [6].

Core Viewpoint - Stanley Black & Decker has announced a $0.01 increase in its quarterly cash dividend to $0.83 per share, reflecting the company's commitment to enhancing shareholder value and confidence in its long-term growth strategy [1][2]. Company Overview - Founded in 1843 and headquartered in the USA, Stanley Black & Decker is a global leader in Tools and Outdoor products, employing approximately 48,000 people and producing a wide range of innovative tools and solutions for builders, tradespeople, and DIY enthusiasts [2]. Dividend Details - The approved quarterly cash dividend of $0.83 per share will be payable on September 16, 2025, to shareholders of record as of September 2, 2025 [1].

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Stanley Black & Decker due to lower revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is expected to show earnings of $0.38 per share, reflecting a decline of 65.1% year-over-year, with revenues projected at $3.99 billion, down 0.9% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 3.5% higher in the last 30 days, indicating a collective reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Stanley Black & Decker is higher than the consensus estimate, resulting in an Earnings ESP of +18.80%, indicating a likely earnings beat [11]. Historical Performance - In the last reported quarter, Stanley Black & Decker exceeded the expected earnings of $0.68 per share by delivering $0.75, achieving a surprise of +10.29%. The company has beaten consensus EPS estimates in the last four quarters [12][13]. Investment Considerations - While the potential for an earnings beat exists, other factors may influence stock performance, making it essential to consider the broader context beyond just earnings results [14][16].

Core Insights - Maria Ford, President of U.S. Commercial & Industrial Sales at DEWALT, has joined the Forbes Business Development Council to share insights on the construction industry and empower the next generation of tradespeople [1][7] Company Overview - DEWALT is a brand under Stanley Black & Decker, recognized as a leader in total jobsite solutions, providing tools and technologies designed to enhance safety and productivity on construction sites [9] Leadership and Advocacy - Ford has a strong background in the industry, having started her career at Stanley Black & Decker in 1998 and progressively taking on more responsibilities in sales and marketing [5] - She is a vocal advocate for skilled trades, actively inspiring future workers through speeches, op-eds, and media engagements [4] Financial Impact - Ford oversees DEWALT's U.S. Commercial & Industrial Sales division, which generates $2 billion in revenue, focusing on empowering professionals through advanced tools and technology solutions [6]

Group 1 - The stocks of companies identified as "losers from Trump's tariffs" experienced a decline, with notable drops including Helen of Troy down 5.88%, Fluence Energy down 4.67%, and Hasbro down 2.24% [1] - Rivian, labeled as a "Tesla competitor," fell by 2.18%, while Stanley Black & Decker and 3M also saw declines of 1.33% and 0.94% respectively [1] Group 2 - RPM International's stock price was reported at $113.30, with a decrease of $1.00 or 0.87%, and a trading volume of 840,000 shares [2] - 3M's stock closed at $155.84, down $1.48 or 0.94%, with a trading volume of 2.4 million shares and a market capitalization of $83.87 billion, reflecting a 21.91% increase [2] - Zebra Technologies saw a stock price of $327.14, down $3.21 or 0.97%, with a market cap of $16.64 billion, down 15.30% [2] - Generac Holdings' stock was at $150.42, down $1.57 or 1.03%, with a market cap of $8.88 billion, down 2.99% [2] - Hasbro's stock price was $75.37, down $1.73 or 2.24%, with a market cap of $10.56 billion, up 37.68% [2] - Fluence Energy's stock closed at $8.17, down $0.40 or 4.67%, with a market cap of $1.49 billion, down 48.55% [2] - Helen of Troy's stock was reported at $22.55, down $1.41 or 5.88%, with a market cap of $518 million, down 62.31% [2]

Core Viewpoint - Analyst Nigel Coe from Wolfe Research upgraded Stanley Black & Decker from "underperform" to "peer perform," indicating a potential stabilization in the stock's performance [1][3] Group 1: Market Analysis - Coe suggests that the demand for Stanley's products is likely at a low point, or "trough," and anticipates a rebound, particularly if the Federal Reserve cuts interest rates [3] - The company is currently experiencing its third consecutive year of declining sales, but there is a consensus among analysts that earnings will grow this year and continue to grow for at least the next couple of years [4] Group 2: Financial Performance - Long-term growth rate projections for Stanley Black & Decker are estimated at a respectable 11% annualized [4] - The company reported strong free cash flow of $765 million over the past year, which is twice the reported GAAP earnings [4] - At a valuation of 14 times free cash flow and a dividend yield of 4.7%, Stanley's stock appears to be undervalued [5]