Stanley Black & Decker(US:SWK)2025-11-04 11:31Financial Performance - Net sales for Q3 2025 were $3,756.0 million, a slight increase from $3,751.3 million in Q3 2024, while year-to-date sales decreased from $11,645.2 million in 2024 to $11,445.8 million in 2025[2] - Net earnings from continuing operations for Q3 2025 were $51.4 million, down from $91.1 million in Q3 2024, with diluted earnings per share decreasing from $0.60 to $0.34[2] - The diluted earnings per share from continuing operations for Q3 2025 was $1.43, up from $1.22 in Q3 2024, reflecting a year-over-year increase of 17.2%[9] - Year-to-date diluted earnings per share from continuing operations increased to $3.26 in 2025, compared to $2.87 in 2024, marking a 13.6% rise[10] Segment Performance - The Tools & Outdoor segment generated net sales of $3,255.5 million in Q3 2025, slightly down from $3,263.3 million in Q3 2024, while segment profit increased to $383.2 million from $327.5 million[8] - Engineered Fastening segment reported net sales of $500.5 million in Q3 2025, up from $488.0 million in Q3 2024, but segment profit decreased to $59.8 million from $70.2 million[8] - Tools & Outdoor segment profit for Q3 2025 was $390.0 million, with a segment profit margin of 12.0%, up from $363.0 million and 11.1% in Q3 2024[11] - Engineered Fastening segment profit in Q3 2025 was $63.9 million, with a margin of 12.8%, compared to $67.6 million and 13.9% in Q3 2024[11] - Year-to-date 2025 segment profit for Tools & Outdoor was $980.7 million, with a margin of 9.8%, compared to $1,010.3 million and 10.0% in 2024[13] Profitability and Margins - Gross profit margin improved to 31.4% in Q3 2025 compared to 29.9% in Q3 2024, reflecting better cost management[2] - In Q3 2025, Stanley Black & Decker reported a gross profit of $1,179.1 million, representing 31.4% of net sales, compared to $1,120.6 million and 29.9% in Q3 2024[9] - Year-to-date 2025 gross profit reached $3,366.4 million, with a gross margin of 29.4%, slightly down from $3,370.3 million and 28.9% in the same period of 2024[10] - Adjusted EBITDA for Q3 2025 was $461.0 million, representing 12.3% of net sales, compared to $406.4 million and 10.8% in Q3 2024[16] Cash Flow and Dividends - Free cash flow before dividends for Q3 2025 was $155.3 million, down from $199.3 million in Q3 2024, highlighting challenges in cash generation[6] - The company declared a dividend of $0.83 per share in Q3 2025, slightly up from $0.82 in Q3 2024, reflecting a commitment to returning value to shareholders[2] Asset Management - Total current assets increased to $6,500.6 million as of September 27, 2025, compared to $6,377.7 million at the end of 2024[4] - Total liabilities decreased from $21,848.9 million in December 2024 to $21,753.9 million in September 2025, indicating improved financial stability[4] - Asset impairment charges increased significantly to $169.1 million in Q3 2025 from $46.9 million in Q3 2024, indicating potential challenges in asset valuation[2] - The company incurred asset impairment charges of $169.1 million in 2025, significantly higher than the $46.9 million in 2024[18] Costs and Expenses - Selling, general and administrative expenses for Q3 2025 were $4.1 million, compared to $15.1 million in Q3 2024, with year-to-date expenses totaling $78.7 million against $62.8 million in 2024[18] - Supply Chain Transformation Costs for Q3 2025 amounted to $4.6 million, with year-to-date costs reaching $16.6 million[18] - Non-GAAP adjustments before income taxes for Q3 2025 totaled $217.6 million, compared to $105.9 million in Q3 2024, indicating a significant increase in adjustments[16] - Complexity Reduction & Operational Excellence costs in 2025 included third-party consulting fees, contributing to operational improvements[21] Environmental and Other Charges - Environmental charges in 2024 were recorded at $152.1 million, primarily due to adjustments related to the Centredale Superfund site[21] - The company reported a loss on the sale of business amounting to $0.3 million in 2025[18] Market Performance - Non-GAAP Organic Growth for North America was reported at -2% for Q3 2025, while Europe experienced a growth of 6%[19] Special Programs - The company implemented a voluntary retirement program in June 2025, incurring costs related to separation benefits for eligible employees[21]