Stanley Black & Decker(US:SWK)2026-02-04 11:05Financial 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]