Stanley Black & Decker(US:SWK) ZACKS·2025-07-29 16:26Core Insights - Stanley Black & Decker, Inc. (SWK) reported second-quarter 2025 adjusted earnings of $1.08 per share, exceeding the Zacks Consensus Estimate of 38 cents, but down 0.9% year over year [1][7] - The company's net sales were $3.95 billion, missing the consensus estimate of $3.99 billion, reflecting a 2% decline year over year due to weakness in both segments [1][7] Segment Performance - The Tools & Outdoor segment generated revenues of $3.46 billion, a decrease of 1.9% year over year [2] - The renamed Engineered Fastening segment reported revenues of $483.8 million, down 2.4% year over year [2] Margin Analysis - Cost of sales decreased by 0.2% year over year to $2.88 billion, while gross profit fell 6.5% to $1.07 billion [3] - Gross margin declined by 140 basis points to 27% [3] - Selling, general and administrative expenses rose by 5.4% to $873.1 million, leading to an adjusted EBITDA of $318.2 million, down 25.9% year over year, with a margin decrease of 260 basis points to 8.1% [3][7] Balance Sheet and Cash Flow - At the end of the second quarter, cash and cash equivalents stood at $311.8 million, up from $290.5 million at the end of Q4 2024 [4] - Long-term debt decreased to $4.76 billion from $5.6 billion at the end of Q4 2024 [4] - In the first half of 2025, net cash used in operating activities was $205.7 million, compared to $142 million generated in the same period last year [5] - Capital and software expenditures totaled $144.6 million, down from $152.9 million year over year, with free cash flow before dividends at negative $350.3 million compared to $10.9 million a year ago [5] 2025 Guidance - The company expects total revenues to be in the range of -1% to flat year over year [6] - Projected earnings are $3.45 (+/- $0.10) per share, an increase from the previous expectation of $3.30 (+/- $0.15) [6] - Adjusted earnings are anticipated to be $4.65 per share, with a target of generating annual free cash flow of approximately $600 million [6]