Key Takeaways Stanley Black & Decker posted Q3 adjusted EPS of $1.43, topping estimates and up 17.2% year over year.Net sales of $3.76 billion were flat from last year, as Tools & Outdoor held steady and Fastening rose 3%.Gross margin improved 150 bps to 31.4%, while 2025 EPS guidance was lowered to $2.55-$2.70.Stanley Black & Decker, Inc. (SWK) reported third-quarter 2025 adjusted earnings of $1.43 per share, which beat the Zacks Consensus Estimate of $1.19. The bottom line increased 17.2% year over year.S ...

Financial Data and Key Metrics Changes - Total revenue for the third quarter was $3.8 billion, flat compared to the prior year, with a 1% organic decline driven by a 5% increase in pricing and a 6% decrease in volume [16][18] - Adjusted gross margin rate was 31.6%, up 110 basis points year over year, primarily due to pricing strategies and supply chain efficiencies [17][25] - Adjusted EBITDA margin was 12.3%, reflecting a 150 basis point improvement year over year [17] Business Line Data and Key Metrics Changes - Tools and outdoor segment revenue was approximately $3.3 billion, flat year over year, with a 2% organic revenue decline due to a 5% pricing benefit offset by a 7% volume decrease [18][20] - Engineered fastening segment revenue grew 3% on a reported basis and 5% organically, driven by a 4% volume increase and a 1% price benefit [22] - DEWALT brand maintained strong momentum with revenue expansion across all product lines and regions, reflecting targeted investments in innovation [20] Market Data and Key Metrics Changes - North America organic revenue for tools and outdoor declined 2%, with end user demand starting strong but moderating later in the quarter [21] - In Europe, organic revenue was flat, with growth in the U.K. offset by softer conditions in France and Germany [22] - The rest of the world saw a 1% organic revenue decline, primarily due to market softness in Asia [22] Company Strategy and Development Direction - The company aims to achieve a 35% adjusted gross margin while strengthening its balance sheet, focusing on activating brands, driving operational excellence, and accelerating innovation [7][15] - A strategic transformation program is on track to deliver $2 billion in cost reductions by year-end 2025, with $120 million in incremental pre-tax run rate cost savings achieved in the third quarter [28][30] - The company is reducing reliance on Chinese imports, targeting less than 10% of U.S. supply from China by mid-2026 [29] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a challenging macroeconomic environment but remains confident in achieving long-term financial goals through disciplined execution [16][40] - The outlook for 2025 anticipates total company sales to be flat to down 1%, with adjusted earnings per share expected to be approximately $4.55 [30][33] - Management emphasizes the importance of maintaining operational resilience and adapting to evolving market conditions [40] Other Important Information - The company recorded a $169 million pre-tax non-cash asset impairment charge in the third quarter, primarily related to brand prioritization strategy adjustments [31] - Free cash flow for the third quarter was $155 million, contributing to a full-year target of $600 million [36][37] Q&A Session Summary Question: How did volumes perform relative to expectations? - Management indicated that volumes were in line with expectations, starting strong but tapering towards the end of the quarter due to a non-standard promotional window [44][46] Question: What are the profit levers for the fourth quarter? - Operating profit is expected to expand due to gross margin improvements and SG&A expense reductions, with a target gross margin around 33% [49][50] Question: What is the impact of tariff inflation on pricing? - The second price increase is expected to be in the low single-digit range, with minimal impact from recent tariff changes [56][58] Question: How does the company view its position in the housing market? - Management believes the company is well-positioned to benefit from any future housing market recovery, focusing on building relationships and innovation during the current market retrenchment [80][84] Question: What progress has been made on USMCA compliance? - Significant progress has been made towards USMCA compliance, with no structural roadblocks anticipated [86][88]

Financial Performance - Total revenue was $3.8 billion, consistent with the prior year, as price (+5%) and currency (+1%) offset lower volume (-6%) [8, 10] - Adjusted gross margin was 31.6%, an increase of 110 basis points year-over-year, driven by pricing and supply chain transformation benefits [8, 10, 17] - Adjusted EPS was $1.43, inclusive of a tax rate benefit [8, 10] - Net cash from operating activities was $221 million, and free cash flow was $155 million [10] Guidance and Targets - The company revised its 2025 EPS planning assumption to $2.55 - $2.70 on a GAAP basis and is planning for 2025 Adjusted EPS of approximately $4.55 [10] - The company is targeting annual free cash flow of approximately $600 million [10, 19] - The company is committed to achieving 35% adjusted gross margin and a solid investment grade balance sheet [7] Segment Performance - Tools & Outdoor revenue was flat, with a 12.0% adjusted segment margin, up year-over-year [12] - Engineered Fastening revenue increased by 3%, with a 12.8% adjusted segment margin, down year-over-year but up 200 basis points sequentially versus 2Q'25 [12, 14] - Tools & Outdoor organic revenue decreased by 2%, while Engineered Fastening organic revenue increased by 5% [12] Cost Savings and Liquidity - The company achieved $120 million in pre-tax run-rate cost savings in the third quarter, with $1.9 billion program-to-date [8, 17] - The company has $0.3 billion in cash on hand and $2.1 billion in additional commercial paper capacity, resulting in $2.4 billion in total additional liquidity [30]

Accessibility StatementSkip Navigation Solid Third Quarter Execution Amid Dynamic Operating Environment with Continued Growth in DEWALT and Year Over Year Gross Margin Expansion NEW BRITAIN, Conn., Nov. 4, 2025 /PRNewswire/ -- Stanley Black & Decker (NYSE: SWK), a worldwide leader in tools and outdoor, today announced third quarter 2025 financial results.  Christopher J. Nelson, Stanley Black & Decker's President & CEO, commented, "Stanley Black & Decker delivered solid third quarter results, despite pr ...