Core Insights - Stanley Black & Decker, Inc. (SWK) reported third-quarter 2025 adjusted earnings of $1.43 per share, exceeding the Zacks Consensus Estimate of $1.19, representing a year-over-year increase of 17.2% [1][9] - The company's net sales were $3.76 billion, slightly missing the consensus estimate of $3.77 billion, and remained flat compared to the same quarter last year [1][9] Segmental Performance - The Tools & Outdoor segment generated revenues of $3.26 billion, consistent with the year-ago quarter, while the Engineered Fastening segment reported revenues of $501 million, up 3% year over year [2][3] Margin Analysis - Cost of sales decreased by 2% year over year to $2.58 billion, leading to a gross profit increase of 5.2% to $1.18 billion, with a gross margin improvement of 150 basis points to 31.4% [4] - Adjusted EBITDA rose by 13.4% year over year to $461.0 million, with the margin increasing by 150 basis points to 12.3% [4] Balance Sheet and Cash Flow - At the end of the third quarter, cash and cash equivalents stood at $268.3 million, down from $290.5 million at the end of fourth-quarter 2024, while long-term debt decreased to $4.70 billion from $5.6 billion [5] - In the first nine months of 2025, net cash generated by operating activities was $15.5 million, significantly lower than $427.8 million in the previous year, with free cash flow before dividends reported as negative $195.0 million [6] 2025 Guidance - The company anticipates total revenues to be in the range of a decline of 1% to flat year-over-year, with earnings projected between $2.55 and $2.70 per share, down from the previous expectation of $3.45 [7]

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]

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].