Core Viewpoint - Stanley Black & Decker has entered into a definitive agreement to sell its Consolidated Aerospace Manufacturing (CAM) business to Howmet Aerospace for $1.8 billion in cash, aiming to enhance shareholder value and reduce debt [1][2]. Group 1: Transaction Details - The sale of CAM is valued at $1.8 billion in cash and is expected to close in the first half of 2026, pending regulatory approval and customary closing conditions [1][3]. - CAM is projected to generate revenue of approximately $405 to $415 million for FY 2025, with an adjusted EBITDA margin approaching the high-teens percentage [2]. Group 2: Strategic Implications - The proceeds from the transaction are anticipated to significantly reduce the company's debt, helping to achieve a target leverage ratio of 2.5 times net debt to adjusted EBITDA [2]. - The divestiture reflects the company's strategy to focus on its core brands and businesses, allowing for a more agile capital allocation strategy in the future [2]. Group 3: Company Background - Consolidated Aerospace Manufacturing (CAM) is recognized for providing critical fasteners, fittings, and engineered components for the aerospace and defense industries, with a portfolio of trusted brands [4]. - Stanley Black & Decker, founded in 1843, is a global leader in tools and outdoor products, employing approximately 48,000 people and producing a wide range of innovative products [5].

Core Viewpoint - Stanley Black & Decker has appointed Agustin Lopez Diaz as Chief Global Supply Chain Officer, effective December 15, 2025, to enhance its global supply chain strategy and operations [1]. Group 1: Appointment Details - Agustin Lopez Diaz brings over 20 years of experience in manufacturing, P&L, and supply chain leadership, having previously worked at Schneider Electric [1]. - He will report to Chris Nelson, President and CEO of Stanley Black & Decker [1]. Group 2: Responsibilities and Expectations - As Chief Global Supply Chain Officer, Lopez Diaz will lead the end-to-end global supply chain strategy, focusing on growth, innovation, and operational excellence [1]. - His role includes developing a future-ready supply chain aligned with the company's business objectives and growth strategy [1]. Group 3: Previous Experience - Prior to this role, Lopez Diaz served as North America Supply Chain Officer at Schneider Electric, overseeing over 50 manufacturing sites and 13 distribution centers across North America and Central America [1]. - He has held leadership positions in quality, customer satisfaction, and sustainability at various companies, including Faurecia, GE Power, Rockwell, and Vestas [1]. Group 4: Educational Background - Lopez Diaz holds degrees in Mechanical Engineering and Business Administration from Universidad Popular Autónoma del Estado de Puebla (UPAEP) in Mexico, along with a post-graduate program in negotiation from the University of Michigan [1].

Core Points - Stanley Black & Decker will present at the 2025 Goldman Sachs Industrials and Materials Conference on December 4, 2025, at 11:30 AM ET [1] - The live webcast will be accessible in the "Investors" section of the company's website, with a replay available for 30 days [2] - Founded in 1843, Stanley Black & Decker is a global leader in tools and outdoor products, employing approximately 48,000 people [3] Company Overview - The company produces a wide range of products including power tools, hand tools, storage solutions, digital jobsite solutions, outdoor products, and engineered fasteners [3] - Stanley Black & Decker's portfolio includes well-known brands such as DEWALT®, CRAFTSMAN®, STANLEY®, BLACK+DECKER®, and Cub Cadet® [3] - The company operates manufacturing facilities globally, supporting builders, tradespeople, and DIY enthusiasts [3]

Core Points - Stanley Black & Decker will present at Baird's 2025 Global Industrial Conference on November 12, 2025, at 12:35 PM CT [1] - The live webcast will be accessible in the "Investors" section of the company's website, with a replay available for 30 days [2] - Founded in 1843, Stanley Black & Decker is a global leader in tools and outdoor products, employing approximately 48,000 people [3] Company Overview - The company produces a wide range of products including power tools, hand tools, storage solutions, and outdoor products [3] - Stanley Black & Decker's portfolio includes well-known brands such as DEWALT®, CRAFTSMAN®, STANLEY®, BLACK+DECKER®, and Cub Cadet® [3] - The company operates manufacturing facilities globally, supporting builders, tradespeople, and DIY enthusiasts [3]

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]

Core Insights - Stanley Black & Decker reported solid third quarter results for 2025, highlighting growth in the DEWALT brand, year-over-year gross margin expansion, and strong free cash flow despite macroeconomic uncertainties [1][2] Financial Performance - Third quarter revenues were $3.8 billion, consistent with the prior year, as price increases (+5%) and currency gains (+1%) were offset by a volume decline (-6%) [6][7] - Gross margin was 31.4%, an increase of 150 basis points year-over-year, while adjusted gross margin was 31.6%, up 110 basis points [6][7] - Third quarter EPS was $0.34, with adjusted EPS at $1.43, benefiting from a tax rate adjustment [6][7] Segment Results - Tools & Outdoor segment reported net sales of $3,256 million, with a segment margin of 11.8%, up 180 basis points from the previous year [3][8] - Engineered Fastening segment net sales increased by 3%, with a segment margin of 11.9%, down from 14.4% year-over-year due to elevated production costs [3][8] Cost Reduction Initiatives - The Global Cost Reduction Program achieved approximately $120 million in incremental pre-tax run-rate cost savings in Q3 2025, totaling about $1.9 billion since its inception in mid-2022 [4][10] - The company aims to reach a long-term adjusted gross margin target of over 35% through these initiatives [4] Strategic Focus - The company is focused on long-term value creation through brand activation, operational excellence, and innovation [1][5] - Management revised the 2025 EPS planning assumption to a range of $2.55 to $2.70 on a GAAP basis, reflecting non-cash asset impairment charges of $169 million [5][10]

Core Insights - Mary Laschinger has been elected to the Board of Directors of Stanley Black & Decker, effective November 1, 2025, bringing over 30 years of experience in global manufacturing and distribution [1][2]. Group 1: Leadership and Experience - Laschinger previously served as Chair and CEO of Veritiv Corporation from July 2014 until her retirement in September 2020, and has held significant roles at International Paper and other companies [3][4]. - She has a strong background in sales, supply chain, marketing, and regulatory affairs, which will contribute to Stanley Black & Decker's strategic goals [3][4]. Group 2: Strategic Goals and Expectations - The Executive Chair of the Board, Don Allan, expressed confidence that Laschinger's expertise will be instrumental in advancing the company's long-term growth strategy and delivering sustained value for shareholders [3]. - Stanley Black & Decker aims to extend its industry leadership and enhance operational excellence through the insights brought by new board members like Laschinger [3]. Group 3: Educational Background - Laschinger holds a bachelor's degree in business from the University of Wisconsin, an MBA from the University of Connecticut, and has completed executive management studies at the Kellogg School of Management [5]. Group 4: Company Overview - Stanley Black & Decker, founded in 1843, is a global leader in tools and outdoor products, employing approximately 48,000 people and producing a wide range of innovative tools and solutions [6]. - The company’s portfolio includes well-known brands such as DEWALT®, CRAFTSMAN®, STANLEY®, BLACK+DECKER®, and Cub Cadet® [6].

Core Points - Stanley Black & Decker will broadcast its third quarter 2025 earnings webcast on November 4, 2025, starting at 8:00 AM ET [1] - A news release detailing the financial results will be distributed before the market opens on the same day [2] - The call will be accessible via a live, listen-only webcast or teleconference, with links available on the company's investor website [3] Company Overview - Founded in 1843 and headquartered in the USA, Stanley Black & Decker is a global leader in tools and outdoor products, employing approximately 48,000 people [4] - The company produces a range of innovative products including power tools, hand tools, storage solutions, and outdoor products, under trusted brands such as DEWALT®, CRAFTSMAN®, STANLEY®, BLACK+DECKER®, and Cub Cadet® [4]