Core Insights - Stanley Black & Decker reported $3.95 billion in revenue for Q2 2025, a 2% decline year-over-year, with an EPS of $1.08 compared to $1.09 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $3.99 billion by 1.12%, while the EPS exceeded the consensus estimate of $0.38 by 184.21% [1] Financial Performance Metrics - Net Sales for Tools & Outdoor segment were $3.46 billion, below the five-analyst average estimate of $3.52 billion, reflecting a year-over-year decline of 1.9% [4] - Net Sales for Engineered Fastening were $483.8 million, slightly above the estimated $477.91 million, but still a 2.4% decrease compared to the previous year [4] - Normalized Operating Profit for Tools & Outdoor was $276.5 million, exceeding the average estimate of $230.46 million [4] - Normalized Operating Profit for Corporate Overhead was reported at -$62.8 million, worse than the estimated -$55.25 million [4] - Normalized Operating Profit for Engineered Fastening was $52.3 million, slightly above the average estimate of $51.98 million [4] Stock Performance - Over the past month, shares of Stanley Black & Decker have returned +9.1%, outperforming the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Performance & Outlook - Stanley Black & Decker's (SWK) 2023 revenue was $15.8 billion[7] - The company is targeting ~$1.5 billion of pre-tax run-rate savings by the end of 2024[16] - The company is reiterating EPS guidance range of GAAP $1.60-$2.85 and adjusted $3.50-$4.50, and free cash flow $0.6B-$0.8B for 2024[29] - The company expects adjusted gross margin to increase sequentially in each half of 2024, planning for ~30% full year 2024 adjusted gross margin[35] - The company's 1Q'24 free cash flow outflow was ~$500 million[35] Business Segments - Tools & Outdoor segment accounted for $13.4 billion in revenue in 2023[7] - Industrial segment revenue was $2.4 billion in 2023[7] - In the Tools & Outdoor segment, Power Tools Group accounted for 48%, Hand Tools, Accessories & Storage for 30%, and Outdoor Power Equipment for 22% of the revenue[7] - Engineered Fastening accounted for 81% and Infrastructure for 19% of the Industrial segment revenue[7] Geographic Distribution - 62% of the company's revenue is generated in the U.S[10]

Financial Performance & Strategy - Stanley Black & Decker's (SWK) 2023 revenue was $15.8 billion[7] - The company is targeting ~$2 billion in pre-tax run-rate cost savings by the end of 2025[12, 14] - SWK is aiming for organic revenue growth of 2-3x the market rate[12] - The company is targeting an adjusted gross margin of 35%+ by 2025[12] - SWK expects free cash flow conversion to be 100%+[12] Segment Breakdown - Tools & Outdoor segment accounted for $13.4 billion of revenue in 2023[7] - Industrial segment revenue was $2.4 billion in 2023[7] - Within Tools & Outdoor, Power Tools Group contributed 48%, Hand Tools, Accessories & Storage 30%, and Outdoor Power Equipment 22% of the revenue[7] Geographic Distribution - 62% of the company's revenues are generated in the U S [10] - Europe accounts for 16%, Emerging Markets 12%, and Rest of World (ROW) 10% of the revenues[10] 2024 Guidance - The company anticipates organic revenue to be approximately (0 5%) year-over-year +/- 130 bps in 2024[28] - Adjusted EPS for 2024 is projected to be $3 70-$4 50, and free cash flow is expected to be $650 million-$850 million[28]