Stanley Black & Decker Inc

Latest Results (12.11.2025):

Stanley Black & Decker Inc reported its third quarter 2025 financial results, showcasing solid performance amid a dynamic operating environment. The company maintained net sales of $3.8 billion and achieved year-over-year gross margin expansion, supported by improved pricing strategies, supply chain efficiencies, and strong DEWALT brand growth. Despite macroeconomic challenges, the quarter delivered resilient EPS results, strong cash flow, and progress on its Global Cost Reduction Program, paving the way for continued profitability and value creation.

Revenue & Gross Margin

In Q3 2025, Stanley Black & Decker Inc recorded net sales of $3.8 billion, in line with the prior year as positive price and currency effects balanced lower volume. Gross margin reached 31.4% with an adjusted margin of 31.6%, marking an improvement of 150 and 110 basis points respectively year-over-year, fueled by effective pricing strategies and supply chain transformations.

EPS & Cash Flow

The quarter delivered a reported EPS of $0.34 and an adjusted EPS of $1.43, which included a tax rate benefit. Furthermore, the company generated $221 million in cash from operating activities and free cash flow of $155 million, underscoring robust liquidity and disciplined financial management.

Segment Performance

The Tools & Outdoor segment's net sales remained steady, with a segment margin improvement to 11.8% (adjusted 12.0%), driven by favorable price actions and operational efficiencies. Meanwhile, the Engineered Fastening segment experienced a 3% rise in net sales, despite a minor offset from product line transfers, as its segment margins reflected the challenging prior year comparables and subsequent sequential improvements.

Global Cost Reduction Program

Driving cost efficiencies, the Global Cost Reduction Program delivered approximately $120 million of incremental pre-tax run-rate savings in Q3 2025, contributing to nearly $1.9 billion in cumulative savings since mid-2022, and positioning the company closer to its long-term margin goals.

2025 Planning & Non-GAAP Adjustments

For full-year 2025, planning assumptions have been updated with management revising the GAAP EPS guidance to a range of $2.55 to $2.70, and an adjusted EPS target of approximately $4.55. Non-cash asset impairment charges of $169 million and other inventory-related adjustments were key factors for these revisions, with total pre-tax non-GAAP adjustments amounting to $217.6 million in the quarter.