SWK
Stanley Black & Decker, Inc.72.80
-1.35-1.82%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Tariff fixes ahead; brand investments detailed.
Q&A revealed tariff mitigation accelerating ahead of plan, slashing China imports for US sales below 5% by year-end while fast-tracking USMCA qualification to industry norms. Management sketched 2026 gross margin path: Q1 at 30.5%, Q2 near 31%, H2 hitting 34-35% despite tariff peaks. They disclosed $75-100M extra investments in Craftsman and Stanley, backing major 20V launches and European sales ramps for sales inflections. Elasticity worsened beyond 1:1 in promo zones, yet tweaks normalize it. Pricing nets +2% yearly. Volatility lingers Q1. Watch pro channel strength.
Key Stats
Market Cap
11.28BP/E (TTM)
25.10Basic EPS (TTM)
2.90Dividend Yield
0.04%Recent Filings
10-K
FY2025 results
Stanley Black & Decker posted $15.1B in FY2025 revenues, down 2% y/y from $15.4B, as 3% pricing gains offset 4% volume declines and a 1% Infrastructure divestiture hit; Tools & Outdoor drove 87% of topline at $13.2B (-1% y/y) while Engineered Fastening fell 4% to $2.0B post-divestitures. Gross margins expanded to 30.3% from 29.4% via pricing and $2.1B cost program savings, lifting adjusted segment profit margins to 10.7% in Tools & Outdoor (up from 10.1%) yet compressing Engineered Fastening to 11.5% (from 12.5%) on automotive weakness. Free cash flow held at $688M; debt sits at $5.3B with $1.5-1.6B CAM sale proceeds eyed for deleveraging. Q4 momentum flickered in DEWALT growth but volumes softened. Supply chain snarls from tariffs and rare earth curbs threaten quarterly flows.
8-K
Q4 results, CAM sale announced
Stanley Black & Decker posted 4Q net sales of $3.7B, down 1%, yet boosted gross margin to 33.2% via pricing and cost cuts. Full-year sales hit $15.1B with adjusted EPS of $4.67; free cash flow funded $240M debt paydown. Announced $1.8B CAM divestiture, netting ~$1.5B-$1.6B for leverage cut—closes H1 2026. Debt drops fast.
8-K
Board refresh with new director
Stanley Black & Decker announced board changes on January 23, 2026: Andrea Ayers retires at the 2026 annual meeting after 11 years; Shane O'Kelly joins immediately as director on Compensation and Governance Committees, bringing supply chain expertise from Advance Auto Parts. Debra Crew steps up as Lead Independent Director now, set to become non-executive Chair on October 1, 2026, post-Donald Allan's retirement. Succession smooth. No disagreements noted.
8-K
Sells CAM for $1.8B
Stanley Black & Decker agreed to sell its Consolidated Aerospace Manufacturing subsidiary to Howmet Aerospace for $1.805 billion in cash on December 22, 2025, expecting to close in H1 2026 pending regulatory approvals. Proceeds of $1.525–1.6 billion after tax will cut debt toward a 2.5x net debt to adjusted EBITDA target. CAM projects $405–415 million FY 2025 revenue. Deal sharpens focus on core brands.
10-Q
Q3 FY2025 results
Stanley Black & Decker held Q3 sales flat at $3.8B y/y while YTD revenue dipped 2% to $11.4B (derived), pressured by Infrastructure divestiture and soft volumes yet lifted by 5% pricing and supply chain gains. Gross margins climbed to 31.4% from 29.9%, with Tools & Outdoor segment profit jumping to 11.8% on efficiencies despite $169.1M brand impairments (Lenox, Troy-Bilt, Irwin). Diluted EPS from continuing ops fell to $0.34 from $0.60 y/y, confirmed vs. 152M shares; YTD $1.61 beat prior $0.60 on tax benefits. Cash dipped to $268.3M amid $1.4B commercial paper and $5.3B long-term debt, but free cash flow turned positive quarterly at $155M (derived). Brand impairments hit hard.
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