Stanley Black Decker 2025 Q1 Earnings Net Income Surges 363.6%

Stanley Black & Decker (SWK) reported its fiscal 2025 Q1 earnings on April 29th, 2025. The company's performance exceeded analysts' expectations, with adjusted EPS reaching $0.75, surpassing the consensus estimate of $0.66. Stanley Black & Decker's guidance for 2025 remains in line with previous projections, anticipating adjusted earnings per share of approximately $4.50. The company reaffirmed its commitment to achieving its financial goals despite ongoing market challenges, supported by strategic pricing actions and supply chain adjustments.

Revenue

In 2025 Q1, Stanley Black & Decker's total revenue decreased by 3.2% to $3.74 billion compared to $3.87 billion in 2024 Q1. The Tools & Outdoor segment generated $3.28 billion, while Engineered Fastening contributed $463.70 million, culminating in the overall revenue figure of $3.74 billion.

Earnings/Net Income

Stanley Black & Decker's EPS increased by 361.5%, reaching $0.60 in 2025 Q1 from $0.13 in 2024 Q1. Net income saw a 363.6% growth to $90.40 million from $19.50 million in the previous year. This substantial earnings improvement highlights the company's strong performance and strategic execution.

Post-Earnings Price Action Review

Following the earnings release, Stanley Black & Decker's stock price exhibited mixed results. The 10-Day win rate stood at 55%, indicating relatively favorable performance over this period. Conversely, the 3-Day win rate was lower at 35%, reflecting weaker immediate post-earnings performance. The stock showed a negative 3-Day return of -1.63%, while the 10-Day return remained slightly positive at 0.17%. Over a 30-Day period, returns were marginally negative at -1.16%. The maximum return during the backtested period peaked at 2.09% on day 59 after the earnings announcement. This analysis suggests that the impact of earnings report metrics on Stanley Black & Decker's stock price is generally muted, with short-term volatility following earnings releases.

CEO Commentary

Donald Allan, Jr., President and CEO, emphasized that Stanley Black & Decker's transformation is successfully progressing, enabling the company to capture long-term market opportunities. He noted, "We delivered a solid start to the year with organic revenue growth and year-over-year gross margin expansion," driven by strong performance in outdoor and professional tools. Allan highlighted the challenges posed by changing U.S. trade policies but expressed confidence in mitigating these impacts through a flexible supply chain and pricing strategies. He stated, "We intend to successfully complete our transformation in 2025," reflecting an optimistic outlook on sustaining growth and market share gains.

Guidance

For 2025, Stanley Black & Decker anticipates adjusted earnings per share of approximately $4.50, with a GAAP EPS range of $3.30 plus or minus $0.15. The company expects low single-digit organic revenue growth driven by mid-single-digit price increases, offset by a low single-digit volume decline. They project an estimated $0.75 headwind on adjusted EPS due to tariffs, with a target of achieving $500 million in supply chain cost savings. Free cash flow is expected to meet or exceed $500 million, maintaining focus on long-term growth and margin expansion.

Additional News

In recent weeks, Stanley Black & Decker has taken significant steps to align its operations with evolving market conditions. The company announced a strategic decision to implement high-single-digit price increases on its Tools & Outdoor products starting in April, with a further increase planned for the third quarter. This move aims to counterbalance the effects of U.S. tariffs. Additionally, Stanley Black & Decker is accelerating its supply chain adjustments, leveraging its North American manufacturing footprint to reduce dependency on Chinese imports. The company is also focusing on bolstering its C-Level team, with plans to enhance leadership capabilities to drive strategic growth initiatives in the coming months. These efforts underscore the company's commitment to navigating current challenges while positioning itself for long-term success.