Stanley Black & Decker Reports Q2 2025 Earnings: Sales Down, Net Income Up

Stanley Black & Decker reported Q2 sales of $3.95 bln, up from $4.02 bln YoY, and a net income of $102 mln, compared to a net loss of $11.2 mln YoY. Basic earnings per share from continuing operations were $0.67, up from a loss of $0.13 YoY. For the six months, sales were $7.69 bln, down from $7.89 bln YoY, and net income was $192.3 mln, up from $8.3 mln YoY. Basic earnings per share were $1.27, up from $0.06 YoY.

Stanley Black & Decker (NYSE: SWK) reported its second-quarter (Q2) 2025 financial results, showcasing a mixed performance that left investors with a blend of positive and negative surprises. The company's revenue came in at $3.95 billion, marking a 2% year-on-year decline from the previous year's $4.02 billion. This result missed analysts' estimates by $3.99 billion, indicating a 1.7% miss [1].

Despite the revenue shortfall, Stanley Black & Decker's earnings per share (EPS) were significantly above expectations. The company reported EPS of $1.08 per share, surpassing the Zacks Consensus Estimate of $0.42. This marked a notable improvement from the same quarter last year when EPS stood at $0.42 [1].

The company's operating margin was 2.7% for Q2 2025, down from 7.8% in the same quarter of 2024. This decline was primarily attributed to increased expenses, including marketing, R&D, and administrative overhead, which rose by 5.4% year on year [2].

On a segmental basis, the Tools & Outdoor segment saw revenues decrease by 1.9% year on year, while the Engineered Fastening segment experienced a 2.4% decline. The gross profit margin also decreased by 140 basis points to 27%, reflecting the company's increased expenses [2].

Stanley Black & Decker's balance sheet showed a reduction in long-term debt, with a balance of $4.76 billion compared to $5.6 billion at the end of 2024. However, the company's free cash flow (before dividends) was negative at $350.3 million, down from $10.9 million in the year-ago period. The company also paid out dividends worth $248.5 million to its shareholders, up 2% from the year-ago period [2].

Looking ahead, Stanley Black & Decker expects total revenues to be in the range of (1%)-flat on a year-over-year basis. The company anticipates earnings to be $3.45 (+/- $0.10) per share, with adjusted earnings projected to be $4.65 per share. The company targets to generate annual free cash flow (non-GAAP) of approximately $600 million [2].

In conclusion, Stanley Black & Decker's Q2 2025 financial results were a mixed bag, with revenue falling short of expectations but EPS significantly exceeding analysts' estimates. The company's operating margin decline and increased expenses are areas of concern, but its strong earnings and free cash flow projections suggest that the company is well-positioned for future growth.

References:
[1] https://finance.yahoo.com/news/stanley-black-decker-nyse-swk-101109636.html
[2] https://finance.yahoo.com/news/stanley-blacks-q2-earnings-beat-152200400.html