Stanley Black & Decker

Stanley Black & Decker (SWK) Q1 2025 Earnings

Reported Apr 30, 2025 at 6:10 AM ET · SEC Source

Q1 25 EPS

$0.75

BEAT +13.65%

Est. $0.66

Q1 25 Revenue

$3.74B

BEAT +0.67%

Est. $3.72B

vs S&P Since Q1 25

+27.4%

BEATING MARKET

SWK +61.7% vs S&P +34.3%

Market Reaction

Did SWK Beat Earnings? Q1 2025 Results

Stanley Black & Decker kicked off 2025 with a stronger-than-expected first quarter, posting adjusted EPS of $0.75 against a consensus estimate of $0.66, a beat of 13.65%, while revenue of $3.74 billion edged past the $3.72 billion estimate by 0.67%, … Read more Stanley Black & Decker kicked off 2025 with a stronger-than-expected first quarter, posting adjusted EPS of $0.75 against a consensus estimate of $0.66, a beat of 13.65%, while revenue of $3.74 billion edged past the $3.72 billion estimate by 0.67%, even as total reported sales slipped 3.2% year-over-year amid currency headwinds and the lapping of its Infrastructure business divestiture. The primary engine behind the earnings outperformance was the company's ongoing Global Cost Reduction Program, which contributed $130 million in incremental pre-tax run-rate savings during the quarter and pushed adjusted gross margin up 140 basis points to 30.4%, with cumulative savings now approaching $1.70 billion toward a $2.00 billion target by year-end. DEWALT extended its streak to eight consecutive quarters of revenue growth, underscoring resilient professional demand. Looking ahead, management guided for approximately $4.50 in adjusted EPS for the full year, though tariff headwinds are estimated to shave roughly $0.75 from 2025 EPS net of mitigation efforts, prompting a high-single digit price increase in April and accelerated supply chain shifts away from China.

Key Takeaways

  • Global Cost Reduction Program generated $130 million of incremental pre-tax run-rate cost savings in Q1 2025
  • Supply chain transformation efficiencies driving gross margin expansion of 130 basis points YoY
  • DEWALT brand posted 8th consecutive quarter of revenue growth driven by professional demand
  • Benefits from new innovation launches partially offset by freight inflation and initial tariff impact
  • Organic revenue growth of 1% offset by 2% currency headwind and 2% Infrastructure divestiture impact
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SWK YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

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SWK Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“Stanley Black & Decker started the year with a solid first quarter, including one point of organic revenue growth and year-over-year gross margin expansion, both key measures of continued progress against our strategic objectives. We also extended our streak of revenue growth at our powerhouse pro-focused DEWALT brand. As we continue to make meaningful progress on metrics primarily within our control, I want to thank the organization for staying focused on execution.”

— Donald Allan Jr., Q1 2025 Earnings Press Release