Stanley Black & Decker Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.88%.
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%, 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.
- 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
“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.”
Stanley Black & Decker CEO, on the earnings call
Forward Guidance & Outlook
The company provided 2025 planning assumptions calling for GAAP EPS of $3.30 (+/- $0.15) and approximately $4.50 adjusted EPS. Free cash flow is targeted to meet or exceed $500 million. The 2025 EPS impact from tariffs net of price and supply chain adjustments is estimated at roughly negative $0.75. The company implemented a high-single digit U.S. Tools & Outdoor price increase in April and plans a second price increase effective at the beginning of Q3. Management is accelerating supply chain adjustments to leverage Mexico and reduce China tariff costs over the next 12-24 months. The GAAP-to-adjusted EPS difference of approximately $1.05 to $1.35 primarily consists of charges related to the supply chain transformation under the Global Cost Reduction Program. The company expects to generate $2 billion of pre-tax run-rate cost savings by end of 2025 and targets 35%+ long-term adjusted gross margin.
SWK YoY Financials
SWK Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.