Stanley Black & Decker

Stanley Black & Decker (SWK) Q2 2025 Earnings

Reported Jul 29, 2025 at 6:11 AM ET · SEC Source

Q2 25 EPS

$1.08

BEAT +159.68%

Est. $0.42

Q2 25 Revenue

$3.95B

MISS 1.23%

Est. $3.99B

vs S&P Since Q2 25

+22.3%

BEATING MARKET

SWK +39.5% vs S&P +17.2%

Market Reaction

Did SWK Beat Earnings? Q2 2025 Results

Stanley Black & Decker delivered a sharply mixed second quarter for 2025, posting adjusted EPS of $1.08 against a consensus estimate of $0.42, a beat of 159.68% that was substantially inflated by a favorable tax settlement rather than operational mom… Read more Stanley Black & Decker delivered a sharply mixed second quarter for 2025, posting adjusted EPS of $1.08 against a consensus estimate of $0.42, a beat of 159.68% that was substantially inflated by a favorable tax settlement rather than operational momentum. Revenue of $3.95 billion fell short of the $3.99 billion analysts had expected and slid 2.00% from a year ago, as a sluggish outdoor buying season and tariff-related shipment disruptions dragged on volumes. Tariffs loomed large over the results, with management estimating a gross annualized impact of roughly $800 million; net of pricing actions and supply chain shifts, the 2025 EPS drag is projected at approximately $0.65. The company's Global Cost Reduction Program delivered around $150 million in incremental savings during the quarter, pushing cumulative savings to roughly $1.80 billion toward a $2.00 billion target. Looking ahead, management's base scenario calls for full-year adjusted EPS of approximately $4.65 and free cash flow of around $600 million, though investor concern over the company's tariff exposure and cash generation sent shares sharply lower following the report.

Key Takeaways

  • Continued DEWALT professional brand growth driven by resilient professional demand
  • Supply chain transformation generated approximately $150 million incremental pre-tax run-rate cost savings in Q2
  • Cumulative $1.8 billion in pre-tax run-rate cost savings since mid-2022
  • 3-percentage-point gross tariff impact on margins partially offset by price increases and supply chain efficiencies
  • Slow outdoor buying season and tariff-related shipment disruptions reduced volume by 4%
  • Price contributed +1% to revenue; currency contributed +1%
  • Favorable tax rate benefit from settlement of audit
  • Lower volume in higher-margin automotive weighed on Engineered Fastening margins
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SWK YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

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SWK Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“We delivered a solid second quarter amid the dynamic operating environment with the continued growth of our professional DEWALT brand. With our supply chain transformation on track to completion in 2025, we are positioning the Company to embark on the next chapter of delivering sustainable growth and long term shareholder returns. Stanley Black & Decker is built on the strength of our people, iconic brands and a powerful innovation engine – attributes that transcend external market conditions.”

— Donald Allan Jr., Q2 2025 Earnings Press Release