Companies /Industrials

Stanley Black & Decker Inc

NYSE: SWK Tools & Accessories
$97.36
▲ $0.86 (+0.89%) today
Markets closed · 8:47pm ET

Q2 2025 Earnings

Reported Jul 29, 2025, 6:11am ET · SEC source
$1.08
Beat +159.68%
EPS · est. $0.42
$3.9B
Miss −1.23%
Revenue · est. $4.0B
+7.6%
Beating market
SWK vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−2%0+2%+4%Jul 29Jul 30report 6:11am ETearnings−0.3%+2.3%
−2%0+2%+4%Jul 29Jul 30earnings−0.3%+2.3%
SWK +2.3%S&P 500 −0.3%
−2%0+2%+4%Jul 29Jul 30report 6:11am ETearnings−0.2%+2.3%
−2%0+2%+4%Jul 29Jul 30earnings−0.2%+2.3%
SWK +2.3%NASDAQ −0.2%
−4%0+4%+8%Jul 28Aug 5report 6:11am ETearnings−1.7%+1.3%
−4%0+4%+8%Jul 28Aug 5earnings−1.7%+1.3%
SWK +1.3%S&P 500 −1.7%
−4%0+4%+8%Jul 28Aug 5report 6:11am ETearnings−2.1%+1.3%
−4%0+4%+8%Jul 28Aug 5earnings−2.1%+1.3%
SWK +1.3%NASDAQ −2.1%
−7.20%
Day of report
−1.22%
Next session
+1.09%
One week
+9.75%
30 days

S&P 500 over the same 30 days: +2.15%.

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 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

“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.”

Stanley Black & Decker CEO, on the earnings call

Forward Guidance & Outlook

Management's base 2025 planning scenario targets GAAP EPS of $3.45 (+/- $0.10) and adjusted EPS of approximately $4.65, with free cash flow targeting approximately $600 million. The gross annualized tariff impact is estimated at approximately $800 million (including July policy changes). Net of price adjustments and supply shifts, the negative 2025 EPS impact is expected to be approximately $0.65. The company expects incremental tariff countermeasures in the second half of 2025 to support gross margin accretion. The supply chain transformation is on track for completion in 2025. Management will provide additional scenario planning details on the earnings call.

SWK YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$2.0B$4.0B$4.0B$3.9BRevenue$1.2B$1.1BGross Profit$373.6M$106.9MOperating Income$13.9M$101.9MNet Income
$0$2.0B$4.0BRevenueGross ProfitOperating IncomeNet Income

SWK Revenue by Segment

Tools & Outdoor$3.5B−2.0%
Engineered Fastening$483.8M−2.0%

Figures from SEC filings and company reports. Not investment advice.