Stanley Black & Decker Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.15%.
Did SWK Beat Earnings? Q4 2025 Results
Stanley Black & Decker delivered a margin-driven quarter in Q4 2025, posting adjusted EPS of $1.41 against a consensus estimate of $1.28, a beat of roughly 9.92%, even as revenue of $3.68 billion fell short of the $3.78 billion analysts had anticipated and edged down 1.0% year over year. The story behind the earnings beat was disciplined cost execution, with gross margin expanding 240 basis points to 33.2%, the strongest quarterly margin performance of the year, as the company's Global Cost Reduction Program hit its original $2.10 billion cumulative savings target. A 7% volume decline, concentrated in North American retail power tools, weighed on the top line despite a 4% pricing contribution and 2% currency tailwinds. A pending $1.80 billion divestiture of Consolidated Aerospace Manufacturing adds a meaningful balance sheet catalyst heading into 2026, when management projects adjusted EPS of $4.90 to $5.70 and free cash flow of $700 million to $900 million, though Goldman Sachs, while raising its price target, flagged that the profit outlook trails broader Wall Street expectations.
- Higher pricing (+4%) partially offsetting volume declines (-7%)
- Supply chain cost reductions and tariff mitigation driving gross margin expansion of 240 basis points
- Global Cost Reduction Program achieved $2.1 billion cumulative pre-tax run-rate savings target
- Strong working capital improvements driving Q4 cash flow
- Strong aerospace and automotive demand driving Engineered Fastening organic growth of 8%
- Disciplined and targeted SG&A cost management reducing SG&A as a percentage of sales by 120 basis points
“Stanley Black & Decker delivered solid results across our key focus areas in 2025, with continued gross margin and net income growth, strong free cash flow, a strengthened balance sheet, and strategic investments focused on driving sustainable, profitable growth. I would like to thank our team for their resilience and commitment to serving our customers and achieving these results despite the dynamic environment.”
Stanley Black & Decker CEO, on the earnings call
Forward Guidance & Outlook
For 2026, Stanley Black & Decker expects GAAP EPS of $3.15 to $4.35 and adjusted EPS of $4.90 to $5.70, representing growth of 42% and 13% at the respective midpoints. Free cash flow is targeted at $700 million to $900 million, reflecting a 16% increase at the midpoint. These assumptions include CAM results for the first half of 2026 and the current tariff landscape. The difference between GAAP and adjusted EPS ranges is approximately $1.35 to $1.75, consisting primarily of charges related to footprint actions and other cost actions.
SWK YoY Financials
SWK Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.