Stanley Black & Decker Reports 3% Decline in Net Sales for Q1 2025

Stanley Black & Decker, Inc. reported a decline in net sales for the first quarter of 2025, totaling $3.745 billion, down 3% from $3.870 billion in the same period of 2024. The decrease was attributed to a 1% increase in volume being offset by a 2% decline from foreign currency fluctuations and a 2% drop due to the divestiture of its Infrastructure business. The company’s gross profit for the quarter was $1.121 billion, representing 29.9% of net sales, compared to $1.109 billion or 28.6% of net sales in the prior year. The increase in gross profit percentage was driven by supply chain efficiencies, despite challenges from freight inflation and tariffs.

In terms of profitability, Stanley Black & Decker reported net earnings of $90.4 million, significantly higher than the $19.5 million recorded in the first quarter of 2024. This resulted in earnings per share of $0.60, compared to $0.13 in the previous year. The company’s earnings before income taxes also improved to $127.6 million from $48.3 million a year earlier. The effective tax rate for the quarter was 29.2%, reflecting a decrease from 59.6% in the same quarter of 2024, primarily due to non-deductible expenses and U.S. tax on foreign earnings.

Operationally, Stanley Black & Decker has been focusing on strategic initiatives, including a $2 billion Global Cost Reduction Program aimed at enhancing profitability and cash flow. The company has generated approximately $130 million in pre-tax run-rate savings in the first quarter of 2025, contributing to its goal of achieving $2 billion in savings by the end of 2025. The company also completed the sale of its Infrastructure business to Epiroc AB for $760 million in April 2024, which is part of its strategy to streamline operations and focus on core segments.

The Tools & Outdoor segment reported net sales of $3.281 billion, relatively flat compared to the previous year, while the Engineered Fastening segment saw a 21% decline in sales to $463.7 million, impacted by the divestiture and market conditions. The company’s total assets increased to $22.496 billion as of March 29, 2025, up from $21.849 billion at the end of 2024, with cash and cash equivalents rising to $344.8 million from $290.5 million.

Looking ahead, Stanley Black & Decker anticipates diluted earnings per share on a GAAP basis to be approximately $3.30 for 2025, with a target for free cash flow to meet or exceed $500 million. The company remains committed to returning excess capital to shareholders while focusing on debt reduction and internal growth investments. The ongoing transformation and strategic initiatives are expected to position the company for sustainable growth in the coming years.