Stanley Black & Decker Reports Decline in Sales but Recovery in Earnings for Q2 2025

Stanley Black & Decker, Inc. reported a decline in financial performance for the second quarter and first half of 2025, as detailed in its latest 10-Q filing. The company recorded net sales of $3.945 billion for the second quarter, a decrease of 2% from $4.024 billion in the same period last year. Year-to-date sales also fell by 3%, totaling $7.690 billion compared to $7.894 billion in 2024. The decline was attributed to a 4% decrease in volume, which was partially offset by a 1% increase in price and favorable foreign currency effects. The Tools & Outdoor segment saw a 2% drop in sales, while the Engineered Fastening segment also experienced a 2% decline.

In terms of profitability, Stanley Black & Decker reported net earnings from continuing operations of $101.9 million for the second quarter, a significant recovery from a loss of $19.2 million in the prior year. The year-to-date net earnings from continuing operations reached $192.3 million, compared to a mere $0.3 million in 2024. The company’s basic earnings per share for the second quarter was $0.67, a turnaround from a loss of $0.13 per share in the same quarter last year. The improved earnings were supported by a reduction in costs, particularly in selling, general, and administrative expenses, which increased to $873.1 million from $828.6 million, reflecting ongoing investments in growth initiatives.

Strategically, Stanley Black & Decker has been focusing on a Global Cost Reduction Program aimed at generating $2 billion in pre-tax run-rate savings by the end of 2025. This initiative includes a $1.5 billion supply chain transformation and a $500 million reduction in selling, general, and administrative costs. The company also completed the divestiture 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 company has also initiated a voluntary retirement program to align its workforce with its more focused portfolio.

Operationally, the company reported a significant increase in cash and cash equivalents, totaling $311.8 million as of June 28, 2025, up from $290.5 million at the end of 2024. However, cash flows from operations were negative year-to-date, at $205.7 million, compared to a positive $142.0 million in the previous year. The company’s restructuring charges amounted to $20 million for the first half of 2025, primarily related to severance costs and facility closures. The company anticipates that the majority of the remaining restructuring reserves will be utilized within the next 12 months.

Looking ahead, Stanley Black & Decker has set a target for diluted earnings per share of approximately $3.45 for 2025, with expectations for free cash flow to reach around $600 million. The company is also navigating challenges related to tariffs, which are expected to impact earnings by approximately $0.65 per share. Despite these challenges, the company remains committed to its long-term growth strategy, focusing on innovation and operational efficiency to enhance profitability and shareholder value.