Stanley Black & Decker, a global leader in tools and outdoor products, reported its first quarter financial results for 2025, highlighting key metrics and strategic responses amid tariff impacts and supply chain transformations.
Who? Stanley Black & Decker (NYSE: SWK)
What? Q1 2025 Financial Performance and Strategic Update
When? Released April 30, 2025, covering Q1 2025 results
Where? Global operations with significant focus on North America, Europe, and other international markets
Q1 2025 revenues were $3.7 billion, down 3% year-over-year, impacted by currency fluctuations (-2%) and the final quarter of an Infrastructure business divestiture (-2%), while organic revenue grew by 1%, driven primarily by professional demand for the DEWALT brand.
Gross margin improved by 130 basis points to 29.9%, with the adjusted gross margin reaching 30.4%, reflecting supply chain efficiencies and new product innovation despite tariff-related freight inflation.
GAAP EPS was reported at \(0.60, with an adjusted EPS of \)0.75.
Net earnings margin rose to 2.4% from 0.5% a year earlier, and adjusted EBITDA margin increased to 9.7% from 8.9% in the prior year’s first quarter.
Tools & Outdoor segment achieved flat sales versus prior year, with 1% volume growth offset by currency impact. North America and Europe saw growth and flat performance respectively, while the rest of the world declined slightly. The segment margin expanded 100 basis points to 8.8%.
Engineered Fastening segment experienced a 21% sales decline primarily due to volume reductions in automotive markets and business divestiture impacts. Its margin contracted from 11.1% to 8.4%.
In response to U.S. tariffs, Stanley Black & Decker implemented a high-single-digit price increase in April 2025 with plans for additional price escalations in Q3. The company is accelerating supply chain adjustments focusing on increasing production from Mexico and leveraging its strong North American manufacturing footprint (approximately 60% of U.S. cost of sales) to mitigate tariff costs over 12-24 months. Despite these efforts, the tariff impact is expected to reduce 2025 EPS by roughly $0.75 after mitigation actions.
The ongoing Global Cost Reduction Program, initiated in mid-2022, generated \(130 million incremental pre-tax run-rate cost savings in Q1 2025, bringing total savings to \)1.7 billion. The program aims for $2 billion in total savings by year-end 2025 to support the company’s long-term adjusted gross margin goal of 35%+.
For fiscal year 2024, Stanley Black & Decker reported total revenues of \(15.37 billion and gross profit of \)4.51 billion, implying a gross margin of approximately 29.38%. Q1 2024 gross margin was significantly lower than the 29.9% reported in Q1 2025, reflecting positive margin trends. Operating income for 2024 was \(1.18 billion, with net income of \)294.3 million.
Management highlighted the uncertain economic environment and remains focused on margin expansion, growth, cash generation, and balance sheet strength while monitoring tariff and supply chain policy developments. The company projects full-year 2025 GAAP EPS around \(3.30, with adjusted EPS near \)4.50, aiming for free cash flow exceeding $500 million.
This earnings update aligns with Stanley Black & Decker’s prior strategic discussions emphasizing supply chain transformation and tariff mitigation. The company’s proactive approach to pricing and supply chain adjustment reflects its commitment to maintaining competitiveness amidst global economic volatility and tariff challenges.
As one authoritative source noted, “Stanley Black & Decker is positioning the company to deliver sustainable long term shareholder returns through operational excellence and innovation.”
Stanley Black & Decker’s Q1 2025 results demonstrate resilience in revenue growth at the brand level and significant margin improvement driven by cost savings programs and supply chain optimizations. Although tariffs present a sizable challenge, the company’s strategic adjustments and pricing actions seek to safeguard financial performance and maximize shareholder value going forward.
For further information, the full 8-K filing is available here: Stanley Black & Decker Q1 2025 8-K Report