Stanley Black's Q1 Earnings Beat Estimates, Sales Down Y/Y

Stanley Black & Decker, Inc. SWK reported first-quarter 2025 adjusted earnings of 75 cents per share, which beat the Zacks Consensus Estimate of 68 cents. The bottom line increased 33.9% year over year.

Stanley Black’s net sales of $3.74 billion beat the consensus estimate of $3.73 billion. The top line declined 3.2% year over year due to weakness in both segments. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Stanley Black’s Segmental Discussion

Effective from the first quarter of 2025, SWK has renamed the Industrial segment as the Engineered Fastening segment. It had no impact on the company's consolidated financial statements or segment results.

Revenues from SWK’s primary segment, Tools & Outdoor, totaled $3.28 billion, which decreased 0.1% year over year. Our estimate for segmental revenues was $3.21 billion.

Revenues from the Engineered Fastening segment grossed $463.7 million, down 20.7% year over year. Our estimate for segmental revenues was $489.3 million.

SWK’s Margin Profile

Stanley Black’s cost of sales decreased 5% year over year to $2.62 billion. The gross profit increased 1.1% year over year to $1.12 billion. The gross margin increased 130 basis points (bps) year over year to 29.9%.

Selling, general and administrative expenses increased 1.8% year over year to $867.0 million. Adjusted EBITDA was $361.8 million, indicating year-over-year growth of 5.6%. The margin increased 80 bps to 9.7%.

SWK’s Balance Sheet and Cash Flow

While exiting the first quarter, Stanley Black had cash and cash equivalents of $344.8 million compared with $290.5 million at the end of fourth-quarter 2024. The long-term debt balance was $4.76 billion, lower than $5.6 billion reported at the end of fourth-quarter 2024.

In the first quarter of 2025, net cash used in operating activities was $420.0 million, down 2.6% year over year. Capital and software expenditures totaled $65 million, down from $65.7 million reported in the year-ago period. Free cash flow (before dividends) was $485.0 million compared with $496.7 million a year ago.

In the first three months, SWK paid out dividends worth $124.5 million to its shareholders, up 2.2% from the year-ago period.

SWK’s 2025 Guidance

Stanley Black expects total revenues to increase in low single digits. The company anticipates earnings to be $3.30 (+/- $0.15) per share compared with $4.05 (+/- $0.65) expected earlier.

SWK’s Zacks Rank

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies

AZZ Inc. AZZ came out with quarterly earnings of $0.98 per share, beating the Zacks Consensus Estimate of $0.95. This compares with earnings of $0.93 per share a year ago.

AZZ reported revenues of $351.88 million, missing the consensus estimate by 3.77%. This compares with year-ago revenues of $366.5 million. 

Valmont Industries VMI reported revenues of $969.31 million in the first quarter of 2025, declining 0.9% on a year-over-year basis. Earnings per share of $4.32 for the same period compare with $4.32 a year ago.

The reported revenues compare with the Zacks Consensus Estimate of $975.6 million. The company delivered an earnings surprise of 1.89%, with the consensus estimate being $4.24 per share.

Pentair plc PNR came out with quarterly earnings of $1.11 per share in the first quarter of 2025, beating the Zacks Consensus Estimate of $1.01. This compares with earnings of $0.94 per share a year ago.

Pentair posted revenues of $1.01 billion for the quarter, surpassing the consensus estimate by 2.68%. This compares with year-ago revenues of $1.02 billion.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research