Stanley Black & Decker reported third‑quarter 2025 results, with net sales of $3.80 billion, slightly above the consensus estimate of $3.77 billion and flat year‑over‑year.
Adjusted earnings per share were $1.43, beating the consensus estimate of $1.19. The company posted an adjusted gross margin of 31.6%, up from 30.5% in the same quarter a year earlier.
The Tools & Outdoor segment generated $3.256 billion in sales with an 11.8% margin, while the Engineered Fastening segment produced $501 million in sales with an 11.9% margin. Both segments saw modest margin expansion driven by pricing power and supply‑chain efficiencies, offset by tariff pressures and lower volume.
The Global Cost Reduction Program added $120 million of incremental pre‑tax run‑rate savings in the quarter, bringing total program savings to $1.9 billion to date. The program remains on track to deliver the targeted $2.5 billion in savings over its five‑year horizon.
Management revised its 2025 adjusted EPS guidance to $4.55, down from the previously forecast $4.65, and reaffirmed a free‑cash‑flow target of $600 million. The company highlighted ongoing investments in technology and product development, while noting that higher production costs and tariff pressures will continue to weigh on margins.
The company recorded a $169 million non‑cash asset impairment charge related to brand portfolio adjustments, including Lenox, Troy‑Bilt, and Irwin. Despite the impairment, the company remains on track to achieve a long‑term adjusted gross margin target of 35% or more.
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