Stanley Black & Decker reported third‑quarter 2025 revenue of $3.76 billion, essentially flat year‑over‑year, and an adjusted earnings per share of $1.43, a $0.24 (20%) beat over the consensus estimate of $1.19. The earnings beat was driven by disciplined cost management and a favorable product mix that increased the share of higher‑margin tools and outdoor equipment, allowing the company to maintain profitability even as raw‑material and tariff costs rose.
Gross margin expanded to 31.6% from 29.9% a year earlier, an improvement of 110 basis points. The margin lift came from higher pricing in the Tools & Outdoor segment—whose margin rose 180 basis points to 11.8%—and from supply‑chain efficiencies that reduced the impact of tariff‑related volume softness. The company’s focus on cost‑control and pricing power helped offset the inflationary pressure on production costs.
Segment performance highlighted that Engineered Fastening net sales grew 3% year‑over‑year, while the Tools & Outdoor segment delivered a 180‑basis‑point margin improvement. The stronger mix of high‑margin products and the continued growth of the DEWALT brand contributed to the overall margin expansion, underscoring the company’s ability to capture pricing power in its core markets.
Management revised the full‑year 2025 adjusted EPS guidance to $4.55 from the prior $4.65, falling below the analyst consensus of $4.61. The downgrade reflects the company’s view that higher production costs and tariff impacts will persist through the year, although management expects these costs to normalize in the fourth quarter. The guidance cut signals caution about near‑term profitability while maintaining confidence in the company’s long‑term cost‑reduction program.
CEO Christopher J. Nelson said the company is on track to deliver the $2 billion cost‑reduction target set in 2023 and to achieve a 35% adjusted gross margin by Q4 2026. CFO Patrick Hallinan emphasized that the company’s focus on cost control and margin expansion will continue to support earnings power and strengthen the balance sheet.
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