DEWALT Posts 8th Consecutive Quarter of Revenue Growth

Published: 2025-05-01 10:50:22 ET SWK

Published on 05/01/2025 at 10:50

NEW BRITAIN, Conn-- Stanley Black & Decker (NYSE: SWK), a worldwide leader in tools and outdoor, today announced first quarter 2025 financial results.

First Quarter Revenues of $3.7 Billion, Down 3% Versus Prior Year With 1% Organic Growth* Offset by Currency and the Final Quarter of Lapping the Infrastructure Divestiture.

First Quarter Gross Margin Was 29.9% Up 130 Basis Points Versus Prior Year; First Quarter Adjusted Gross Margin* Was 30.4%, Up 140 Basis Points Versus Prior Year.

First Quarter EPS Was $0.60 and Adjusted EPS* Was $0.75.

Management Will Provide More Details Regarding Its Current 2025 Planning Assumptions and Scenario Planning on Today's Earnings Call.

Donald Allan, Jr., Stanley Black & Decker's President & CEO, commented, 'Stanley Black & Decker started the year with a solid first quarter, including one point of organic revenue growth* and year-over-year gross margin expansion, both key measures of continued progress against our strategic objectives. We also extended our streak of revenue growth at our powerhouse pro-focused DEWALT brand. As we continue to make meaningful progress on metrics primarily within our control, I want to thank the organization for staying focused on execution.

'In light of the current environment, we are accelerating adjustments to our supply chain and exploring all options as we seek to minimize the impact of tariffs on end users while balancing the need to protect our business and our ability to innovate for years to come. With that in mind, we implemented an initial price increase in April and notified our customers that further price action is required. We are also continuing to closely monitor shifting tariff policies as well as their potential effects on the operating and demand environments with an aim of being agile and responsive. Against this backdrop, our top priorities remain clear: accelerating our growth culture to serve our end users and customers, generating cash and strengthening our balance sheet, and progressing the transformation to support our long term margin journey.

'Stanley Black & Decker is built on the strength of our people, iconic brands and a powerful innovation engine, and we believe we are positioning the Company to deliver sustainable long term shareholder returns.'

*Non-GAAP Financial Measure As Further Defined On Page 6

First Quarter 2025 Key Points:

Net sales were $3.7 billion, down 3% versus prior year as volume (+1%) was more than offset by currency (-2%), and the Infrastructure business divestiture (-2%).

Gross margin was 29.9%, up 130 basis points versus the prior year rate. Adjusted gross margin* was 30.4%, up 140 basis points versus the prior year. The year-over-year changes for gross margin and adjusted gross margin were primarily driven by the supply chain transformation efficiencies and benefits from new innovation launches that were partially offset by freight inflation and the initial impact from tariffs.

SG&A expenses were 23.2% of sales versus 22.0% in the prior year. Excluding charges, adjusted SG&A expenses* were 22.6% of sales, up versus 21.5% in the prior year. The year-over-year changes for SG&A as a percent of sales and adjusted SG&A as a percent of sales were driven by investments in revenue generating initiatives designed to deliver increased market penetration and future market share gains.

Net earnings were 2.4% of sales versus net earnings of 0.5% of sales in the prior year. First quarter EBITDA* as a percent of sales was 8.9% versus 7.1% in the prior year. First quarter adjusted EBITDA* was 9.7% of sales versus 8.9% of sales in the prior year.

1Q'25 Segment Results: See full release at:

https://newsroom.stanleyblackanddecker.com/2025-04-30-Stanley-Black-Decker-Reports-1Q-2025-Results