Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $3.8 billion, flat compared to the prior year, with a 1% organic decline driven by a 5% increase in pricing and a 6% decrease in volume [14][15] - Adjusted gross margin rate was 31.6%, up 110 basis points year-over-year, primarily due to pricing strategies and supply chain efficiencies [15][21] - Adjusted EBITDA margin was 12.3%, reflecting a 150 basis point improvement year-over-year, mainly attributed to gross margin expansion [15] Business Line Data and Key Metrics Changes - Tools and Outdoor segment revenue was approximately $3.3 billion, flat year-over-year, with a 2% organic revenue decline due to a 5% pricing benefit offset by a 7% volume decrease [16][18] - DEWALT brand continued to show growth, with revenue expansion across all product lines and regions, reflecting targeted investments in innovation and market activation [17][19] - Engineered Fastening segment revenue grew 3% on a reported basis and 5% organically, driven by a 4% volume increase and a 1% price benefit [19][20] Market Data and Key Metrics Changes - North America organic revenue declined 2%, consistent with overall segment performance, while Europe saw flat organic revenue with growth in the U.K. offset by softness in France and Germany [18][19] - The rest of the world experienced a 1% organic revenue decline, primarily due to market softness in Asia [19] Company Strategy and Development Direction - The company aims to achieve a 35% adjusted gross margin while strengthening its balance sheet, focusing on three strategic imperatives: activating brands with purpose, driving operational excellence, and accelerating innovation [6][10] - The transformation program has generated about $1.9 billion in pre-tax run rate cost savings since mid-2022, with a target of $2 billion by year-end 2025 [23][24] - The company is reducing reliance on Chinese imports, aiming to decrease U.S. supply from China to less than 10% by mid-2026 [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong long-term shareholder returns despite a challenging macroeconomic environment [14][35] - The company anticipates continued year-over-year expansion of adjusted gross margin, targeting around 33% for Q4 2025 [30][34] - Adjusted earnings per share for the full year is expected to be approximately $4.55, reflecting higher-than-anticipated production costs [26][29] Other Important Information - The company plans to allocate free cash flow in excess of dividends toward debt reduction and maintaining a strong balance sheet [32][33] - Total pre-tax non-GAAP adjustments for the year are estimated to range between $370-$400 million, primarily related to supply chain transformation and non-cash asset impairment charges [28] Q&A Session Summary Question: How did volumes perform relative to expectations? - Management indicated that volumes were in line with expectations, starting strong but tapering towards the end of Q3 due to a non-standard promotional window [36][37] Question: What are the profit levers for Q4? - Operating profit for Q4 is expected to expand due to gross margin improvements and SG&A reductions, with a targeted gross margin around 33% [39][40] Question: What is the impact of tariff inflation on pricing? - The second price increase is expected to be in the low single-digit range, with minimal impact from recent tariff changes [42][43] Question: How does the company view its position in the housing market? - Management does not see immediate catalysts for housing market growth but believes the company is well-positioned to benefit when the market improves [56] Question: What progress has been made on USMCA compliance? - The company is making significant progress towards USMCA compliance, which is a key part of its mitigation strategy [58]

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分组1 - Stanley Black & Decker reported quarterly earnings of $1.43 per share, exceeding the Zacks Consensus Estimate of $1.19 per share, and showing an increase from $1.22 per share a year ago, resulting in an earnings surprise of +20.17% [1] - The company posted revenues of $3.76 billion for the quarter ended September 2025, slightly missing the Zacks Consensus Estimate by 0.35%, and showing a marginal increase from $3.75 billion year-over-year [2] - Over the last four quarters, Stanley Black & Decker has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [2] 分组2 - The stock has underperformed the market, losing about 17.4% since the beginning of the year, while the S&P 500 has gained 16.5% [3] - The current consensus EPS estimate for the coming quarter is $1.52 on revenues of $3.8 billion, and for the current fiscal year, it is $4.56 on revenues of $15.26 billion [7] - The Manufacturing - Tools & Related Products industry is currently in the top 39% of Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Performance - Total revenue was $3.8 billion, consistent with the prior year, as price (+5%) and currency (+1%) offset lower volume (-6%) [8, 10] - Adjusted gross margin was 31.6%, an increase of 110 basis points year-over-year, driven by pricing and supply chain transformation benefits [8, 10, 17] - Adjusted EPS was $1.43, inclusive of a tax rate benefit [8, 10] - Net cash from operating activities was $221 million, and free cash flow was $155 million [10] Guidance and Targets - The company revised its 2025 EPS planning assumption to $2.55 - $2.70 on a GAAP basis and is planning for 2025 Adjusted EPS of approximately $4.55 [10] - The company is targeting annual free cash flow of approximately $600 million [10, 19] - The company is committed to achieving 35% adjusted gross margin and a solid investment grade balance sheet [7] Segment Performance - Tools & Outdoor revenue was flat, with a 12.0% adjusted segment margin, up year-over-year [12] - Engineered Fastening revenue increased by 3%, with a 12.8% adjusted segment margin, down year-over-year but up 200 basis points sequentially versus 2Q'25 [12, 14] - Tools & Outdoor organic revenue decreased by 2%, while Engineered Fastening organic revenue increased by 5% [12] Cost Savings and Liquidity - The company achieved $120 million in pre-tax run-rate cost savings in the third quarter, with $1.9 billion program-to-date [8, 17] - The company has $0.3 billion in cash on hand and $2.1 billion in additional commercial paper capacity, resulting in $2.4 billion in total additional liquidity [30]

Core Viewpoint - Stanley Black & Decker has lowered its annual profit forecast due to increased production costs, resulting in a nearly 4% decline in its shares during premarket trading [1] Company Summary - The company has adjusted its profit outlook for the year, indicating challenges in managing production expenses [1] - The reduction in profit forecast has led to a negative market reaction, as evidenced by the drop in share price [1] Industry Summary - The news highlights the impact of rising production costs on companies within the power tools sector, suggesting potential challenges for other players in the industry [1]

Financial Performance - Net sales for Q3 2025 were $3,756.0 million, a slight increase from $3,751.3 million in Q3 2024, while year-to-date sales decreased from $11,645.2 million in 2024 to $11,445.8 million in 2025[2] - Net earnings from continuing operations for Q3 2025 were $51.4 million, down from $91.1 million in Q3 2024, with diluted earnings per share decreasing from $0.60 to $0.34[2] - The diluted earnings per share from continuing operations for Q3 2025 was $1.43, up from $1.22 in Q3 2024, reflecting a year-over-year increase of 17.2%[9] - Year-to-date diluted earnings per share from continuing operations increased to $3.26 in 2025, compared to $2.87 in 2024, marking a 13.6% rise[10] Segment Performance - The Tools & Outdoor segment generated net sales of $3,255.5 million in Q3 2025, slightly down from $3,263.3 million in Q3 2024, while segment profit increased to $383.2 million from $327.5 million[8] - Engineered Fastening segment reported net sales of $500.5 million in Q3 2025, up from $488.0 million in Q3 2024, but segment profit decreased to $59.8 million from $70.2 million[8] - Tools & Outdoor segment profit for Q3 2025 was $390.0 million, with a segment profit margin of 12.0%, up from $363.0 million and 11.1% in Q3 2024[11] - Engineered Fastening segment profit in Q3 2025 was $63.9 million, with a margin of 12.8%, compared to $67.6 million and 13.9% in Q3 2024[11] - Year-to-date 2025 segment profit for Tools & Outdoor was $980.7 million, with a margin of 9.8%, compared to $1,010.3 million and 10.0% in 2024[13] Profitability and Margins - Gross profit margin improved to 31.4% in Q3 2025 compared to 29.9% in Q3 2024, reflecting better cost management[2] - In Q3 2025, Stanley Black & Decker reported a gross profit of $1,179.1 million, representing 31.4% of net sales, compared to $1,120.6 million and 29.9% in Q3 2024[9] - Year-to-date 2025 gross profit reached $3,366.4 million, with a gross margin of 29.4%, slightly down from $3,370.3 million and 28.9% in the same period of 2024[10] - Adjusted EBITDA for Q3 2025 was $461.0 million, representing 12.3% of net sales, compared to $406.4 million and 10.8% in Q3 2024[16] Cash Flow and Dividends - Free cash flow before dividends for Q3 2025 was $155.3 million, down from $199.3 million in Q3 2024, highlighting challenges in cash generation[6] - The company declared a dividend of $0.83 per share in Q3 2025, slightly up from $0.82 in Q3 2024, reflecting a commitment to returning value to shareholders[2] Asset Management - Total current assets increased to $6,500.6 million as of September 27, 2025, compared to $6,377.7 million at the end of 2024[4] - Total liabilities decreased from $21,848.9 million in December 2024 to $21,753.9 million in September 2025, indicating improved financial stability[4] - Asset impairment charges increased significantly to $169.1 million in Q3 2025 from $46.9 million in Q3 2024, indicating potential challenges in asset valuation[2] - The company incurred asset impairment charges of $169.1 million in 2025, significantly higher than the $46.9 million in 2024[18] Costs and Expenses - Selling, general and administrative expenses for Q3 2025 were $4.1 million, compared to $15.1 million in Q3 2024, with year-to-date expenses totaling $78.7 million against $62.8 million in 2024[18] - Supply Chain Transformation Costs for Q3 2025 amounted to $4.6 million, with year-to-date costs reaching $16.6 million[18] - Non-GAAP adjustments before income taxes for Q3 2025 totaled $217.6 million, compared to $105.9 million in Q3 2024, indicating a significant increase in adjustments[16] - Complexity Reduction & Operational Excellence costs in 2025 included third-party consulting fees, contributing to operational improvements[21] Environmental and Other Charges - Environmental charges in 2024 were recorded at $152.1 million, primarily due to adjustments related to the Centredale Superfund site[21] - The company reported a loss on the sale of business amounting to $0.3 million in 2025[18] Market Performance - Non-GAAP Organic Growth for North America was reported at -2% for Q3 2025, while Europe experienced a growth of 6%[19] Special Programs - The company implemented a voluntary retirement program in June 2025, incurring costs related to separation benefits for eligible employees[21]

Core Viewpoint - Stanley Black & Decker reported a decline in third-quarter profit and revised its full-year outlook downward due to the impact of tariffs and reduced consumer spending on do-it-yourself projects [1] Financial Performance - The company experienced lower profit in the third quarter, indicating challenges in its financial performance [1] - The full-year outlook has been cut, reflecting ongoing difficulties in the business environment [1] Market Conditions - Tariffs have negatively affected the company's operations, contributing to the decline in profitability [1] - Weak consumer spending on do-it-yourself projects has further pressured the company's business performance [1]

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Core Insights - Stanley Black & Decker reported solid third quarter results for 2025, highlighting growth in the DEWALT brand, year-over-year gross margin expansion, and strong free cash flow despite macroeconomic uncertainties [1][2] Financial Performance - Third quarter revenues were $3.8 billion, consistent with the prior year, as price increases (+5%) and currency gains (+1%) were offset by a volume decline (-6%) [6][7] - Gross margin was 31.4%, an increase of 150 basis points year-over-year, while adjusted gross margin was 31.6%, up 110 basis points [6][7] - Third quarter EPS was $0.34, with adjusted EPS at $1.43, benefiting from a tax rate adjustment [6][7] Segment Results - Tools & Outdoor segment reported net sales of $3,256 million, with a segment margin of 11.8%, up 180 basis points from the previous year [3][8] - Engineered Fastening segment net sales increased by 3%, with a segment margin of 11.9%, down from 14.4% year-over-year due to elevated production costs [3][8] Cost Reduction Initiatives - The Global Cost Reduction Program achieved approximately $120 million in incremental pre-tax run-rate cost savings in Q3 2025, totaling about $1.9 billion since its inception in mid-2022 [4][10] - The company aims to reach a long-term adjusted gross margin target of over 35% through these initiatives [4] Strategic Focus - The company is focused on long-term value creation through brand activation, operational excellence, and innovation [1][5] - Management revised the 2025 EPS planning assumption to a range of $2.55 to $2.70 on a GAAP basis, reflecting non-cash asset impairment charges of $169 million [5][10]

Core Insights - Mary Laschinger has been elected to the Board of Directors of Stanley Black & Decker, effective November 1, 2025, bringing over 30 years of experience in global manufacturing and distribution [1][2]. Group 1: Leadership and Experience - Laschinger previously served as Chair and CEO of Veritiv Corporation from July 2014 until her retirement in September 2020, and has held significant roles at International Paper and other companies [3][4]. - She has a strong background in sales, supply chain, marketing, and regulatory affairs, which will contribute to Stanley Black & Decker's strategic goals [3][4]. Group 2: Strategic Goals and Expectations - The Executive Chair of the Board, Don Allan, expressed confidence that Laschinger's expertise will be instrumental in advancing the company's long-term growth strategy and delivering sustained value for shareholders [3]. - Stanley Black & Decker aims to extend its industry leadership and enhance operational excellence through the insights brought by new board members like Laschinger [3]. Group 3: Educational Background - Laschinger holds a bachelor's degree in business from the University of Wisconsin, an MBA from the University of Connecticut, and has completed executive management studies at the Kellogg School of Management [5]. Group 4: Company Overview - Stanley Black & Decker, founded in 1843, is a global leader in tools and outdoor products, employing approximately 48,000 people and producing a wide range of innovative tools and solutions [6]. - The company’s portfolio includes well-known brands such as DEWALT®, CRAFTSMAN®, STANLEY®, BLACK+DECKER®, and Cub Cadet® [6].