Stanley Black & Decker, Inc. is a diversified global provider of tools, storage, and engineered fastening systems, operating through two main business segments: Tools & Outdoor and Industrial. The company offers a wide range of products, including power tools, hand tools, outdoor equipment, and engineered components for various industries . Their products are marketed under well-known brands such as DEWALT®, CRAFTSMAN®, BLACK+DECKER®, and CUB CADET® . The Industrial segment also includes businesses that cater to the automotive and aerospace industries with specialized fastening solutions .
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Tools & Outdoor - Comprises the Power Tools Group, Hand Tools, Accessories & Storage, and Outdoor Power Equipment, offering a variety of professional and consumer products under brands like DEWALT®, CRAFTSMAN®, and BLACK+DECKER®.
- Power Tools Group (PTG) - Offers professional and consumer power tools under brands such as DEWALT®, CRAFTSMAN®, and BLACK+DECKER®.
- Hand Tools, Accessories & Storage (HTAS) - Provides hand tools, power tool accessories, and storage products.
- Outdoor Power Equipment - Sells lawn and garden products under brands like DEWALT®, CRAFTSMAN®, and CUB CADET®.
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Industrial - Includes the Engineered Fastening and Infrastructure businesses, providing highly engineered components like fasteners and fittings for industries such as automotive and aerospace.
- Engineered Fastening - Supplies fasteners and fittings for various industries, including automotive and aerospace.
- Infrastructure - Previously designed and sold attachments and tools for infrastructure and construction applications, but was sold in April 2024.
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Donald Allan, Jr. ExecutiveBoard | President and Chief Executive Officer | None | Donald Allan, Jr. has been with SWK since 1999, serving in various leadership roles, including CFO and President. He became CEO in July 2022 and focuses on operational priorities, innovation, and electrification. | View Report → |
Christopher J. Nelson Executive | COO, EVP, and President of Tools & Outdoor | None | Christopher J. Nelson joined SWK in June 2023. Previously, he was President of the HVAC segment at Carrier Global Corporation and has expertise in global operations and customer-centric innovation. | |
Deborah K. Wintner Executive | Senior Vice President and CHRO | None | Deborah Wintner became CHRO in August 2024. She has been with SWK for six years and previously led HR operations for the Tools and Outdoor division. | |
Patrick D. Hallinan Executive | Executive Vice President and CFO | Board Member at HNI Corporation | Patrick Hallinan joined SWK in April 2023. Previously, he was CFO at Fortune Brands Innovations, Inc. and has extensive experience in finance and strategic transformation. | |
Tamer K. Abuaita Executive | Senior Vice President and Chief Supply Chain Officer | None | Tamer K. Abuaita joined SWK in January 2022 and oversees supply chain operations. He received a compensation adjustment in 2024 due to increased responsibilities. | |
Adrian V. Mitchell Board | Director | COO and CFO at Macy’s, Inc. | Adrian Mitchell joined SWK’s board in 2022. He has held leadership roles at Macy’s, Crate and Barrel, and Target, with expertise in finance, operations, and digital transformation. | |
Andrea J. Ayers Board | Independent Chair of the Board | Director at United States Steel Corporation | Andrea Ayers has been a director at SWK since 2014 and became Independent Chair in 2022. She has extensive experience in customer management analytics and technology. | |
Jane M. Palmieri Board | Director | None | Jane Palmieri joined SWK’s board in 2021. She is President of Industrial Intermediates & Infrastructure at Dow Inc. and has expertise in sustainability and energy efficiency. | |
Michael D. Hankin Board | Director | CEO of Brown Advisory Incorporated | Michael Hankin has been a director at SWK since 2016. He is also CEO of Brown Advisory, where he has grown assets under management significantly. | |
Robert J. Manning Board | Director | None | Robert Manning joined SWK’s board in 2022. He has extensive experience in financial services and investment stewardship, having served as CEO and Chairman at MFS Investment Management. | |
Susan K. Carter Board | Director | Director at Amcor plc and ON Semiconductor | Susan Carter joined SWK’s board in October 2023. She has over 30 years of financial leadership experience, including as CFO at Ingersoll Rand and KBR. |
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Given the mixed demand environment you mentioned and expectations of continued macroeconomic challenges, how confident are you in achieving the 35% plus adjusted gross margin goal within your transformation time horizon, and what contingencies do you have in place if market conditions worsen?
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You noted strong free cash flow generation this quarter, partly due to accelerated working capital improvements. With expectations of a soft macro environment in the second half, can you elaborate on the specific actions you will take to sustain free cash flow and further reduce debt, especially considering the planned additional $400 million to $500 million of short-term debt reduction by year-end?
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With your increased investments in innovation, brand marketing, and market activation, how are you balancing these expenditures with your commitment to cost management and margin improvement, particularly in light of the challenging demand environment and the need to fund additional organic growth investments?
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The guidance mentions a second quarter environmental reserve expense of approximately $155 million. Can you provide more details on this expense and discuss how it impacts your financial outlook, especially concerning priorities like debt reduction and investment in growth initiatives?
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In the Industrial segment, you expect flat to slightly positive organic revenue growth, with aerospace fasteners growth being partially offset by global automotive OEM light vehicle production headwinds. How are you navigating these industry-specific challenges, and what strategies are in place to drive growth in this segment despite the macro pressures?
Research analysts who have asked questions during STANLEY BLACK & DECKER earnings calls.
Nigel Coe
Wolfe Research, LLC
6 questions for SWK
Julian Mitchell
Barclays Investment Bank
5 questions for SWK
Michael Rehaut
JPMorgan Chase & Co.
5 questions for SWK
Adam Baumgarten
Zelman & Associates
4 questions for SWK
Christopher Snyder
Morgan Stanley
4 questions for SWK
Jonathan Matuszewski
Jefferies Financial Group Inc.
3 questions for SWK
Timothy Wojs
Robert W. Baird & Co.
3 questions for SWK
Tim Wojs
Robert W. Baird & Co. Incorporated
3 questions for SWK
Jeffrey Sprague
Vertical Research Partners
2 questions for SWK
Joe O'Dea
Wells Fargo
2 questions for SWK
Joe Ritchie
Goldman Sachs
2 questions for SWK
Nicole DeBlase
BofA Securities
2 questions for SWK
Robert Wertheimer
Melius Research
2 questions for SWK
Brett Linzey
Mizuho Securities
1 question for SWK
Chris Snyder
Morgan Stanley
1 question for SWK
Joseph O'Dea
Wells Fargo & Company
1 question for SWK
Joseph Ritchie
Goldman Sachs
1 question for SWK
Rob Wertheimer
Melius Research LLC
1 question for SWK
| Customer | Relationship | Segment | Details |
|---|---|---|---|
Lowe’s | Major Home Center | All | Accounted for 14% of consolidated net sales in 2024 , 14% in 2023 , and 15% in 2022. |
The Home Depot | Major Home Center | All | Accounted for 14% of consolidated net sales in 2024 and 13% in 2023 and 2022. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
MTD Holdings Inc. | 2021 | Stanley Black & Decker acquired the remaining 80% stake in MTD Holdings for $1.6 billion in cash (after a prior 20% stake for $234 million), solidifying its leadership in the global outdoor power equipment market with known brands and over $2.5 billion in revenue; the deal is expected to create a leader in the $25 billion outdoor category and was subject to customary closing conditions and regulatory approvals. |
Excel Industries | 2021 | Stanley Black & Decker acquired Excel Industries on September 12, 2021, for $375 million in cash as a strategic bolt-on to enhance its outdoor products segment, contributing to a combined $4 billion outdoor platform; Excel’s strong design and manufacturing capabilities in premium turf-care equipment, along with its solid presence in the independent dealer network, made it an ideal fit, with the acquisition accounted for using the acquisition method and subject to typical closing conditions. |
Recent press releases and 8-K filings for SWK.
- Stanley Black & Decker delivered Q3 adjusted EPS of $1.43, inclusive of a $0.25 tax benefit, with Tools & Outdoor revenue flat at $3.3 billion and Engineered Fastening organic revenue growth of 5%.
- The company achieved 31.6% adjusted gross margin (up 110 bps YoY) and generated $155 million in free cash flow, advancing toward a $600 million full-year target.
- For full-year 2025, management forecasts $4.55 adjusted EPS, GAAP EPS of $2.55–$2.70, flat to 1% revenue decline, and approximately 31% adjusted gross margin, with Q4 margin expected near 33% ±50 bps.
- To mitigate tariffs, the company is shifting U.S. supply from China to Mexico—aiming for <10% China-sourced supply by mid-2026 and <5% by end-2026—and remains on track to deliver $2 billion in run-rate cost savings by year-end 2025.
- In Q3, Stanley Black & Decker generated $3.8 B in revenue, flat YoY and down 1% organically, with pricing up 5% and volume down 6%.
- Adjusted gross margin improved by 110 bps to 31.6%, and adjusted EBITDA margin rose 150 bps to 12.3%, driven by pricing strategies and supply chain efficiencies.
- Aerospace delivered over 25% organic growth; automotive achieved low single-digit growth; general industrial fasteners declined mid-single digits; engineered fastening margin was 12.8%, up 200 bps sequentially.
- The global cost reduction program added $120 M in pre-tax run rate savings this quarter, bringing total savings to $1.9 B since mid-2022 and on track for $2 B by year-end 2025.
- Company guides 2025 adjusted EPS of $4.55 (GAAP EPS $2.55–$2.70), full-year revenue flat to down 1%, Q4 adjusted gross margin ~33%, free cash flow target of $600 M, and net debt/EBITDA target ≤2.5x.
- Strategy & transformation: on track for $2 billion cost reduction by year-end 2025 with $1.9 billion in run-rate savings YTD and $120 million incremental in Q3; targeting 35%+ adjusted gross margin and reducing U.S. supply from China to <10% by mid-2026 ( )
- Q3 revenue of $3.8 billion was flat year-over-year; organic sales declined 1% driven by 5% pricing gain and 6% volume decline ( )
- Q3 adjusted gross margin reached 31.6% (+110 bps) and adjusted EBITDA margin 12.3% (+150 bps); adjusted EPS was $1.43 (including $0.25 tax benefit) and free cash flow $155 million ( )
- Segment highlights: Tools & Outdoor revenue of $3.3 billion flat YoY with organic –2% (pricing +5%, volume –7%) and segment margin 12% (+90 bps); engineered fastening organic growth of 5% ( )
- 2025 guidance: adjusted EPS ~$4.55, GAAP EPS $2.55–$2.70; full-year sales flat to down 1%; full-year adjusted gross margin ~31% and Q4 margin ~33% ( )
- Revenue of $3.8 B, flat YoY as price (+5 %) and currency (+1 %) offset volume (-6 %) impact.
- Adjusted gross margin at 31.6 %, up 110 bp YoY due to pricing and supply-chain efficiencies; targeting ~33 % in Q4.
- Adjusted EPS of $1.43 (GAAP EPS $0.34); revised full-year EPS guidance to $2.55–$2.70 GAAP and ~4.55 adjusted.
- Operating cash flow of $221 M and free cash flow of $155 M; liquidity of $0.3 B cash and $2.1 B commercial paper capacity (total $2.4 B).
- Third quarter net sales were $3.8 billion, flat year-over-year as pricing (+5%) and currency (+1%) gains offset a 6% volume decline.
- GAAP EPS was $0.34, and adjusted EPS was $1.43, reflecting a tax rate benefit; gross margin expanded 150 bps to 31.4%.
- Third quarter free cash flow was $155 million, with operating cash flow of $221 million.
- Full-year 2025 GAAP EPS guidance was revised to $2.55–2.70, and adjusted EPS to ~$4.55; free cash flow target remains ~$600 million.
- In Q3, net sales were $3.8 billion, flat year-over-year as price (+5%) and currency (+1%) gains offset a 6% volume decline
- Gross margin expanded 150 bps to 31.4%, with adjusted gross margin at 31.6%, driven by pricing strategies and supply chain efficiencies
- GAAP EPS was $0.34, and adjusted EPS was $1.43, aided by a tax rate benefit
- Operating cash flow was $221 million, delivering free cash flow of $155 million in the quarter
- 2025 guidance updated: GAAP EPS now $2.55–$2.70 (from $3.45); adjusted EPS expected at $4.55 (from $4.65); free cash flow target remains ~$600 million
- ResearchAndMarkets added the Builder Hardware Market – Global Forecast to 2030 report, projecting growth from USD 52.84 billion in 2024 to USD 55.94 billion in 2025 and a 5.64% CAGR to reach USD 73.46 billion by 2030.
- The report segments the market by product (bolts, screws, door closers, handles, hinges, locks), distribution channel, end-user application, material, operation and mounting type, and geographic region.
- Key trends include accelerating demand for IoT-driven smart hardware, supply-chain resilience via near-shoring and digital logistics, regulatory shifts toward recycled materials, and growing modular construction adoption.
- Enhanced U.S. tariffs in 2025 on steel, brass, and precision components are driving cost pressures, prompting manufacturers to near-shore operations and invest in automation to preserve margins.
- CEO transition: Chris Nelson will become CEO in October, with Don Allan moving to Executive Chair, underscoring continuity in the company’s leadership and strategic focus.
- Margin targets and tariff mitigation: Facing an $800 million annualized tariff headwind, the company expects ~31% gross margin in FY 2025 and aims for 35%+ by late 2026 through two price increases, supply-chain shifts (China→Mexico) and ongoing transformation savings.
- Brand investment focus: Prioritizing DEWALT®, STANLEY® and CRAFTSMAN® (> 75% of revenue) with ~$100 million of incremental annual growth spend, and expects STANLEY® and CRAFTSMAN® to gain traction in 2026, especially in Europe and DIY channels.
- Market positioning: Targets mid-single-digit growth vs a 3–5% market by leveraging innovation and field support; current pro segment is resilient while consumer demand remains pressured.
- Planned divestiture: Intends to divest ~$500 million of assets (likely the Arrow fastener business), with completion expected in Q4 2025 or Q1 2026.
- Leadership transition announced: Chris Nelson will step into the CEO role in October, with Don Allan becoming Executive Chair, ensuring continuity of the company’s strategic plan.
- Brand prioritization focusing on DEWALT®, STANLEY®, and CRAFTSMAN®—which together comprise over 75% of revenue—to concentrate innovation and go-to-market investments in professional and DIY segments.
- Margin improvement roadmap targeting mid-30% gross margins by end-2026 through a second price increase in Q4, annualized $800 million in tariff mitigation, and supply-chain shifts to Mexico and other regions.
- Fastener portfolio optimization with plans to divest Arrow (≈$400 million revenue) in Q4 or Q1, while retaining the remaining industrial fasteners business (≈$1.7–$1.8 billion) to maximize shareholder value.
- Chris Nelson to become CEO in October with Don Allan moving to Executive Chair, reinforcing the focus on organic growth and margin expansion.
- Focusing on DEWALT®, STANLEY®, and CRAFTSMAN®, which together account for 75%+ of revenue, supported by $100 million of annual incremental growth investment to target 4–6% organic growth.
- Mitigating $800 million of annualized tariffs via a second price increase and supply‐chain shifts (USMCA optimization), aiming for ~31% gross margin in 2025 and 35%+ by end-2026 (12-month delay due to tariffs).
- Planning the divestiture of Arrow (fastener business, ~$400 million revenue) in Q4 2025/Q1 2026 to streamline the portfolio.