Stanley Black & Decker Reports Mixed Q4 Results with Earnings Beat but Revenue Miss
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Should l Buy SWK?
Source: seekingalpha
- Earnings Beat: Stanley Black & Decker (SWK) reported adjusted earnings of $1.41 per share for Q4, surpassing analysts' expectations of $1.28, indicating resilience in profitability despite market challenges.
- Revenue Decline: The company's revenue fell 1% year-over-year to $3.7 billion, missing Wall Street's forecast of $3.78 billion, reflecting softness in the North American retail market that offset pricing gains.
- Margin Expansion: Gross margin increased by 240 basis points to 33.2%, with adjusted gross margin at 33.3%, demonstrating significant profit expansion driven by pricing actions and cost reductions despite lower volumes.
- Cash Flow and Outlook: Stanley generated $956 million in operating cash flow this quarter and forecasts earnings between $3.15 and $4.35 per share for 2026, indicating a commitment to cost discipline and strategic investments amid uncertain demand.
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Analyst Views on SWK
Wall Street analysts forecast SWK stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for SWK is 84.89 USD with a low forecast of 69.00 USD and a high forecast of 98.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
5 Buy
3 Hold
1 Sell
Moderate Buy
Current: 85.570
Low
69.00
Averages
84.89
High
98.00
Current: 85.570
Low
69.00
Averages
84.89
High
98.00
About SWK
Stanley Black & Decker Inc. is a global provider of hand tools, power tools, outdoor products and related accessories, as well as a provider of engineered fastening solutions. The Company’s segments include Tools & Outdoor and Engineered Fastening. The Tools & Outdoor segment is comprised of the Power Tools Group (PTG), Hand Tools, Accessories & Storage (HTAS) and Outdoor Power Equipment (Outdoor) product lines. The PTG product line includes both professional and consumer products. The HTAS product line sells hand tools, power tool accessories and storage products. The Outdoor product line primarily sells corded and cordless electric lawn and garden products. The Engineered Fastening segment primarily sells highly engineered components such as fasteners, fittings and various engineered products, which are designed for specific application across multiple verticals. The Company's portfolio of brands includes DEWALT, CRAFTSMAN, STANLEY, BLACK+DECKER, and Cub Cadet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Stanley Black & Decker Q4 2025 Financial Results Analysis
- Sales Decline: Stanley Black & Decker reported net sales of $3.684 billion for Q4 2025, falling short of analyst expectations of $3.780 billion, reflecting a 3% organic decline primarily due to weaker North American retail demand.
- Margin Improvement: Despite the sales drop, gross margin increased to 33.2%, up 240 basis points year-over-year, indicating effective cost management and pricing strategies that have positively impacted profitability.
- Strong Cash Flow: The company generated operating cash flow of $956 million and free cash flow of $883 million in the fourth quarter, demonstrating robust cash generation capabilities that support future investments and debt repayment.
- Divestiture Strategy: Stanley Black & Decker agreed to divest its Consolidated Aerospace Manufacturing business for $1.8 billion in cash, with net proceeds expected between $1.525 billion and $1.6 billion after taxes and fees, aimed at reducing debt and strengthening the balance sheet.
See More
Stanley Black & Decker Reports Mixed Q4 Results with Earnings Beat but Revenue Miss
- Earnings Beat: Stanley Black & Decker (SWK) reported adjusted earnings of $1.41 per share for Q4, surpassing analysts' expectations of $1.28, indicating resilience in profitability despite market challenges.
- Revenue Decline: The company's revenue fell 1% year-over-year to $3.7 billion, missing Wall Street's forecast of $3.78 billion, reflecting softness in the North American retail market that offset pricing gains.
- Margin Expansion: Gross margin increased by 240 basis points to 33.2%, with adjusted gross margin at 33.3%, demonstrating significant profit expansion driven by pricing actions and cost reductions despite lower volumes.
- Cash Flow and Outlook: Stanley generated $956 million in operating cash flow this quarter and forecasts earnings between $3.15 and $4.35 per share for 2026, indicating a commitment to cost discipline and strategic investments amid uncertain demand.
See More
Stanley Black & Decker to Host Q4 2025 Earnings Call
- Earnings Call Scheduled: Stanley Black & Decker will host a conference call on February 4, 2026, at 8:00 AM ET to discuss its Q4 2025 earnings results, aiming to provide investors with the latest performance insights to enhance transparency.
- Investor Access Method: Investors can access the live webcast by logging onto the company's investor relations page, ensuring that all stakeholders can receive timely key information.
- Performance Discussion Focus: The call will focus on the company's financial performance for Q4 2025, including revenue, profit, and future outlook, helping investors assess the company's financial health and market prospects.
- Market Reaction Expectations: The upcoming call is expected to impact investor confidence, particularly against the backdrop of performance fluctuations, as transparent communication of information can help stabilize market sentiment.
See More
Stanley Black & Decker Reports 2025 Financial Results: Gross Margin and Net Income Growth
- Strong Financial Performance: Stanley Black & Decker reported fourth-quarter net sales of $3.684 billion, a 2% year-over-year decline, yet gross margin improved to 33.2% due to a 5% price increase and 2% favorable currency effects, demonstrating the company's resilience and adaptability in a dynamic market environment.
- Significant Cost Savings: The Global Cost Reduction Program, initiated in mid-2022, has achieved approximately $2.1 billion in pre-tax savings, with $120 million realized in the fourth quarter alone, indicating the company's strategic execution in continuous improvement and operational efficiency.
- Debt Reduction Strategy: The company announced a definitive agreement to divest its CAM business for $1.8 billion in cash, expected to close in the first half of 2026, with net proceeds projected between $1.525 billion and $1.6 billion, aimed at further reducing debt leverage and enhancing financial stability.
- Positive Future Outlook: Stanley Black & Decker anticipates 2026 EPS in the range of $3.15 to $4.35, reflecting a 42% growth, and targets free cash flow between $700 million and $900 million, showcasing the company's confidence and strategic positioning for future growth.
See More
Stanley Black & Decker Q4 Earnings Beat Expectations
- Earnings Beat: Stanley Black & Decker reported a Q4 non-GAAP EPS of $1.41, exceeding expectations by $0.13, indicating resilience in profitability despite revenue shortfalls.
- Flat Revenue Performance: The company’s Q4 revenue stood at $3.7 billion, flat year-over-year, missing expectations by $80 million, reflecting weak market demand that may impact future growth strategies.
- Optimistic Future Outlook: The company expects 2026 GAAP EPS to range from $3.15 to $4.35, with adjusted EPS between $4.90 and $5.70, suggesting potential midpoint growth of 42% and 13%, showcasing management's confidence in future performance.
- Free Cash Flow Target: Stanley Black & Decker aims for free cash flow in the range of $700 to $900 million, reflecting a 16% increase at the midpoint, which will support future investments and debt management, enhancing financial flexibility.
See More
Analysis and Outlook: A New Decline in Software Performance
Market Trends: The software market is experiencing a significant selloff, indicating a downturn in investor confidence.
Company Focus: Anthropic, a key player in the AI sector, is highlighted amidst the broader market challenges.
See More
Stanley Black & Decker Q4 2025 Financial Results Analysis
- Sales Decline: Stanley Black & Decker reported net sales of $3.684 billion for Q4 2025, falling short of analyst expectations of $3.780 billion, reflecting a 3% organic decline primarily due to weaker North American retail demand.
- Margin Improvement: Despite the sales drop, gross margin increased to 33.2%, up 240 basis points year-over-year, indicating effective cost management and pricing strategies that have positively impacted profitability.
- Strong Cash Flow: The company generated operating cash flow of $956 million and free cash flow of $883 million in the fourth quarter, demonstrating robust cash generation capabilities that support future investments and debt repayment.
- Divestiture Strategy: Stanley Black & Decker agreed to divest its Consolidated Aerospace Manufacturing business for $1.8 billion in cash, with net proceeds expected between $1.525 billion and $1.6 billion after taxes and fees, aimed at reducing debt and strengthening the balance sheet.
See More
Stanley Black & Decker Reports Mixed Q4 Results with Earnings Beat but Revenue Miss
- Earnings Beat: Stanley Black & Decker (SWK) reported adjusted earnings of $1.41 per share for Q4, surpassing analysts' expectations of $1.28, indicating resilience in profitability despite market challenges.
- Revenue Decline: The company's revenue fell 1% year-over-year to $3.7 billion, missing Wall Street's forecast of $3.78 billion, reflecting softness in the North American retail market that offset pricing gains.
- Margin Expansion: Gross margin increased by 240 basis points to 33.2%, with adjusted gross margin at 33.3%, demonstrating significant profit expansion driven by pricing actions and cost reductions despite lower volumes.
- Cash Flow and Outlook: Stanley generated $956 million in operating cash flow this quarter and forecasts earnings between $3.15 and $4.35 per share for 2026, indicating a commitment to cost discipline and strategic investments amid uncertain demand.
See More
Stanley Black & Decker to Host Q4 2025 Earnings Call
- Earnings Call Scheduled: Stanley Black & Decker will host a conference call on February 4, 2026, at 8:00 AM ET to discuss its Q4 2025 earnings results, aiming to provide investors with the latest performance insights to enhance transparency.
- Investor Access Method: Investors can access the live webcast by logging onto the company's investor relations page, ensuring that all stakeholders can receive timely key information.
- Performance Discussion Focus: The call will focus on the company's financial performance for Q4 2025, including revenue, profit, and future outlook, helping investors assess the company's financial health and market prospects.
- Market Reaction Expectations: The upcoming call is expected to impact investor confidence, particularly against the backdrop of performance fluctuations, as transparent communication of information can help stabilize market sentiment.
See More
Stanley Black & Decker Reports 2025 Financial Results: Gross Margin and Net Income Growth
- Strong Financial Performance: Stanley Black & Decker reported fourth-quarter net sales of $3.684 billion, a 2% year-over-year decline, yet gross margin improved to 33.2% due to a 5% price increase and 2% favorable currency effects, demonstrating the company's resilience and adaptability in a dynamic market environment.
- Significant Cost Savings: The Global Cost Reduction Program, initiated in mid-2022, has achieved approximately $2.1 billion in pre-tax savings, with $120 million realized in the fourth quarter alone, indicating the company's strategic execution in continuous improvement and operational efficiency.
- Debt Reduction Strategy: The company announced a definitive agreement to divest its CAM business for $1.8 billion in cash, expected to close in the first half of 2026, with net proceeds projected between $1.525 billion and $1.6 billion, aimed at further reducing debt leverage and enhancing financial stability.
- Positive Future Outlook: Stanley Black & Decker anticipates 2026 EPS in the range of $3.15 to $4.35, reflecting a 42% growth, and targets free cash flow between $700 million and $900 million, showcasing the company's confidence and strategic positioning for future growth.
See More
Stanley Black & Decker Q4 Earnings Beat Expectations
- Earnings Beat: Stanley Black & Decker reported a Q4 non-GAAP EPS of $1.41, exceeding expectations by $0.13, indicating resilience in profitability despite revenue shortfalls.
- Flat Revenue Performance: The company’s Q4 revenue stood at $3.7 billion, flat year-over-year, missing expectations by $80 million, reflecting weak market demand that may impact future growth strategies.
- Optimistic Future Outlook: The company expects 2026 GAAP EPS to range from $3.15 to $4.35, with adjusted EPS between $4.90 and $5.70, suggesting potential midpoint growth of 42% and 13%, showcasing management's confidence in future performance.
- Free Cash Flow Target: Stanley Black & Decker aims for free cash flow in the range of $700 to $900 million, reflecting a 16% increase at the midpoint, which will support future investments and debt management, enhancing financial flexibility.
See More
Analysis and Outlook: A New Decline in Software Performance
Market Trends: The software market is experiencing a significant selloff, indicating a downturn in investor confidence.
Company Focus: Anthropic, a key player in the AI sector, is highlighted amidst the broader market challenges.
See More
