#USA #financial results #DEWALT #Stanley Black & Decker #New Britain

Stanley Black & Decker Announces 4Q and Full Year 2024 Financial Results

Stanley Black & Decker Inc. (NYSE: SWK), a prominent force in the tools and outdoor sector, disclosed its fourth quarter and full year 2024 financial results on February 5, 2025. The company revealed that revenues for the year totaled $15.4 billion, reflecting a 3% decline compared to the previous year. The flat organic revenue growth is attributed largely to significant performance from its DEWALT brand and aerospace fasteners, which partially offset losses from an infrastructure divestiture and unfavorable currency fluctuations.

Fourth Quarter Insights

The fourth quarter generated revenues of $3.7 billion, remaining consistent year-over-year, but exhibiting a 3% growth in organic terms. A notable aspect of this quarter was the gross margin, which recorded at 30.8%, an increase of 120 basis points from the prior year, and an adjusted gross margin of 31.2%. These improvements were significantly influenced by the ongoing global cost reduction program that the company has been implementing, yielding positive effects on margin expansion.

Earnings per share (EPS) for the fourth quarter reached $1.28, while adjusted EPS recorded at $1.49. This contrasts with the previous year, wherein the company experienced losses. The robust cash generation for the quarter amounted to $679 million, further supporting debt reduction efforts that totaled $1.1 billion over the year.

Strategic Focus and Outlook

In a statement, Donald Allan Jr., President and CEO of Stanley Black & Decker, expressed pride in the company’s performance, citing operational efficiencies and strong market share gains particularly in DEWALT along with select engineered fastening segments. He acknowledged the challenges posed by a mixed macroeconomic environment yet remained optimistic about future growth prospects in professional construction and aerospace market segments.

Looking ahead to 2025, management intends to focus on share gain strategies and cost structure improvements while preparing for potential impacts from newly announced tariffs. The company anticipates aggregate market demand to stabilize, with potential inflections in growth later in the year.

Stanley Black & Decker aims to return adjusted gross margins to historical levels exceeding 35% by focusing on operational excellence and cash flow generation, and transforming its supply chain to better align with customer demand.

Financial Summary

The Tools & Outdoor division showed a 2% revenue increase compared to fourth quarter 2023, driven mainly by a solid performance during the holiday promotional season. In contrast, the industrial segment witnessed a 15% revenue decline, driven by market softness in automotive sectors.

The company’s global cost reduction initiative is projected to yield $2 billion in pre-tax run-rate savings by the end of 2025. Approximately $1.5 billion of these savings is expected from a comprehensive supply chain transformation.

Concluding Remarks

In conclusion, Stanley Black & Decker’s fourth quarter and full year results demonstrate resilience against a challenging financial backdrop. There is a clear emphasis on efficiency improvements and market share expansion to drive future growth. As management prepares for the upcoming fiscal year, their outlook remains cautiously optimistic, with a strong commitment to delivering shareholder value through strategic investments and operational enhancements.

Investors can stay informed through a webcast scheduled for February 5, providing further insights into the company's performance and future planning assumptions.