Stanley Black & Decker (NYSE:SWK) reported third-quarter results ahead of expectations, with strong execution and continued efficiency gains helping offset macroeconomic headwinds.
The tools and outdoor equipment manufacturer posted adjusted earnings per share of $1.43, topping the consensus estimate of $1.19. Revenue reached $3.8 billion, slightly above forecasts of $3.77 billion and roughly flat compared to the same period last year.
The company’s adjusted gross margin expanded to 31.6%, up 110 basis points year-over-year, driven by pricing initiatives and supply chain transformation efficiencies. These gains were partially offset by tariff costs, lower sales volumes, and inflationary pressures. Shares of Stanley Black & Decker slipped 0.5% following the release.
Price increases contributed 5% to quarterly growth, while currency added 1%, offset by a 6% volume decline. The DEWALT brand continued to perform well, maintaining growth momentum even amid a softer consumer environment and tariff-related promotional adjustments.
“Stanley Black & Decker delivered solid third quarter results, despite prevailing macroeconomic uncertainty,” said Christopher J. Nelson, President and CEO. “Our performance included continued growth in our DEWALT brand, year over year gross margin expansion and solid free cash flow.”
The company’s global cost reduction program remains firmly on track, producing about $120 million in incremental pre-tax run-rate cost savings in the third quarter. Since mid-2022, the program has achieved $1.9 billion of its targeted $2.0 billion in pre-tax run-rate savings.
Stanley Black & Decker updated its full-year 2025 adjusted EPS guidance to around $4.55, slightly below the prior forecast of $4.65, reflecting higher production costs that are expected to normalize in the fourth quarter. The company maintained its free cash flow target of approximately $600 million.
During the quarter, Stanley Black & Decker also recorded non-cash asset impairment charges of $169 million, linked to updated brand prioritization decisions affecting the Lenox, Troy-Bilt, and Irwin trade names.