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Jun 30, 2024
Stanley Black & Decker Q2 2024 Earnings Report
Second quarter results showed gross margin expansion driven by lower inventory destocking costs, supply chain transformation benefits, and reduced shipping costs, with the global cost reduction program on track.
Key Takeaways
Stanley Black & Decker reported second-quarter revenues of $4.0 billion, a 3% decrease versus the prior year. However, the company saw improvements in gross margin and strong cash generation, supported by debt reduction.
Revenues were $4.0 billion, down 3% versus prior year, with organic revenue growth of 1% led by DEWALT, Outdoor Products and Engineered Fastening.
Gross margin was 28.4%, up 600 basis points versus prior year.
GAAP EPS was ($0.13); Adjusted EPS was $1.09.
Cash from operating activities was $573 million and free cash flow was $486 million.
Stanley Black & Decker
Stanley Black & Decker
Stanley Black & Decker Revenue by Segment
Stanley Black & Decker Revenue by Geographic Location
Revenue by Segment
Tools & Outdoor Revenue
CapyFin.comEngineered Fastening Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comEurope Revenue
CapyFin.comRest of World Revenue
CapyFin.com Forward Guidance
Management is updating its guidance ranges and expects 2024 GAAP EPS to be in the range of $0.90 to $2.00. Adjusted EPS is expected to be between $3.70 to $4.50. Free cash flow is increased to be approximately $650 million to $850 million.
Positive Outlook
- Focused on executing supply chain improvements to further improve gross margin and earnings in the second half of 2024.
- Progress to date supports improved full year adjusted earnings and free cash flow outlook.
- Actions to drive toward target of 35%+ adjusted gross margins.
- Funding additional organic revenue growth investments will continue generating positive results.
- Top priorities remain delivering margin expansion, cash generation and balance sheet strength to position the Company for long-term growth and value creation.
Challenges Ahead
- GAAP EPS range revised to $0.90 to $2.00 (From $1.60 to $2.85) primarily due to the second quarter environmental reserve adjustments.
- Expects second half free cash flow to fund the cash dividend.
- Expects second half free cash flow to support an additional $400 - $500 million short term debt reduction by year end.
- Difference between 2024 GAAP and adjusted EPS guidance is approximately $2.50 to $2.80.
- Difference consists primarily of charges related to the supply chain transformation under the Global Cost Reduction Program and environmental reserve adjustments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income