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Dec 31, 2024
Stanley Black & Decker Q4 2024 Earnings Report
Stanley Black & Decker reported flat revenue with organic growth, increased gross margin, and strong cash generation in Q4 2024.
Key Takeaways
Stanley Black & Decker's Q4 2024 results showed flat revenue compared to the prior year, but with 3% organic growth. The company achieved a gross margin increase of 120 basis points and generated strong free cash flow. Management is preparing countermeasures designed to mitigate the impact from recently announced tariffs.
Revenues for the fourth quarter were $3.7 billion, flat versus prior year with 3% organic growth.
Gross margin for the fourth quarter was 30.8%, up 120 basis points versus the prior year.
EPS for the fourth quarter was $1.28 and adjusted EPS was $1.49.
Cash from operating activities for the fourth quarter was $679 million and free cash flow was $565 million.
Stanley Black & Decker
Stanley Black & Decker
Stanley Black & Decker Revenue by Segment
Revenue by Segment
Tools & Outdoor Revenue
CapyFin.com Forward Guidance
Stanley Black & Decker is planning for 2025 with assumptions for EPS to be $4.05 (+/- $0.65) on a GAAP basis and $5.25 (+/- $0.50) on an adjusted basis, and free cash flow of $750 million (+/- $100 million).
Positive Outlook
- Continued gross margin expansion
- Strong free cash flow generation
- Strengthening balance sheet
- New investments aimed at driving market share growth
- Capitalizing on opportunities in professional construction, aerospace, and industrial fastening
Challenges Ahead
- Aggregate market demand is expected to remain muted but relatively stable in the first half
- Preparing countermeasures designed to mitigate the impact from recently announced tariffs
- Dynamic backdrop in 2025 due to recent tariff announcements
- Potential for a positive inflection later in the year is dependent on strength in professional construction as well as aerospace and industrial fastening
- Difference between the 2025 GAAP and adjusted EPS planning assumption is approximately $1.05 to $1.35, consisting primarily of charges related to the supply chain transformation under the Global Cost Reduction Program.