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Dec 31, 2025
Stanley Black & Decker Q4 2025 Earnings Report
Stanley Black & Decker reported solid fourth quarter and full year 2025 financial results, with continued gross margin and net income growth, strong free cash flow, and a strengthened balance sheet.
Key Takeaways
Stanley Black & Decker delivered solid results in Q4 2025, with net sales of $3.7 billion, a gross margin of 33.2%, and adjusted EPS of $1.41. The company also generated strong cash from operating activities of $956 million and announced a definitive agreement to divest its CAM business for $1.8 billion, aiming to reduce debt.
Net sales for Q4 2025 were $3.7 billion, a 1% decrease versus prior year, primarily due to lower volume in North America retail.
Gross margin improved significantly to 33.2%, up 240 basis points, driven by higher pricing, tariff mitigation, and supply chain cost reductions.
Adjusted EPS for the quarter was $1.41, reflecting solid execution amid a dynamic operating environment.
The company generated $956 million in cash from operating activities and announced the divestiture of the CAM business for $1.8 billion to reduce debt.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For 2026, Stanley Black & Decker expects GAAP EPS in the range of $3.15 to $4.35 and adjusted EPS in the range of $4.90 to $5.70, reflecting significant growth. The company is targeting free cash flow between $700 million and $900 million, an increase of 16% at the midpoint.
Positive Outlook
- Expected GAAP EPS growth of 42% at the midpoint.
- Expected adjusted EPS growth of 13% at the midpoint.
- Targeted free cash flow increase of 16% at the midpoint, ranging from $700 million to $900 million.
- Divestiture of CAM business expected to drive meaningful reduction of debt leverage.
- Continued strategic focus on margin and cash flow objectives, enhancing earnings power for long-term growth.
Challenges Ahead
- 2026 is anticipated to be another uncertain, dynamic year.
- The difference between GAAP and Adjusted EPS is approximately $1.35 to $1.75, primarily due to restructuring costs and other cost actions.
- Underlying planning assumptions include CAM results for only the first half of 2026.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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