Financial Reports

Several companies reported Q1 or fiscal-year-end financials in early May, and we provide brief updates on those reports. Scroll through the copy below, or click on a brand in the list to be directed to that reporting. We also link in our report to the company’s own reporting website. All these companies, except Stihl, are public and make financial reports available periodically as required.

• Brightview
• Caterpillar
• Husqvarna
• Makita
• Polaris
• Scott’s
• SiteOne
• Stanley Black & Decker
• Stihl
• Textron

BRIGHTVIEW

On May 1, Brightview reported unaudited results for its second quarter ended March 31, 2024. It reported that total revenue increased 3.5% year-over-year to $672.9 million, and net income increased 253% year-over-year to $33.7 million. The company also recorded a $43.9 million gain on divestiture of the non-core U.S. Lawns business it sold for $51.6 million in early 2024.

“During the quarter we continued to advance our strategy on profitable growth and a unified go-to-market offering under One BrightView. Our ability to deliver on these key initiatives resulted in an increase in revenue, and robust EBITDA growth and margin expansion,” said BrightView president and CEO Dale Asplund. “I am pleased to report we are reaffirming our breakthrough EBITDA guidance for fiscal 2024, while raising our Free Cash Flow guidance.” In the first quarter of fiscal year 2024, ended Dec. 31, 2023, Brightview reported that total revenue decreased 4.5% year-over-year to $626.7 million. The decrease, Brightview said, was driven by a $22.1 million decrease in snow removal revenue and an $18.8 million decrease in our commercial landscaping business.

CATERPILLAR

Caterpillar reported Q1 2024 sales and revenues were $15.8 billion, about flat compared to the first quarter of 2023, due to lower sales volume, which was mostly offset by favorable price realization. Operating profit margin was 22.3% for the first quarter of 2024, compared with 17.2% for the Q1 of 2023.

“Our strong balance sheet and ME&T free cash flow allowed us to deploy a record $5.1 billion of cash for share repurchases and dividends in the first quarter. We continue to execute our strategy for long-term profitable growth,” said Jim Umpleby, chairman and CEO.”

Investors.com reported that Cat stock is the number three performer year to date among 30 Dow Jones components, with a 23% gain, which beats stocks such as Amazon, Microsoft and Apple.

HUSQVARNA

Husqvarna net sales decreased by 14% to SEK 14,719m ($17,167). Changes in exchange rates had a neutral effect. Planned exits of low-margin, petrol-powered business impacted by -4%. Organic sales decreased by 11%.

In the Husqvarna Forest & Garden Division, sales of robotic mowers for the professional market and battery-powered products were strong. However, sales of petrol-powered wheeled products continued on a low level, partly due to lower demand and Husqvarna proactively exiting parts of this segment in North America.

“A key aspect of our transformation is to expand in segments such as robotic mowers, battery-powered products, watering and solutions for the professional market,” said Pavel Hajman, CEO. “Another strategic aspect is our commitment to sustainability. To date, CO₂ emissions (Scope 1, 2 and 3) have decreased by 51% compared with the base year of 2015. This is driven by the electrification of our industry and lower sales of petrol-powered products, primarily wheeled. With that, we have exceeded our target of a 35% reduction by 2025.”

MAKITA

For the fiscal year, Makita reported that sales fell in many areas and consolidated revenue came to 741,391 million yen, down 3.0% year over year. The company cited weak demand for housing due to monetary tightening in overseas market and restrained investment in the building and construction markets.

Makita reported operating profit increased by 134.3% year on year to 66,169 million yen (operating profit ratio: 8.9%) driven by an improvement in the cost ratio due to the impact of reduction of transportation cost and foreign exchange rates. Profit before income taxes increased by 168.0% to 64,017 million yen (profit before income taxes ratio: 8.6%) and profit attributable to owners of the parent increased by 273.3% to 43,691 million yen (ratio of profit attributable to owners of the parent: 5.9%).

In North America, Makita reported that, although consumer spending overall remained comparatively strong, housing-related demand was sluggish as the high interest rate environment continued, and sales decreased, centered mainly on home improvement stores, ending at 93,677 million yen, a decrease of 21.3% year on year.

Outlook for the fiscal year ending March 31, 2025, Makita said it expects that the prospect for the global economy will continue to be uncertain. Makita reported it will strengthen its R&D and product development capabilities, mainly for the technologies of motors and technologies for discharge/charge of batteries. The company said it will work to develop mainly cordless outdoor power equipment and cleaning products, as the mainstay of future business.

POLARIS

“Our sales results for the first quarter were in line with our expectations, and adjusted EPS came in above plan,” said Mike Speetzen, CEO of Polaris Inc. “We gained share in ORV, motorcycles and marine, and the recent launches in our best-selling full-size Ranger and Indian Scout lineups reflect our strategic focus on rider-driven innovation. While we continue to see strength within our off-road utility business, snow was particularly challenging given poor winter conditions and trends in more recreational categories continued to be soft.”

For the first quarter of 2024, Polaris reported worldwide sales of $1,736 million, down 20% compared to the first quarter of 2023. Sales in North America represented 83% of total company sales and decreased 22% from $1,842 million in 2023. Sales in Q1 2024 were negatively impacted by lower volume and net pricing driven by higher promotional activity partially offset by favorable product mix. Sales in the off-road group were off 16% compared to Q1 2023, while North American ORV unit retail sales were up 3%. Polaris expects 2024 sales to be down 5-7% compared to 2023.

SCOTT’S

The Scotts Miracle Grow Company announced its financial results for the second quarter ended March 30, 2024. Total sales were approximately flat at $1.53 billion compared to a year ago. U.S. consumer net sales increased 2% to $1.38 billion from $1.36 billion in the same period last year. Favorability in the segment, said the company in its fi ling, was mainly driven by increased listings and early season promotions.

“Through the first six months of our fiscal year, we exceeded operating plan targets and made progress on the most important financial metrics driving our business,” said Jim Hagedorn, chairman, CEO and president. “We’re in a favorable position to achieve our fiscal 2024 guidance as well as meet our goals for cash flow generation, debt reduction and gross margin improvement. Hawthorne segment sales for the quarter decreased 28% to $66.4 million compared to $92.7 million last year. The decline was largely due to the company’s previously announced focus on its proprietary signature brands and discontinuation of its third-party distributed brands business, along with continued pressure on the indoor and hydroponic industry as a whole.

The company’s portfolio includes well-known brands such as Scotts, Miracle-Gro, and Ortho. Scotts also leads in the North American cannabis-growing equipment sector through its Hawthorne segment. The majority of its sales are to major retailers like Home Depot, Lowe’s and Walmart.

SITEONE

SiteOne Landscape Supply, Inc. reported its financial results for the first quarter ended March 31, 2024, with net sales increasing by 8% to $904.8 million compared to $837.4 million in the

“During the first quarter of 2024 we experienced continued significant commodity pricing deflation which dampened our near-term results. Against this headwind we were pleased to achieve positive organic daily sales growth, good net sales growth, and improved operating cash flow for the quarter,” said Doug Black, SiteOne chairman and CEO. “Our acquisition pipeline remains very active.”

SiteOne reported an increase in gross profit of 5% to $301.2 million for the Q1 2024 compared to $287.1 million for the prior-year period. Gross margin decreased 100 basis points to 33.3% for Q1 of 2024 primarily due to lower price realization, partially offset by a positive impact from acquisitions.

“For the full year 2024 we expect prices to be down approximately 2%,” said Doug Black. “In total, end market demand has been solid, and with the benefit of our commercial initiatives, we continue to expect sales volume to more than offset price deflation and …  we expect to increase adjusted EBITDA margin during the year.”

STANLEY BLACK & DECKER

Reporting on Q1 2024 results, Stanley Black & Decker announced net sales for the quarter were $3.9 billion, down 2% versus prior year due to volume (-1%) and currency (-1%). By segment, the company’s Tools & Outdoor net sales were down 1% versus Q1 2023 as volume growth in Dewalt was more than offset by a muted market demand backdrop which contributed to lower volume (-1%). “Looking forward, we expect mixed demand trends to persist across our businesses in 2024, and we are driving supply chain cost improvements designed to expand margins, deliver earnings growth and generate strong cash flow.  At the same time, the long-term growth and market share gains we are focused on achieving will be driven by introducing exciting new products within our most powerful brands designed to deliver enhanced productivity for end users,” said Donald Allan, Jr., Stanley Black & Decker’s president & CEO. 

STIHL

Stihl reported that 2023 sales in North America, its largest market, were significantly lower than in 2022. “After three years of extremely strong growth, we were confronted with declining demand in 2023,” said Michael Traub, chairman, executive board of Stihl.

“This phase, which we experienced due to the coronavirus pandemic, is over. High inflation and rising interest rates have now dampened consumer sentiment. In addition, dealers and retailers have plenty of stock that they now need to sell off first.”

Stihl expanded its U.S. dealer network and increased its market share in battery-operated products in North America. Sales of Stihl gasoline-powered products declined significantly, while its battery and iMow business grew encouragingly, the company stated. Stihl aims to increase the share of sales from battery-operated products to at least 35 percent by 2027, with a target of 80 percent by 2035.

“Stihl has grown by over 30 percent since 2019,” Traub said. “Right now, we are moving toward a normalization of growth. Irrespective of this, we are continuing to pursue our long-term strategy of achieving dual technological leadership: leading the sustainable transformation in both the battery- and gasoline-powered tool segments.”

TEXTRON

Textron Industrial (Arctic Cat UTVs, Cushman utility vehicles, EZ-Go vehicles, Jacobsen mowers) revenues were $892 million, down $40 million from last year’s first quarter. Segment profit of $29 million was down $12 million from the first quarter of 2023, primarily due to lower volume and mix in Specialized Vehicles. Textron expects to incur additional severance costs in the second quarter of 2024 in the range of $25 to $30 million, largely related to headcount reductions in the Industrial segment.