Stanley Black & Decker reports drop for year

On Feb. 5, Stanley Black & Decker (SWK) announced fourth quarter and full year 2024 financial results. The company reported 2024 revenues of $15.4 billion, down 3% compared to 2023. Its Q4 revenues of $3.7 billion were flat versus the prior year.

By segment

The company’s Tools & Outdoor segment showed net sales up 2% versus Q4 2023, driven by volume increases, which it said was partially offset by price (-1%) and currency (-1%). Organic revenue was up 3%, with continued growth in Dewalt and a solid holiday promotional season partially offset by a moderately weaker consumer and DIY backdrop. The Tools & Outdoor segment includes outdoor equipment brands such as Dewalt, Craftsman, Stanley, Cub Cadet, Hustler, and others in the OPE and DIYer tool space.

Industrial net sales, which includes fasteners that secure cars, aircraft and electronics to storage solutions, were down (-15%) versus fourth quarter 2023, with organic sales flat.

“Turning to 2025, we are taking actions intended to deliver share gain and to improve the cost structure behind our ongoing strategic initiatives and are preparing countermeasures designed to mitigate the impact from recently announced tariffs as their full effect becomes known. Aggregate market demand is expected to remain muted but relatively stable in the first half with the potential for a positive inflection later in the year supported by strength in professional construction as well as aerospace and industrial fastening. As we seek to capitalize on these opportunities, we remain focused on prudently investing across our portfolio to fuel end-user inspired innovation and differentiated market activation designed to capture the share gain opportunities we anticipate in the near-term and over the long-term horizon,” said Donald Allan, Jr., Stanley Black & Decker’s president & CEO, commented. 

“With the recent tariff announcements, we are preparing for a dynamic backdrop in 2025 and expect to respond with supply chain and price actions designed to mitigate the impact from such tariffs to maintain our margin objectives, which enable us to fuel innovation and brand building. Our top priorities remain delivering margin expansion, cash generation and restoring balance sheet strength over the next 12 to 18 months to position the Company for long-term growth and value creation,” said Patrick D. Hallinan, Executive Vice President and CFO.

Multi-year strategic focus remains unchanged:

• Advancing innovation, electrification, and global market penetration to achieve mid-single digit organic revenue growth* (2 to 3 times the market)
• Streamlining and simplifying the organization, and investing in initiatives that more directly impact our customers and end users
• Returning adjusted gross margins* to historical 35%+ levels by accelerating the operations and supply chain transformation to improve fill rates and better match inventory with customer demand
• Prioritizing cash flow generation and inventory optimization