Stanley Black & Decker sales off 2%, citing tariff-related impacts
Stanley Black & Decker, on July 29, reported its Q2 2025 financials, showing net sales for the period of $3.9 billion. That’s down 2% versus prior year as volume (-4%) was partially offset by price (+1%) and currency (+1%). Second quarter EBITDA as a percent of sales was 6.0% versus 5.3% in the prior year. Second quarter adjusted EBITDA was 8.1% of sales versus 10.7% of sales in the prior year.
Tools & Outdoor
In its Tools & Outdoor segment, the company reported net sales were down (-2%) versus second quarter 2024, as volume (-5%) was partially offset by price (+2%) and currency (+1%). Organic revenue was down (-3%), largely due to a slow outdoor buying season and tariff-related shipment disruptions that were partially offset by price and continued Dewalt professional growth. Segment margin was 6.9%, down 210 basis points versus prior year rate of 9.0%. The year-over-year change in both segment margin and adjusted segment margin was primarily due to the impact from tariffs, lower volume, and investments in growth initiatives, partially offset by the supply chain transformation efficiencies, price and cost control.
Leadership comments
“We delivered a solid second quarter amid the dynamic operating environment with the continued growth of our professional Dewalt brand, said Donald Allan, Jr., Stanley Black & Decker’s president & CEO. “With our supply chain transformation on track to completion in 2025, we are positioning the company to embark on the next chapter of delivering sustainable growth and long-term shareholder returns. Stanley Black & Decker is built on the strength of our people, iconic brands and a powerful innovation engine – attributes that transcend external market conditions.”
“The organization is executing a robust plan designed to mitigate tariffs and is prioritizing adjustments to its supply chain that leverage the strength of our North American footprint while optimizing our overseas supply chain inputs for the U.S. market,” said Christopher J. Nelson, COO, EVP and president of Tools & Outdoor.
“As I prepare to step into my new role as CEO, I am energized by the opportunity to partner with our customers to serve our end users, and to achieve the amazing potential for our brands and innovation in the marketplace.”
Regional total revenue growth:
- North America (-4%)
- Europe (+5%)
- Rest of world (-2%)
Planning Assumptions
“In the first half of 2025 we remained focused on meeting the needs of our end users, while responding decisively to external forces with operational and supply chain adjustments,” said Patrick D. Hallinan, EVP and CFO. “We are planning for a range of possible outcomes in 2025 and remaining nimble as we closely monitor the demand environment and judiciously pursue tariff mitigation actions to deliver progress on our long-term margin journey. We expect to continue strategically adjusting our costs and inventory to protect earnings power and cash flow, while preserving our innovation and brand activation focused growth investments.”
The gross annualized tariff impact is currently estimated to be approximately $800 million, which carries an assumption for country tariffs that includes July policy changes. Net of price adjustments and supply shifts the negative 2025 EPS impact is expected to be approximately $0.65 reflecting the timing and costs required to implement mitigation countermeasures.
