Stanley Black & Decker Reports Q4 Revenue of $3.68B
Reports Q4 revenue $3.68B, consensus $3.78B. Chris Nelson, Stanley Black & Decker's president and CEO, commented, "Stanley Black & Decker delivered solid results across our key focus areas in 2025, with continued gross margin and net income growth, strong free cash flow*, a strengthened balance sheet, and strategic investments focused on driving sustainable, profitable growth. I would like to thank our team for their resilience and commitment to serving our customers and achieving these results despite the dynamic environment."
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- Sales Decline: Stanley Black & Decker reported net sales of $3.684 billion for Q4 2025, falling short of analyst expectations of $3.780 billion, reflecting a 3% organic decline primarily due to weaker North American retail demand.
- Margin Improvement: Despite the sales drop, gross margin increased to 33.2%, up 240 basis points year-over-year, indicating effective cost management and pricing strategies that have positively impacted profitability.
- Strong Cash Flow: The company generated operating cash flow of $956 million and free cash flow of $883 million in the fourth quarter, demonstrating robust cash generation capabilities that support future investments and debt repayment.
- Divestiture Strategy: Stanley Black & Decker agreed to divest its Consolidated Aerospace Manufacturing business for $1.8 billion in cash, with net proceeds expected between $1.525 billion and $1.6 billion after taxes and fees, aimed at reducing debt and strengthening the balance sheet.

- Earnings Beat: Stanley Black & Decker (SWK) reported adjusted earnings of $1.41 per share for Q4, surpassing analysts' expectations of $1.28, indicating resilience in profitability despite market challenges.
- Revenue Decline: The company's revenue fell 1% year-over-year to $3.7 billion, missing Wall Street's forecast of $3.78 billion, reflecting softness in the North American retail market that offset pricing gains.
- Margin Expansion: Gross margin increased by 240 basis points to 33.2%, with adjusted gross margin at 33.3%, demonstrating significant profit expansion driven by pricing actions and cost reductions despite lower volumes.
- Cash Flow and Outlook: Stanley generated $956 million in operating cash flow this quarter and forecasts earnings between $3.15 and $4.35 per share for 2026, indicating a commitment to cost discipline and strategic investments amid uncertain demand.
- Earnings Call Scheduled: Stanley Black & Decker will host a conference call on February 4, 2026, at 8:00 AM ET to discuss its Q4 2025 earnings results, aiming to provide investors with the latest performance insights to enhance transparency.
- Investor Access Method: Investors can access the live webcast by logging onto the company's investor relations page, ensuring that all stakeholders can receive timely key information.
- Performance Discussion Focus: The call will focus on the company's financial performance for Q4 2025, including revenue, profit, and future outlook, helping investors assess the company's financial health and market prospects.
- Market Reaction Expectations: The upcoming call is expected to impact investor confidence, particularly against the backdrop of performance fluctuations, as transparent communication of information can help stabilize market sentiment.

- Strong Financial Performance: Stanley Black & Decker reported fourth-quarter net sales of $3.684 billion, a 2% year-over-year decline, yet gross margin improved to 33.2% due to a 5% price increase and 2% favorable currency effects, demonstrating the company's resilience and adaptability in a dynamic market environment.
- Significant Cost Savings: The Global Cost Reduction Program, initiated in mid-2022, has achieved approximately $2.1 billion in pre-tax savings, with $120 million realized in the fourth quarter alone, indicating the company's strategic execution in continuous improvement and operational efficiency.
- Debt Reduction Strategy: The company announced a definitive agreement to divest its CAM business for $1.8 billion in cash, expected to close in the first half of 2026, with net proceeds projected between $1.525 billion and $1.6 billion, aimed at further reducing debt leverage and enhancing financial stability.
- Positive Future Outlook: Stanley Black & Decker anticipates 2026 EPS in the range of $3.15 to $4.35, reflecting a 42% growth, and targets free cash flow between $700 million and $900 million, showcasing the company's confidence and strategic positioning for future growth.
- Earnings Beat: Stanley Black & Decker reported a Q4 non-GAAP EPS of $1.41, exceeding expectations by $0.13, indicating resilience in profitability despite revenue shortfalls.
- Flat Revenue Performance: The company’s Q4 revenue stood at $3.7 billion, flat year-over-year, missing expectations by $80 million, reflecting weak market demand that may impact future growth strategies.
- Optimistic Future Outlook: The company expects 2026 GAAP EPS to range from $3.15 to $4.35, with adjusted EPS between $4.90 and $5.70, suggesting potential midpoint growth of 42% and 13%, showcasing management's confidence in future performance.
- Free Cash Flow Target: Stanley Black & Decker aims for free cash flow in the range of $700 to $900 million, reflecting a 16% increase at the midpoint, which will support future investments and debt management, enhancing financial flexibility.
Market Trends: The software market is experiencing a significant selloff, indicating a downturn in investor confidence.
Company Focus: Anthropic, a key player in the AI sector, is highlighted amidst the broader market challenges.









