Stanley Black & Decker Reports Strong Q2 Earnings and Raises Full-Year Guidance
Stanley Black & Decker (NYSE:SWK) reported second-quarter results that exceeded expectations, with adjusted earnings per share of $1.57, up from the midpoint of its prior guidance by $0.37. Adjusted gross margin rose sharply to 33.7%, a gain of 620 basis points year over year, while EBITDA margin increased to 11.3%. Organic revenue grew 3% despite flat overall sales compared to last year. The company's power tools and U.S. commercial and industrial channels were key drivers of growth, with organic revenue in the former rising by 8%. However, outdoor products saw a decline due to weaker replenishment demand following weather-related softness. Stanley Black & Decker also raised its full-year adjusted EPS guidance to $5.20–$5.80 and free-cash-flow forecast to $600 million–$800 million. The company repaid approximately $1.7 billion in debt during the quarter, while also repurchasing $250 million of shares. Management plans to use net tariff refunds—accounting for a 250-basis-point benefit—to fund growth initiatives such as product innovation and brand activation.
Tickers: $SWK
Topics: debt_reduction financial_results margin_expansion revenue_growth