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Investing.com -- Stanley Black & Decker (NYSE:SWK) reported third-quarter earnings that exceeded analyst expectations, with adjusted earnings per share of $1.43, beating the consensus estimate of $1.19. Revenue came in at $3.8 billion, slightly above the analyst estimate of $3.77 billion and in line with the same quarter last year.
The company’s adjusted gross margin expanded to 31.6%, up 110 basis points from the prior year, driven by pricing strategies and supply chain transformation efficiencies, partially offset by tariffs, lower volume, and inflation. Stanley Black & Decker’s shares were down 0.5% following the announcement.
The tools and outdoor equipment manufacturer saw price increases of 5% and currency benefits of 1% offset by a 6% decline in volume during the quarter. The DEWALT brand continued to show growth despite a challenging consumer environment and tariff-related promotional reductions.
"Stanley Black & Decker delivered solid third quarter results, despite prevailing macroeconomic uncertainty," said Christopher J. Nelson, President and CEO. "Our performance included continued growth in our DEWALT brand, year over year gross margin expansion and solid free cash flow."
The company’s global cost reduction program remains on track, having generated approximately $120 million of incremental pre-tax run-rate cost savings in the third quarter. Since mid-2022, the program has delivered approximately $1.9 billion of the targeted $2.0 billion in pre-tax run-rate cost savings.
Stanley Black & Decker updated its full-year 2025 adjusted EPS guidance to approximately $4.55, down from its previous estimate of $4.65, reflecting higher production costs that the company expects to adjust back to targeted levels during the fourth quarter. The free cash flow target remains unchanged at approximately $600 million.
The company recorded non-cash asset impairment charges of $169 million during the quarter, stemming from updated brand prioritization affecting the Lenox, Troy-Bilt, and Irwin trade names.