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Investing.com -- Stanley Black & Decker reported fourth-quarter earnings and revenue that surpassed analyst expectations, driven by organic growth in its DEWALT brand and aerospace fasteners business. The company’s stock edged up 0.4% following the announcement.
The tool manufacturer posted adjusted earnings per share of $1.49, beating the analyst consensus of $1.26. Revenue for the quarter came in at $3.72 billion, topping estimates of $3.58 billion. Sales were flat compared to the same period last year, with 3% organic growth offset by divestitures and currency headwinds.
Stanley Black & Decker (NYSE:SWK)’s gross margin expanded to 30.8%, up 120 basis points YoY. Adjusted gross margin rose 140 basis points to 31.2%, primarily due to supply chain transformation efficiencies.
The company’s DEWALT brand posted its seventh consecutive quarter of organic growth. The Tools & Outdoor segment, which includes DEWALT, saw organic revenue increase 3% YoY, driven by growth in North America (+2%), Europe (+4%), and rest of world (+8%).
"Stanley Black & Decker delivered across its key focus areas in 2024 with continued gross margin expansion, strong free cash flow generation, strengthening our balance sheet as well as making new investments aimed at driving market share growth," said Donald Allan, Jr., President & CEO.
For 2025, the company provided a base case adjusted EPS outlook of $5.25 (+/- $0.50), excluding potential impacts from recently announced tariffs. Management plans to implement countermeasures to mitigate tariff effects as they become clearer.
Stanley Black & Decker generated $679 million in operating cash flow and $565 million in free cash flow during the fourth quarter. The company reduced its debt by $1.1 billion in 2024 while maintaining shareholder dividends.