Stanley Black & Decker's stock soared 5.03% during Wednesday's intraday trading session, reversing earlier pre-market losses as investors digested the company's fourth-quarter earnings report.
The tools and outdoor solutions firm reported adjusted earnings per share of $1.41 for Q4 2025, beating analyst estimates of $1.28 by approximately 10%. Despite revenue of $3.68 billion missing expectations, the company achieved significant gross margin expansion to 33.3%, representing a 210 basis point improvement year-over-year. This margin improvement was driven by higher pricing, successful tariff mitigation, and supply chain cost reductions through the company's Global Cost Reduction Program.
Additional positive factors included the announcement of a $1.8 billion divestiture of the Consolidated Aerospace Manufacturing (CAM) business, with proceeds earmarked for debt reduction, and strong free cash flow generation. The company also indicated it would adjust some tariff-driven price increases in non-strategic categories to stimulate sales in a weak consumer market while maintaining overall pricing discipline.
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