Stanley Black & Decker raised its annual earnings and free cash flow outlook after third-quarter organic sales rose 4 per cent. Tariff refunds supplied a substantial part of its margin improvement. Reported sales declined slightly alongside portfolio changes, while the toolmaker also announced a new share repurchase authorization.
Stanley Black & Decker raised its annual outlook after reporting third-quarter organic sales growth and benefits from tariff refunds.[1], [2]
The toolmaker’s reported sales fell 1 per cent to about 3.7 billion dollars, while organic sales increased 4 per cent. Sales volume added 6 per cent, pricing subtracted 2 per cent and portfolio changes reduced reported sales by 4 per cent. Currency effects were approximately flat.[1]
Gross margin rose 7.6 percentage points to 39 per cent. On an adjusted basis, it increased 7.8 points to 39.4 per cent. Tariff refunds contributed 4.3 points to both measures. Selling, general and administrative expenses reached 24.2 per cent of sales; the company attributed the increase partly to investments and costs associated with the refunds.[1]
Management now expects annual free cash flow of 1–1.2 billion dollars, up from 600–800 million dollars. That forecast incorporates tariff refunds and taxes and fees associated with the CAM divestiture. Adjusted earnings guidance increased to 5.95–6.25 dollars per share. The group also completed its previous share repurchase authorization with 250 million dollars of quarterly purchases; the board approved a new 1 billion dollar authorization running through 2029.[1]
