Stanley Black & Decker reported its 2025 first quarter financial results on April 30, logging the company’s eighth consecutive quarter of revenue growth for the company’s DEWALT brand.

SBD posted total sales of $3.7 billion, down 3% year-over-year with 1% growth offset by currency (-2%) and its infrastructure business divestiture (-2%).

The company’s 1Q gross margin of 29.9% jumped 130 basis points YoY, with adjusted gross margin of 30.4% likewise up 140 bps compared to the same period a year prior.

Adjusted EBITDA was 9.7% of sales versus 8.9% a year earlier.

By SBD business unit in 1Q:

• Tools & Outdoor sales of $3.2 billion were flat year-over-year. Organic revenue was up 1%, with continued growth in DEWALT supported by professional demand as well as strong shipments in advance of the outdoor season. Adjusted segment margin of 9.6% was up 110 bps YoY.
• Engineered Fastening (a segment renamed from “Industrial” following divestitures) sales of $464 million were down 21% year-over-year, with organic revenue down 1% as aerospace and general industrial growth was more than offset by automotive market softness. Adjusted segment margin was 10.1% versus 12.1% YoY.

Tariffs & Price Increases

Stanley Black & Decker implemented a “high-single digit price increase on U.S. Tools & Outdoor” in April, with plans to introduce a second price increase effective the beginning of the third quarter.

The company is also “accelerating strategic adjustments to its supply chain with the objective of leveraging Mexico and reducing China tariff costs over the next 12-24 months.” The company expects to leverage its North American footprint as a competitive advantage (~60% of U.S. cost of sales).

“In light of the current environment, we are accelerating adjustments to our supply chain and exploring all options as we seek to minimize the impact of tariffs on end users while balancing the need to protect our business and our ability to innovate for years to come,” SBD President & CEO Donald Allan Jr. said in the earnings report. “With that in mind, we implemented an initial price increase in April and notified our customers that further price action is required.  We are also continuing to closely monitor shifting tariff policies as well as their potential effects on the operating and demand environments with an aim of being agile and responsive.  Against this backdrop, our top priorities remain clear: accelerating our growth culture to serve our end users and customers, generating cash and strengthening our balance sheet, and progressing the transformation to support our long term margin journey.”