Stanley Black & Decker, Inc. · NYSE:SWK
Stanley Black & Decker — Q4 2024 Earnings Presentation
21 slides from Stanley Black & Decker's earnings presentation, Feb 5, 2025
Slide 1: Fourth Quarter And Full Year 2024 Overview
Fourth Quarter And Full Year 2024 Overview February 5, 2025
Slide 2: Participants
Participants Don Allan President & CEO Chris Nelson COO, EVP And President, Tools & Outdoor Pat Hallinan Executive Vice President, CFO Dennis Lange Vice President, Investor Relations 4Q And FY 2024 Earnings Call 2
Slide 3: Cautionary Statement
Cautionary Statement This Presentation and related discussions contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All such statements other than statements of historical
Slide 4: 2024 Year In Review
2024 Year In Review Delivered Across Key Focus Areas In 2024 Against A Mixed Macroeconomic Backdrop… By The Numbers… ~$15.4B ~Flat Led By Growth In DEWALT And Aerospace Revenue Organic Revenue* Fasteners 30% +400 Bps Versus 2023 As Global Cost Reduction Adjusted Gross Margin* Program Continues Drivi
Slide 5: 4Q 2024 Key Messages
4Q 2024 Key Messages Accelerating Our Growth Culture With Operational Excellence At Its Core… 4Q’24 Key Financials • 4Q’24 Revenues Of $3.7 Billion, Flat Versus Prior Year With 3% Organic Growth * Offset By Infrastructure Divestiture (-2%) And Currency (-1%) $3.7 Billion Total Revenue • 4Q’24 Adjust
Slide 6: 4Q & FY 2024 Segment Overview
4Q & FY 2024 Segment Overview Led By Growth In DEWALT And Aerospace Offset By A Weak Consumer & Auto Production Backdrop Revenue Adjusted Segment Margin* • DEWALT Posts 7th Consecutive Quarter Of Organic Growth* $M $3,228 10.0% 10.2% • 4Q Organic Revenue* +3% With +5% PT, +2% HTAS, +3% OPG $3,154 •
Slide 7: Building Brand Equity With The Trades
Building Brand Equity With The Trades DEWALT Has End-To-End Product Solutions For Carpenters 20V MAX* XR® 20V MAX* XR® ¼" Quiet 3-Speed Hammer Drill Hydraulic Impact Driver A Great End-User Experience, With Features Designed To Drive Productivity, Safety, Efficiency, And Profitability *Maximum Init
Slide 8: Strategic Transformation
Strategic Transformation Expected To Generate $2 Billion Pre-Tax Run-Rate Cost Savings By The End Of 2025… Supply Chain Transformation Material Ops Footprint Complexity Productivity Excellence Rationalization Reduction Savings Progress Achieved Adjusted Gross Margin* Progression Pre-Tax Run-Rate Cos
Slide 9: Cash & Gross Margin Update
Cash & Gross Margin Update Supply Chain Transformation Driving Margin Expansion And Cash Generation… ~$750M FY’24 Free Cash Flow* Along With Infrastructure Continued AGM* Expansion Supports Incremental Growth Divestiture Proceeds Reduced Debt By ~$1.1B In FY’24 Investments To Accelerate Share Gain F
Slide 10: 2025 Planning Assumptions
2025 Planning Assumptions 2025 Base Case View (Pre-Tariffs) Tariff Scenario Planning Total Company Tools & Outdoor Industrial Total Company U.S. Supply ~$6.8B U.S. Adjusted Cost Of Sales* Based On Country Of Origin*** Total Sales**: Organic*: Organic*: ~Flat YoY +/- 150 Bps +Low Single Digits +Low S
Slide 11: Our Transformation Journey
Our Transformation Journey We’re Accelerating Our Growth Culture With Operational Excellence At Its Core More Delivering Building a Compelling Focused Company Strong Execution Growth Culture Shareholder Value Creation Opportunity 4Q And FY 2024 Earnings Call 11
Slide 12: Q&A
Q&A 12
Slide 13: Liquidity And Free Cash Flow Reconciliation
Liquidity And Free Cash Flow Reconciliation 4Q’24 Free Cash Flow Liquidity Key Points Fourth Quarter Full Year • Target: Maintain Solid Investment Grade Credit Ratings 2023 2024 V$ 2023 2024 V$ • $3.5B In Credit Facilities Backed By A Well Capitalized, $M Diversified Bank Group Net (Loss) Earnings $
Slide 14: Reconciliation Of GAAP To Non-GAAP Measures
Reconciliation Of GAAP To Non-GAAP Measures Q4 2024 FY 2024 GAAP Non-GAAP Non-GAAP GAAP Non-GAAP Non-GAAP Gross Profit Adjustments Gross Profit Gross Profit Adjustments Gross Profit $1,144.1 $16.1 $1,160.2 $4,514.4 $88.8 $4,603.2 30.8% 31.2% 29.4% 30.0% GAAP Non-GAAP Non-GAAP GAAP Non-GAAP Non-GAAP
Slide 15: Reconciliation Of GAAP To Non-GAAP Measures
Reconciliation Of GAAP To Non-GAAP Measures 2H 2022 1H 2024 GAAP Non-GAAP Non-GAAP GAAP Non-GAAP Non-GAAP Gross Profit Adjustments Gross Profit Gross Profit Adjustments Gross Profit $1,771.6 $1,793.6 $2,249.7 $2,297.6 $22.0 $47.9 21.9% 22.1% 28.5% 29.1% 1H 2023 2H 2024 GAAP Non-GAAP Non-GAAP GAAP No
Slide 16: Reconciliation Of GAAP To Non-GAAP Measures
Reconciliation Of GAAP To Non-GAAP Measures Q4 2023 Q4 2024 GAAP Non-GAAP Non-GAAP GAAP Non-GAAP Non-GAAP Segment Profit Adjustments Segment Profit Segment Profit Adjustments Segment Profit Outdoor Tools & $293.5 $22.3 $315.8 $298.1 $32.1 $330.2 9.3% 10.0% 9.2% 10.2% Non-GAAP GAAP Non-GAAP GAAP Non-
Slide 17: Reconciliation Of GAAP To Non-GAAP Measures
Reconciliation Of GAAP To Non-GAAP Measures FY 2023 FY 2024 GAAP Non-GAAP Non-GAAP GAAP Non-GAAP Non-GAAP Segment Profit Adjustments Segment Profit Segment Profit Adjustments Segment Profit Outdoor Tools & $687.6 $196.7 $884.3 $1,197.4 $143.1 $1,340.5 5.1% 6.6% 9.0% 10.1% Non-GAAP GAAP Non-GAAP GAAP
Slide 18: Reconciliation Of GAAP To Non-GAAP Measures
Reconciliation Of GAAP To Non-GAAP Measures Stanley Black GAAP Non-GAAP 4Q ‘24 QTD & Decker – Acquisitions Divestitures Currency Organic Sales Sales Growth Growth 0% 0% 2% -1% 3% GAAP Non-GAAP Acquisitions Divestitures Currency Organic Sales Outdoor Sales Growth Tools & Growth QTD 2% 0% 0% -1% 3% GA
Slide 19: Reconciliation Of GAAP To Non-GAAP Measures
Reconciliation Of GAAP To Non-GAAP Measures Stanley Black GAAP Non-GAAP & Decker – Acquisitions Divestitures Currency Organic Sales Sales Growth ‘24 YTD Growth -3% 0% 2% -1% 0% GAAP Non-GAAP Acquisitions Divestitures Currency Organic Sales Outdoor Sales Growth Tools & Growth YTD -1% 0% 0% -1% 0% GAA
Slide 20: EBITDA Reconciliation
EBITDA Reconciliation 4Q And FY 2024 Earnings Call 20
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures Organic revenue or organic sales is defined as the difference between total current and prior year sales less the impact of companies acquired and divested in the past twelve months and any foreign currency impacts. Organic revenue growth, organic sales growth or organic
Stanley Black & Decker — Q4 2024 Earnings Presentation on 6ix