Stanley Black & Decker, Inc. · NYSE:SWK
Stanley Black & Decker — Q3 2024 Earnings Presentation
18 slides from Stanley Black & Decker's earnings presentation, Oct 29, 2024
Slide 1: Third Quarter 2024 Overview
Third Quarter 2024 Overview October 29, 2024
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 3Q’24 Earnings Call | 2
Slide 3: Cautionary Statement
Cautionary Statement Certain Statements Contained In This Presentation Are Forward Looking 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. For These Purposes, Forward-Looking Statements Are Statements Th
Slide 4: 3Q 2024 Key Messages
3Q 2024 Key Messages Delivered Gross Margin Improvements As Well As Robust Cash Generation In The Third Quarter… 3Q’24 Key Financials • 3Q’24 Revenues Of $3.8 Billion, Down 5% Versus Prior Year As Growth In DEWALT Was Offset By Mixed End Market Demand; Infrastructure Divestiture Impacted Revenue Gro
Slide 5: 3Q 2024 Segment Overview
3Q 2024 Segment Overview Capitalized On Bright Spots In DEWALT And Aerospace Offset By A Weak Consumer & Auto Production Backdrop Revenue Adjusted Segment Margin* $M • 3Q Organic Revenue* (-2%) Tools & Outdoor • (-4%) N.A., +1% Europe, +6% Rest Of World $3,355 11.1% $3,263 9.3% • (-1%) PT, (-3%) HTA
Slide 6: Prioritizing Resources To Accelerate Organic Growth
Prioritizing Resources To Accelerate Organic Growth Moving With Speed And A Clear Mandate: Executing Our Transformation Plan And Accelerating Share Gain Goal To Invest $30M By 2027 To Grow The Trades Is Synergistic With Our Success Support Newer Generations Amplify DEWALT's Brand Loyalty Build Deepe
Slide 7: Strategic Transformation
Strategic Transformation On-Track For Expected $2.0 Billion Pre-Tax Run-Rate Cost Savings By End Of 2025… Supply Chain Transformation Strategic Sourcing Ops Excellence Footprint Rationalization Complexity Reduction Savings Progress Achieved Adjusted Gross Margin* Progression Pre-Tax Run-Rate Cost Sa
Slide 8: Cash & Gross Margin Update
Cash & Gross Margin Update Disciplined Execution Of Our Supply Chain Transformation, Driving Margin Expansion And Cash Generation… 3Q’24 Free Cash Flow* Was ~$200M Driven By Meaningfully Expanded Adjusted Gross Margin* In 3Q’24 Profitability Improvement YTD Free Cash Flow* Adjusted Gross Margin* 3Q'
Slide 9: 2024 Guidance
2024 Guidance (1%) Organic Revenue* Midpoint Amid Soft Macro, With Focused Margin Expansion & Cost Management… 2024 Outlook Total Company Tools & Outdoor Industrial Organic Revenue* Organic: ~(1%) YoY +/- 50 Bps Organic: ~(1%) YoY +/- 50 Bps Organic: ~(1%) YoY +/- 50 Bps And Adjusted Margins* Adj. E
Slide 10: Stronger And More Focused Enterprise
Stronger And More Focused Enterprise Centered Around Our Core Market Leadership Positions And Built Upon The Strength Of Our People And Culture Unleashing End-User Empowering Brand Power Inspired Innovation People 3Q’24 Earnings Call | 10
Slide 11: Q&A
Q&A StanleyBlack&Decker For those who make the world.”
Slide 12: Liquidity And Free Cash Flow Reconciliation
Liquidity And Free Cash Flow Reconciliation 3Q’24 Free Cash Flow Liquidity Key Points QTD YTD • Target: Maintain Investment Grade Credit Ratings 3Q'23 3Q'24 V$ 3Q'23 3Q'24 V$ • $3.5B In Credit Facilities Backed By A Well Capitalized, $M Diversified Bank Group Net Earnings (Loss) $ 5 $ 91 $ 86 $ (6)
Slide 13: Reconciliation Of GAAP To Non-GAAP Measures
Reconciliation Of GAAP To Non-GAAP Measures 2H 2022 2H 2023 GAAP Non-GAAP Non-GAAP Gross GAAP Non-GAAP Non-GAAP Gross Gross Profit Adjustments Profit Gross Profit Adjustments Profit $1,771.6 $1,793.6 $2,165.0 $2,207.1 $22.0 $42.1 21.9% 22.1% 28.2% 28.7% 1H 2023 1H 2024 GAAP Non-GAAP Non-GAAP Gross G
Slide 14: Reconciliation Of GAAP To Non-GAAP Measures
Reconciliation Of GAAP To Non-GAAP Measures 3Q 2023 3Q 2024 GAAP Non-GAAP Non-GAAP Gross GAAP Non-GAAP Non-GAAP Gross Gross Profit Adjustments Profit Gross Profit Adjustments Profit $1,060.6 $32.2 $1,092.8 $1,120.6 $24.8 $1,145.4 26.8% 27.6% 29.9% 30.5% GAAP Non-GAAP Non-GAAP Diluted EPS Adjustments
Slide 15: Reconciliation Of GAAP To Non-GAAP Segment Profit
Reconciliation Of GAAP To Non-GAAP Segment Profit 3Q 2023 3Q 2024 Tools & Outdoor GAAP Non-GAAP Non-GAAP GAAP Non-GAAP Non-GAAP Segment Profit Adjustments Segment Profit Segment Profit Adjustments Segment Profit $273.4 $39.4 $312.8 $327.5 $35.5 $363.0 8.1% 9.3% 10.0% 11.1% GAAP Non-GAAP Non-GAAP GAA
Slide 16: Reconciliation Of GAAP To Non-GAAP Sales Growth
Reconciliation Of GAAP To Non-GAAP Sales Growth Decker – 3Q ‘24 Stanley Black & GAAP Non-GAAP Organic Acquisitions Divestitures Currency Sales Growth Sales Growth QTD -5% 0% 2% -1% -2% Tools & Outdoor GAAP Non-GAAP Organic Acquisitions Divestitures Currency Sales Growth Sales Growth QTD -3% 0% 0% -1
Slide 17: EBITDA Reconciliation
EBITDA Reconciliation 3Q’24 Earnings Call | 17
Slide 18: 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
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