Stanley Black & Decker, Inc. · NYSE:SWK
Stanley Black & Decker — Q2 2024 Earnings Presentation
18 slides from Stanley Black & Decker's earnings presentation, Jul 30, 2024
Slide 1: Second Quarter 2024 Overview
Second Quarter 2024 Overview July 30, 2024
Slide 2: Participants
Participants Don Allan President & CEO Chris Nelson COO, Executive Vice President And President, T&O Pat Hallinan Executive Vice President, CFO Dennis Lange Vice President, Investor Relations 2Q’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: Transforming To Accelerate Organic Growth
Transforming To Accelerate Organic Growth Executing On Our Clear Vision And Strategy For Long-Term Success… Reduce Complexity – Invest In Core Growth Enhance ~$2B Savings By End Of ’25** $300M - $500M Shareholder Return Organic Revenue* OPTIMIZE I N N O VAT I O N Growth 2-3X Market C O R P O R AT E
Slide 5: 2Q 2024 Key Messages
2Q 2024 Key Messages Extended Our Trajectory Of Solid Execution Against Our Operational Priorities In The Second Quarter… 2Q’24 Key Financials • 2Q’24 Revenues Of $4.0 Billion, Down 3% Versus Prior Year As 1% Organic Revenue Growth* Led By DEWALT, Outdoor Products And Engineered Fastening Was More T
Slide 6: 2Q 2024 Segment Overview
2Q 2024 Segment Overview Organic Growth* Driven By Strength In DEWALT, Outdoor And Aerospace Fasteners Revenue Adjusted Segment Margin* • 2Q Organic Revenue* +1% $M • +1% N.A., (3%) Europe, +5% Rest Of World Tools & Outdoor $3,542 $3,529 • (2%) PT, Flat HTAS, +6% OPG 10.4% • DEWALT And Outdoor Leadi
Slide 7: 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 Starting From A Compelling Position Brand-Led Pro-Focused Market-Facing 1) Industry With Strong Long-Term Growth Characteristics 2) Iconic Brands 3
Slide 8: Strategic Transformation
Strategic Transformation On-Track For Expected $2.0 Billion Pre-Tax Run-Rate Cost Savings By End Of 2025… Progress Achieved Supply Chain Transformation Pre-Tax Run-Rate Cost Savings Strategic Sourcing Footprint Rationalization $150M $1.3B Complexity Reduction Ops Excellence 2Q’24 Quarter-To-Date Pro
Slide 9: Cash & Gross Margin Update
Cash & Gross Margin Update Reshaping Cost Structure, Expanding Margins, Delivering Earnings Growth, Generating Strong Free Cash Flow*… 2Q’24 Free Cash Flow* Was $486M Advancing Our Strategic Transformation To Raising 2024 Free Cash Flow* Target To $650M to $850M Further Gross Margin Improvement Adju
Slide 10: 2024 Guidance
2024 Guidance (0.5%) Organic Revenue* Midpoint Amid Soft Macro, With Focus On 2nd Half Margin Expansion & Cost Management… 2024 Outlook Total Company Tools & Outdoor Industrial Organic Revenue* Organic: +/- Low Single Digits Organic: Flat To Low Single Digit Organic: ~(0.5%) YoY +/- 130 Bps And Adju
Slide 11: 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 2Q’24 Earnings Call | 11
Slide 12: Q&A
Q&A StanleyBlack&Decker For those who make the world.”
Slide 13: Liquidity And Free Cash Flow Reconciliation
Liquidity And Free Cash Flow Reconciliation 2Q’24 Free Cash Flow Liquidity Key Points QTD YTD • Target: Maintain Investment Grade Credit Ratings • $3.5B In Credit Facilities Backed By A Well Capitalized, 2Q'23 2Q'24 V$ 2Q'23 2Q'24 V$ $M Diversified Bank Group Net Earnings (Loss) $ 177 $ (11) $ (188)
Slide 14: Reconciliation Of GAAP To Non-GAAP Measures
Reconciliation Of GAAP To Non-GAAP Measures 2Q 2023 2H 2023 GAAP Non-GAAP Non-GAAP Gross GAAP Non-GAAP Non-GAAP Gross Gross Profit Adjustments Profit Gross Profit Adjustments Profit $932.1 $983.5 $2,165.0 $2,207.1 $51.4 $42.1 22.4% 23.6% 28.2% 28.7% 1Q 2024 2Q 2024 GAAP Non-GAAP Non-GAAP Gross GAAP
Slide 15: Reconciliation Of GAAP To Non-GAAP Segment Profit
Reconciliation Of GAAP To Non-GAAP Segment Profit 2Q 2023 2Q 2024 Tools & Outdoor GAAP Non-GAAP Non-GAAP GAAP Non-GAAP Non-GAAP Segment Profit Adjustments Segment Profit Segment Profit Adjustments Segment Profit $102.0 $55.8 $157.8 $316.1 $52.6 $368.7 2.9% 4.5% 9.0% 10.4% GAAP Non-GAAP Non-GAAP GAAP
Slide 16: Reconciliation Of GAAP To Non-GAAP Sales Growth
Reconciliation Of GAAP To Non-GAAP Sales Growth Decker – 2Q ‘24 Stanley Black & GAAP Non-GAAP Organic Acquisitions Divestitures Currency Sales Growth Sales Growth QTD -3% 0% 3% -1% 1% Tools & Outdoor GAAP Non-GAAP Organic Acquisitions Divestitures Currency Sales Growth Sales Growth QTD 0% 0% 0% -1%
Slide 17: EBITDA Reconciliation
EBITDA Reconciliation 2Q’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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