Stanley Black & Decker reported its fourth quarter and full year 2024 financial results, showcasing a mix of growth and challenges. In 2024, the company's revenues amounted to $15.4 billion, representing a 3% decrease compared to the prior year, with flat organic revenue led by growth in Dewalt and aerospace fasteners partially offset by infrastructure divestiture and currency impacts. However, the fourth quarter saw revenues of $3.7 billion, remaining flat versus the prior year, with 3% organic growth offset by infrastructure divestiture and currency effects.
The gross margin for the fourth quarter stood at 30.8%, marking a 120 basis points increase compared to the prior year, while the adjusted gross margin reached 31.2%, up 140 basis points versus the prior year. This performance contributed to full-year gross margin of 29.4% and adjusted gross margin of 30.0%.
Earnings per share (EPS) for the fourth quarter were $1.28, with adjusted EPS at $1.49. For the full year, EPS was $1.89, and adjusted EPS was $4.36. Furthermore, the company generated $679 million in cash from operating activities in the fourth quarter, with free cash flow amounting to $565 million. For the full year, cash from operating activities totaled $1,107 million, supporting $1.1 billion in total debt reduction during 2024.
The company's Tools & Outdoor segment saw net sales increase by 2% in the fourth quarter, driven by volume and organic revenue growth of 3%, while the Industrial segment experienced a 15% decrease in net sales. The Industrial segment's adjusted segment margin was 10.7%, compared to the prior year rate of 11.1%.
Stanley Black & Decker is executing a global cost reduction program that is expected to generate $2 billion of pre-tax run-rate cost savings by the end of 2025. Since the program's inception in mid-2022, the company has achieved approximately $1.5 billion in pre-tax run-rate cost savings and reduced inventory by over $2 billion.
Looking ahead to 2025, the company aims to achieve adjusted gross margins of historical 35%+ levels and deliver EBITDA expansion through organic growth and supply chain cost structure improvements. The company's planning assumption for 2025 EPS is $4.05 (+/ $0.65) on a GAAP basis and $5.25 (+/ $0.50) on an adjusted basis, with free cash flow targeted at $750 million (+/* $100 million).
The market has reacted to these announcements by moving the company's shares -4.5% to a price of $82.78. If you want to know more, read the company's complete 8-K report here.
