Stanley Black & Decker, Inc. · NYSE:SWK
Stanley Black & Decker — Investor Presentation (August 2025)
39 slides from Stanley Black & Decker's investor presentation, Aug 8, 2025
Slide 1: Investor Presentation
Investor Presentation Version 8.8.2025
Slide 2: Contents
Contents Contacts Dennis Lange SWK Overview Pages 4 – 17 Vice President, Investor Relations 860-827-3833 Tools & Outdoor Pages 18 – 25 [email protected] Engineered Fastening Pages 26 – 30 Christina Francis Director, Investor Relations Appendix Pages 31 – 39 860-438-3470 christina.francis@sbdin
Slide 3: Cautionary Statement
Cautionary Statement This Presentation contains “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 fact are “forward-look
Slide 4: We Are Now A More Focused Company
We Are Now A More Focused Company Well-Positioned Businesses In Attractive Industries That Are Forecasted To Grow Over A Multi-Year Period Businesses Tools & Outdoor A Worldwide Leader In Tools & Outdoor Key Industries Hand Tools, Accessories & Residential Power Tools Storage Group Construction ~28%
Slide 5: 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 OPTIMIZE MSD Organic Revenue* Innovation Corporate Structure Growth (2-3X Market
Slide 6: Solid Execution Against Our Operational Priorities Set In 2022
Solid Execution Against Our Operational Priorities Set In 2022 We Have Made Tangible Progress Against Our Strategy Despite Choppy Markets… 2019 2024 26% 30% 22% Trough >50% $2.6B $250M >$2B '2H22 '23 '24 Pre-Pandemic To Today Of Top 70 Leaders Adj. Gross Margin* Service Levels Revenue Divested Redep
Slide 7: Focused On Successful Completion Of The Transformation
Focused On Successful Completion Of The Transformation Building A Solid Foundation And Cultivating A Growth Culture: Operational Excellence | Share Growth | Balance Sheet Health Deliver Sustainable 35%+ Accelerate Our Organic Growth Engine Adjusted Gross Margins* Material Productivity Pro-Focused Ma
Slide 8: Building An Organic Growth Culture
Building An Organic Growth Culture Prioritizing & Protecting Investments For Brand Health & Acceleration Of Organic Growth Purposeful & Efficient Investments Adjusted SG&A* % Of Sales FY25 – FY27 Target Longer-Term Target ~21% To ~22% ~20% To ~21% Focused Innovation Marketplace Brands Capabilities A
Slide 9: Long Term Financial Targets - Multi-Year Vision Beyond 2027
Long Term Financial Targets - Multi-Year Vision Beyond 2027 We Believe There Is A Multi-Year Runway For Growth & Margin Accretion Beyond The Transformation Strategic Criteria Long-Term Value Creation Algorithm (Beyond 2027) Markets With An Attractive Revenue Growth: MSD Organic Growth* % (200-300bps
Slide 10: Capital Structure & Capital Deployment
Capital Structure & Capital Deployment Committed To Debt Reduction Disciplined Capital Deployment Priorities & Solid Investment Grade Credit Rating Focused On Achieving ≤ 2.5X Net Debt To Adj. EBITDA* 1 Transformation & Organic Growth Investments • Supported By Organic Cash Generation 2 Support A St
Slide 11: Returns Are A Key Measure Of Our Long Term Success
Returns Are A Key Measure Of Our Long Term Success We Are Focused On Improving Returns To ≥ Mid-Teens Level Cash Flow Return On Investment* Contributing Factors Asset Efficiency ≥Mid-Teens • Inventory Of 120-130 DSI 13.7% ~12% To ~13% • Disciplined CAPEX 8.9% 8.8% Margin Improvement & Growth • Trans
Slide 12: Why Invest?
Why Invest? We See Significant Value Creation Potential In The Short, Medium And Long-Term Well-Positioned In Attractive & Growing Industries COMPLETING ACTIVATING A GROWTH DEPLOYING CAPITAL TRANSFORMATION CULTURE WITH WITH DISCIPLINE OPERATIONS EXCELLENCE Earnings Power Consistent Share Gain Accret
Slide 13: 2025 Planning Assumptions
2025 Planning Assumptions
Slide 14: 2025 Planning Assumptions
2025 Planning Assumptions As Presented On 7.29.25 Earnings Call 2025 Planning Scenario Total Company Segments Total Revenue** VPY Flat To (-1%) Tools & Outdoor Currency & Divestitures VPY Net Neutral Organic Revenue* ~(-1%) Organic Revenue* Flat To (-1%) Adj. Segment Margin* Positive YoY Price +Mid
Slide 15: Strategy To Successfully Navigate Tariffs
Strategy To Successfully Navigate Tariffs As Presented On 7.29.25 Earnings Call Take Decisive Actions Designed To Position The Business For Success With A Focus On Achieving Our Long Term Financial Objectives, Including 35%+ Adjusted Gross Margins* Guiding Principles Mitigation Update Accelerating S
Slide 16: Planning Assumption Sensitivities Consistent With Prior Disclosure
Planning Assumption Sensitivities Consistent With Prior Disclosure Total Company U.S. Supply ~$6.8B U.S. Adjusted Cost Of Sales* Based On Country Of Origin** ~$2.9B - $3.0B U.S. ~$1.2B - $1.3B U.S. Volume Sensitivity (Annual Basis) Mexico ~$0.13 Adj. EPS* = 1-Point Of U.S. Volume ~$1.5B - $1.6B Rest
Slide 17: Currency Impact
Currency Impact 20% Currency Trends Vs. USD (12/30/22 – 6/30/2025) Hedging Approach 14% ~Flat 10% (-3%) (-3%) - Partially Hedge Key Currency 15% Exposures (CAD, EUR, GBP, & AUD, Among Other) - Intent Is To Dampen Volatility And 10% Allow Time For Business Teams To Mitigate Fluctuations With Cost & 5
Slide 18: Tools & Outdoor
Tools & Outdoor
Slide 19: A Global Leader In Tools & Outdoor
A Global Leader In Tools & Outdoor Five Brands Represent T&O 2024 Annual Revenue $13.3B ~80% Of Our T&O Segment Power Tools Hand Tools, Outdoor Power Group Accessories & Storage Equipment ~49% ~28% ~23% % Of 2024 Revenue T&O Total Addressable Market U.S. Europe 15% Represents >$100B 63% ROW 10% Emer
Slide 20: What It Takes To Win In The Tools & Outdoor Industry
What It Takes To Win In The Tools & Outdoor Industry Starting From A Position Of Strength… Iconic Brands Rapid Innovation Broad Channel & Operational Excellence Focused On Geographical Funds Growth End-User Needs Coverage …Building On This Solid Foundation To Accelerate Growth Investor Presentation
Slide 21: Innovation Addresses Professional End-User Needs
Innovation Addresses Professional End-User Needs Research Suggests >50% Of New Tool Purchasers Are Trading Up For Innovation… Safety Is Critical To A Product Quality Drives End Users Willing To Platform Integration | Productive Jobsite Reliability | Pay A Premium For Tech Enablement Uptime On The Jo
Slide 22: Focused Brands | Targeted Users
Focused Brands | Targeted Users Clear Differentiation Across Our Core Brands LEADERSHIP REPUTATION ACCOMPLISHMENT The World’s Most Resi Construction Ambitious Demanding Pros Professionals DIY Enthusiast Strengthen Focus Scale • Develop End-To-End • Products And Solutions • Win In DIY Verticals Workf
Slide 23: Elevating Our End-User Inspired Innovation Capabilities
Elevating Our End-User Inspired Innovation Capabilities Leading Technologies End-To-End Solutions Platforming Connected Ecosystems Core Technology Enablers Total Carpentry Solutions Drive Modular, Yet Provide End Users Safety Features Customizable Designs & Productivity Through Tool Product Platform
Slide 24: Enhance End-User Engagement
Enhance End-User Engagement Marketplace Activation Global Expansion Nordics & Southern Europe High Growth Eastern Europe Emerging Kingdom Of Saudi Arabia Core Markets Increasing Our Field Sales Customer Innovation And Support Center Revitalization Drive Growth In International Markets Access To End
Slide 25: Developing Supply Chain That Delivers Competitive Advantage
Developing Supply Chain That Delivers Competitive Advantage An Engine For Future Margin Expansion Innovation Network Strategy Material Productivity Service Excellence And Agility Leadership Excellence Fast, Reliable And Cost And Cash Efficiency + Supply Chain Program + Supplier Of Choice Efficient I
Slide 26: Engineered Fastening
Engineered Fastening
Slide 27: STANLEY Engineered Fastening
STANLEY Engineered Fastening A Global Leader In Fastening Systems Where We Play A Leading Supplier Of Fasteners, Tools, Systems & Revenue Industry Share Trend 2024 Services With A Total System Approach To Fastening & Joining Applications And Deep Engineering Expertise Automotive $1.0B $10B Blind & T
Slide 28: What We Do
What We Do We Aim To Solve The Most Critical Challenges Of Our Customers… Light Weighting Safety Productivity Automotive Aerospace Industrial Investor Presentation 28
Slide 29: How We Win
How We Win 1 Deeply Embedded Design Partnerships • Application Engineering & Manufacturing Expertise • Technology Leadership In Automation Striving For Zero Defects 2 Connected Value Streams • Combined Technology Drives Additional Customer Value • Clip → Stud → Equipment → Service → Spares 3 Leaders
Slide 30: Well-Positioned For Profitable Growth
Well-Positioned For Profitable Growth 200-300bps Above Market ~$2B Margin Expansion Levers AUTOMOTIVE Differentiated Products, Application Engineering Investment & Even Value Pricing & 80/20 Deeper Partnerships With Global NEV OEMs AEROSPACE Operational Excellence Evolve Innovation Engine & Differen
Slide 31: Appendix
Appendix 31
Slide 32: End Categories
End Categories Engineered End Categories - % Of Revenue* Tools & Outdoor SWK Fastening Existing Residential / Repair / DIY 0% 23% 20% New Residential Construction 0% 27% 24% Non-Resi. / Commercial Construction 0% 16% 14% Industrial & Automotive Repair 34% 11% 14% Automotive OEM 49% 0% 6% Aerospace 1
Slide 33: Geographic Reach
Geographic Reach Stanley Black & Decker Segments Tools & Outdoor Engineered Fastening* 9% 13% 10% 11% 12% 16% 16% 15% 52% 62% 21% 63% U.S. Europe Emerging Markets ROW Diversified Globally With 60%-65% Of Our Revenues Generated In The U.S. Percentages As Of Fiscal Year 2024 Totals Investor Presentati
Slide 34: Material Spend
Material Spend Direct Material Spend* Components Finished Goods 2024 ($M) Finished Goods 1,660 27% Components 3,430 56% Steel 370 6% Resin / Plastic Moldings 260 4% Packaging 250 4% Base Metals 160 3% $6,130 Top Three Raw Material Exposures (Finished Goods + Direct + Components) 1. Steel 2. Resin 3.
Slide 35: Liquidity
Liquidity Near Term Liquidity Sources Long-Term Debt Outstanding ($M) June 2025 Cash Position $0.3B Notes/Bonds Revolving Credit Facilities $3.5B O/S Total Near-Term Liquidity $3.8B 5-Year Agreement – June 2029 $2.25B * 364-Day Facility – June 2026 $1.25B Adequate Liquidity To Meet The Needs Of The
Slide 36: Non-GAAP & Other Financial Measures
Non-GAAP & Other Financial Measures This presentation may include the following Non-GAAP 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 cur
Slide 37: Reconciliation Of GAAP To Non-GAAP Measures
Reconciliation Of GAAP To Non-GAAP Measures 2H 2022 GAAP Non-GAAP Non-GAAP Gross Profit Adjustments Gross Profit $1,771.6 $1,793.6 $22.0 21.9% 22.1% FY 2023 GAAP Non-GAAP Non-GAAP Gross Profit Adjustments Gross Profit $ 3,932.6 $4,099.5 $166.9 24.9% 26.0% FY 2024 GAAP Non-GAAP Non-GAAP Gross Profit
Slide 38: Reconciliation Of GAAP To Non-GAAP Measures
Reconciliation Of GAAP To Non-GAAP Measures Investor Presentation 38
Slide 39: Investor Presentation
Investor Presentation StanleyBlack&Decker For those who make the world.”
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