Stanley Black & Decker’s Margin Strategy: Can China Diversification Up Its Game?

Stanley Black & Decker’s third quarter 2025 results reflect a mixed performance with some positives and notable challenges. The company’s revenue for the quarter stood at $3.8 billion, marking a flat performance compared to the previous year, with an organic decline of 1%. This outcome was primarily driven by a 6% decline in volume, which offset a 5% increase in pricing. The DEWALT brand showed resilience with continued growth despite a weak consumer environment, indicating strong professional demand. However, overall, the consumer market remains soft. Adjusted gross margin improved to 31.6%, a 110 basis point increase year-over-year, thanks to effective pricing strategies and supply chain efficiencies. Nonetheless, this was partly offset by tariffs, lower volumes, and inflation. Despite these headwinds, Stanley Black & Decker maintained an adjusted EBITDA margin of 12.3%, reflecting a 150 basis point year-over-year improvement, underscoring disciplined execution in a dynamic environment.