Stanley Black & Decker Q4 Margins Rise 240bps, Mizuho Ups Target to $110
Mizuho raised Stanley Black & Decker’s price target to $110 from $90, citing solid execution and improved peer valuations. Q4 2025 net sales were $3.7 billion (-1% YoY) as gross margin climbed 240 bps to 33.2% and adjusted EPS reached $1.41, while the company agreed to sell its aerospace unit for $1.8 billion.
1. Price Target Raised to $110
Mizuho lifted Stanley Black & Decker’s price target to $110 from $90, maintaining an Outperform rating. The upgrade was based on the company’s solid execution and improving valuations across its peer group.
2. Q4 2025 Financial Performance
In Q4 2025, net sales reached $3.7 billion, down 1% year-over-year, with organic sales declining 3% amid softer demand. Gross margin improved by 240 basis points to 33.2%, adjusted gross margin hit 33.3%, and adjusted EPS rose to $1.41, supported by disciplined SG&A expense control.
3. Cash Generation Strength
Operating activities produced $956 million in cash, while free cash flow totaled $883 million, underscoring the company’s ability to generate liquidity despite a modest sales decline.
4. Aerospace Unit Divestiture
The company agreed to sell its Consolidated Aerospace Manufacturing business for $1.8 billion in cash, reflecting a strategic move to streamline its portfolio and focus on core tools, outdoor products and engineered fastening solutions.