Stanley Black & Decker (SWK) shares tumbled 6.67% in pre-market trading on Tuesday following the release of its second-quarter 2025 financial results. The tool manufacturer reported lower-than-expected revenue and highlighted significant challenges from tariffs, overshadowing a better-than-anticipated adjusted earnings per share.

The company's Q2 revenue came in at $3.9 billion, falling short of the $4 billion estimated by analysts. This represents a 2% decrease compared to the same period last year, which the company attributed to a slow outdoor buying season and disruptions in shipments related to tariffs. Despite the revenue miss, Stanley Black & Decker posted an adjusted EPS of $1.08, significantly surpassing the IBES estimate of $0.41.

Looking ahead, Stanley Black & Decker provided a somber outlook for the full year 2025. The company expects an EPS impact of about $0.65 from timing and costs associated with tariff mitigation countermeasures. The gross annualized tariff impact is estimated to be approximately $800 million. As a result, the company revised its full-year 2025 outlook, projecting an EPS of -$0.65 and an adjusted EPS range of $1.1 to $1.3. Management emphasized ongoing efforts to strategically adjust costs and inventory while completing its supply chain transformation by 2025, which is expected to position the company for sustainable growth and long-term shareholder returns.