Stanley Black & Decker Completes Sale of Consolidated Aerospace Manufacturing Business to Howmet Aerospace

Rhea-AI Summary

Stanley Black & Decker (NYSE: SWK) completed the sale of its Consolidated Aerospace Manufacturing (CAM) business to Howmet Aerospace for approximately $1.8 billion in cash on April 6, 2026. The company expects to receive about $1.57 billion net of taxes and fees and plans to use the proceeds to reduce debt and pursue a more dynamic capital allocation strategy.

Management said the transaction sharpens the companys portfolio focus on core businesses and aims to reach a target leverage of around 2.5x net debt to adjusted EBITDA by year-end, enabling additional shareholder-focused capital deployment.

Positive

• $1.57B net proceeds expected to reduce debt
• Targets ~2.5x net debt to adjusted EBITDA by year-end
• Proceeds enable more dynamic capital allocation for shareholders

Negative

• None.

News Market Reaction – SWK

-0.96%

-0.96% Session close to close

In the Apr 6 session, SWK declined 0.96%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement centers on portfolio focus and deleveraging. SWK completed the sale of its CAM bus...

Analysis

This announcement centers on portfolio focus and deleveraging. SWK completed the sale of its CAM business to Howmet for about $1.8 billion in cash and plans to use roughly $1.57 billion of net proceeds to reduce debt, aiming for a leverage ratio near 2.5x net debt to adjusted EBITDA by year-end. Investors may watch future updates on debt levels, leverage metrics, and how capital allocation priorities shift after this divestiture.

Key Figures

CAM sale value: $1.8 billion Net proceeds: $1.57 billion Target leverage ratio: 2.5x

3 metrics

CAM sale value $1.8 billion Cash consideration from sale of CAM business to Howmet Aerospace

Net proceeds $1.57 billion Net of taxes and fees, expected to be used to reduce debt

Target leverage ratio 2.5x Target net debt to adjusted EBITDA by year-end after transaction

Historical Context

5 past events · Latest: Mar 26 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Mar 26	Earnings call timing	Neutral	-2.8%	Announced date and webcast details for Q1 2026 earnings release.
Mar 10	Conference presentation	Neutral	-0.5%	Planned presentation at the 2026 J.P. Morgan Industrials Conference.
Feb 24	Dividend declaration	Neutral	-4.5%	Declared regular Q1 2026 cash dividend of $0.83 per common share.
Feb 12	Peer earnings (HWM)	Positive	-0.9%	Howmet reported record FY2025 results and announced CAM acquisition agreement.
Feb 11	Conference appearance	Neutral	-0.9%	Planned CEO presentation at Barclays Industrial Select Conference via webcast.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent SWK headlines, including dividends and conference appearances, were followed by modestly negative 1-day moves, suggesting a tendency toward weak near-term reactions even to neutral or shareholder-friendly news.

Recent Company History

Over the last few months, SWK’s news flow has centered on routine but shareholder-relevant updates. A $0.83 first-quarter 2026 dividend (payable Mar 24, 2026) and multiple conference appearances were each followed by small 1-day declines of between about -0.5% and -4.47%. An earnings release date announcement for Apr 29, 2026 also saw a negative price reaction. Against this backdrop, today’s CAM divestiture and debt-reduction focus fits an ongoing effort to refine strategy and capital allocation.

Key Terms

capital allocation, net debt, adjusted EBITDA, leverage ratio

4 terms

capital allocation financial

"Transaction Increases Financial Flexibility to Pursue More Dynamic Capital Allocation Strategy"

Capital allocation is the process of deciding how a company or individual uses their money to grow, pay bills, save, or invest. It matters because good decisions can help build wealth and ensure resources are used wisely, while poor choices can limit growth or cause financial problems. Think of it like managing your allowance—deciding whether to spend, save, or invest to meet your goals.

View in glossary

net debt financial

"target leverage ratio of at or around 2.5 times net debt to adjusted EBITDA by year end"

Net debt is the total amount a company owes after subtracting the cash and assets it has that can be used to pay off that debt. It shows how much debt is truly a burden, helping investors understand if a company is financially healthy or heavily borrowed. Think of it like calculating how much money you owe after using your savings to pay part of it.

View in glossary

adjusted EBITDA financial

"2.5 times net debt to adjusted EBITDA by year end"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

leverage ratio financial

"target leverage ratio of at or around 2.5 times net debt to adjusted EBITDA"

Leverage ratio measures how much a company relies on borrowed money compared with its own funds or assets, typically expressed as debt relative to equity or total assets. Like a homeowner with a mortgage, higher leverage can amplify returns when business is strong but also raises the chance of big losses or default if revenue falls, so investors use it to judge financial risk and resilience.

View in glossary

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Transaction Increases Financial Flexibility to Pursue More Dynamic Capital Allocation Strategy for Shareholder Value Creation  

NEW BRITAIN, Conn., April 6, 2026 /PRNewswire/ -- Stanley Black & Decker (NYSE: SWK) today announced that it has completed the previously announced sale of its Consolidated Aerospace Manufacturing ("CAM") business to Howmet Aerospace for approximately $1.8 billion in cash. Stanley Black & Decker expects to utilize the net proceeds from the transaction of approximately $1.57 billion (net of taxes and fees) to reduce debt.

Chris Nelson, Stanley Black & Decker's President & CEO, commented, "The successful sale of CAM further focuses our portfolio on our core businesses. The proceeds from this transaction are expected to significantly reduce our debt, positioning us to achieve our target leverage ratio of at or around 2.5 times net debt to adjusted EBITDA by year end, and enabling additional capital allocation opportunities. We remain committed to disciplined capital allocation and accelerating value creation for our shareholders.

"We would also like to recognize the CAM team for their dedication and outstanding contributions, which have been instrumental to our business success. As they now embark on their next chapter with Howmet Aerospace, we are confident they will continue to set new standards of excellence and continue to drive meaningful impact."

About Stanley Black & Decker
Founded in 1843 and headquartered in the USA, Stanley Black & Decker (NYSE: SWK) is a worldwide leader in Tools and Outdoor, operating manufacturing facilities globally. The Company's approximately 43,500 employees produce innovative end-user inspired power tools, hand tools, storage, digital jobsite solutions, outdoor and lifestyle products, and engineered fasteners to support the world's builders, tradespeople and DIYers. The Company's world class portfolio of trusted brands includes DEWALT®, CRAFTSMAN®, STANLEY®, BLACK+DECKER®, and Cub Cadet®. To learn more visit: www.stanleyblackanddecker.com or follow Stanley Black & Decker on Facebook, Instagram, LinkedIn and X.

Investor Contacts
Michael Wherley
Vice President, Investor Relations
michael.wherley@sbdinc.com
(860) 827-3833

Christina Francis
Senior Director, Investor Relations
christina.francis@sbdinc.com
(860) 438-3470

Media Contact
Debora Raymond
Vice President, Public Relations
debora.raymond@sbdinc.com
(203) 640-8054

Cautionary Note Regarding Forward-Looking Statements

Stanley Black & Decker makes forward-looking statements in this press release which represent its expectations or beliefs about future events and financial performance. Forward-looking statements are identifiable by words such as "believe," "anticipate," "expect," "intend," "plan," "will," "may" and other similar expressions. In addition, any statements that refer to expectations, projections, proceeds or other characterizations of future events or circumstances are forward-looking statements. Forward-looking statements made in this press release, include, but are not limited to, statements concerning: the Company's ability to maximize value to shareholders through active portfolio management and capital allocation; the impact of the transaction to fund debt reduction and achieve target leverage ratios within the time period estimated; the Company's capital allocation strategy including share repurchases; and taxes.

You are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements are not guarantees of future events and involve risks, uncertainties and other known and unknown factors that may cause actual results and performance to be materially different from any future results or performance expressed or implied by such forward-looking statements, including, but not limited to, the failure to realize the expected benefits of the Company's value creation, reduce debt,  achieve leverage ratio goals or undertake capital allocation strategies including share repurchases.

Forward-looking statements made herein are also subject to risks and uncertainties, described in Stanley Black & Decker's 2025 Annual Report on Form 10-K and other filings Stanley Black & Decker makes with the Securities and Exchange Commission. In addition, actual results could differ materially from those suggested by the forward-looking statements, and therefore you should not place undue reliance on the forward-looking statements. Stanley Black & Decker makes no commitment to revise or update any forward-looking statements to reflect events or circumstances occurring or existing after the date of any forward-looking statement.

View original content to download multimedia:https://www.prnewswire.com/news-releases/stanley-black--decker-completes-sale-of-consolidated-aerospace-manufacturing-business-to-howmet-aerospace-302734667.html

SOURCE Stanley Black & Decker, Inc.

FAQ

What did Stanley Black & Decker (SWK) announce on April 6, 2026 about CAM?

They completed the sale of the Consolidated Aerospace Manufacturing business for approximately $1.8 billion. According to the company, net proceeds are about $1.57 billion, intended to reduce debt and refocus the portfolio on core businesses.

How will the $1.57 billion net proceeds affect SWKs debt levels and leverage target?

The company expects to use the net proceeds to reduce debt and lower leverage. According to the company, this positions SWK to target roughly 2.5x net debt to adjusted EBITDA by year-end, improving financial flexibility.

Who bought SWKs CAM business and what was the purchase price reported by Stanley Black & Decker?

Howmet Aerospace acquired the CAM business for about $1.8 billion in cash. According to the company, net proceeds after taxes and fees are approximately $1.57 billion, earmarked for debt reduction and capital allocation.

What strategic purpose did Stanley Black & Decker cite for selling the CAM business (SWK)?

The company said the sale sharpens its portfolio focus on core businesses and creates financial flexibility. According to the company, proceeds will enable disciplined capital allocation and accelerate shareholder value creation.

Will the CAM sale change Stanley Black & Deckers capital allocation plans for shareholders (SWK)?

Yes. The company expects the transaction to enable more dynamic capital allocation and additional shareholder-focused actions. According to the company, reduced debt and improved leverage will support those allocation opportunities.