Stanley Black & Decker (SWK) lifts 2026 EPS outlook after $1.8B CAM sale
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Stanley Black & Decker reported first quarter 2026 net sales of $3.85 billion, up 3% from a year earlier, with gross margin at 30.1% and GAAP EPS of $0.39 versus $0.60. Adjusted EPS was $0.80, reflecting restructuring, impairment and other charges.
The Tools & Outdoor segment grew sales 2% with an 8.3% margin, while Engineered Fastening sales rose 10% with margin expanding to 11.9%. EBITDA margin was 7.1% and adjusted EBITDA margin 9.2%, both below prior-year levels.
In April 2026, the company completed the sale of Consolidated Aerospace Manufacturing for $1.8 billion in cash, generating about $1.6 billion of net proceeds, largely used to reduce debt. For 2026, it raised GAAP EPS guidance to $4.15–$5.35 and reaffirmed adjusted EPS guidance of $4.90–$5.70, alongside projected free cash flow of $500–$700 million including CAM-related taxes and fees.
Positive
- Balance sheet strengthening and capital return capacity: Sale of Consolidated Aerospace Manufacturing for $1.8B in cash produced approximately $1.6B net proceeds, most of which has already been used to reduce debt in 2Q 2026, and management highlights potential share repurchases as a future capital allocation use.
- Significantly higher 2026 earnings outlook: The company now guides 2026 GAAP EPS to $4.15–$5.35 and continues to expect adjusted EPS of $4.90–$5.70, implying year-over-year growth of 79% and 13%, respectively, at the midpoints versus 2025 performance.
Negative
- Current-period earnings and margin compression: First quarter 2026 GAAP EPS declined to $0.39 from $0.60, EBITDA margin fell to 7.1% from 8.9%, and adjusted EBITDA margin eased to 9.2% from 9.7%, reflecting restructuring, an asset impairment, and softer profitability in some areas.
- Negative free cash flow in the quarter: Free cash flow before dividends was a use of $447.3 million in first quarter 2026, compared with a $485.0 million use a year earlier, indicating continued cash outflows ahead of the improved full-year free cash flow expectations.
Insights
Modest sales growth, margin pressure, but major deleveraging and stronger 2026 EPS outlook.
Stanley Black & Decker delivered 3% revenue growth to $3.85B in 1Q 2026, with Tools & Outdoor up 2% and Engineered Fastening up 10%. GAAP EPS fell to $0.39 while adjusted EPS improved to $0.80, helped by non-GAAP addbacks.
Profitability showed mixed trends: gross margin edged up to 30.1%, but EBITDA margin declined to 7.1%, and adjusted EBITDA margin slipped to 9.2%. Tools & Outdoor margins compressed, while Engineered Fastening margins expanded meaningfully, driven by aerospace and automotive strength.
The completed CAM divestiture for $1.8B in cash, yielding about $1.6B net proceeds largely used for debt reduction, is a key balance sheet event. Management raised 2026 GAAP EPS guidance to $4.15–$5.35 and reaffirmed adjusted EPS of $4.90–$5.70, plus free cash flow of $500–$700M. Subsequent filings may provide more detail on capital deployment, including planned share repurchases.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net sales 1Q 2026: $3,846.4M
GAAP EPS 1Q 2026: $0.39
Adjusted EPS 1Q 2026: $0.80
+5 more
8 metrics
Net sales 1Q 2026
$3,846.4M
First quarter 2026 vs $3,744.6M in first quarter 2025
GAAP EPS 1Q 2026
$0.39
Diluted EPS vs $0.60 in first quarter 2025
Adjusted EPS 1Q 2026
$0.80
Non-GAAP diluted EPS vs $0.75 in first quarter 2025
CAM sale price and net proceeds
$1.8B sale, ~$1.6B net proceeds
Consolidated Aerospace Manufacturing sale to Howmet Aerospace in 2Q 2026
2026 GAAP EPS guidance
$4.15–$5.35
Represents 79% year-over-year growth at midpoint vs 2025
2026 adjusted EPS guidance
$4.90–$5.70
Represents 13% year-over-year growth at midpoint vs 2025
2026 free cash flow guidance
$500–$700M (incl. CAM taxes/fees)
Excluding such payments: $700–$900M, consistent with prior guidance
EBITDA and adjusted EBITDA margins
7.1% EBITDA, 9.2% adjusted EBITDA
First quarter 2026 vs 8.9% and 9.7% in first quarter 2025
Key Terms
adjusted EPS, free cash flow, EBITDA margin, organic revenue, +2 more
6 terms
adjusted EPS financial
"EPS of $0.39; adjusted EPS* of $0.80"
Adjusted earnings per share (adjusted eps) is a measure of a company's profit per share that has been modified to exclude certain one-time or unusual items, such as costs from restructuring or asset sales. It provides a clearer picture of the company’s core performance by removing events that may distort the usual earnings. Investors use adjusted eps to better understand a company's ongoing profitability and compare it more accurately over time.
free cash flow financial
"Free cash flow* is expected to be in the range of $500 to $700 million"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
EBITDA margin financial
"EBITDA margin* was 7.1%, a decrease of 180 basis points"
EBITDA margin is the share of each dollar of sales that a company keeps as operating cash profit before interest, taxes, and accounting for equipment wear and long-term investments. Think of it like the cash a store has left from every sale after paying day-to-day running costs but before paying rent, loan interest or replacing old machinery. Investors use it to compare core profitability and operational efficiency across companies by removing financing and accounting differences.
organic revenue financial
"Organic revenue* decreased by 1%, primarily due to lower retail volumes in North America."
Organic revenue is the sales a company generates from its regular business activities after stripping out extra effects like revenue added or lost from buying or selling other businesses and from currency swings. Think of it as measuring how much a store’s own customers increased spending, not growth from opening new stores or temporary price moves; investors use it to judge the true strength and sustainability of a company’s core demand.
Non-GAAP financial measures financial
"Non-GAAP financial measure as further defined on page 5"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
footprint rationalization financial
"Footprint Rationalization costs in 2026 and 2025 primarily relate to site transformation"
Earnings Snapshot
Net sales: $3,846.4M · Guidance included
First quarter 2026
Net sales
$3,846.4M
vs $3,744.6M in first quarter 2025
GAAP diluted EPS
$0.39
vs $0.60 in first quarter 2025
Adjusted diluted EPS
$0.80
vs $0.75 in first quarter 2025
EBITDA margin
7.1%
vs 8.9% in first quarter 2025
Adjusted EBITDA margin
9.2%
vs 9.7% in first quarter 2025
Guidance
For 2026, GAAP EPS guidance is $4.15–$5.35, adjusted EPS guidance is $4.90–$5.70, and free cash flow is expected at $500–$700M including CAM divestiture taxes and fees.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): April 29, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
(Address of principal executive offices, including Zip Code)
Registrant’s telephone number, including area code: (860 ) 225-5111
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title Of Each Class | Trading Symbols | Name Of Each Exchange On Which Registered | |||||||||||||||
| - $2.50 Par Value per Share | |||||||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02 Results of Operations and Financial Condition
On April 29, 2026, Stanley Black & Decker, Inc. issued a press release announcing first quarter 2026 results.
Item 9.01 Financial Statements and Exhibits.
(a) Not applicable
(b) Not applicable
(c) Not applicable
(d) Exhibits
99.1 Press release dated April 29, 2026, issued by Stanley Black & Decker, Inc.
99.2 Financial statements and supporting schedules contained in Stanley Black & Decker, Inc.'s April 29, 2026 press release.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Stanley Black & Decker, Inc. | |||||||||||
| April 29, 2026 | By: | /s/ Patrick Hallinan | |||||||||
| Name: | Patrick Hallinan | ||||||||||
| Title: | Executive Vice President, Chief Financial Officer & Chief Administrative Officer | ||||||||||
Exhibit Index
| Exhibit No. | Description | ||||
| 99.1 | Press release dated April 29, 2026, issued by Stanley Black & Decker, Inc. | ||||
| 99.2 | Financial statements and supporting schedules contained in Stanley Black & Decker, Inc.'s April 29, 2026 press release. | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | ||||
Exhibit 99.1
Stanley Black & Decker Reports Strong 1Q 2026 Results
Sales, Margin, and Cash1 On-Track to Achieve Full Year Targets
2Q’26 Aerospace Fasteners Sale Delivers ~$1.6B Net Proceeds;
Bolsters Balance Sheet and Fuels Capital Deployment
Raises 2026 GAAP EPS Guidance on Expected 2Q’26 CAM Gain;
Reaffirms 2026 Adjusted EPS Guidance
New Britain, Connecticut, April 29, 2026 … Stanley Black & Decker (NYSE: SWK), a global leader in tools and outdoor solutions, today announced first quarter 2026 financial results.
First Quarter 2026 Highlights
•Net sales of $3.8 billion, up 3% versus prior year and flat on an organic basis*
•Gross margin of 30.1%, up 20 basis points versus prior year; adjusted gross margin* of 30.2%, down 20 basis points versus prior year
•EPS of $0.39; adjusted EPS* of $0.80
Chris Nelson, Stanley Black & Decker's President & CEO, commented, “Stanley Black & Decker entered 2026 with unwavering commitment to our strategic priorities, and we delivered stronger than planned first quarter results through disciplined execution. Our team’s focus and resilience ensured that sales, gross margin, and cash1 performance remain firmly on track with our full year plan. I am proud of our team for maintaining their customer-centric approach and for advancing our vision to build a world-class branded industrial company.
“We are confident in our strategy and our ability to achieve our long-term financial goals, even amid global economic uncertainty. By protecting and advancing targeted, strategic investments, we are positioning Stanley Black & Decker for sustainable, profitable growth and continued value creation for our shareholders.”
1Q 2026 Results (all comparisons versus prior year)
•Net sales of $3.8 billion, up 3%, as higher price (+3%) and currency (+3%) were partially offset by lower volume (-3%). The volume decline was primarily due to retail softness in North America.
•Gross margin of 30.1%, up 20 basis points, and adjusted gross margin* of 30.2%, down 20 basis points. Delivered approximately flat gross margins – in-line with expectations – as operational cost improvements and higher
1 Refer to “2026 Guidance” on page 3 for further discussion and details of underlying planning assumptions
*Non-GAAP financial measure as further defined on page 5
1
Exhibit 99.1
pricing were largely offset by increased tariff expense, volume deleverage, and other inflation.
•SG&A expenses of 23.0% of sales, down 20 basis points, and adjusted SG&A expenses* of 22.8%, up 20 basis points. Delivered approximately flat performance as strategic growth investments were balanced by disciplined and targeted cost management.
•The tax rate was 29.7% and the adjusted tax rate* was 26.3%.
•Net earnings were 1.5% of sales, a decrease of 90 basis points. EBITDA margin* was 7.1%, a decrease of 180 basis points, and adjusted EBITDA margin* was 9.2%, a decrease of 50 basis points.
1Q 2026 Segment Results
| ($ in M) | Sales | Segment Profit | Charges1 | Adj. Segment Profit* | Segment Margin | Adj. Segment Margin* | ||||||||||||||
| Tools & Outdoor | $3,336 | $276.0 | $12.6 | $288.6 | 8.3% | 8.7% | ||||||||||||||
| Engineered Fastening | $511 | $60.9 | $0.2 | $61.1 | 11.9% | 12.0% | ||||||||||||||
1 See Non-GAAP adjustments on page 13.
Tools & Outdoor net sales were up 2% year over year, as higher pricing (+4%) and currency (+3%) were partially offset by volume declines (-5%). Organic revenue* decreased by 1%, primarily due to lower retail volumes in North America. This decline was mostly offset by increased sell-in ahead of the outdoor product Spring season, strong performance in prioritized international markets, and higher rates of professional conversions within the U.S. commercial & industrial channel. North America sales were down 1% on a total basis and down 2% organically*, Europe increased by 11% on a total basis and was positive 1% organically*, while the Rest of World was up 6% on a total basis and flat organically*. The Tools & Outdoor segment margin was 8.3%, down 50 basis points year over year. Adjusted segment margin* was 8.7%, down 90 basis points. These margin declines were predominantly due to growth investments, and greater sales volume of lower-margin outdoor products. Higher pricing was largely offset by increased tariff expenses.
Engineered Fastening net sales were up 10% year over year, as strong volume (+6%), pricing (+1%) and currency (+3%) all contributed to growth. Organic revenues* were up 7%, driven by robust aerospace growth and automotive outperforming the market. These gains were partially offset by a decline in industrial volume. The Engineered Fastening segment margin was 11.9%, up 350
*Non-GAAP financial measure as further defined on page 5
2
Exhibit 99.1
basis points year over year, and adjusted segment margin* was 12.0%, up 190 basis points year over year. These substantial margin expansions were driven by improved profitability in aerospace, and higher volume and mix in automotive.
Completion of CAM Sale Enables Meaningful Debt Reduction and Capital Allocation Opportunities
On April 6 (2Q'26), the Company successfully completed the previously announced sale of Consolidated Aerospace Manufacturing (‘CAM’) to Howmet Aerospace for $1.8 billion in cash. Net proceeds from the transaction were approximately $1.6 billion (net of projected taxes and fees). The vast majority of the proceeds have already been used to reduce debt in 2Q 2026. The results of CAM remained in continuing operations until the deal closed.
Patrick Hallinan, EVP, Chief Financial Officer & Chief Administrative Officer, commented, “We made solid progress in the first quarter to deliver sales, margin and cash1 in line with our full year plan. We achieved this progress, despite ongoing macroeconomic challenges, driven by the commitment of our teams around the world. At the same time, the CAM transaction has sharpened our focus on our core business; it now allows us to pursue capital allocation that accelerates shareholder value creation, which we expect to take the form of share repurchases.
“Looking forward, we remain firmly committed to executing our strategic plans to deliver on our near-term and long-term margin and cash flow objectives, while enhancing our earnings power to position the Company for long-term growth and value creation.”
2026 Guidance
The Company now expects 2026 GAAP EPS to be in the range of $4.15 to $5.35, which is higher than prior guidance factoring in the expected gain on the sale of CAM now that the transaction has closed. The Company continues to expect adjusted EPS* in the range of $4.90 to $5.70. These ranges represent year over year growth of 79% and 13%, respectively, at the midpoint of each range as compared to 2025 performance. The updated guidance excludes CAM results as of April 6, 2026. Free cash flow* is expected to be in the range of $500 to $700 million, now including projected taxes and fees associated with the recently closed CAM divestiture. Excluding such payments, free cash flow* is expected to be in the range of $700 to $900 million, consistent with prior guidance. The Company will discuss underlying assumptions on the earnings call.
The difference between the GAAP and Adjusted EPS* assumption range is approximately $0.35 to $0.75, consisting primarily of charges related to footprint actions and other cost actions, largely offset by the estimated gain on the sale of the CAM business.
1 Refer to “2026 Guidance” on page 3 for further discussion and details of underlying planning assumptions
*Non-GAAP financial measure as further defined on page 5
3
Exhibit 99.1
1Q 2026 Non-GAAP Adjustments
Total pre-tax non-GAAP adjustments in the first quarter were $81.0 million, primarily related to restructuring costs, a non-cash asset impairment charge, and costs associated with footprint actions. Gross profit and SG&A included $5.2 million and $7.7 million of charges, respectively, while Other-net included a net benefit of $2.6 million. The Company also recorded restructuring charges of $44.9 million and an asset impairment charge of $22.7 million. In addition, the Company recognized a $3.1 million loss on the sale of a small business in the Tools & Outdoor segment.
Earnings Webcast
Stanley Black & Decker will host a webcast with investors today, April 29, 2026, at 8:00 am ET. A slide presentation, which will accompany the call, will be available on the "Investors" section of the Company’s website at www.stanleyblackanddecker.com/investors and will remain available after the call.
The call will be available through a live, listen-only webcast or teleconference. Links to access the webcast, register for the teleconference, and view the accompanying slide presentation will be available on the "Investors" section of the Company’s website, www.stanleyblackanddecker.com/investors under the subheading "News & Events." A replay will be available at the same location, approximately two hours after the call.
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.
4
Exhibit 99.1
Investor Contacts:
Michael Wherley | Christina Francis | ||||
Vice President, Investor Relations | Senior Director, Investor Relations | ||||
michael.wherley@sbdinc.com | christina.francis@sbdinc.com | ||||
(860) 827-3833 | (860) 438-3470 | ||||
Media Contacts:
Debora Raymond | ||
| Vice President, Public Relations | ||
| debora.raymond@sbdinc.com | ||
(203) 640-8054 | ||
Non-GAAP Financial 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, foreign currency fluctuations, transfers of product lines between segments, and outdoor product line exits (as previously communicated). Organic revenue growth, organic sales growth or organic growth is organic revenue or organic sales divided by prior year sales. Gross profit is defined as sales less cost of sales. Gross margin is gross profit as a percent of sales. Segment profit is defined as sales less cost of sales and selling, general and administrative (“SG&A”) expenses (aside from corporate overhead expense). Segment margin is segment profit as a percent of sales. EBITDA is earnings before interest, taxes, depreciation and amortization. EBITDA margin is EBITDA as a percent of sales. Gross profit, gross margin, SG&A, segment profit, segment margin, earnings, EBITDA and EBITDA margin are adjusted for certain gains and charges, such as costs related to supply chain transformation and footprint actions, asset impairments, voluntary retirement program costs, divestiture-related items, restructuring, gains or losses on sales of businesses, and other adjusting items. Income taxes attributable to Non-GAAP adjustments are determined by calculating income taxes on pre-tax earnings, both inclusive and exclusive of Non-GAAP adjustments, taking into consideration the nature of the Non-GAAP adjustments and the applicable statutory income tax rates.
Management uses these metrics as key measures to assess the performance of the Company as a whole, as well as the related measures at the segment level. Adjusted earnings per share or adjusted EPS, is diluted GAAP EPS excluding certain gains and charges. Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important indicator of its liquidity, as well as its ability to fund future growth and to provide a return to the shareowners and is useful information for investors. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company’s common stock and business acquisitions, among other items. Free cash flow conversion is defined as free cash flow divided by net income. Net debt to adjusted EBITDA is total debt less cash on hand divided by adjusted EBITDA. The Non-GAAP financial measures are reconciled to GAAP on pages 12 through 15 and in the appendix to the earnings conference call slides available at http://www.stanleyblackanddecker.com/investors. The Company considers the use of the Non-GAAP financial measures above relevant to aid analysis and understanding of the Company’s results, business trends and outlook measures aside from the material impact of certain gains and charges and ensures appropriate comparability to operating results of prior periods.
The Company provides expectations for the non-GAAP financial measures of full year 2026 adjusted EPS, presented on a basis excluding certain gains and charges, as well as 2026 free cash flow. Forecasted full-year 2026 adjusted EPS is reconciled to forecasted full-year 2026 GAAP EPS under “2026 Guidance”. Consistent with past methodology, the forecasted full-year 2026 GAAP EPS excludes the impacts of potential acquisitions and divestitures (unless otherwise noted), future regulatory changes or strategic shifts that could impact the Company's contingent liabilities or intangible assets, respectively, potential future cost actions in response to external factors that have not yet occurred, and any other items not specifically referenced under “2026 Guidance”. A reconciliation of forecasted free cash flow to its most
5
Exhibit 99.1
directly comparable GAAP estimate is not available without unreasonable effort due to high variability and difficulty in predicting items that impact cash flow from operations, which could be material to the Company’s results in accordance with U.S. GAAP. The Company believes such a reconciliation would also imply a degree of precision that is inappropriate for this forward-looking measure.
The Company may also provide multi-year strategic goals for the non-GAAP financial measures of adjusted gross margin and net debt to adjusted EBITDA, presented on a basis excluding certain gains and charges. A reconciliation for these non-GAAP measures is not available without unreasonable effort due to the inherent difficulty of forecasting the timing and/or amount of various items that have not yet occurred, including the high variability and low visibility with respect to certain gains or charges that would generally be excluded from non-GAAP financial measures and which could be material to the Company’s results in accordance with U.S. GAAP. Additionally, estimating such GAAP measures and providing a meaningful reconciliation consistent with the Company’s accounting policies for future periods requires a level of precision that is unavailable for these future multi-year periods and cannot be accomplished without unreasonable effort. The Company believes such a reconciliation would also imply a degree of precision that is inappropriate for these forward-looking measures.
CAUTIONARY STATEMENT
CONCERNING FORWARD-LOOKING STATEMENTS
This document 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 statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including, but not limited to, any goals, projections, guidance or planning assumptions or scenarios; any statements of the plans, strategies and objectives of management for future operations, including expectations around productivity and efficiency goals and future operational strategies; any statements regarding future economic conditions or performance; any statements concerning future dividends or share repurchases; any statements and assumptions or scenarios regarding possible tariff and tariff impact projections, including those relating to Section 232 tariffs, tariff refunds and related mitigation plans (including price actions, supply chain adjustments and expected timing and benefits related to such plans); the impact of the CAM sale transaction to fund debt reduction and achieve target leverage ratios within the time period estimated; and any statements of assumptions underlying any of the foregoing. Forward-looking statements may include, among others, the words “may,” “will,” “estimate,” “intend,” “could,” “project,” “plan,” “continue,” “believe,” “expect,” “anticipate”, “run-rate”, “annualized”, “forecast”, “commit”, “goal”, “target”, “design”, “on track”, “position or positioning”, “guidance,” “aim,” “looking forward,” “multi-year” or any other similar words. Although the Company believes that the expectations reflected in any of its forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of its forward-looking statements. The Company's future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, such as those disclosed or incorporated by reference in the Company's filings with the Securities and Exchange Commission.
Important factors that could cause the Company's actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in its forward-looking statements include, among others, the following: (i) successfully developing, marketing and achieving sales from new products and services and the continued acceptance of current products and services as well as successful execution of, and realization of expected benefits from, the Company’s brand prioritization and investment strategy; (ii) macroeconomic factors, including global and regional business conditions, commodity availability and prices, inflation and deflation, interest rate volatility, currency exchange rates, and uncertainties in the global financial markets; (iii) laws, regulations and governmental policies affecting the Company's activities in the countries where it does business or sources supply inputs, including those related to, taxation, data privacy, anti-bribery, anti-corruption, government contracts, and trade controls, including but not limited to, tariffs, import and export controls, raw material and rare earth related controls and other monetary and non-monetary trade regulations or barriers; (iv) the Company’s ability to predict the timing and extent of any trade related regulations (or any court rulings in response thereto), clearances, restrictions or policies, including but not limited to, trade barriers, tariffs, raw material and rare earth related controls, as well as its ability to successfully assess the impact to its business of, and mitigate or respond to, such macroeconomic or trade, tariff and raw material and rare earth import/export control changes, regulations or policies (including, but not limited to, the Company’s ability to predict and respond to court rulings in response thereto, to obtain any tariff refunds in amounts or within timeframes that would meaningfully offset the impact of tariffs on the Company’s business, or to obtain price increases from its customers and complete effective supply chain adjustments within anticipated time frames
6
Exhibit 99.1
and ability to obtain rare earth related supply clearances); (v) realizing the anticipated benefits of mergers, acquisitions, joint ventures, strategic alliances or divestitures and the costs associated with such transactions; (vi) pricing pressure and other changes within competitive markets; (vii) availability and price of raw materials, rare earth materials, component parts, freight, energy, labor and sourced finished goods; (vii) potential business, supply chain and distribution disruptions, including those related to physical security threats, information technology or cyber-attacks, epidemics, natural disasters or pandemics, sanctions, political unrest, war or terrorism, including the conflicts between Russia and Ukraine, and Israel and Hamas, and tensions or conflicts in South Korea, China, Taiwan and the Middle East (including the ongoing conflict in Iran); (viii) potential adverse developments in new or pending litigation and/or government investigations; (ix) potential regulatory liabilities, including environmental, privacy, data breach, workers compensation and product liabilities; (x) failure to realize the expected benefits of the Company’s value creation, debt reduction and capital allocation strategy; (xi) and the other factors set forth in the Annual Report on Form 10-K and in the Quarterly Reports on Form 10-Q, including under the headings “Risk Factors,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in the Consolidated Financial Statements and the related Notes, and other filings with the Securities and Exchange Commission.
Forward-looking statements, and the factors that could cause actual results to differ materially from those forward-looking statements, in this press release speak only as of the date hereof, and forward-looking statements in documents that are incorporated by reference herein speak only as of the date of those documents. The Company does not undertake any obligation or intention to update or revise any forward-looking statements, except as required by law.
7
Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, Millions of Dollars Except Per Share Amounts)
| FIRST QUARTER | |||||||||||
| 2026 | 2025 | ||||||||||
| NET SALES | $ | 3,846.4 | $ | 3,744.6 | |||||||
| COSTS AND EXPENSES | |||||||||||
| Cost of sales | 2,689.1 | 2,623.8 | |||||||||
| Gross profit | 1,157.3 | 1,120.8 | |||||||||
| % of Net Sales | 30.1 | % | 29.9 | % | |||||||
| Selling, general and administrative | 884.0 | 867.0 | |||||||||
| % of Net Sales | 23.0 | % | 23.2 | % | |||||||
| Other - net | 41.9 | 47.5 | |||||||||
| Loss on sale of business | 3.1 | 0.3 | |||||||||
| Asset impairment charges | 22.7 | — | |||||||||
| Restructuring charges | 44.9 | 1.2 | |||||||||
| Income from operations | 160.7 | 204.8 | |||||||||
| Interest - net | 75.9 | 77.2 | |||||||||
| EARNINGS BEFORE INCOME TAXES | 84.8 | 127.6 | |||||||||
| Income taxes | 25.2 | 37.2 | |||||||||
| NET EARNINGS | $ | 59.6 | $ | 90.4 | |||||||
| EARNINGS PER SHARE OF COMMON STOCK | |||||||||||
| Basic | $ | 0.39 | $ | 0.60 | |||||||
| Diluted | $ | 0.39 | $ | 0.60 | |||||||
| DIVIDENDS PER SHARE OF COMMON STOCK | $ | 0.83 | $ | 0.82 | |||||||
| WEIGHTED-AVERAGE SHARES OUTSTANDING (in thousands) | |||||||||||
| Basic | 151,759 | 151,028 | |||||||||
| Diluted | 152,389 | 151,699 | |||||||||
8
Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, Millions of Dollars)
| April 4, 2026 | January 3, 2026 | |||||||||||||
| ASSETS | ||||||||||||||
| Cash and cash equivalents | $ | 333.7 | $ | 280.1 | ||||||||||
| Accounts and notes receivable, net | 1,438.4 | 919.7 | ||||||||||||
| Inventories, net | 4,059.0 | 4,157.1 | ||||||||||||
| Current assets held for sale | 271.5 | 262.4 | ||||||||||||
| Other current assets | 404.2 | 359.7 | ||||||||||||
| Total current assets | 6,506.8 | 5,979.0 | ||||||||||||
| Property, plant and equipment, net | 1,763.1 | 1,831.8 | ||||||||||||
| Goodwill and other intangibles, net | 10,325.3 | 10,374.8 | ||||||||||||
| Long-term assets held for sale | 1,279.5 | 1,273.9 | ||||||||||||
| Other assets | 1,725.1 | 1,784.2 | ||||||||||||
| Total assets | $ | 21,599.8 | $ | 21,243.7 | ||||||||||
| LIABILITIES AND SHAREOWNERS’ EQUITY | ||||||||||||||
| Short-term borrowings | $ | 1,743.0 | $ | 605.6 | ||||||||||
| Current maturities of long-term debt | 54.2 | 554.8 | ||||||||||||
| Accounts payable | 2,220.1 | 2,163.0 | ||||||||||||
| Accrued expenses | 1,642.5 | 1,878.1 | ||||||||||||
| Current liabilities held for sale | 56.8 | 44.2 | ||||||||||||
| Total current liabilities | 5,716.6 | 5,245.7 | ||||||||||||
| Long-term debt | 4,704.0 | 4,703.3 | ||||||||||||
| Long-term liabilities held for sale | 9.7 | 9.4 | ||||||||||||
| Other long-term liabilities | 2,192.8 | 2,230.7 | ||||||||||||
| Shareowners’ equity | 8,976.7 | 9,054.6 | ||||||||||||
| Total liabilities and shareowners' equity | $ | 21,599.8 | $ | 21,243.7 | ||||||||||
9
Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
SUMMARY OF CASH FLOW ACTIVITY
(Unaudited, Millions of Dollars)
| FIRST QUARTER | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| OPERATING ACTIVITIES | ||||||||||||||
| Net earnings | $ | 59.6 | $ | 90.4 | ||||||||||
| Depreciation | 84.4 | 91.1 | ||||||||||||
| Amortization | 28.6 | 37.3 | ||||||||||||
| Loss on sale of business | 3.1 | 0.3 | ||||||||||||
| Asset impairment charges | 22.7 | — | ||||||||||||
Changes in working capital1 | (388.8) | (469.0) | ||||||||||||
| Other | (198.4) | (170.1) | ||||||||||||
| Net cash used in operating activities | (388.8) | (420.0) | ||||||||||||
| INVESTING AND FINANCING ACTIVITIES | ||||||||||||||
| Capital and software expenditures | (58.5) | (65.0) | ||||||||||||
| Payments on long-term debt | (500.1) | (500.0) | ||||||||||||
| Net short-term commercial paper borrowings | 1,145.4 | 1,136.2 | ||||||||||||
| Cash dividends on common stock | (126.0) | (124.5) | ||||||||||||
| Other | (8.1) | (2.4) | ||||||||||||
| Net cash provided by investing and financing activities | 452.7 | 444.3 | ||||||||||||
| Effect of exchange rate changes on cash | (6.9) | 31.5 | ||||||||||||
| Increase in cash, cash equivalents and restricted cash | 57.0 | 55.8 | ||||||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 287.4 | 292.8 | ||||||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 344.4 | $ | 348.6 | ||||||||||
Free Cash Flow Computation2 | ||||||||||||||
| Net cash used in operating activities | $ | (388.8) | $ | (420.0) | ||||||||||
| Less: capital and software expenditures | (58.5) | (65.0) | ||||||||||||
| Free cash flow (before dividends) | $ | (447.3) | $ | (485.0) | ||||||||||
| Reconciliation of Cash, Cash Equivalents and Restricted Cash | ||||||||||||||
| April 4, 2026 | January 3, 2026 | |||||||||||||
| Cash and cash equivalents | $ | 333.7 | $ | 280.1 | ||||||||||
| Restricted cash included in Other current assets | 9.2 | 7.3 | ||||||||||||
| Cash and cash equivalents included in Current assets held for sale | 1.5 | — | ||||||||||||
| Cash, cash equivalents and restricted cash | $ | 344.4 | $ | 287.4 | ||||||||||
1 | Working capital is comprised of accounts receivable, inventory, accounts payable and deferred revenue. | |||||||||||||
2 | Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important measure of its liquidity, as well as its ability to fund future growth and to provide a return to the shareowners, and is useful information for investors. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company’s common stock and business acquisitions, among other items. | |||||||||||||
10
Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION
(Unaudited, Millions of Dollars)
| FIRST QUARTER | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| NET SALES | ||||||||||||||
| Tools & Outdoor | $ | 3,335.6 | $ | 3,280.9 | ||||||||||
Engineered Fastening1 | 510.8 | 463.7 | ||||||||||||
| Total | $ | 3,846.4 | $ | 3,744.6 | ||||||||||
SEGMENT PROFIT 2 | ||||||||||||||
| Tools & Outdoor | $ | 276.0 | $ | 289.2 | ||||||||||
Engineered Fastening1 | $ | 60.9 | $ | 39.0 | ||||||||||
CORPORATE OVERHEAD 2 | $ | (63.6) | $ | (74.4) | ||||||||||
| Segment Profit as a Percentage of Net Sales | ||||||||||||||
| Tools & Outdoor | 8.3 | % | 8.8 | % | ||||||||||
Engineered Fastening1 | 11.9 | % | 8.4 | % | ||||||||||
1 | On April 6, 2026, the Company completed the previously announced sale of its Consolidated Aerospace Manufacturing (“CAM”) business. Based on management’s commitment to sell this business, the assets and liabilities related to CAM were classified as held for sale on the Company’s Condensed Consolidated Balance Sheets as of April 4, 2026 and January 3, 2026. For the three months ended April 4, 2026, net sales and segment profit for Engineered Fastening included $117.0 million and $22.0 million, respectively, related to the CAM business. | |||||||||||||
2 | Segment profit is defined as net sales minus cost of sales and SG&A (aside from corporate overhead expenses). The corporate overhead element of SG&A, which is not allocated to the business segments for purposes of determining segment profit, consists of the costs associated with the executive management team and expenses related to centralized functions that benefit the entire Company but are not directly attributable to the business segments, such as legal and corporate finance functions, as well as expenses for the world headquarters facility. | |||||||||||||
11
Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars Except Per Share Amounts)
| FIRST QUARTER 2026 | |||||||||||||||||||||||
| GAAP | Non-GAAP Adjustments | Non-GAAP1 | |||||||||||||||||||||
| Gross profit | $ | 1,157.3 | $ | 5.2 | $ | 1,162.5 | |||||||||||||||||
| % of Net Sales | 30.1 | % | 30.2 | % | |||||||||||||||||||
| Selling, general and administrative | 884.0 | (7.7) | 876.3 | ||||||||||||||||||||
| % of Net Sales | 23.0 | % | 22.8 | % | |||||||||||||||||||
| Earnings before income taxes | 84.8 | 81.0 | 165.8 | ||||||||||||||||||||
Income taxes2 | 25.2 | 18.4 | 43.6 | ||||||||||||||||||||
| Net earnings | 59.6 | 62.6 | 122.2 | ||||||||||||||||||||
| Diluted earnings per share of common stock | $ | 0.39 | $ | 0.41 | $ | 0.80 | |||||||||||||||||
| FIRST QUARTER 2025 | |||||||||||||||||||||||
| GAAP | Non-GAAP Adjustments | Non-GAAP1 | |||||||||||||||||||||
| Gross profit | $ | 1,120.8 | $ | 16.7 | $ | 1,137.5 | |||||||||||||||||
| % of Net Sales | 29.9 | % | 30.4 | % | |||||||||||||||||||
| Selling, general and administrative | 867.0 | (22.0) | 845.0 | ||||||||||||||||||||
| % of Net Sales | 23.2 | % | 22.6 | % | |||||||||||||||||||
| Earnings before income taxes | 127.6 | 31.5 | 159.1 | ||||||||||||||||||||
Income taxes2 | 37.2 | 7.5 | 44.7 | ||||||||||||||||||||
| Net earnings | 90.4 | 24.0 | 114.4 | ||||||||||||||||||||
| Diluted earnings per share of common stock | $ | 0.60 | $ | 0.15 | $ | 0.75 | |||||||||||||||||
1 | The Non-GAAP 2026 and 2025 information, as reconciled to GAAP above, is considered relevant to aid analysis and understanding of the Company’s results and business trends aside from the material impact of certain gains and charges and ensures appropriate comparability to operating results of prior periods. See further detail on Non-GAAP adjustments on page 14. | ||||||||||||||||||||||
2 | Income taxes attributable to Non-GAAP adjustments are determined by calculating income taxes on pre-tax earnings, both inclusive and exclusive of Non-GAAP adjustments, taking into consideration the nature of the Non-GAAP adjustments and the applicable statutory income tax rates. | ||||||||||||||||||||||
12
Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars)
| FIRST QUARTER 2026 | |||||||||||||||||||||||
| GAAP | Non-GAAP Adjustments1 | Non-GAAP2 | |||||||||||||||||||||
| SEGMENT PROFIT | |||||||||||||||||||||||
| Tools & Outdoor | $ | 276.0 | $ | 12.6 | $ | 288.6 | |||||||||||||||||
| Engineered Fastening | $ | 60.9 | $ | 0.2 | $ | 61.1 | |||||||||||||||||
| CORPORATE OVERHEAD | $ | (63.6) | $ | 0.1 | $ | (63.5) | |||||||||||||||||
| Segment Profit as a Percentage of Net Sales | |||||||||||||||||||||||
| Tools & Outdoor | 8.3 | % | 8.7 | % | |||||||||||||||||||
| Engineered Fastening | 11.9 | % | 12.0 | % | |||||||||||||||||||
| FIRST QUARTER 2025 | |||||||||||||||||||||||
| GAAP | Non-GAAP Adjustments1 | Non-GAAP2 | |||||||||||||||||||||
| SEGMENT PROFIT | |||||||||||||||||||||||
| Tools & Outdoor | $ | 289.2 | $ | 25.0 | $ | 314.2 | |||||||||||||||||
| Engineered Fastening | $ | 39.0 | $ | 7.7 | $ | 46.7 | |||||||||||||||||
| CORPORATE OVERHEAD | $ | (74.4) | $ | 6.0 | $ | (68.4) | |||||||||||||||||
| Segment Profit as a Percentage of Net Sales | |||||||||||||||||||||||
| Tools & Outdoor | 8.8 | % | 9.6 | % | |||||||||||||||||||
| Engineered Fastening | 8.4 | % | 10.1 | % | |||||||||||||||||||
1 | Non-GAAP adjustments for the Tools & Outdoor segment relate primarily to footprint actions associated with the supply chain transformation, as further discussed on page 14. | ||||||||||||||||||||||
| 2 | The Non-GAAP 2026 and 2025 business segment and corporate overhead information, as reconciled to GAAP above, is considered relevant to aid analysis and understanding of the Company’s results and business trends aside from the material impact of certain gains and charges and ensures appropriate comparability to operating results of prior periods. | ||||||||||||||||||||||
13
Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS TO EBITDA
(Unaudited, Millions of Dollars)
| FIRST QUARTER | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Net earnings | $ | 59.6 | $ | 90.4 | ||||||||||
| % of Net Sales | 1.5 | % | 2.4 | % | ||||||||||
| Interest - net | 75.9 | 77.2 | ||||||||||||
| Income taxes | 25.2 | 37.2 | ||||||||||||
| Depreciation | 84.4 | 91.1 | ||||||||||||
| Amortization | 28.6 | 37.3 | ||||||||||||
EBITDA1 | $ | 273.7 | $ | 333.2 | ||||||||||
| % of Net Sales | 7.1 | % | 8.9 | % | ||||||||||
| Non-GAAP adjustments before income taxes | 81.0 | 31.5 | ||||||||||||
| Less: Accelerated depreciation included in Non-GAAP adjustments before income taxes | — | 2.9 | ||||||||||||
Adjusted EBITDA1 | $ | 354.7 | $ | 361.8 | ||||||||||
| % of Net Sales | 9.2 | % | 9.7 | % | ||||||||||
SUMMARY OF NON-GAAP ADJUSTMENTS BEFORE INCOME TAXES
(Unaudited, Millions of Dollars)
| FIRST QUARTER | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Supply Chain Transformation Costs: | ||||||||||||||
Footprint Rationalization2 | $ | 5.2 | $ | 6.6 | ||||||||||
| Material Productivity & Operational Excellence | — | 4.7 | ||||||||||||
| Other charges | — | 5.4 | ||||||||||||
| Gross profit | $ | 5.2 | $ | 16.7 | ||||||||||
| Supply Chain Transformation Costs: | ||||||||||||||
Footprint Rationalization2 | $ | 6.6 | $ | 6.1 | ||||||||||
Complexity Reduction & Operational Excellence3 | — | 10.0 | ||||||||||||
| Transition services costs related to previously divested businesses | — | 5.3 | ||||||||||||
| Other charges | 1.1 | 0.6 | ||||||||||||
| Selling, general and administrative | $ | 7.7 | $ | 22.0 | ||||||||||
| Income related to providing transition services to previously divested businesses | $ | — | $ | (6.8) | ||||||||||
| Deal-related costs and other | (2.6) | (1.9) | ||||||||||||
| Other, net | $ | (2.6) | $ | (8.7) | ||||||||||
| Loss on sale of business | $ | 3.1 | $ | 0.3 | ||||||||||
Asset impairment charges4 | 22.7 | — | ||||||||||||
| Restructuring charges | 44.9 | 1.2 | ||||||||||||
| Non-GAAP adjustments before income taxes | $ | 81.0 | $ | 31.5 | ||||||||||
14
Exhibit 99.2
| 1 | EBITDA is earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA represents EBITDA excluding certain gains and charges, as summarized above. EBITDA and Adjusted EBITDA, both Non-GAAP measures, are considered relevant to aid analysis and understanding of the Company’s operating results and ensures appropriate comparability to prior periods. | |||||||||||||
2 | Footprint Rationalization costs in 2026 and 2025 primarily relate to site transformation and re-configuration costs. Facility exit costs related to site closures are reported in Restructuring charges. | |||||||||||||
3 | Complexity Reduction & Operational Excellence costs in 2025 primarily related to third-party consulting fees to provide expertise in identifying business model changes and quantifying related cost savings opportunities within the Company’s Engineered Fastening business, developing a detailed program and related governance, and assisting the Company with the implementation of actions necessary to achieve the identified objectives. | |||||||||||||
4 | Asset impairment charges in 2026 relate to the write-down of assets associated with the exit of a Tools and Outdoor product line and related plant closure. | |||||||||||||
RECONCILIATION OF GAAP REVENUE GROWTH TO NON-GAAP ORGANIC GROWTH
(Unaudited)
| FIRST QUARTER 2026 | ||||||||||||||||||||||||||||||||||||||||||||
| GAAP Revenue Growth | Less: Acquisitions | Plus: Divestitures | Less: Product Line Transfer | Less: Outdoor Product Line Exits | Less: Currency | Non-GAAP Organic Growth1 | ||||||||||||||||||||||||||||||||||||||
| Stanley Black & Decker | 3 | % | - | % | - | % | - | % | - | % | 3 | % | - | % | ||||||||||||||||||||||||||||||
| Tools & Outdoor | 2 | % | - | % | - | % | - | % | - | % | 3 | % | -1 | % | ||||||||||||||||||||||||||||||
| North America | -1 | % | - | % | - | % | - | % | - | % | 1 | % | -2 | % | ||||||||||||||||||||||||||||||
| Europe | 11 | % | - | % | - | % | - | % | - | % | 10 | % | 1 | % | ||||||||||||||||||||||||||||||
| Rest of World | 6 | % | - | % | - | % | - | % | - | % | 6 | % | - | % | ||||||||||||||||||||||||||||||
| Engineered Fastening | 10 | % | - | % | - | % | - | % | - | % | 3 | % | 7 | % | ||||||||||||||||||||||||||||||
| 1 | Non-GAAP Organic Growth, as reconciled to GAAP Revenue Growth above, is utilized to describe the change in the Company’s net sales excluding the impacts of foreign currency fluctuations, acquisitions during their initial 12 months of ownership, divestitures, transfers of product lines between segments, and outdoor product line exits (as previously communicated). Organic growth is also referred to as organic sales growth and organic revenue growth. | |||||||||||||
15
FAQ
How did Stanley Black & Decker (SWK) perform in 1Q 2026?
Stanley Black & Decker reported 1Q 2026 net sales of $3.85 billion, up 3% year over year. GAAP EPS was $0.39 versus $0.60 a year earlier, while adjusted EPS reached $0.80, supported by non-GAAP addbacks related to restructuring and other charges.
What were Stanley Black & Decker’s 2026 earnings guidance ranges?
For 2026, the company expects GAAP EPS of $4.15–$5.35, higher than prior guidance after the CAM sale gain, and adjusted EPS of $4.90–$5.70. At the midpoints, these ranges represent 79% GAAP and 13% adjusted EPS growth versus 2025 performance.
What is the impact of the CAM divestiture on Stanley Black & Decker (SWK)?
On April 6, 2026, the company closed the sale of Consolidated Aerospace Manufacturing to Howmet Aerospace for $1.8 billion in cash. Net proceeds were approximately $1.6 billion, with the vast majority already used to reduce debt, supporting leverage improvement and future capital allocation flexibility.
How did Stanley Black & Decker’s business segments perform in 1Q 2026?
In 1Q 2026, Tools & Outdoor net sales increased 2% to $3.34 billion with an 8.3% segment margin, while Engineered Fastening net sales rose 10% to $510.8 million and segment margin expanded to 11.9%, driven by strong aerospace and automotive demand.
What free cash flow does Stanley Black & Decker expect in 2026?
The company projects 2026 free cash flow of $500–$700 million, including taxes and fees from the CAM divestiture. Excluding those payments, free cash flow is expected at $700–$900 million, consistent with prior guidance and reflecting operational improvements and working capital management plans.
How did margins and profitability trend for Stanley Black & Decker in 1Q 2026?
First quarter 2026 gross margin improved slightly to 30.1%, but EBITDA margin declined to 7.1%, with adjusted EBITDA margin at 9.2%. Net earnings were 1.5% of sales, down 90 basis points year over year, reflecting higher restructuring and impairment charges.