Tariff refunds lift Stanley Black & Decker's forecast. What else improved?
Net refunds explain 55 cents of a 60-cent annual forecast upgrade. Tools margins also improve beyond the refund contribution.
Ticker Byline
Stanley Black & Decker, Inc.
Stanley Black & Decker makes tools, outdoor products and engineered fastening systems. Customer demand, product mix and manufacturing costs shape earnings.
- Ticker
- SWK
- Exchange
- XNYS
- SEC CIK
- 0000093556
Stanley Black & Decker's tools business serves professional tradespeople and consumers, while Engineered Fastening supplies components for industrial and automotive customers. Its portfolio is becoming more focused after business sales and changes to its outdoor-products model.
Results and the annual outlook
| Measure | 2026 | 2025 |
|---|---|---|
| Revenue | 3,731.6 | 3,756.0 |
| Net income | 272.1 | 51.4 |
| Reported diluted EPS | 1.83 | 0.34 |
| Adjusted diluted EPS | 2.31 | 1.43 |
Third-quarter adjusted net income was $343.4 million. Both reported and adjusted EPS included a net tariff-refund benefit of 67 cents per share.
The annual reported EPS forecast is $5.45 to $5.85. The adjusted EPS forecast is $5.95 to $6.25, compared with July's $5.20 to $5.80. Management attributed 55 cents of the 60-cent midpoint increase to incremental net refunds, with five cents from a lower share count and other items.
The full-year forecast includes a total 60-cent net benefit from second- and third-quarter refunds. Fourth-quarter guidance includes roughly 25 cents of additional refund-related costs and taxes and assumes no further refunds. The underlying operational outlook was unchanged. The analysis of the refund and profit outlook also examines the improvement in tools margins.
Organic sales grew 4%, supported by higher volume despite lower prices. Tools & Outdoor's adjusted operating margin reached 17.6% from 12%. Net refunds added approximately 4.3 percentage points, alongside productivity and product-mix improvement.
Cash generation and debt
| Measure | Amount |
|---|---|
| Operating cash flow | 1,032.8 |
| Capital and software spending | 196.9 |
| Free cash flow | 835.9 |
Cash and cash equivalents were $741.2 million at October 3, excluding restricted cash and cash classified within the business held for sale. Debt carrying value was $4.70 billion, with no current maturities or commercial paper outstanding.
Undrawn committed facilities of $2 billion for five years and $1 billion for 364 days back the same $3 billion commercial-paper program.
A completed sale and a pending disposal
On April 6, the company completed the sale of Consolidated Aerospace Manufacturing, or CAM, for approximately $1.8 billion in cash. Most net proceeds were used to repay commercial paper. CAM's results remained in continuing operations through the sale date, affecting year-over-year comparisons.
The separate $225 million Excel Industries sale, announced in September, remained pending. Management expected it to close around year-end, subject to approvals and customary conditions.
Capital returns
The new $1 billion repurchase authorization replaces an exhausted earlier program. The company bought back $250 million of shares during the third quarter. Its annual free-cash-flow target is $1 billion to $1.2 billion, including refunds already received and projected CAM-related taxes and fees.
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