Stanley Black & Decker, Inc. Q1 2026 Earnings Recap

Stanley Black & Decker shares closed essentially flat following first quarter earnings, as results and updated outlook appeared well-aligned with market expectations. Modest revenue growth, steady margins, and ongoing strategic moves left investors largely unmoved.

Key Takeaways

• First quarter revenue increased 3% year-over-year (flat organically), ahead of internal expectations, with Tools & Outdoor up 2% and Engineered Fastening up 10% on a reported basis.
• Adjusted gross margin was 30.2%, down 20 basis points year-over-year; adjusted EBITDA margin of 9.2% declined 50 basis points, though both were within planned ranges.
• Adjusted EPS of $0.80 surpassed the prior guidance range ($0.55–$0.60).
• Tools & Outdoor organic revenue declined 1%, driven by a 5% volume drop, most notably in North America’s retail channel; outdoor product categories showed early season strength.
• Completed sale of the Aerospace Fasteners business, directing ~$1.6 billion net proceeds primarily to debt reduction; Board has authorized share repurchases as balance sheet improves.