Q1 2026 Stanley Black & Decker Inc Earnings Call Transcript
Key Points
- Stanley Black & Decker Inc (SWK) reported a 3% increase in overall revenue for the first quarter, outperforming expectations.
- The company successfully completed the sale of its Aerospace Fasteners business, using the proceeds to reduce debt and strengthen its balance sheet.
- The Tools & Outdoor segment saw a strong initial sell-in for outdoor products, indicating effective order fulfillment and positioning for the peak selling season.
- The Engineered Fastening segment achieved 10% revenue growth, with notable performance in the Aerospace and automotive businesses.
- The company is on track to achieve its strategic goals, including a focus on brand activation, operational excellence, and innovation, with positive momentum in professional channels and international markets.
- Adjusted gross margin rate decreased by 20 basis points year-over-year, and adjusted EBITDA margin fell by 50 basis points.
- Organic revenue for the Tools & Outdoor segment declined by 1%, with volume pressure offsetting pricing benefits.
- The North American retail channel experienced lower retail activity, contributing to a decrease in volume.
- The company faces inflationary cost pressures in resins, freight, battery metals, and tungsten, which offset some tariff tailwinds.
- The divestiture of the CAM business resulted in a reduction of expected Engineered Fastening segment pretax profit by about $15 million for the second quarter.
Welcome to the Stanley Black & Decker first quarter earnings call. My name is Shannon and Iâll be your operator for todayâs call. (Operator Instructions) Please note that this conference is now recorded.
I will now turn the call over to the Vice President of Investor Relations, Michael Wherley. Mr. Wherley, you may begin.
Good morning, everyone, and thanks for joining us for our first quarter earnings call. With us today are Chris Nelson, President and CEO; and Patrick Hallinan, Executive Vice President, CFO and Chief Administrative Officer.
Our earnings release, which was issued earlier this morning, and a supplemental presentation, which we will refer to, are available on the IR section of our website. A replay of today's webcast will also be available beginning around 11:00 AM Eastern Time.
This morning, Chris and Pat will review our first quarter results, along with our updated outlook for 2026, followed by a Q&A session.
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