Q2 2026 Stanley Black & Decker Inc Earnings Call Transcript
Key Points
- Stanley Black & Decker Inc (SWK) delivered a solid second quarter with a 3% organic revenue growth, slightly ahead of expectations.
- Adjusted gross margin rate increased by 620 basis points year-over-year, supported by gross productivity and product mix.
- The company received tariff refunds, contributing to adjusted gross margins and allowing for accelerated growth investments.
- Adjusted earnings per share were $1.57, exceeding the midpoint of guidance by $0.37.
- The sale of the aerospace fasteners business allowed SWK to pay down $1.7 billion in debt and repurchase 3.2 million shares for $250 million.
- Outdoor organic revenue decreased by 7% due to weather-related demand softness.
- European organic revenue was down 2%, with challenging market conditions in France and other parts of the region.
- Engineered fastening segment revenue was down 18% due to the aerospace fasteners divestiture.
- Persistent inflationary pressures from battery metals, tungsten, oil, and oil derivatives are expected to neutralize tariff benefits.
- The company anticipates a potential need for price increases by 2027 due to ongoing inflationary pressures.
Welcome to the Stanley Black & Decker Second Quarter Earnings Call. My name is Shannon, and I'll be your operator for today's call.
At this time, all participants are in listen-only mode.
Following the company's prepared remarks, we will conduct a Q&A session. To ask a question of the management team, please press *11 on your telephone at any time.
You will hear an automated message advising you are in the queue.
To withdraw yourself from the queue, please press *11 again.
Please note that this conference is being recorded.
I will now turn the call over to the Vice President of Investor Relations, Michael Worley. Mr. Worley, you may begin.
Good morning, everyone, and thanks for joining us for our second quarter earnings call. With us today are Chris Nelson, President and CEO, and Patrick Hallinan, Executive Vice President, CFO, and Chief Administrative Officer.
Earnings release, which was issued
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