Slides
Page 1
Investor Presentation Version 2.17.2026
Page 2
2 Contents Investor Presentation SWK Overview Pages 4 – 11 Tools & Outdoor Pages 12 – 19 Engineered Fastening Pages 20 – 22 Appendix Pages 23 – 31 Contacts Michael Wherley Vice President, Investor Relations 860-827-3833 michael.wherley@sbdinc.com Christina Francis Senior Director, Investor Relations 860-438-3470 christina.francis@sbdinc.com 1000 Stanley Drive New Britain, CT 06053 investorrelations@sbdinc.com
Page 3
3 Cautionary Statement Investor Presentation This Presentation 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 such 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 statements of goals, targets, priorities, projections, guidance, or planning assumptions or scenarios regarding earnings, EPS, EBITDA, income, revenue, profit, margins, cash flow, costs of sales, sales, sales growth, organic growth, profitability, demand volume, market share, credit ratings, SG&A, shareholder value, or other financial items; any statements of the plans, strategies, and objectives of management for future operations including expectations around the Company’s productivity and efficiency goals and future operational strategies following completion of the Company’s transformation, run-rate cost savings, leverage ratios, debt reduction or liquidity; any statements concerning market share gain, proposed new products, services, developments, investments, or innovation and brand prioritization strategies; any statements regarding future economic conditions or performance; any statements concerning future dividends, share repurchases or shareholder returns; any statements and assumptions regarding geopolitical events, possible tariff and tariff impact projections (including the amount, timing and materiality thereof) and related mitigation plans (including obtaining price increases and supply chain adjustments) or timing or anticipated benefits; any statements concerning the consummation of the CAM sale transaction, the Company’s ability to maximize value for shareholders through active portfolio management and the impact of the transaction to fund debt reduction and support the Company’s capital allocation strategy; statements of beliefs, plans, intentions or expectations and any statements of assumptions underlying any of the foregoing which may include, among others, the words “may,” “will,” “estimate,” “intend,” “could,” “project,” “plan,” “continue,” “believe,” “expect,” “anticipate”, “run-rate”, “annualized”, “forecast”, “commit”, “design”, “positioned or positioning”, “guidance” “looking forward”, “future”, “vision”, “strategy”, “long- term”, “on-track” or any other similar words;. You are cautioned not to rely on these forward-looking statements, which are based on the Company’s current expectations and assumptions of future events. Each of the forward-looking statements involves risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward-looking statements. Factors that might cause actual results, performance and achievements to differ materially from estimates or projections contained in forward-looking statements include, but are not limited to: the Company’s continued success with its productivity and efficiency initiatives post-transformation, complexity reduction, cost containment, and supply chain improvements (including leveraging its North American footprint and reducing China production) and disciplined capital deployment; changes in macroeconomic conditions, including interest rates and geopolitical events; changes in trade-related regulations and restrictions such as import and export controls, tariffs, trade barriers, clearances and raw material and rare earth related clearances or controls and other monetary and non-monetary trade regulations or barriers, and the Company’s ability to predict the timing, extent, materiality, impact or disruptiveness to the Company of such regulations, restrictions, tariffs barriers, clearances and controls; the Company’s ability to successfully mitigate or respond to such macroeconomic, geopolitical, or trade, tariff and rare earth policy changes including, obtaining price increases from customers, repositions of supply chain and ability to obtain rare earth related supply clearances reprioritizing resources, all within anticipated timeframes and costs, and successful government engagement efforts; the Company 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, including potential licensing initiatives and related restructuring efforts, and its ability to estimate and mitigate negative consequences from the same including, but not limited to, reduced ability to generate sales; the failure to consummate, or a delay in the consummation of, the CAM sale transaction for various reasons (including but not limited to failure to receive, or delay in receiving, required regulatory approvals and meet customary closing conditions), and failure to realize the expected benefits of the Company’s value creation, debt reduction and capital allocation strategy; and those factors set forth in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, the section of its Quarterly Earnings Releases entitled “cautionary Statements Concerning Forward Looking Statements” and in its other filings with the SEC. Forward-looking statements in this Presentation 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 undertakes no obligation or intention to update or revise any forward-looking statements, whether because of future events or circumstances, new information or otherwise, except as required by law Non-GAAP financial measures are referenced in this Presentation. Refer to the Appendix included herein for applicable GAAP reconciliations and additional information, as applicable, regarding the use of non-GAAP and other financial measures.
Page 4
4 An Industry Leader with World Class Brands Well-positioned businesses in attractive industries that are forecasted to grow over a multi -year period Investor Presentation *2025 revenue for SWK and Engineered Fastening includes previously announced pending divestiture of Consolidated Aerospace Manufacturing ("CAM") Product line percentages as of 2025 revenue Tools & Outdoor (87% of SWK Revenue) A Worldwide Leader in Tools & Outdoor Engineered Fastening (13% of SWK Revenue) A Leading Supplier of Fasteners, Tools, Systems & Services Residential Construction Non-Residential Construction Outdoor & DIY Businesses Automotive General Industrial Key Industries Key Industries Outdoor Power Equipment ~23% Hand Tools, Accessories & Storage ~28% Power Tools Group ~49% ~$13.2B 2025 Annual Revenue 2025 Revenue ~$15.1B General Industrial ~26% Aerospace* ~21% Automotive ~53% ~$2B 2025 Annual Revenue Revenue By Region North America ~66% Europe ~16% ROW ~18% Aerospace
Page 5
5 *Non-GAAP Financial Measures. Refer to appendix for additional information on all non -GAAP financial measures Returning cash to shareholders through our dividend, while also supporting incremental growth investments to accelerate brand building and innovation Investor Presentation Adjusted Gross Margin Expansion and Improved Financial Position As Presented On 2.4.26 Earnings Call Executing our strategic plans to attain our near-term and long-term margin and cash flow objectives Adjusted Gross Margin* Expansion Year Over Year • AGM* improvement driven by benefits from higher pricing, tariff mitigation, and supply chain cost reductions • Driving annual productivity beyond the transformation to fuel investments • Long-Term target: 35%+ Adjusted gross margin* 4Q’25 YoY 30.0% 30.7% FY'24 FY'25 31.2% 33.3% 4Q'24 4Q'25 FY’25 YoY Year-End Leverage Ratio Improved Net Debt to Adjusted EBITDA* 5.9x 3.7x 3.4x Dec '23 Dec '24 Dec '25 • $688M FY’25 free cash flow* supported debt reduction and shareholder returns • Proceeds from announced CAM divestiture expected to drive meaningful debt leverage reduction in 2026 *
Page 6
6Investor Presentation Building a World Class, Branded Industrial Company As Presented On 2.4.26 Earnings Call ACTIVATE Brands with Purpose DRIVE Operational Excellence *Non-GAAP financial measure: Refer to appendix for additional information on all non-GAAP financial measures Focused on organic growth*, margin expansion, cash generation, and shareholder return; Committed to achieving 35% AGM* and a solid investment grade balance sheet Delivering long-term value by solving our end users’ most pressing and complex challenges ACCELERATE Innovation Long-Term Financial Goals – Expect To Reflect In 2028 Financials** Organic Revenue Growth*: MSD in an LSD market Adj. Gross Margin*: 35% to 37% Adj. EBITDA*: Mid-to-High Teens % of sales Free Cash Flow Conversion*: ~100% +/- 10pts of GAAP NI in any given year CFROI*: Low-to-Mid Teens by 2028 ≥Mid-Teens beyond 2028 Credit Rating: Solid Investment Grade **These goals assume the current tariff landscape, low single digit market growth, and inflation around 2% per year Strategic Imperatives
Page 7
7 Capital Structure & Capital Deployment Investor Presentation Committed to Debt Reduction & Solid Investment Grade Credit Rating Focused on achieving ≤ 2.5x net debt to adj. EBITDA* •Supported by organic cash generation and future proceeds from additional portfolio optimization opportunities in the near-term Disciplined Capital Deployment Priorities Support a Strong & Growing Dividend Dividend policy: • Committed to continued growth • Target long-term payout** ~30% +/- 5pts 2 Deploying Excess Capital: • Deleverage to target levels (current focus) • Preference toward share repurchase (beyond) 3 Organic Growth Investments1 S&P Moody’s Fitch BBB+ Baa3 BBB+ A2 P3 F2 | | | LT ST|Agency Current Credit Ratings *Non-GAAP Financial Measure. Refer to appendix for additional information on all non -GAAP financial measures **As A Percentage Of GAAP NI Dividend paid consecutively for 149 years, increased for past 58 years
Page 8
8 Returns Are A Key Measure Of Our Long Term Success We are focused on improving returns to ≥Mid-teens level Investor Presentation FY19 13.7% FY25 8.2% Contributing Factors Asset Efficiency • Inventory of 120-130 DSI** • Disciplined capex Margin Improvement & Growth • Transformation program savings captured • Organic growth with operating leverage Judicious Capital Allocation • Debt reduction to target levels • Share repurchase • Opportunistic M&ALonger-Term Target ≥Mid-Teens Cash Flow Return On Investment* With multiple defined pathways for improvement *Non-GAAP Financial Measure. Refer to appendix for additional information on all non -GAAP financial measures **Days Sales in Inventory (DSI) measures the average number of days inventory is held prior to selling it. ~150 DSI as of year -end 2025. 2025 DSI calculated as Net Inventory/12 Mo Cost of Goods Sold multiplied by 371 days (days in 53 week fiscal year)
Page 9
2026 Planning Assumptions
Page 10
10 2026 Planning Assumptions As Presented On 2.4.26 Earnings Call Investor Presentation **Forecasted total net sales reflects the impact of forecasted foreign currency, assuming the end of December 2025 rates, and excludes the impact of acquisitions and divestitures not yet consummated Other Planning Assumptions Pre-Tax Non-GAAP Adjustments: ~$270M-$345M (~20% non-cash) Other Net*: ~$250M Net Interest Expense: ~$300M Depreciation*: ~$350M | Intangible Amortization: ~$110M Capex: ~$0.3B Adjusted Tax Rate*: ~19% | Shares: ~153M Tariff Disclaimer: Assumes Current Tariff Landscape 1Q’26: ~$3.7B Net Sales; ~$0.55-$0.60 Adj. EPS* Total Company Total Net Sales** YoY +Low Single Digits Organic Revenue* +LSD Currency +LSD CAM Divestiture (2H) & Licensing OPG Gas Walk Behind*** -LSD Adjusted EBITDA Margin* Positive YoY EPS | Adjusted EPS* $3.15 to $4.35 | $4.90 to $5.70 Free Cash Flow* ~$700M to $900M Segments Tools & Outdoor Organic Revenue* +Low Single Digits Adj. Segment Margin* Positive YoY Engineered Fastening Organic Revenue* Adj. Segment Margin* Positive YoY CAM Divestiture Framework First half 2026 expectations for CAM are included in the planning assumptions, including: • Quarterly Net Sales Range: $110M to $120M • Quarterly Segment Profit Range: $10M to $20M *Non-GAAP financial measure: Refer to appendix for additional information on all non -GAAP financial measures o Includes expected corporate and segment allocations o Segment Profit is defined as sales minus cost of sales and SG&A (aside from corporate overhead expenses) +Mid Single Digits MSD w/ CAM (1H) | +LSD w/o CAM (2H) ***Reflects strategic decision to transition from manufacturing gas -powered walk-behind products to a licensing model. Expect 2 026 impact of $120M-$140M
Page 11
11Investor Presentation U.S. dollar weakness supports an improving currency profile -5% 0% 5% 10% 15% 20% Currency Impact As of 12/31/25. FY Impact Using December Month End Rates Hedging Approach - Partially hedge key currency exposures (CAD, EUR, GBP, & AUD, among other) - Intent is to dampen volatility and allow time for business teams to mitigate fluctuations with cost & price actions Estimated 2026 OM Annual Impact - CAD 1% move: $3.0M - $4.0M - EUR 1% move: $1.5M - $2.5M - GBP 1% move: $3.0M - $4.0M - BRL 1% move: $1.5M - $2.5M - AUD 1% move: $1.5M - $2.5M Currency Trends Vs. USD (12/31/24 – 12/31/2025) 13% 12% 5% 8% 8%
Page 12
Tools & Outdoor
Page 13
13 A Global Leader in Tools & Outdoor *Source: 2023 reported company results, Euromonitor The share numbers presented may not accurately reflect the full competitive landscape & may fluctuate significantly year-to-year due to industry developments Five brands represent ~80% of our T&O segment Europe 16% T&O 2025 Annual Revenue $13.2B Global Priority Brands T&O total addressable market represents >$100B (as presented at Nov 2024 Capital Markets Day) Top 2 manufacturers represent less than 25% of addressable market Power Tools Group ~49% Hand Tools, Accessories & Storage ~28% Outdoor Power Equipment ~23% % Of 2025 Revenue N.A. 68%* ROW 16%
Page 14
14 What It Takes to Win in the Tools & Outdoor Industry Starting from a position of strength… Investor Presentation Rapid Innovation Focused On End-User Needs Broad Channel & Geographical Coverage Iconic Brands Operational Excellence Funds Growth …Building on this solid foundation to accelerate growth
Page 15
15 Innovation Addresses Professional End-User Needs Research suggests >50% of new tool purchasers are trading up for innovation… Investor Presentation End users willing to pay a premium for more productive tools Platform integration and tech enablement Product quality drives reliability and uptime on the jobsite Safety is critical to a productive jobsite Safety Quality Productivity Innovation …With >60% of respondents valuing safety, quality, and brand reputation as the most important buying factor* *Source: Expert Interviews And Tool Purchaser Survey
Page 16
16 Focused Brands | Targeted Users Clear differentiation across our global priority brands Investor Presentation Strengthen • Develop end-to-end workflow solutions • Strengthen the DEWALT ecosystem Focus • Products and solutions that are essential for small construction professionals Scale • Win in DIY verticals with DIY enthusiasts • Focus on margin expansion LEADERSHIP The World’s Most Demanding Pros REPUTATION Resi Construction Professionals ACCOMPLISHMENT Ambitious DIY Enthusiast
Page 17
17 Elevating Our End-User Inspired Innovation Capabilities End-To-End Solutions Platforming Leading Technologies Connected Ecosystems Drive modular, yet customizable designs Total carpentry solutions Total mechanical, electrical, plumbing solutions Provide end users safety features & productivity through tool connectivity & actionable data Investor Presentation Core technology enablers Grinder Product Platforms Nailer Multiple pathways to foster growth and meet end-user needs Motor Battery
Page 18
18 Enhance End-User Engagement Investor Presentation Marketplace Activation Global Expansion Drive growth in international markets High Growth Emerging Core Markets Nordics & Southern Europe Eastern Europe Kingdom Of Saudi Arabia Customer Innovation Center revitalization Increasing our field sales and support Access to end users and understanding user needs critical to execute
Page 19
19 Investor Presentation Developing Supply Chain That Delivers Competitive Advantage An engine for future margin expansion Innovation Excellence Material Productivity Leadership Service Excellence Network Strategy and Agility Fast, reliable and efficient innovation + design to value Supply chain program + platforming + sustainable productivity Supplier of choiceCost and cash efficiency + low-cost manufacturing + tariff mitigation
Page 20
Engineered Fastening
Page 21
21 Investor Presentation ~$2B $25B Revenue 2025* Industry Automotive $1.0B $10B Aerospace* $0.4B $4B Industrial $0.5B $11B Engineered Fastening Where We Play A leading supplier of fasteners, tools, systems & services with a total system approach to fastening & joining applications and deep engineering expertise Blind & Threaded Fastening Installation Equipment A Global Leader in Fastening Systems Plastics & Engineered Components Broad Portfolio: Fastener + Equipment Industry Players See full size image Segment *2025 revenue for Engineered Fastening includes previously announced pending divestiture of Consolidated Aerospace Manufacturing ("CAM") (as presented at Nov 2024 Capital Markets Day)
Page 22
22 How We Win Investor Presentation Connected Value Streams Deeply Embedded Design Partnerships • Application engineering & manufacturing expertise • Technology leadership in automation striving for zero defects Leadership in Automation 1 2 3 • Productivity - driving workflow efficiency • Profitability - optimized total cost of ownership • Combined technology drives additional customer value • Clip → stud → equipment → service → spares INDUSTRIAL Focus on high growth verticals AUTOMOTIVE Application engineering investment & even deeper partnerships with global NEV OEMs Driving sustainable share growth and gross margin expansion Revenue growth expected to be 200-300bps above market Driving sustainable share growth and gross margin expansion Light Weighting Productivity Safety Solving Critical Customer Challenges
Page 23
23 Appendix
Page 24
24 End Categories Investor Presentation ~40%-45% Exposure to residential construction (~30% U.S.) End Categories - % of Net Sales* Engineered Fastening Tools & Outdoor SWK Existing Residential / Repair / DIY 0% 23% 20% New Residential Construction 0% 27% 23% Non-Resi. / Commercial Construction 0% 16% 14% Industrial & Automotive Repair 26% 11% 13% Automotive OEM 53% 0% 7% Aerospace 21% 0% 3% Outdoor Professional 0% 6% 5% Outdoor Consumer / DIY 0% 17% 15% Total 100% 100% 100% *2025 revenue for SWK and Engineered Fastening includes previously announced pending divestiture of Consolidated Aerospace Ma nufacturing ("CAM") Comm. Const. includes non-retail, office buildings, arenas/stadiums, hotels, resorts, cinemas, etc. Industrial includes manufacturing, utilities, distribution, power, rail, auto repair, etc.
Page 25
25 Geographic Reach Investor Presentation Percentages as of fiscal year 2025 totals *2025 Revenue For Engineered Fastening includes previously announced pending divestiture of Consolidated Aerospace Manufacturing ("CAM") Segments Engineered Fastening*Tools & Outdoor Revenue By Region North America ~68% Europe ~16% ROW ~16% Revenue By Region North America ~52% Europe ~21% ROW ~27%
Page 26
26 Material Spend Investor Presentation Direct Material Spend* Components Top Three Raw Material Exposures (Finished Goods + Direct + Components) 1. Steel 2. Resin 3. Packaging 2025 ($B) Finished Goods 1.5 26% Components 3.1 53% Steel 0.4 6% Resin / Plastic Moldings 0.4 8% Packaging 0.2 4% Base Metals 0.2 3% $5.8 For Directional Analysis Only *Raw Material Spend Includes Conversion Costs Electronics Machined Components Batteries Engines & Transmissions Other Core Components
Page 27
27 Liquidity Investor Presentation O/S Notes/Bonds Near Term Liquidity Sources Long-Term Debt Outstanding ($M) Year End 2025 Cash Position $0.3B Revolving Credit Facilities $3.5B Total Near-Term Liquidity $3.8B 5-Year Agreement – June 2029 $2.25B 364-Day Facility – June 2026 $1.25B Adequate liquidity to meet the needs of the company *The 2026 maturities are on the balance sheet under current maturities of long-term debt, as of January 3, 2026 * CAM divestiture net proceeds – after taxes and fees – are expected to be in the range of $1.525B to $1.6B, which the Company expects to utilize to reduce debt. The transaction is expected to close in the first half of 2026 and is subject to regulatory approval and other customary closing conditions $500M Due March 2026
Page 28
28 Non-GAAP & Other Financial Measures Investor Presentation This presentation may include the following Non-GAAP 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, and transfers of product lines between segments. 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, depreciation, segment profit, segment margin, other, net earnings, EBITDA and EBITDA margin are adjusted for certain gains and charges, such as supply chain transformation costs, asset impairments, voluntary retirement program costs, environmental charges, acquisition and divestiture-related items, restructuring, 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. Cash Flow Return On Investment ("CFROI") is computed as cash from operations plus after-tax interest expense, divided by the two- point average of debt and equity. Operating leverage is the change in pre-tax adjusted earnings divided by the change in sales. Net Debt to Adjusted EBITDA is total debt less cash on hand divided by adjusted EBITDA. 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 organic revenue growth. Forecasted full-year 2026 adjusted EPS and 2026 organic revenue growth are reconciled to forecasted full-year 2026 GAAP EPS and total 2026 revenue growth, respectively, on slide 10. 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 on slide 10. Forecasted 2026 organic revenue growth assumes the impact of foreign currency using historical rates and excludes the impacts of potential acquisitions and divestitures. In addition to 2026 adjusted EPS and 2026 organic revenue growth, the Company also provides additional expectations for forward-looking non-GAAP financial measures, presented on a basis excluding certain gains and charges, (slides 5, 6, 7, 10) as well as forecasted free cash flow, free cash flow conversion, and CFROI (slide 6, 10). A reconciliation of forecasted free cash flow to its most 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 also provides multi-year strategic goals for the non-GAAP financial measures of adjusted gross margin and adjusted EBITDA margin, presented on a basis excluding certain gains and charges, as well as organic growth, free cash flow conversion, and CFROI. 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 multi-year periods requires a level of precision that is unavailable for these future 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.
Page 29
29 Reconciliation Of GAAP To Non-GAAP Measures Investor Presentation
Page 30
30 Reconciliation Of GAAP To Non-GAAP Measures Investor Presentation
Page 31
Investor Presentation