Earnings release
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Stanley Black & Decker Reports Solid 2Q 2026 Results July 29, 2026 On Track to Achieve Full Year Sales and Margin Targets 2Q Earnings and Margin Growth Include Benefit from Tariff Refunds Raises 2026 EPS and Free Cash Flow Guidance Reduced Debt by $1.7B and Executed $250M of Share Repurchases in 2Q NEW BRITAIN, Conn., July 29, 2026 /PRNewswire/ -- Stanley Black & Decker (NYSE: SWK), a global leader in tools and outdoor solutions, today announced second quarter 2026 financial results. Second Quarter 2026 Highlights Net sales of $4.0 billion, in-line with prior year and up 3% on an organic basis* Gross margin of 33.0%, up 600 basis points versus prior year; adjusted gross margin* of 33.7%, up 620 basis points versus prior year; both included a benefit of roughly 250 basis points from net tariff refunds EPS of $2.33; adjusted EPS* of $1.57; both included a benefit of approximately $0.17 from net tariff refunds Cash from operating activities was $763 million and free cash flow* was $698 million Successfully completed the sale of Consolidated Aerospace Manufacturing ('CAM') in April, which supported debt reduction and capital allocation priorities including share repurchases Chris Nelson, Stanley Black & Decker's President & CEO, commented, "The Stanley Black & Decker team is committed to executing our strategy and delivering profitable, organic growth. Our second quarter sales, gross margin, and cash performance keep us firmly on track to achieve our full-year targets. We further strengthened the balance sheet and executed on our capital deployment strategy. In addition, the tariff refunds are supporting incremental growth investments. "We are confident in our path forward and our ability to navigate the external environment to deliver our long-term financial goals. Through disciplined execution of our strategic priorities, we are strengthening Stanley Black & Decker's ability to deliver sustainable, profitable growth and create long-term value for our shareholders." 1 Includes IEEPA tariff refund gain partially offset by directly attributable variable incentive compensation costs, growth investments, and taxes (for EPS only) 2 Refer to "2026 Guidance" on page 3 for further discussion and details of underlying planning assumptions * Non-GAAP financial measure as further defined on page 5 2Q 2026 Results (all comparisons versus prior year) Net sales of $4.0 billion, in-line with prior year, as higher volume (+3%) and currency tailwinds (+1%) were offset by the CAM divestiture and the previously announced strategic transition to a licensing model for the gas walk-behind outdoor products. Pricing was flat. The volume strength was primarily driven by U.S. retail and commercial and industrial ('C&I') channels in Tools & Outdoor. Gross margin of 33.0%, up 600 basis points; Adjusted gross margin* of 33.7%, up 620 basis points; both included an approximate 250 basis point benefit from net tariff refunds. SG&A expenses of 23.9% of sales, up 180 basis points; Adjusted SG&A expenses* of 23.9%, up 310 basis points; both increases were predominantly due to incremental costs and investments tied to tariff refunds received. The tax rate was 29.6% and the adjusted tax rate* was 15.1%. Net earnings were 8.9% of sales, an increase of 630 basis points. EBITDA margin* was 17.4%, an increase of 1140 basis points, and adjusted EBITDA margin* was 11.3%, an increase of 320 basis points. 2Q 2026 Segment Results ($ in M) Sales Segment Profit Charges Adj. Segment Profit* Segment Margin Adj. Segment Margin* 1 1 2 1 3
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Tools & Outdoor $3,564 $389.0 $30.5 $419.5 10.9 % 11.8 % Engineered Fastening $396 $51.6 $0.1 $51.7 13.0 % 13.0 % See Non-GAAP adjustments on page 14. 1 Includes IEEPA tariff refund gain partially offset by directly attributable variable incentive compensation costs, growth investments, and taxes (for EPS only) * Non-GAAP financial measure as further defined on page 5 Tools & Outdoor net sales were up 3% year over year, as higher volume (+3%) and currency tailwinds (+1%) were partially offset by the previously announced strategic transition to a licensing model for the gas walk-behind outdoor products (-1%). Pricing was flat. Organic revenue* increased 3%, primarily driven by power tools strength in U.S. retail and C&I channels. North America sales were up 3% on a total basis and up 4% organically*, Europe was flat on a total basis and down 2% organically*, while the Rest of World was up 8% on a total basis and up 3% organically*. The Tools & Outdoor segment margin was 10.9%, up 400 basis points year over year. Adjusted segment margin* was 11.8%, up 380 basis points year over year. Segment margin improvement reflected net productivity gains and favorable product mix. In addition, the net tariff refunds raised segment margin by approximately 150 basis points. Engineered Fastening net sales were down 18% year over year, due to the CAM divestiture (-21%), which was partially offset by volume (+2%) and pricing (+1%), while currency was flat. Organic revenues* were up 3%, driven by industrial strength, as well as continued automotive fasteners growth. The Engineered Fastening segment margin was 13.0%, up 580 basis points year over year, and adjusted segment margin* was 13.0%, up 220 basis points year over year. Year-over-year segment margin expansions were largely driven by net productivity improvements and favorable automotive volume and mix. In addition, the net tariff refunds raised segment margin by approximately 50 basis points. Capital Deployment Update During the quarter, the Company reduced debt by $1.7 billion and repurchased approximately 3.2 million shares for $250 million, under the previously announced authorization approved by the Board of Directors in April 2026. Patrick Hallinan, EVP, Chief Financial Officer & Chief Administrative Officer, commented, "We delivered solid second quarter performance, and are on track to deliver on our full year sales and margin targets. We remain focused on executing our strategy and progressing our priorities, while navigating the dynamic operating environment. Successfully closing the CAM divestiture at the start of the quarter enhanced our financial strength, affording the ability to invest in growth, reduce debt, support the dividend, and repurchase our shares. "As we look ahead, we remain committed to delivering our near-term and long-term growth, margin, and cash flow objectives, while thoughtfully allocating capital to accelerate shareholder value creation." 2026 Guidance The Company is raising 2026 GAAP EPS to be in the range of $4.60 to $5.45, from a prior range of $4.15 to $5.35. The Company is also raising and tightening the adjusted EPS* range to $5.20 to $5.80, from a prior range of $4.90 to $5.70. These ranges represent year over year growth of 90% and 18%, respectively, at the midpoint of each range as compared to 2025 performance. Free cash flow* is now expected to be in the range of $600 to $800 million, revised from $500 to $700 million, which incorporates the tariff refund realized in the second quarter and projected taxes and fees associated with the CAM divestiture. The Company will discuss underlying assumptions on the earnings call. The difference between the GAAP and Adjusted EPS* assumption range is approximately $0.35 to $0.60, consisting primarily of charges related to footprint actions and other cost actions, largely offset by the gain on the sale of the CAM business. 1 Includes IEEPA tariff refund gain partially offset by directly attributable variable incentive compensation costs, growth investments, and taxes (for EPS only) 2 Refer to "2026 Guidance" on page 3 for further discussion and details of underlying planning assumptions * Non-GAAP financial measure as further defined on page 5 3 1 1 2
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2Q 2026 Non-GAAP Adjustments Total pre-tax non-GAAP adjustments in the second quarter was a gain of $221.3 million. The Company recognized a $273.7 million gain on the sale of businesses, largely related to the CAM divestiture, which was partially offset by other non-GAAP adjustments primarily associated with footprint actions and restructuring costs. Gross profit and SG&A included $28.7 million and $3.0 million of charges, respectively, while Other-net included a net charge of $0.3 million. The Company also recorded restructuring charges of $15.1 million and an asset impairment charge of $5.3 million. Earnings Webcast Stanley Black & Decker will host a webcast with investors today, July 29, 2026, at 8:00 am ET. The call will be available through a live teleconference and a listen-only webcast. Direct links to register for the teleconference, access the webcast, and view the accompanying slide presentation will be available on the Stanley Black & Decker Investors website (www.stanleyblackanddecker.com/investors), under "Events." A replay will be available in the same location approximately two hours after the call. 1 Includes IEEPA tariff refund gain partially offset by directly attributable variable incentive compensation costs, growth investments, and taxes (for EPS only) 2 Refer to "2026 Guidance" on page 3 for further discussion and details of underlying planning assumptions * Non-GAAP financial measure as further defined on page 5 About Stanley Black & Decker Founded in 1843 and headquartered in the USA, Stanley Black & Decker (NYSE: SWK) is a worldwide leader in Tools and Outdoor, operating manufacturing facilities globally. The Company's approximately 41,000 employees produce innovative end-user inspired power tools, hand tools, storage, digital jobsite solutions, outdoor and lifestyle products, and engineered fasteners to support the world's builders, tradespeople and DIYers. The Company's world class portfolio of trusted brands includes DEWALT®, CRAFTSMAN®, STANLEY®, BLACK+DECKER®, and Cub Cadet®. To learn more visit: www.stanleyblackanddecker.com or follow Stanley Black & Decker on Facebook, Instagram, LinkedIn and X. Investor Contacts: Michael Wherley Vice President, Investor Relations michael.wherley@sbdinc.com (860) 827-3833 Christina Francis Senior Director, Investor Relations christina.francis@sbdinc.com (860) 438-3470 Media Contacts: Debora Raymond Vice President, Public Relations debora.raymond@sbdinc.com (203) 640-8054 Non-GAAP Financial 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, transfers of
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product lines between segments, and the strategic transition to a licensing model for gas walk-behind outdoor product lines (as previously communicated). 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, segment profit, segment margin, earnings, EBITDA and EBITDA margin are adjusted for certain gains and charges, such as costs related to supply chain transformation and footprint actions, asset impairments, voluntary retirement program costs, divestiture-related items, restructuring, gains or losses on sales of businesses, 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. Net debt to adjusted EBITDA is total debt less cash on hand divided by adjusted EBITDA. The Non-GAAP financial measures are reconciled to GAAP on pages 12 through 17 and in the appendix to the earnings conference call slides available at http://www.stanleyblackanddecker.com/investors. 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 free cash flow. Forecasted full-year 2026 adjusted EPS is reconciled to forecasted full-year 2026 GAAP EPS under "2026 Guidance". 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 under "2026 Guidance". 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 may also provide multi-year strategic goals for the non-GAAP financial measures of adjusted gross margin and net debt to adjusted EBITDA, presented on a basis excluding certain gains and charges. 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 periods requires a level of precision that is unavailable for these future multi-year 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.
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CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS This document 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 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 goals, projections, guidance or planning assumptions or scenarios; any statements of the plans, strategies and objectives of management for future operations, including expectations around productivity and efficiency goals and future operational strategies; any statements regarding future economic conditions or performance; any statements concerning future dividends or share repurchases; any statements and assumptions or scenarios regarding possible tariff and tariff impact projections, including those relating to Section 122, 232 or 301 tariffs, tariff refunds and related mitigation plans (including price actions, supply chain adjustments and expected timing and benefits related to such plans); and any statements of assumptions underlying any of the foregoing. Forward-looking statements may include, among others, the words "may," "will," "estimate," "intend," "could," "project," "plan," "continue," "believe," "expect," "anticipate", "annualized", "forecast", "commit", "goal", "target", "design", "on track", "position or positioning", "guidance," "aim," "looking forward," "multi-year" or any other similar words. Although the Company believes that the expectations reflected in any of its forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of its forward-looking statements. The Company's future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, such as those disclosed or incorporated by reference in the Company's filings with the Securities and Exchange Commission. Important factors that could cause the Company's actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in its forward-looking statements include, among others, the following: (i) 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; (ii) macroeconomic factors, including global and regional business conditions, commodity availability and prices, inflation and deflation, interest rate volatility, currency exchange rates, and uncertainties in the global financial markets; (iii) laws, regulations and governmental policies affecting the Company's activities in the countries where it does business or sources supply inputs, including those related to, taxation, data privacy, anti-bribery, anti-corruption, government contracts, and trade controls, including but not limited to, tariffs, import and export controls, raw material and rare earth related controls and other monetary and non-monetary trade regulations or barriers; (iv) the Company's ability to predict the timing and extent of any trade related regulations (or any court rulings in response thereto), clearances, restrictions or policies, including but not limited to, trade barriers, tariffs, raw material and rare earth related controls, as well as its ability to successfully assess the impact to its business of, and mitigate or respond to, such macroeconomic or trade, tariff and raw material and rare earth import/export control changes, regulations or policies (including, but not limited to, the Company's ability to predict and respond to court rulings in response thereto, to obtain any tariff refunds in amounts or within timeframes that would meaningfully offset the impact of tariffs on the Company's business, or to obtain price increases from its customers and complete effective supply chain adjustments within anticipated time frames and ability to obtain rare earth related supply clearances); (v) realizing the anticipated benefits of mergers, acquisitions, joint ventures, strategic alliances or divestitures and the costs associated with such transactions; (vi) pricing pressure and other changes within competitive markets; (vii) availability and price of raw materials, rare earth materials, component parts, freight, energy, labor and sourced finished goods; (vii) potential business, supply chain and distribution disruptions, including those related to physical security threats, information technology or cyber-attacks, epidemics, natural disasters or pandemics, sanctions, political unrest, war or terrorism, including the conflicts between Russia and Ukraine, and Israel and Hamas, and tensions or conflicts in South Korea, China, Taiwan and the Middle East (including the ongoing conflict in Iran); (viii) potential adverse developments in new or pending litigation and/or government investigations; (ix) potential regulatory liabilities, including environmental, privacy, data breach, workers compensation and product liabilities; (x) failure to realize the expected benefits of the Company's value creation, debt reduction and capital allocation strategy; (xi) and the other factors set
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forth in the Annual Report on Form 10-K and in the Quarterly Reports on Form 10-Q, including under the headings "Risk Factors," and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and in the Consolidated Financial Statements and the related Notes, and other filings with the Securities and Exchange Commission. Forward-looking statements, and the factors that could cause actual results to differ materially from those forward- looking statements, in this press release 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 does not undertake any obligation or intention to update or revise any forward-looking statements, except as required by law. STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, Millions of Dollars Except Per Share Amounts) SECOND QUARTER YEAR-TO-DATE 2026 2025 2026 2025 NET SALES $ 3,960.7 $ 3,945.2 $ 7,807.1 $ 7,689.8 COSTS AND EXPENSES Cost of sales 2,654.9 2,878.7 5,344.0 5,502.5 Gross profit 1,305.8 1,066.5 2,463.1 2,187.3 % of Net Sales 33.0 % 27.0 % 31.5 % 28.4 % Selling, general and administrative 947.9 873.1 1,831.9 1,740.1 % of Net Sales 23.9 % 22.1 % 23.5 % 22.6 % Other - net 52.9 67.7 94.8 115.2 (Gain) loss on sales of businesses (273.7) - (270.6) 0.3 Asset impairment charges 5.3 - 28.0 - Restructuring charges 15.1 18.8 60.0 20.0 Income from operations 558.3 106.9 719.0 311.7 Interest - net 59.3 80.2 135.2 157.4 EARNINGS BEFORE INCOME TAXES 499.0 26.7 583.8 154.3 Income taxes 147.7 (75.2) 172.9 (38.0) NET EARNINGS $ 351.3 $ 101.9 $ 410.9 $ 192.3 EARNINGS PER SHARE OF COMMON STOCK Basic $ 2.34 $ 0.67 $ 2.72 $ 1.27 Diluted $ 2.33 $ 0.67 $ 2.71 $ 1.27 DIVIDENDS PER SHARE OF COMMON STOCK $ 0.83 $ 0.82 $ 1.66 $ 1.64 WEIGHTED-AVERAGE SHARES OUTSTANDING (in thousands) Basic 150,130 151,231 150,800 151,122 Diluted 150,648 151,728 151,401 151,711 STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, Millions of Dollars) July 4, January 3, 2026 2026 ASSETS Cash and cash equivalents $ 592.4 $ 280.1 Accounts and notes receivable, net 1,471.0 919.7 Inventories, net 3,896.5 4,157.1 Current assets held for sale - 262.4 Other current assets 383.8 359.7 Total current assets 6,343.7 5,979.0 Property, plant and equipment, net 1,707.5 1,831.8 Goodwill and other intangibles, net 10,289.4 10,374.8 Long-term assets held for sale - 1,273.9 Other assets 1,752.9 1,784.2 Total assets $ 20,093.5 $ 21,243.7 LIABILITIES AND SHAREOWNERS' EQUITY Short-term borrowings $ - $ 605.6 Current maturities of long-term debt 53.7 554.8 Accounts payable 2,422.3 2,163.0
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Accrued expenses 1,953.1 1,878.1 Current liabilities held for sale - 44.2 Total current liabilities 4,429.1 5,245.7 Long-term debt 4,704.2 4,703.3 Long-term liabilities held for sale - 9.4 Other long-term liabilities 2,001.4 2,230.7 Shareowners' equity 8,958.8 9,054.6 Total liabilities and shareowners' equity $ 20,093.5 $ 21,243.7 STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES SUMMARY OF CASH FLOW ACTIVITY (Unaudited, Millions of Dollars) SECOND QUARTER YEAR-TO-DATE 2026 2025 2026 2025 OPERATING ACTIVITIES Net earnings $ 351.3 $ 101.9 $ 410.9 $ 192.3 Depreciation 101.8 92.7 186.2 183.8 Amortization 27.6 37.4 56.2 74.7 (Gain) loss on sales of businesses (273.7) - (270.6) 0.3 Asset impairment charges 5.3 - 28.0 - Changes in working capital 282.1 127.6 (106.7) (341.4) Other 268.7 (145.3) 70.3 (315.4) Net cash provided by (used in) operating activities 763.1 214.3 374.3 (205.7) INVESTING AND FINANCING ACTIVITIES Capital and software expenditures (64.9) (79.6) (123.4) (144.6) Proceeds from sales of businesses, net of cash sold 1,814.6 - 1,814.7 5.0 Payments on long-term debt - (0.3) (500.1) (500.3) Net short-term commercial paper (repayments) borrowings (1,750.2) (98.2) (604.8) 1,038.0 Purchases of common stock for treasury (252.1) (0.8) (267.4) (12.5) Cash settlement on forward stock purchase contract (125.0) - (125.0) - Cash dividends on common stock (124.3) (124.0) (250.3) (248.5) Other 4.0 12.7 11.1 17.0 Net cash (used in) provided by investing and financing activities (497.9) (290.2) (45.2) 154.1 Effect of exchange rate changes on cash (5.6) 42.6 (12.5) 74.1 Increase (decrease) in cash, cash equivalents and restricted cash 259.6 (33.3) 316.6 22.5 Cash, cash equivalents and restricted cash, beginning of period 344.4 348.6 287.4 292.8 Cash, cash equivalents and restricted cash, end of period $ 604.0 $ 315.3 $ 604.0 $ 315.3 Free Cash Flow Computation Net cash provided by (used in) operating activities $ 763.1 $ 214.3 $ 374.3 $ (205.7) Less: capital and software expenditures (64.9) (79.6) (123.4) (144.6) Free cash flow (before dividends) $ 698.2 $ 134.7 $ 250.9 $ (350.3) Reconciliation of Cash, Cash Equivalents and Restricted Cash July 4, 2026 January 3, 2026 Cash and cash equivalents $ 592.4 $ 280.1 Restricted cash included in Other current assets 11.6 7.3 Cash, cash equivalents and restricted cash $ 604.0 $ 287.4 Working capital is comprised of accounts receivable, inventory, accounts payable and deferred revenue. Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important measure 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. STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES BUSINESS SEGMENT INFORMATION (Unaudited, Millions of Dollars) SECOND QUARTER YEAR-TO-DATE 2026 2025 2026 2025 NET SALES Tools & Outdoor $ 3,564.3 $ 3,461.4 $ 6,899.9 $ 6,742.3 Engineered Fastening 396.4 483.8 907.2 947.5 Total $ 3,960.7 $ 3,945.2 $ 7,807.1 $ 7,689.8 SEGMENT PROFIT 1 2 1 2 1 2
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Tools & Outdoor $ 389.0 $ 238.1 $ 665.0 $ 527.3 Engineered Fastening $ 51.6 $ 35.0 $ 112.5 $ 74.0 CORPORATE OVERHEAD $ (82.7) $ (79.7) $ (146.3) $ (154.1) Segment Profit as a Percentage of Net Sales Tools & Outdoor 10.9 % 6.9 % 9.6 % 7.8 % Engineered Fastening 13.0 % 7.2 % 12.4 % 7.8 % On April 6, 2026, the Company completed the previously announced sale of its Consolidated Aerospace Manufacturing ("CAM") business. Based on management's commitment to sell this business, the assets and liabilities related to CAM were classified as held for sale on the Company's Condensed Consolidated Balance Sheets as of January 3, 2026. For the three months ended July 4, 2026, the net sales and segment profit for Engineered Fastening did not include results of the CAM business. For the six months ended July 4, 2026, net sales and segment profit for Engineered Fastening included $117.0 million and $22.0 million, respectively, related to the CAM business. Segment profit is defined as net sales minus cost of sales and SG&A (aside from corporate overhead expenses). The corporate overhead element of SG&A, which is not allocated to the business segments for purposes of determining segment profit, consists of the costs associated with the executive management team and expenses related to centralized functions that benefit the entire Company but are not directly attributable to the business segments, such as legal and corporate finance functions, as well as expenses for the world headquarters facility. STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING NON-GAAP FINANCIAL MEASURES (Unaudited, Millions of Dollars Except Per Share Amounts) SECOND QUARTER 2026 GAAP Non-GAAP Adjustments Non-GAAP Gross profit $ 1,305.8 $ 28.7 $ 1,334.5 % of Net Sales 33.0 % 33.7 % Selling, general and administrative 947.9 (3.0) 944.9 % of Net Sales 23.9 % 23.9 % Earnings before income taxes 499.0 (221.3) 277.7 Income taxes 147.7 (105.7) 42.0 Net earnings 351.3 (115.6) 235.7 Diluted earnings per share of common stock $ 2.33 $ (0.76) $ 1.57 SECOND QUARTER 2025 GAAP Non-GAAP Adjustments Non-GAAP Gross profit $ 1,066.5 $ 20.0 $ 1,086.5 % of Net Sales 27.0 % 27.5 % Selling, general and administrative 873.1 (52.6) 820.5 % of Net Sales 22.1 % 20.8 % Earnings before income taxes 26.7 83.0 109.7 Income taxes (75.2) 21.8 (53.4) Net earnings 101.9 61.2 163.1 Diluted earnings per share of common stock $ 0.67 $ 0.41 $ 1.08 The Non-GAAP 2026 and 2025 information, as reconciled to GAAP above, is considered relevant to aid analysis and understanding of the Company's results and business trends aside from the material impact of certain gains and charges and ensures appropriate comparability to operating results of prior periods. See further detail on Non-GAAP adjustments on page 16. 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. STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING NON-GAAP FINANCIAL MEASURES (Unaudited, Millions of Dollars Except Per Share Amounts) YEAR-TO-DATE 2026 GAAP Non-GAAP Adjustments Non-GAAP 1 2 1 1 2 1 2 1 2 1 2 1
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Gross profit $ 2,463.1 $ 33.9 $ 2,497.0 % of Net Sales 31.5 % 32.0 % Selling, general and administrative 1,831.9 (10.7) 1,821.2 % of Net Sales 23.5 % 23.3 % Earnings before income taxes 583.8 (140.3) 443.5 Income taxes 172.9 (87.3) 85.6 Net earnings 410.9 (53.0) 357.9 Diluted earnings per share of common stock $ 2.71 $ (0.35) $ 2.36 YEAR-TO-DATE 2025 GAAP Non-GAAP Adjustments Non-GAAP Gross profit $ 2,187.3 $ 36.7 $ 2,224.0 % of Net Sales 28.4 % 28.9 % Selling, general and administrative 1,740.1 (74.6) 1,665.5 % of Net Sales 22.6 % 21.7 % Earnings before income taxes 154.3 114.5 268.8 Income taxes (38.0) 29.3 (8.7) Net earnings 192.3 85.2 277.5 Diluted earnings per share of common stock $ 1.27 $ 0.56 $ 1.83 The Non-GAAP 2026 and 2025 information, as reconciled to GAAP above, is considered relevant to aid analysis and understanding of the Company's results and business trends aside from the material impact of certain gains and charges and ensures appropriate comparability to operating results of prior periods. See further detail on Non-GAAP adjustments on page 16. 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. STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES TO CORRESPONDING NON-GAAP FINANCIAL MEASURES (Unaudited, Millions of Dollars) SECOND QUARTER 2026 GAAP Non-GAAP Adjustments Non-GAAP SEGMENT PROFIT Tools & Outdoor $ 389.0 $ 30.5 $ 419.5 Engineered Fastening $ 51.6 $ 0.1 $ 51.7 CORPORATE OVERHEAD $ (82.7) $ 1.1 $ (81.6) Segment Profit as a Percentage of Net Sales Tools & Outdoor 10.9 % 11.8 % Engineered Fastening 13.0 % 13.0 % SECOND QUARTER 2025 GAAP Non-GAAP Adjustments Non-GAAP SEGMENT PROFIT Tools & Outdoor $ 238.1 $ 38.4 $ 276.5 Engineered Fastening $ 35.0 $ 17.3 $ 52.3 CORPORATE OVERHEAD $ (79.7) $ 16.9 $ (62.8) Segment Profit as a Percentage of Net Sales Tools & Outdoor 6.9 % 8.0 % Engineered Fastening 7.2 % 10.8 % The 2026 Non-GAAP adjustments for the Tools & Outdoor segment relate primarily to footprint actions. The 2025 Non-GAAP adjustments for the business segments relate primarily to separation benefit costs associated with a voluntary retirement program as well as footprint actions and other costs associated with the supply chain transformation. The 2025 Non-GAAP 2 1 2 1 2 1 2 1 2 1
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adjustments for Corporate overhead primarily consist of voluntary retirement program costs and transition services costs related to previously divested businesses. See further discussion on page 16. The Non-GAAP 2026 and 2025 business segment and corporate overhead information, as reconciled to GAAP above, is considered relevant to aid analysis and understanding of the Company's results and business trends aside from the material impact of certain gains and charges and ensures appropriate comparability to operating results of prior periods. STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES TO CORRESPONDING NON-GAAP FINANCIAL MEASURES (Unaudited, Millions of Dollars) YEAR-TO-DATE 2026 GAAP Non-GAAP Adjustments Non-GAAP SEGMENT PROFIT Tools & Outdoor $ 665.0 $ 43.1 $ 708.1 Engineered Fastening $ 112.5 $ 0.3 $ 112.8 CORPORATE OVERHEAD $ (146.3) $ 1.2 $ (145.1) Segment Profit as a Percentage of Net Sales Tools & Outdoor 9.6 % 10.3 % Engineered Fastening 12.4 % 12.4 % YEAR-TO-DATE 2025 GAAP Non-GAAP Adjustments Non-GAAP SEGMENT PROFIT Tools & Outdoor $ 527.3 $ 63.4 $ 590.7 Engineered Fastening $ 74.0 $ 25.0 $ 99.0 CORPORATE OVERHEAD $ (154.1) $ 22.9 $ (131.2) Segment Profit as a Percentage of Net Sales Tools & Outdoor 7.8 % 8.8 % Engineered Fastening 7.8 % 10.4 % The 2026 Non-GAAP adjustments for the Tools & Outdoor segment relate primarily to footprint actions. The 2025 Non-GAAP adjustments for the business segments relate primarily to separation benefit costs associated with a voluntary retirement program as well as footprint actions and other costs associated with the supply chain transformation. The 2025 Non-GAAP adjustments for Corporate overhead primarily consist of voluntary retirement program costs and transition services costs related to previously divested businesses. See further discussion on page 16. The Non-GAAP 2026 and 2025 business segment and corporate overhead information, as reconciled to GAAP above, is considered relevant to aid analysis and understanding of the Company's results and business trends aside from the material impact of certain gains and charges and ensures appropriate comparability to operating results of prior periods. STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP EARNINGS TO EBITDA (Unaudited, Millions of Dollars) SECOND QUARTER YEAR-TO-DATE 2026 2025 2026 2025 Net earnings $ 351.3 $ 101.9 $ 410.9 $ 192.3 % of Net Sales 8.9 % 2.6 % 5.3 % 2.5 % Interest - net 59.3 80.2 135.2 157.4 Income taxes 147.7 (75.2) 172.9 (38.0) Depreciation 101.8 92.7 186.2 183.8 Amortization 27.6 37.4 56.2 74.7 EBITDA $ 687.7 $ 237.0 $ 961.4 $ 570.2 % of Net Sales 17.4 % 6.0 % 12.3 % 7.4 % Non-GAAP adjustments before income taxes (221.3) 83.0 (140.3) 114.5 Less: Accelerated depreciation included in Non-GAAP adjustments before income taxes 20.7 1.8 20.7 4.7 Adjusted EBITDA $ 445.7 $ 318.2 $ 800.4 $ 680.0 % of Net Sales 11.3 % 8.1 % 10.3 % 8.8 % SUMMARY OF NON-GAAP ADJUSTMENTS BEFORE INCOME TAXES (Unaudited, Millions of Dollars) SECOND QUARTER YEAR-TO-DATE 2 1 2 1 2 1 2 1 1
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2026 2025 2026 2025 Supply Chain Transformation Costs: Footprint Rationalization $ 29.0 $ 5.4 $ 34.2 $ 12.0 Material Productivity & Operational Excellence - 3.3 - 8.0 Voluntary retirement program (0.5) 11.9 (0.5) 11.9 Other charges 0.2 (0.6) 0.2 4.8 Gross profit $ 28.7 $ 20.0 $ 33.9 $ 36.7 Supply Chain Transformation Costs: Footprint Rationalization $ 2.3 $ 5.0 $ 8.9 $ 11.1 Complexity Reduction & Operational Excellence - 10.5 - 20.5 Transition services costs related to previously divested businesses 1.9 3.1 1.9 8.4 Voluntary retirement program (2.7) 33.5 (2.7) 33.5 Other charges 1.5 0.5 2.6 1.1 Selling, general and administrative $ 3.0 $ 52.6 $ 10.7 $ 74.6 Income related to providing transition services to previously divested businesses $ (1.9) $ (3.5) $ (1.9) $ (10.3) Voluntary retirement program - 6.2 - 6.2 Deal-related costs and other 2.2 (11.1) (0.4) (13.0) Other, net $ 0.3 $ (8.4) $ (2.3) $ (17.1) (Gain) loss on sales of businesses $ (273.7) $ - $ (270.6) $ 0.3 Asset impairment charges 5.3 - 28.0 - Restructuring charges 15.1 18.8 60.0 20.0 Non-GAAP adjustments before income taxes $ (221.3) $ 83.0 $ (140.3) $ 114.5 EBITDA is earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA represents EBITDA excluding certain gains and charges, as summarized above. EBITDA and Adjusted EBITDA, both Non-GAAP measures, are considered relevant to aid analysis and understanding of the Company's operating results and ensures appropriate comparability to prior periods. Footprint Rationalization costs in 2026 primarily relate to accelerated depreciation of manufacturing equipment driven by plants closed in the second quarter of 2026, as well as site transformation and re-configuration costs. Footprint Rationalization costs in 2025 primarily relate to site transformation and re-configuration costs. Facility exit costs related to site closures are reported in Restructuring charges. In June 2025, the Company implemented a voluntary retirement program ("VRP") to right-size the Company's corporate and support functions to align with a more focused portfolio following recent divestitures and more streamlined operations as part of the supply chain transformation. The costs associated with the VRP relate to separation benefits provided to eligible employees who voluntarily retired from the Company. Complexity Reduction & Operational Excellence costs in 2025 primarily related to third-party consulting fees to provide expertise in identifying business model changes and quantifying related cost savings opportunities within the Company's Engineered Fastening business, developing a detailed program and related governance, and assisting the Company with the implementation of actions necessary to achieve the identified objectives. Includes an $8.1 million gain on sale of a distribution center in the second quarter of 2025 as part of the supply chain transformation. Asset impairment charges in 2026 relate to the write-down of assets associated with the exit of a Tools and Outdoor product line and related plant closure. STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP REVENUE GROWTH TO NON-GAAP ORGANIC GROWTH (Unaudited) SECOND QUARTER 2026 GAAP Revenue Growth Less: Acquisitions Plus: Divestitures Less: Product Line Transfer Less: Strategic Outdoor Product Line Transition Less: Currency Non-GAAP Organic Growth Stanley Black & Decker - % - % 3 % - % -1 % 1 % 3 % Tools & Outdoor 3 % - % - % - % -1 % 1 % 3 % North America 3 % - % - % - % -1 % - % 4 % Europe - % - % - % - % - % 2 % -2 % Rest of World 8 % - % - % - % - % 5 % 3 % Engineered Fastening -18 % - % 21 % - % - % - % 3 % Non-GAAP Organic Growth, as reconciled to GAAP Revenue Growth above, is utilized to describe the change in the Company's net sales excluding the impacts of foreign currency fluctuations, acquisitions during their initial 12 months of ownership, divestitures, transfers of product lines between segments, and the strategic transition to a licensing model for gas walk-behind outdoor product lines (as previously communicated). Organic growth is also referred to as organic sales growth and organic revenue growth. View original content to download multimedia:https://www.prnewswire.com/news-releases/stanley-black--decker- reports-solid-2q-2026-results-302837066.html SOURCE Stanley Black & Decker, Inc. 2 3 2 4 3 3 5 6 1 2 3 4 5 6 1 1