Stanley Black & Decker (SWK) investor relations material

Leadership and organizational updates

• COO Chris Nelson will become CEO in October, with Don Allan moving to Executive Chair, signaling continuity in transformation and growth focus.

• Michael Worley joins as VP of IR, replacing Dennis Lange, who moves to a strategy role.

Strategic brand focus and innovation

• Capital is being concentrated on DEWALT, STANLEY, and CRAFTSMAN, which represent over 75% of revenue and target key market segments.

• Investments in STANLEY and CRAFTSMAN are showing early results, especially in Europe and Latin America, with further U.S. hand tools focus and DIY repositioning expected to drive growth by 2026.

• Product innovation is prioritized in carpentry, concrete, plumbing, mechanical, and electrical categories, with new launches expected to boost DEWALT growth.

• Over 400 customer-facing employees have been added, mainly in sales and field support, to strengthen relationships and drive sales initiatives.

Financial targets, margin expansion, and tariff mitigation

• Despite macro and political headwinds, long-term targets set at the previous Capital Markets Day remain in place, though tariffs have delayed achievement by about 12 months.

• Gross margin is expected to reach low 30% in the back half of the year, with a target of 35% now anticipated about a year later than originally planned.

• Tariff mitigation, price increases, and supply chain shifts (notably moving production from China to Mexico) are key to margin expansion.

• USMCA compliance is a strategic focus, with efforts to maximize local content and multi-nodal manufacturing to adapt to evolving trade regimes.