Stanley Black & Decker (SWK) Baird 2026 Global Industrial Conference summary

Q3 performance and priorities

• Q3 organic growth ~4%; adjusted gross margin reached 35% excluding tariff refunds, with cash flow ahead of plan.

• Two consecutive quarters of organic growth across DEWALT, CRAFTSMAN, and STANLEY; product launch cycle time cut 30% over the past couple of years.

• Completed a $500M share buyback and authorized a further $1B program; divestitures and operating progress strengthened the balance sheet.

2027 outlook and margin expansion

• Targeting 34%–35% gross margin next year, supported by consistent execution and progress demonstrated in Q3.

• Tariff refunds pulled forward investments in field sales and core-brand advertising from 2027 into 2026; SG&A expected to return to a ~23% run rate going forward.

• Platforming is mandatory in new product development; applying standardized components to existing products is a further productivity and margin opportunity.

• Platforming provides a roadmap for continued material productivity and gross margin expansion.

Brand and channel strategy

• Brand-led organization sets each brand’s positioning and target trades before defining products and directing sales, promotion, and investment.

• DEWALT investment centers on trade specialists, channel support, and outreach to younger professionals; CRAFTSMAN is focused on DIY products and expanding in garage, garden, and home renovation.

• STANLEY is refreshing its product line and adding dedicated support for hand-tool wholesalers, particularly in Europe.

• U.S. construction and industrial channel saw double-digit growth; professional channels are a major share opportunity, with growth supported by construction activity and stronger channel execution.