Stanley Black & Decker (SWK) Investor presentation summary

Business overview and market position

• Operates two main segments: Tools & Outdoor (87% of revenue) and Engineered Fastening (13% of revenue), with leading brands such as DEWALT, CRAFTSMAN, STANLEY, and Cub Cadet.

• Tools & Outdoor segment generated $13.2B in 2025, with a focus on power tools, hand tools, accessories, storage, and outdoor equipment.

• Engineered Fastening segment generated ~$2B in 2025, serving automotive, industrial, and aerospace markets.

• Geographic reach includes North America (68% of Tools & Outdoor revenue), Europe (16%), and Rest of World (16%).

• Exposure to residential construction is approximately 40-45% of total revenue.

Financial performance and targets

• Adjusted gross margin improved to 33.3% in Q4 2025, with a long-term target of 35%+.

• Net debt to adjusted EBITDA reduced from 5.9x in Dec 2023 to 3.4x in Dec 2025, with a target of ≤2.5x.

• 2026 planning assumptions include low single-digit organic revenue growth, adjusted EPS of $4.90 to $5.70, and free cash flow of $700M to $900M.

• Proceeds from the CAM divestiture expected to further reduce debt in 2026.

• Long-term financial goals for 2028: 35-37% adjusted gross margin, mid-to-high teens adjusted EBITDA margin, and ~100% free cash flow conversion.

Strategic imperatives and operational focus

• Strategic focus on activating brands, driving operational excellence, and accelerating innovation.

• Committed to disciplined capital deployment: organic growth investments, strong and growing dividend, and deleveraging.

• Dividend paid consecutively for 149 years and increased for 58 years.

• Supply chain initiatives target cost efficiency, tariff mitigation, and sustainable productivity.

• Innovation and end-user engagement are central to growth, with emphasis on safety, quality, and productivity.