Stanley Black & Decker (SWK) Investor presentation summary

Business overview and segment performance

• Tools & Outdoor segment accounts for 87% of revenue, with $13.2B projected for 2025; key brands include DEWALT, CRAFTSMAN, STANLEY, BLACK+DECKER, and Cub Cadet.

• Engineered Fastening segment represents 13% of revenue, with $2B projected for 2025; focus areas are automotive, industrial, and aerospace.

• North America generates 66% of total revenue, with Europe and ROW contributing 16% and 18%, respectively.

• CAM business divested in April 2026, with proceeds used to reduce debt.

Financial performance and guidance

• 2026 organic revenue expected to grow low single digits (LSD%), with positive YoY margin expansion.

• Adjusted EPS guidance for 2026 is $4.90 to $5.70; free cash flow expected between $700M and $900M.

• Gross margin forecasted to reach 34-35% in 2026, with a long-term target of 35-37%.

• Net debt to adjusted EBITDA targeted at ~2.5x by end of 2026.

Strategic priorities and capital allocation

• Focus on organic growth, margin expansion, cash generation, and shareholder returns.

• Board approved $500M share repurchase authorization in April 2026.

• Capital deployment priorities: fund organic growth, return excess capital to shareholders, and consider bolt-on M&A.

• Committed to maintaining a solid investment grade credit rating.