Stanley Black & Decker (SWK) Q1 2026 earnings summary

Executive summary

• Net sales rose 3% year-over-year to $3.85 billion in Q1 2026, driven by price increases and favorable currency, offset by lower volume.

• Adjusted EPS was $0.80, exceeding guidance, while GAAP EPS was $0.39 for the quarter.

• Completed the sale of the aerospace fasteners (CAM) business in April 2026 for $1.8B, with $1.6B net proceeds used primarily for debt reduction and strengthening the balance sheet.

• Authorized a new $500M share repurchase program in April 2026, replacing the prior program.

• Strategic focus remains on operational excellence, purposeful brand activation, and innovation to drive long-term value.

Financial highlights

• Q1 2026 revenue up 3% year-over-year to $3.8B–$3.85B, with flat organic growth as price increases offset volume declines.

• Adjusted gross margin was 30.2% (down 20 bps YoY); gross margin was 30.1% (up 20 bps YoY).

• Adjusted EBITDA margin was 9.2% (down 50 bps YoY); EBITDA margin was 7.1% (down 180 bps YoY).

• Free cash flow for Q1 2026 was an outflow of $447M, improved from the prior year.

• Net earnings for Q1 2026 were $59.6M, with diluted EPS at $0.39.

Outlook and guidance

• 2026 adjusted EPS guidance is $4.90–$5.70 (13% growth at midpoint); GAAP EPS guidance is $4.15–$5.35, reflecting CAM sale gain.

• Free cash flow expected at $500M–$700M (including CAM taxes/fees), or $700M–$900M excluding those payments.

• Total company revenue expected to be flat to up low single digits year-over-year; organic revenue to grow low single digits.

• Adjusted gross margin to expand by ~150 bps YoY, targeting 35%+ by Q4 2026 and 35–37% by end of 2028.

• Q2 net sales expected at ~$3.9B, down slightly YoY due to CAM sale, but up low single digits organically; adjusted EPS $1.15–$1.25.