Stanley Black & Decker, Inc. reported a net sales increase of 2.7% for the first quarter of 2026, reaching $3.846 billion compared to $3.745 billion in the same period of 2025. The company's gross profit for the quarter was $1.157 billion, representing 30.1% of net sales, a slight increase from 29.9% in the prior year. However, net earnings fell to $59.6 million, or $0.39 per diluted share, down from $90.4 million, or $0.60 per diluted share, in the previous year. The decline in profitability was attributed to increased costs, including tariffs and inflation, as well as a decrease in volume.
In terms of operational changes, Stanley Black & Decker completed the sale of its Consolidated Aerospace Manufacturing (CAM) business on April 6, 2026, for approximately $1.8 billion. This divestiture is part of the company's strategy to streamline its portfolio and focus on its core Tools & Outdoor and Engineered Fastening segments. The sale is expected to result in a pre-tax gain of approximately $260 million to $280 million, which will be recognized in the second quarter of 2026. The CAM business contributed $117 million in net sales and $22 million in segment profit for the first quarter of 2026.
The Tools & Outdoor segment reported net sales of $3.336 billion, a 2% increase from the previous year, while the Engineered Fastening segment saw a 10% increase in net sales to $510.8 million. The overall segment profit for Tools & Outdoor decreased to $276 million, or 8.3% of net sales, compared to 8.8% in the prior year. In contrast, Engineered Fastening's segment profit improved to $60.9 million, or 11.9% of net sales, up from 8.4% in the previous year, driven by strong performance in aerospace and automotive markets.
The company’s balance sheet showed total assets of $21.6 billion as of April 4, 2026, an increase from $21.2 billion at the beginning of the year. Cash and cash equivalents rose to $333.7 million, up from $280.1 million. However, short-term borrowings increased significantly to $1.743 billion from $605.6 million, reflecting the company's reliance on commercial paper to finance operations. The company anticipates free cash flow for 2026 to be in the range of $500 to $700 million, which includes projected taxes and fees associated with the CAM divestiture.
Looking ahead, Stanley Black & Decker has updated its guidance for 2026, projecting diluted earnings per share in the range of $4.15 to $5.35, reflecting the anticipated gain from the CAM sale. The company continues to focus on organic growth investments and plans to utilize the proceeds from the divestiture to reduce debt and potentially repurchase shares. The outlook remains cautious, with expectations of ongoing inflationary pressures and potential impacts from changing tariff policies.
About STANLEY BLACK & DECKER, INC.
Stanley Black & Decker, Inc. is a global provider of hand tools, power tools, outdoor products, and engineered fastening solutions. Its brands include DEWALT, CRAFTSMAN, and BLACK+DECKER. Serving professional and consumer markets worldwide, the company focuses on innovation, portfolio simplification, and operational efficiency to deliver quality products, expand market share, and create long-term value for stakeholders.
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