Stanley Black & Decker (NYSE:SWK) Releases Earnings Results, Beats Expectations By $0.14 EPS

Stanley Black & Decker (NYSE:SWK) posted its quarterly earnings data on Wednesday. The industrial products company reported $1.41 earnings per share for the quarter, beating analysts’ consensus estimates of $1.27 by $0.14, Briefing.com reports. Stanley Black & Decker had a net margin of 2.89% and a return on equity of 8.10%. During the same period last year, the firm earned $1.49 earnings per share. The company’s revenue for the quarter was down 1.0% on a year-over-year basis. Stanley Black & Decker updated its FY 2026 guidance to 4.900-5.700 EPS.

Here are the key takeaways from Stanley Black & Decker’s conference call:

• Full‑year Adjusted Gross Margin expanded to 30.7% (Q4: 33.3%) and the company completed its global cost reduction program, capturing $2.1 billion of run‑rate pre‑tax savings while targeting ~3% annual productivity and a >35% gross margin goal by Q4 2026.
• Adjusted EPS rose 7% to $4.67, Adjusted EBITDA grew 5%, and Free Cash Flow was nearly $700M for 2025 (Q4 FCF $883M), which management used for dividends, debt paydown and growth investments.
• Announced a definitive agreement to sell the CAM (aerospace fasteners) business for ~$1.8B gross (net proceeds ~$1.525–1.6B) to materially reduce debt, expected to cut leverage by ~1–1.25 turns and bring net debt/EBITDA to ≤2.5x, increasing capital allocation flexibility.
• Top‑line pressure persists: total revenue was down 1% (organic -3%) in Q4 with a 7% volume decline; management expects continued volatility into Q1 as peak 2025 tariff expense rolls into the P&L and guided Q1 sales of ~ $3.7B with EPS $0.55–$0.60 and roughly flat gross margin.
• Strategic portfolio moves will reduce reported revenue in the near term — management will transition gas‑powered walk‑behind outdoor products to a licensing model (reducing revenue by ~$120–140M in 2026 and ~$150–170M in 2027) while positioning those businesses for higher margins.

Stanley Black & Decker Trading Up 1.7%

SWK stock traded up $1.37 during midday trading on Wednesday, reaching $82.33. 1,099,894 shares of the company’s stock traded hands, compared to its average volume of 1,737,099. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.11 and a quick ratio of 0.35. Stanley Black & Decker has a fifty-two week low of $53.91 and a fifty-two week high of $90.75. The business has a 50-day moving average price of $77.10 and a two-hundred day moving average price of $73.52. The company has a market capitalization of $12.75 billion, a P/E ratio of 28.45, a PEG ratio of 1.09 and a beta of 1.21.

Analysts Set New Price Targets

Several research analysts have weighed in on SWK shares. Wall Street Zen downgraded Stanley Black & Decker from a “buy” rating to a “hold” rating in a report on Sunday, October 19th. Wells Fargo & Company lifted their price target on Stanley Black & Decker from $75.00 to $82.00 and gave the company an “equal weight” rating in a report on Wednesday, January 14th. Morgan Stanley set a $88.00 price objective on shares of Stanley Black & Decker in a report on Monday, December 22nd. Weiss Ratings restated a “hold (c)” rating on shares of Stanley Black & Decker in a report on Wednesday, January 21st. Finally, UBS Group cut their price target on shares of Stanley Black & Decker from $105.00 to $98.00 and set a “buy” rating on the stock in a research note on Monday, January 5th. Five research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Stanley Black & Decker presently has a consensus rating of “Hold” and an average target price of $87.33.

Institutional Investors Weigh In On Stanley Black & Decker

Hedge funds have recently modified their holdings of the stock. Freestone Grove Partners LP acquired a new stake in Stanley Black & Decker in the third quarter valued at approximately $95,602,000. Balyasny Asset Management L.P. acquired a new position in Stanley Black & Decker in the 2nd quarter worth $36,003,000. Bank of America Corp DE boosted its position in Stanley Black & Decker by 38.9% in the 2nd quarter. Bank of America Corp DE now owns 1,389,767 shares of the industrial products company’s stock valued at $94,157,000 after buying an additional 389,123 shares during the last quarter. UBS Group AG grew its stake in shares of Stanley Black & Decker by 27.0% during the third quarter. UBS Group AG now owns 1,597,048 shares of the industrial products company’s stock valued at $118,709,000 after acquiring an additional 339,878 shares in the last quarter. Finally, Hotchkis & Wiley Capital Management LLC increased its position in shares of Stanley Black & Decker by 9.0% during the third quarter. Hotchkis & Wiley Capital Management LLC now owns 3,103,941 shares of the industrial products company’s stock worth $230,716,000 after acquiring an additional 255,295 shares during the last quarter. 87.77% of the stock is currently owned by hedge funds and other institutional investors.

Stanley Black & Decker Company Profile

Stanley Black & Decker, Inc (NYSE:SWK) is a leading global manufacturer of industrial tools, engineered fastening systems, and security products. The company’s portfolio includes power tools, hand tools, accessories, and storage solutions marketed under well-known brands such as DEWALT, Stanley, Craftsman and Black & Decker. In addition to its core tools and hardware offerings, the company provides customized assembly and installation systems for the automotive, electronics and aerospace industries.

Operations are organized across three principal business segments.