STANLEY BLACK & DECKER, INC. (SWK): Results of Operations and Financial Condition
STANLEY BLACK & DECKER, INC. (SWK) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Stanley Black & Decker Reports Solid 2Q 2026 Results On Track to Achieve Full Year Sales and Margin Targets 2Q Earnings and Margin Growth Include Benefit from Tariff Refunds Raises 2026 EPS and Free Cash Flow Guidance Reduced Debt by $1.7B and Executed $250M of Share
How this was made
The 30-second read
Why it matters
Traders can update models for SWK’s profitability, working-capital dynamics, and cash generation based on the reported quarter and year-to-date figures. Segment profit detail also helps assess whether margin expansion is broad-based or driven by mix and one-time items.
Market read
Fresh quarterly financials and segment profitability, including cash flow and balance sheet changes, provide actionable updates for near-term positioning.
What to watch
Engineered Fastening comparables include CAM business effects for the six months ended July 4, 2026, so investors should normalize segment performance around the divestiture timing.
Second-quarter GAAP net earnings were $351.3 million on net sales of $3,960.7 million, with GAAP gross profit margin of 33.0%.
Second-quarter gross profit, operating income, net earnings, diluted EPS, operating cash flow and free cash flow were higher than the corresponding 2025 figures presented. The period also included a $273.7 million gain on sales of businesses, while Engineered Fastening second-quarter sales were $396.4 million versus $483.8 million in 2025 and excluded CAM following its sale.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, second quarterGAAP | $3,960.7 million | – | – |
| Net sales, year-to-dateGAAP | $7,807.1 million | – | – |
| Cost of sales, second quarterGAAP | $2,654.9 million | – | – |
| Cost of sales, year-to-dateGAAP | $5,344.0 million | – | – |
| Gross profit, second quarterGAAP | $1,305.8 million | – | – |
| Gross profit margin, second quarterGAAP | 33.0% | – | – |
| Gross profit, year-to-dateGAAP | $2,463.1 million | – | – |
| Gross profit margin, year-to-dateGAAP | 31.5% | – | – |
| Selling, general and administrative expense, second quarterGAAP | $947.9 million | – | – |
| Selling, general and administrative expense as a percentage of net sales, second quarterGAAP | 23.9% | – | – |
| Selling, general and administrative expense, year-to-dateGAAP | $1,831.9 million | – | – |
| Selling, general and administrative expense as a percentage of net sales, year-to-dateGAAP | 23.5% | – | – |
| Other, net, second quarterGAAP | $52.9 million | – | – |
| Other, net, year-to-dateGAAP | $94.8 million | – | – |
| Gain on sales of businesses, second quarterGAAP | $(273.7) million | – | – |
| Gain on sales of businesses, year-to-dateGAAP | $(270.6) million | – | – |
| Asset impairment charges, second quarterGAAP | $5.3 million | – | – |
| Asset impairment charges, year-to-dateGAAP | $28.0 million | – | – |
| Restructuring charges, second quarterGAAP | $15.1 million | – | – |
| Restructuring charges, year-to-dateGAAP | $60.0 million | – | – |
| Income from operations, second quarterGAAP | $558.3 million | – | – |
| Income from operations, year-to-dateGAAP | $719.0 million | – | – |
| Interest, net, second quarterGAAP | $59.3 million | – | – |
| Interest, net, year-to-dateGAAP | $135.2 million | – | – |
| Earnings before income taxes, second quarterGAAP | $499.0 million | – | – |
| Earnings before income taxes, year-to-dateGAAP | $583.8 million | – | – |
| Income taxes, second quarterGAAP | $147.7 million | – | – |
| Income taxes, year-to-dateGAAP | $172.9 million | – | – |
| Net earnings, second quarterGAAP | $351.3 million | – | – |
| Net earnings, year-to-dateGAAP | $410.9 million | – | – |
| Basic earnings per share, second quarterGAAP | $2.34 | – | – |
| Basic earnings per share, year-to-dateGAAP | $2.72 | – | – |
| Diluted earnings per share, second quarterGAAP | $2.33 | – | – |
| Diluted earnings per share, year-to-dateGAAP | $2.71 | – | – |
| Dividends per share of common stock, second quarterGAAP | $0.83 | – | – |
| Dividends per share of common stock, year-to-dateGAAP | $1.66 | – | – |
| Weighted-average basic shares outstanding, second quarterGAAP | 150,130 thousand | – | – |
| Weighted-average diluted shares outstanding, second quarterGAAP | 150,648 thousand | – | – |
| Gross profit, second quarternon-GAAP | $1,334.5 million | – | – |
| Gross profit margin, second quarternon-GAAP | 33.7% | – | – |
| Selling, general and administrative expense, second quarternon-GAAP | $944.9 million | – | – |
| Selling, general and administrative expense as a percentage of net sales, second quarternon-GAAP | 23.9% | – | – |
| Earnings before income taxes, second quarternon-GAAP | $277.7 million | – | – |
| Net earnings, second quarternon-GAAP | $235.7 million | – | – |
| Diluted earnings per share of common stock, second quarternon-GAAP | $1.57 | – | – |
| Gross profit, year-to-datenon-GAAP | $2,497.0 million | – | – |
| Gross profit margin, year-to-datenon-GAAP | 32.0% | – | – |
| Selling, general and administrative expense, year-to-datenon-GAAP | $1,821.2 million | – | – |
| Selling, general and administrative expense as a percentage of net sales, year-to-datenon-GAAP | 23.3% | – | – |
| Earnings before income taxes, year-to-datenon-GAAP | $443.5 million | – | – |
| Net earnings, year-to-datenon-GAAP | $357.9 million | – | – |
| Diluted earnings per share of common stock, year-to-datenon-GAAP | $2.36 | – | – |
| Net cash provided by operating activities, second quarterGAAP | $763.1 million | – | – |
| Net cash provided by (used in) operating activities, year-to-dateGAAP | $374.3 million | – | – |
| Free cash flow before dividends, second quarternon-GAAP | $698.2 million | – | – |
| Free cash flow before dividends, year-to-datenon-GAAP | $250.9 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Tools & OutdoorSecond-quarter segment profit was $389.0 million and segment profit as a percentage of net sales was 10.9%. Non-GAAP adjustments for the 2026 segment relate primarily to footprint actions. | $3,564.3 million | – | – |
| Engineered FasteningFor the three months ended July 4, 2026, net sales and segment profit did not include results of the CAM business following its April 6, 2026 sale. Second-quarter segment profit was $51.6 million and segment profit as a percentage of net sales was 13.0%. | $396.4 million | – | – |
Capital returns
- Purchases of common stock for treasury were $(252.1) million in the second quarter and $(267.4) million year-to-date.
- Cash settlement on forward stock purchase contract was $(125.0) million in the second quarter and year-to-date.
- Cash dividends on common stock were $(124.3) million in the second quarter and $(250.3) million year-to-date.
- Dividends per share of common stock were $0.83 in the second quarter and $1.66 year-to-date.
What drove it
- GAAP gross profit margin was 33.0% in the second quarter and 31.5% year-to-date, compared with 27.0% and 28.4%, respectively, in the corresponding 2025 periods.
- Tools & Outdoor second-quarter segment profit was $389.0 million, compared with $238.1 million, and segment profit as a percentage of net sales was 10.9%, compared with 6.9%.
- Engineered Fastening second-quarter segment profit was $51.6 million, compared with $35.0 million, and segment profit as a percentage of net sales was 13.0%, compared with 7.2%.
- The Company completed the sale of its Consolidated Aerospace Manufacturing business on April 6, 2026, and recorded a $(273.7) million gain on sales of businesses in the second quarter.
- Second-quarter non-GAAP diluted earnings per share were $1.57, compared with $1.08.
Concerns
- Engineered Fastening second-quarter net sales were $396.4 million, compared with $483.8 million in the corresponding 2025 period.
- The 2026 second-quarter Engineered Fastening results did not include CAM, while year-to-date Engineered Fastening net sales and segment profit included $117.0 million and $22.0 million, respectively, related to CAM.
- Second-quarter GAAP net earnings included a $(273.7) million gain on sales of businesses.
- Year-to-date restructuring charges were $60.0 million, compared with $20.0 million in 2025.
- Selling, general and administrative expense as a percentage of net sales was 23.9% in the second quarter, compared with 22.1% in 2025.
What to watch
- Tools & Outdoor net sales and segment profit as a percentage of net sales.
- Engineered Fastening results after the April 6, 2026 CAM business sale.
- The level of restructuring charges and footprint-action-related non-GAAP adjustments.
- Operating cash flow, capital and software expenditures, and free cash flow before dividends.
- Common-stock repurchases, dividends, commercial paper repayments and long-term debt levels.
Balance sheet and cash flow
- Cash and cash equivalents were $592.4 million as of July 4, 2026, compared with $280.1 million as of January 3, 2026.
- Cash, cash equivalents and restricted cash were $604.0 million as of July 4, 2026, compared with $287.4 million as of January 3, 2026.
- Long-term debt was $4,704.2 million as of July 4, 2026, compared with $4,703.3 million as of January 3, 2026.
- Current maturities of long-term debt were $53.7 million as of July 4, 2026, compared with $554.8 million as of January 3, 2026.
- Payments on long-term debt were $(500.1) million year-to-date.
- Net short-term commercial paper repayments were $(1,750.2) million in the second quarter and $(604.8) million year-to-date.
- Capital and software expenditures were $(64.9) million in the second quarter and $(123.4) million year-to-date.
- Proceeds from sales of businesses, net of cash sold, were $1,814.6 million in the second quarter and $1,814.7 million year-to-date.
Analysis
Stanley Black & Decker reported second-quarter net sales of $3,960.7 million, compared with $3,945.2 million in the corresponding 2025 period. Gross profit was $1,305.8 million and gross profit margin was 33.0%, compared with $1,066.5 million and 27.0%, respectively. The comparable non-GAAP gross profit margin was 33.7%, compared with 27.5%. The filing does not provide organic growth, volume, price, regional sales, or customer demand measures.
Profitability improved across the reported operating measures. GAAP income from operations was $558.3 million versus $106.9 million, while GAAP net earnings were $351.3 million versus $101.9 million and diluted EPS was $2.33 versus $0.67. Results included a $(273.7) million gain on sales of businesses. On a non-GAAP basis, net earnings were $235.7 million and diluted EPS was $1.57, compared with $163.1 million and $1.08. Second-quarter SG&A was $947.9 million, or 23.9% of net sales, compared with $873.1 million, or 22.1%.
Tools & Outdoor generated second-quarter net sales of $3,564.3 million and GAAP segment profit of $389.0 million, with a 10.9% segment profit margin. Engineered Fastening generated $396.4 million of net sales and $51.6 million of segment profit, with a 13.0% segment profit margin. Comparability within Engineered Fastening is affected by the April 6, 2026 sale of CAM: second-quarter results excluded CAM, while the year-to-date segment figures included $117.0 million of net sales and $22.0 million of segment profit from CAM.
Cash generation was positive in the period. Net cash provided by operating activities was $763.1 million in the second quarter and free cash flow before dividends was $698.2 million. Year-to-date operating cash flow was $374.3 million and free cash flow before dividends was $250.9 million. The Company received $1,814.6 million of proceeds from sales of businesses, net of cash sold, in the quarter, repaid $(1,750.2) million of net short-term commercial paper, repurchased $(252.1) million of common stock for treasury, and paid $(124.3) million of common-stock dividends.
Cash and cash equivalents were $592.4 million at July 4, 2026, compared with $280.1 million at January 3, 2026. Long-term debt was $4,704.2 million, broadly comparable with $4,703.3 million at January 3, 2026, while current maturities of long-term debt were $53.7 million compared with $554.8 million. The provided filing excerpt contains no forward guidance or management commentary, leaving the next-period revenue, margin, expense and tax outlook undisclosed in the supplied document.
Not in the filing
stated, not guessed- Forward guidance for revenue, gross margin, operating expenses, tax rate, EPS, cash flow or any other metric was not provided in the supplied filing text.
- Previous-period outlook was not provided.
- Prior-quarter comparisons for reported income-statement, segment, cash-flow and non-GAAP metrics were not provided.
- Reported percentage changes for total sales, segment sales, profitability, EPS, cash flow and non-GAAP measures were not provided.
- Organic sales, volume, pricing, geographic results, end-market demand measures, backlog and orders were not provided.
- Named executive commentary and named-executive quotes were not provided.
- Full non-GAAP adjustment detail referenced as appearing on page 16 was not included in the supplied filing text.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This SEC 8-K (Item 2.02) includes Exhibit 99.2 with Q2 2026 income statement, balance sheet, cash flow summary, and segment information, plus non-GAAP reconciliation.
Ticker impact
SWK reported Q2 2026 results with net sales of $3,960.7M and net earnings of $351.3M, plus segment profit detail by Tools & Outdoor and Engineered Fastening.
Likely near-term support for the stock versus prior quarter given the large jump in net earnings and gross profit, though investors may focus on margin sustainability and the segment mix after the CAM divestiture.
This is a primary-source earnings/financial-condition filing with multiple datapoints (sales, gross profit, operating income, EPS, cash flow). However, the excerpt does not include management guidance or consensus context, limiting precision on forward expectations.
Market effects
Tools and engineered fastening end-markets may see read-through from SWK’s margin expansion and segment profit mix, but the filing is company-specific.
No explicit regional demand signals are provided in the excerpt.
Limited global macro linkage in the provided text; focus remains on company execution and cash generation.
Counterpoint
Net earnings and gross profit improved, but costs and expenses include notable items (e.g., gain/loss on sales of businesses and restructuring charges), so underlying operating momentum may be less strong than headline earnings suggest.
Key entities
- companySTANLEY BLACK & DECKER, INC.
Reported Q2 2026 results, including net sales, gross profit, operating income, EPS, cash flow, and segment profit by Tools & Outdoor and Engineered Fastening.
- business_unitConsolidated Aerospace Manufacturing (CAM) business
Previously announced sale completed April 6, 2026; CAM results are excluded from Engineered Fastening for Q2 and included for the six-month period.
