SECOND QUARTER 2026
Filed Jul 29, 2026Second-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.