Stanley Black & Decker

SWK

Market cap $13.4B

Stanley Black & Decker is downgraded from buy to hold due to weakening fundamentals and unattractive valuation. SWK's tools and outdoor segment saw significant volume declines, while engineered fastening delivered growth driven by aerospace and automotive demand. Despite soft demand, SWK improved gross margins to 33.3% and reduced net debt to adjusted EBITDA from 5.9x to 3.4x over two years.

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NEW BRITAIN, Conn., Feb. 24, 2026 /PRNewswire/ -- Stanley Black & Decker (NYSE: SWK), a global leader in tools and outdoor solutions, announced today that its Board of Directors approved a regular first quarter cash dividend of $0.83 per common share.

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Stanley Black & Decker, Inc. (SWK) Presents at Barclays 43rd Annual Industrial Select Conference Transcript

Stanley Black & Decker delivered solid Q4 results, beating EPS estimates despite headwinds, and remains focused on debt reduction. SWK trades at less than 17x 2026 EPS estimates, with significant earnings growth projected through 2028, making it undervalued relative to the broader market. The upcoming $1.8B CAM divestiture will strengthen the balance sheet, enabling debt repayment and potentially unlocking share buybacks and dividend growth.

FY 2025: Record Revenue, Up 11% Year Over Year; Record Profit and Cash from Operations FY 2025: GAAP EPS Up 32% Year Over Year; Adjusted EPS * Up 40% Year Over Year FY 2025: $700 Million Deployed for Common Stock Repurchases; $265 Million Debt Reduction FY 2026: Revenue Growth Guidance at Approximately 10%, Expect Improved Profit and Cash Generation Fourth Quarter 2025 GAAP Financial Results Revenue of $2.2 billion, up 15% year over year (YoY), driven by Commercial Aerospace, up 13% Operating Income Margin of 22.6%, down 90 basis points YoY Net Income of $372 million versus $314 million in the fourth quarter 2024; Earnings per Share (EPS) of $0.92, up 19% YoY Generated $654 million of Cash from Operations; $449 million of Cash used for Financing Activities; and $122 million of Cash used for Investing Activities Share repurchases of $200 million; paid $0.12 per share common stock dividend Fourth Quarter 2025 Adjusted Financial Results Adjusted EBITDA excluding special items of $653 million, up 29% YoY Adjusted EBITDA margin excluding special items of 30.1%, up 330 basis points YoY Adjusted Operating Income Margin excluding special items of 26.8%, up 380 basis points YoY Adjusted EPS excluding special items of $1.05, up 42% YoY Generated $530 million of Free Cash Flow Full Year 2025 GAAP Financial Results Revenue of $8.3 billion, up 11% YoY, driven by Commercial Aerospace, up 12% Operating Income Margin of 24.8%, up 280 basis points YoY Net Income of $1.5 billion versus $1.2 billion in 2024; EPS of $3.71 versus $2.81 in 2024 Generated $1.9 billion of Cash from Operations; $1.3 billion of Cash used for Financing Activities; and $0.4 billion of Cash used for Investing Activities Share repurchases of $700 million; paid $0.44 per share common stock dividend Full Year 2025 Adjusted Financial Results Adjusted EBITDA excluding special items of $2.4 billion, up 26% YoY Adjusted EBITDA margin excluding special items of 29.3%, up 350 basis points YoY Adjusted Operating Income Margin excluding special items of 25.8%, up 380 basis points YoY Adjusted EPS excluding special items of $3.77, up 40% YoY Generated $1.4 billion of Free Cash Flow 2026 Guidance Q1 2026 Guidance FY 2026 Guidance Low Baseline High Low Baseline High Revenue $2.225B $2.235B $2.245B $9.000B $9.100B $9.200B Adj. EBITDA * 1 $680M $685M $690M $2.710B $2.760B $2.810B Adj.

NEW BRITAIN, Conn., Feb. 11, 2026 /PRNewswire/ -- Stanley Black & Decker (NYSE: SWK) invites investors and the general public to listen to a webcast of a presentation by Chris Nelson, President and CEO, at the Barclays 43rd Annual Industrial Select Conference on Wednesday, February 18, 2026 at 1:15 PM ET.

Dividend Kings remain broadly overvalued, with only a handful approaching fair price despite elevated yields. Three Dividend Kings—Canadian Utilities, Fortis, and Hormel—currently meet the dogcatcher 'ideal' but face dividend safety concerns due to negative free cash flow margins. Analyst projections estimate 14.16% to 27.77% net gains for top-yielding Dividend Kings by February 2027, with ABBV and NWN ranking in the top 20 across yield, target, and returns.