Stanley Black & Decker Q4 adjusted EPS beats estimates on margin expansion

Stanley Black & Decker

04/02/2026 11:08

Overview

Tools and outdoor solutions firm's Q4 revenue declined 1%, missing analyst expectations

Adjusted EPS for Q4 beat analyst expectations

Company to divest CAM business for $1.8 bln in cash

Outlook

Stanley Black & Decker expects 2026 EPS between $3.15 and $4.35 on a GAAP basis

Company targets 2026 adjusted EPS between $4.90 and $5.70

Stanley Black & Decker forecasts 2026 free cash flow between $700 mln and $900 mln

Result Drivers

GROSS MARGIN EXPANSION - Higher pricing, tariff mitigation, and supply chain cost reductions drove significant gross margin improvement

TOOLS & OUTDOOR MARGIN - Despite volume declines, segment margin expanded due to higher pricing and cost controls

ENGINEERED FASTENING GROWTH - Strong demand in aerospace and automotive drove segment growth and margin expansion

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Miss
$3.68 bln
$3.78 bln (12 Analysts)
Q4 Adjusted EPS
Beat
$1.41
$1.28 (14 Analysts)
Q4 EPS
$1.04
Q4 Net Income
$158.20 mln
Q4 Adjusted Gross Margin
33.30%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 13 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the industrial machinery & equipment peer group is "buy."

Wall Street's median 12-month price target for Stanley Black & Decker Inc is $86.50, about 6.8% above its February 3 closing price of $80.96

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nPnbhWL3Ha

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)