Stanley Black & Decker, Caterpillar report higher first-quarter sales as market demand holds
Stanley Black & Decker and Caterpillar reported first-quarter 2026 results showing higher sales, with both companies pointing to pricing, volume and continued demand in key markets.
Stanley Black & Decker said net sales rose 3% year over year to $3.8 billion, driven by higher pricing and favorable currency, partially offset by lower volumes tied to softer North American retail demand. Earnings per share were $0.39, with adjusted EPS of $0.80.
Caterpillar reported sales and revenues increased 22% to $17.4 billion, reflecting higher sales volume and favorable price realization. Profit per share rose to $5.47, with adjusted profit per share of $5.54.
Both companies cited mixed conditions across segments.
At Stanley Black & Decker, its Tools & Outdoor segment posted a 2% increase in sales, supported by pricing gains and international performance, though volumes declined. Engineered Fastening sales rose 10%, led by aerospace and automotive demand, with margin improvement in that segment.
Caterpillar reported sales growth across all major segments. Construction Industries increased 38%, Power & Energy rose 22% and Resource Industries grew 4%. The company said higher dealer inventory levels and increased equipment sales to end users contributed to volume gains.
Margins showed some pressure for both companies.
Stanley Black & Decker reported a gross margin of 30.1%, with impacts from tariffs, inflation and volume deleverage offsetting pricing and cost improvements.
Caterpillar’s operating profit margin was 17.7%, down from 18.1% a year earlier, with higher manufacturing costs, including tariffs, and increased operating expenses partially offsetting gains from volume and pricing.
Cash deployment and capital activity also differed.
Caterpillar generated $1.9 billion in enterprise operating cash flow and returned $5.7 billion to shareholders through share repurchases and dividends.
Stanley Black & Decker completed the sale of its Consolidated Aerospace Manufacturing business in April, generating about $1.6 billion in net proceeds, which it said are being used primarily to reduce debt.
Looking ahead, Stanley Black & Decker raised its 2026 GAAP earnings guidance to a range of $4.15 to $5.35 per share, reflecting the impact of the divestiture, while maintaining its adjusted EPS outlook.
Caterpillar pointed to a strong backlog and ongoing order activity as indicators of continued momentum, though both companies noted ongoing macroeconomic uncertainty, including tariff-related costs and shifting global demand.
