Stanley Black & Decker reports growth in outdoor products business
Stanley Black & Decker reported second-quarter net sales of $4 billion, in line with the prior-year period, while raising its earnings per share and free cash flow guidance for 2026. Organic sales increased 3% during the quarter.
Gross margin increased to 33.0% from 27.0% a year earlier, while earnings per share were $2.33. Cash from operating activities totaled $763 million, and free cash flow reached $698 million. During the quarter, the company completed the sale of its Consolidated Aerospace Manufacturing business, reducing debt by $1.7 billion and repurchasing approximately 3.2 million shares for $250 million.
The company’s Tools & Outdoor segment reported a 3% increase in net sales year over year. Organic revenue also increased 3%, driven primarily by power tool sales in U.S. retail and commercial and industrial channels. Higher volume and favorable currency were partially offset by the company’s previously announced transition to a licensing model for gas walk-behind outdoor products. Segment margin increased to 10.9% from 6.9% a year earlier.
The Engineered Fastening segment reported an 18% decline in sales, primarily due to the Consolidated Aerospace Manufacturing divestiture, though organic revenue increased 3% on higher industrial demand and automotive fastener growth. Segment margin increased to 13.0% from 7.2% a year earlier.
Chris Nelson, Stanley Black & Decker’s President & CEO, commented, “The Stanley Black & Decker team is committed to executing our strategy and delivering profitable, organic growth. Our second quarter sales, gross margin, and cash performance keep us firmly on track to achieve our full-year targets2. We further strengthened the balance sheet and executed on our capital deployment strategy. In addition, the tariff refunds are supporting incremental growth investments.
“We are confident in our path forward and our ability to navigate the external environment to deliver our long-term financial goals. Through disciplined execution of our strategic priorities, we are strengthening Stanley Black & Decker’s ability to deliver sustainable, profitable growth and create long-term value for our shareholders.”
Patrick Hallinan, EVP, Chief Financial Officer & Chief Administrative Officer, commented, “We delivered solid second quarter performance, and are on track to deliver on our full year sales and margin targets2. We remain focused on executing our strategy and progressing our priorities, while navigating the dynamic operating environment. Successfully closing the CAM divestiture at the start of the quarter enhanced our financial strength, affording the ability to invest in growth, reduce debt, support the dividend, and repurchase our shares.
“As we look ahead, we remain committed to delivering our near-term and long-term growth, margin, and cash flow objectives, while thoughtfully allocating capital to accelerate shareholder value creation.”
The company raised its 2026 GAAP earnings per share guidance to a range of $4.60 to $5.45 from a previous range of $4.15 to $5.35. It also increased its adjusted earnings per share guidance to $5.20 to $5.80 and raised its free cash flow outlook to a range of $600 million to $800 million.
