Stanley Black & Decker is in the final stages of its multiyear supply chain transformation, aiming to stabilize, simplify, and focus the organization, emphasizing cost structure improvement, leveraging core strengths, and prioritizing investments for accelerated organic growth. The company successfully completed its global cost reduction program, capturing $2.1 billion in run rate pretax cost savings since mid-2022. The company remains fully committed to achieving adjusted gross margins that are above 35%, a long-standing objective that continues to guide efforts and priorities, aiming to reach this milestone by 2026.
Cyborg Score Rationale
The company has successfully captured $2.1 billion in cost savings and achieved 7% adjusted EPS growth in 2025, reaching $4.67. However, total revenues were down about 1% organically in 2025 with a 7% volume decline in Q4 largely due to power tool demand dynamics in North American retail channels. Management set 2026 EPS guidance of $4.90–$5.70 versus consensus ~$5.56, signalling weaker demand and lowering near-term expectations.
Top Insights
2026 adjusted gross margin expected to expand by approximately 150 basis points year-over-year
Company is ahead of schedule in reducing reliance on Chinese imports for North American sales, aiming to be below 5% by the end of 2026
Additional $75M-$100M planned investment in brand growth in 2026 with significant new product launches and increased social media spending for CRAFTSMAN and STANLEY brands
Company faces challenges from heightened price sensitivity among consumers, particularly in opening price point products and brands
Named Competitors
DEWALT — Professional power tools and equipment
Milwaukee — Professional power tools
Makita — Power tools and accessories
Bosch Professional — Professional power tools
Recent Developments
(February 2026) Announced definitive agreement to divest Consolidated Aerospace Manufacturing (CAM) business for $1.8 billion in cash
(February 2026) Adjusted earnings per share grew by 7% in 2025 reaching $4.67 despite substantial tariff headwinds
(February 2026) Achieved full year adjusted gross margin of 30.7% and free cash flow of $688 million in 2025
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