Stanley Black & Decker Inc. (NYSE:SWK) reported first-quarter results on Wednesday that came in ahead of analyst expectations, supported by modest revenue growth.
Adjusted earnings per share were $0.80, exceeding the consensus forecast of $0.59 by $0.21. Revenue reached $3.85 billion, above estimates of $3.75 billion and up 3% compared with the same period last year.
Shares rose 0.86% in premarket trading following the announcement.
The company reiterated its full-year 2026 adjusted EPS guidance of $4.90 to $5.70, with the midpoint of $5.30 above the analyst consensus of $5.21. It also increased its GAAP EPS outlook to a range of $4.15 to $5.35, reflecting the anticipated gain from the divestment of its Consolidated Aerospace Manufacturing business.
“Stanley Black & Decker entered 2026 with unwavering commitment to our strategic priorities, and we delivered stronger than planned first quarter results through disciplined execution,” said Chris Nelson.
Net sales grew 3%, as price increases of 3% and favorable currency effects of 3% offset a 3% decline in volumes. On an organic basis, revenue remained flat.
Gross margin improved by 20 basis points to 30.1%, while adjusted gross margin slipped 20 basis points to 30.2%, as operational gains and pricing were offset by higher tariff-related costs and lower volumes.
The Tools & Outdoor division generated $3.34 billion in revenue, up 2% year over year, with an adjusted segment margin of 8.7%. The Engineered Fastening segment reported sales of $511 million, a 10% increase, with an adjusted margin of 12.0%.
The company completed the sale of its Consolidated Aerospace Manufacturing unit to Howmet Aerospace on April 6 for $1.8 billion in cash, generating approximately $1.6 billion in net proceeds. Most of the funds were used to reduce debt during the second quarter.