SWKMEDIUM SIGNALOPERATIONAL10-K

Stanley Black & Decker completed its $2.0 billion cost reduction program ahead of schedule while announcing the $1.8 billion sale of its Consolidated Aerospace Manufacturing business as part of ongoing portfolio simplification.

The company has successfully executed its multi-year transformation strategy, achieving $2.1 billion in cost savings that exceeded the original $2.0 billion target by end of 2025. The pending CAM divestiture for $1.8 billion in cash continues the strategic focus on core tools, outdoor, and engineered fastening businesses while providing substantial proceeds for debt reduction and reinvestment.

Comparing 2026-02-24 vs 2025-02-18View on EDGAR →
FINANCIAL ANALYSIS

SWK delivered meaningfully higher net income of $401.9 million, up 36.6% year-over-year, demonstrating the benefits of its cost reduction initiatives. However, gross profit declined to $4.3 billion from $5.2 billion, likely reflecting portfolio divestitures and market conditions. The company reduced total debt by 13.8% to $5.3 billion while operating cash flow modestly declined to $971.2 million, suggesting a solid but transitional financial position as the transformation program concludes.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
+36.6%
$294.3M$401.9M

Net income grew 36.6% — bottom-line growth signals improving overall business health.

Gross Profit
P&L
-17.5%
$5.2B$4.3B

Gross margin compression — rising input costs, pricing pressure, or unfavorable product mix shift.

Total Debt
Balance Sheet
-13.8%
$6.1B$5.3B

Debt reduced 13.8% — deleveraging strengthens balance sheet and reduces financial risk.

Share Buybacks
Cash Flow
+13.6%
$17.7M$20.1M

Share repurchases increased 13.6% — management returning capital, signals confidence in intrinsic value.

Operating Cash Flow
Cash Flow
-12.3%
$1.1B$971.2M

Operating cash flow softened — monitor whether temporary working capital timing or structural deterioration.

LANGUAGE CHANGES
NEW — 2026-02-24
PRIOR — 2025-02-18
ADDED
On February 16, 2026, the registrant had 155,079,468 shares of common stock outstanding.
FORM 10-K SUMMARY 56 SIGNATURES 115 EX-10.25 EX-10.26 EX-10.27 EX-19 EX-21 EX-23 EX-24 EX-31.1(a) EX-31.1(b) EX-32.1 EX-32.2 2 FORM 10-K PART I ITEM 1.
Most recently, the Company announced in December 2025 that it had entered into a definitive agreement to sell its Consolidated Aerospace Manufacturing ("CAM") business for $1.8 billion in cash.
These divestitures reflect the Company's ongoing strategic commitment to simplify and streamline its portfolio to focus on its leading market positions in tools and outdoor, as well as engineered fastening systems.
In mid-2022, the Company initiated a business transformation that included reinvestment for faster growth as well as a Global Cost Reduction Program designed to achieve $2.0 billion of pre-tax run-rate cost savings by optimizing its cost base across its supply chain and selling, general, and administrative ( SG A ) functions.
The Company completed this program as of the end of 2025 and generated approximately $2.1 billion of pre-tax run-rate savings, exceeding the original program target.
The Company is guided by its mission to build a world-class branded industrial company, by solving end users most pressing and complex challenges.
The strategy to achieve this mission is anchored by three core imperatives: activating our brands with purpose, driving operational excellence, and accelerating innovation.
Activating our brands with purpose is rooted by the Company's brands standing for quality, safety and productivity.
The Company is investing resources to continue to deepen connections with end users, with every product, solution and service aligned with their evolving needs.
REMOVED
On February 11, 2025, the registrant had 154,413,950 shares of common stock outstanding.
FORM 10-K SUMMARY 56 SIGNATURES 118 EX-19 EX-21 EX-23 EX-24 EX-31.1(a) EX-31.1(b) EX-32.1 EX-32.2 2 FORM 10-K PART I ITEM 1.
These recent divestitures are part of the Company's strategic commitment to simplify and streamline its portfolio to focus on its leading market positions in tools and outdoor, as well as engineered fastening systems.
Leveraging the benefits of a more focused portfolio, the Company initiated a business transformation in mid-2022 that includes reinvestment for faster growth as well as a $2.0 billion Global Cost Reduction Program through 2025.
In terms of capital allocation, the Company remains committed, over time, to returning excess capital to shareholders through a strong and growing dividend as well as a preference toward opportunistically repurchasing shares.
In the near term, the Company intends to direct any capital in excess of the quarterly dividend on its common stock toward debt reduction and internal growth investments.
The Company s business strategy is designed to drive long-term value for its stakeholders by creating a simplified and focused organization, investing in core growth and innovation to be a market leader, and delivering for its customers, end users and shareholders.
The Company has accordingly focused its sustainability efforts to better align with this business strategy.
Description of the Business The Company s operations are classified into two reportable business segments: Tools Outdoor and Industrial.
Annual revenues in the Tools Outdoor segment were $13.3 billion in 2024, representing 87% of the Company s total revenues.
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