Stanley Black & Decker Q1 Sales Rise 3%, Adjusted EPS Hits $0.80 as CAM Sale Nets $1.6 B
Stanley Black & Decker delivered Q1 net sales of $3.8 billion, up 3% year-over-year, flat organically, with gross margin at 30.1% (+20 bps) and adjusted EPS of $0.80. The sale of its CAM aerospace unit generated ~$1.6 billion in net proceeds, which have been deployed toward debt reduction and share repurchase funding.
1. Q1 2026 Financial Performance
Stanley Black & Decker reported net sales of $3.8 billion, a 3% increase versus Q1 2025 driven by pricing (+3%) and currency (+3%), offset by a 3% volume decline. Gross margin expanded 20 basis points to 30.1%, while adjusted gross margin slipped 20 basis points to 30.2%. Reported EPS was $0.39, with adjusted EPS at $0.80.
2. Segment Results
The Tools & Outdoor segment generated $3.336 billion in sales (+2% total, –1% organic) and an adjusted margin of 8.7% (down 90 bps) due to growth investments and higher tariff expenses. The Engineered Fastening segment achieved $511 million in sales (+10% total, +7% organic) and an adjusted margin of 12.0% (up 190 bps) on stronger aerospace and automotive volumes.
3. CAM Unit Sale and Capital Deployment
On April 6, the company completed the sale of its Consolidated Aerospace Manufacturing unit for $1.8 billion, netting ~$1.6 billion after taxes and fees. Proceeds have been primarily used to pay down debt, and management plans to deploy remaining capital into share buybacks to enhance shareholder value.
4. Updated 2026 Guidance
With the expected gain from the CAM transaction, the company raised its 2026 GAAP EPS guidance to $4.15–$5.35 and reaffirmed its adjusted EPS targets, underpinned by disciplined cost management, strategic investments, and continued operational execution.