Stanley Black & Decker (SWK) official guidance

Adjusted segment margin is expected to improve year-over-year, primarily due to continuous operating improvement and volume leverage.

Adjusted segment margin is expected to improve year-over-year, driven primarily by sustained pricing actions, tariff mitigation, operational excellence, and thoughtful SG&A management.

Engineered fastening is expected to grow low single- to mid-single-digits organically, which is slightly lower than our prior guidance, reflecting just 1 quarter of contribution from CAM rather than the 2 in our original guidance.

Engineered Fastening is planned to grow mid-single digits organically, with comparatively strong performance in the first half, reflecting an anticipated half year contribution from CAM.

Tools & Outdoor is still expected to deliver low single-digit organic growth in 2026, led by market share gains in what we anticipate will be a roughly flat market.

Tools & Outdoor is expected to deliver low single-digit organic growth in 2026, with an emphasis on market share gains and what we anticipate will be a roughly flat market characterized by continued uncertainty.

We still expect organic revenue to grow by a low single-digit percentage year-over-year.

We are planning total company revenue to grow in the low single digits year-over-year, with organic revenue also expected to grow at a similar rate.

Our GAAP earnings guidance of $4.15-$5.35 includes pre-tax non-GAAP adjustments ranging from $10 million-$65 million.

The Company now expects 2026 GAAP EPS to be in the range of $4.15 to $5.35, which is higher than prior guidance factoring in the expected gain on the sale of CAM now that the transaction has closed.

Our GAAP earnings guidance of $3.15-$4.35 includes pretax, non-GAAP adjustments ranging from $270 million-$345 million, primarily from footprint optimization actions, with approximately 20% of the total representing non-cash charges.

The Company expects 2026 EPS to be in the range of $3.15 to $4.35 on a GAAP basis and in the range of $4.90 to $5.70 on an adjusted basis*. This represents growth of 42% and 13%, respectively, at the midpoint of each range.

For 2026, we expect adjusted earnings per share to be in the range of $4.90 to $5.70, representing growth of 13% at the midpoint and remaining consistent with our original adjusted earnings guidance.

The Company continues to expect adjusted EPS* in the range of $4.90 to $5.70.

For 2026, we expect adjusted earnings per share to be in the range of $4.90-$5.70, representing growth of 13% at the midpoint.

The Company expects 2026 EPS to be in the range of $3.15 to $4.35 on a GAAP basis and in the range of $4.90 to $5.70 on an adjusted basis*. This represents growth of 42% and 13%, respectively, at the midpoint of each range.

Free cash flow* is expected to be in the range of $500 to $700 million, now including projected taxes and fees associated with the recently closed CAM divestiture.

The Company is targeting free cash flow* to be in the range of $700 to $900 million, reflecting an increase of 16% at the midpoint.

We had talked about, by the end of this year, 2026, largely being out of China for U.S. consumption, less than 5%.

We are targeting free cash flow generation of $700 million-$900 million for the year, reflecting our expected continuation of strong cash flow conversion.

We expect to achieve the following level of performance in 2028: mid-single-digit sales growth, 35%-37% adjusted gross margins on a full year basis, accompanied by adjusted EBITDA margins of mid- to high-teens, cash flow conversion of net income approximating 100%, cash flow return on investment margins in the low- to mid-teens.

I'd say the cadence throughout the year is we expect, you know, the first quarter to be around 30.5, the second quarter to be between that and maybe 31, and then the back half to be, for each of the third and the fourth quarter in the 34%-35% range.

Looking forward to 2026, we foresee a strong opportunity for significant year-over-year adjusted gross margin expansion versus 2025, even if the macro conditions do not improve materially. We continue to target 35+% adjusted gross margin. As a team, we continue to strive to achieve or be very close to this target by the fourth quarter of 2026.