SWK

It has been about a month since the last earnings report for Stanley Black & Decker (SWK). Shares have added about 3.9% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Stanley Black & Decker due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Stanley Black & Decker, Inc. before we dive into how investors and analysts have reacted as of late. Stanley Black reported adjusted earnings of $1.57 per share for the second quarter of 2026, which beat the Zacks Consensus Estimate of $1.20 by 30.8%. The bottom line increased from adjusted earnings of $1.08 per share reported in the year-ago quarter.Net sales of $3.96 billion surpassed the consensus estimate of $3.93 billion by 0.7% and increased 0.4% year over year. Higher organic sales, improved gross margins and strong cash generation supported the quarter, while the company also raised its full-year earnings and free cash flow guidance. Stanley Black generated Tools & Outdoor revenues of $3.56 billion, up 3% year over year, driven by higher volumes in U.S. retail and commercial & industrial channels. Organic revenues for the segment also increased 3%, aided by strength in power tools despite the transition to a licensing model for gas walk-behind outdoor products.Engineered Fastening revenues declined 18% year over year to $396.4 million due to the divestiture of the Consolidated Aerospace Manufacturing (CAM) business. Excluding the divestiture impact, organic revenues increased 3%, supported by industrial demand and continued automotive fastener growth. Stanley Black's cost of sales declined 7.8% year over year to $2.65 billion. Gross profit increased 22.4% to $1.31 billion, lifting the gross margin by 600 basis points to 33.0%. On an adjusted basis, gross margin expanded 620 basis points to 33.7%, benefiting from tariff refunds and productivity improvements.Selling, general and administrative expenses increased 8.6% year over year to $947.9 million and represented 23.9% of sales compared with 22.1% a year ago. Adjusted EBITDA was $445.7 million, indicating a year-over-year increase of 40.1%. The adjusted EBITDA margin improved 320 basis points to 11.3%, while net earnings rose sharply to $351.3 million from $101.9 million in the prior-year quarter. Stanley Black ended the quarter with cash and cash equivalents of $592.4 million compared with $280.1 million at the end of 2025. Long-term debt was $4.70 billion, largely unchanged from the figure reported at the end of 2025. The company reduced total debt by $1.7 billion during the quarter using proceeds from the CAM divestiture.Cash provided by operating activities totaled $763.1 million compared with $214.3 million in the year-ago quarter. Capital and software expenditures were $64.9 million, resulting in free cash flow of $698.2 million compared with $134.7 million in the year-ago quarter. During the quarter, the company repurchased approximately $250 million of shares and paid dividends of $124.3 million. Management raised its 2026 GAAP earnings guidance to $4.60-$5.45 per share from the prior range of $4.15-$5.35. Adjusted earnings are now projected in the range of $5.20-$5.80 per share, up from the earlier outlook of $4.90-$5.70.The company also increased its free cash flow forecast to $600-$800 million from the previous expectation of $500-$700 million. Management said the revised guidance reflects the benefit from tariff refunds realized in the second quarter as well as taxes and fees associated with the CAM divestiture. In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -7.76% due to these changes. At this time, Stanley Black & Decker has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock has a score of B on the value side, putting it in the second quintile for value investors. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Stanley Black & Decker has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Stanley Black & Decker, Inc. (SWK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Donaldson Company, Inc. DCI is scheduled to release fourth-quarter fiscal 2026 (ended July 2026) results on Aug. 26, before market open.The Zacks Consensus Estimate for this Bloomington, MN-based tool maker’s fiscal fourth-quarter revenues is pegged at $1.04 billion, indicating 6.4% growth from the year-ago quarter. The consensus estimate for adjusted earnings is pinned at $1.12 per share. The figure indicates an increase of 8.7% from the year-ago quarter’s number.The consensus estimate for earnings has been stable over the past 60 days. The company has outperformed the consensus estimate thrice and missed once in the preceding four quarters.Let’s see how things have shaped up for Donaldson before the announcement. The Mobile Solutions segment’s results are likely to benefit from strong demand for products in the aftermarket business, supported by growth across all regions and both original equipment (OE) and independent channels.Strong momentum in the off-road business, along with higher truck production in the Europe, the Middle East and Africa region, is likely to have driven its on-road business in the quarter. The consensus mark for the Mobile Solutions segment’s revenues is pegged at $620 million, indicating a 5.4% increase from the year-ago figure.Strength in the Industrial Filtration Solutions business, driven by strong demand in the power generation market, is likely to have been favorable for the Industrial Solutions segment. Recovery in demand for new equipment in the aerospace & defense market also augurs well. The consensus mark for the Industrial Solutions segment’s revenues is pegged at $336 million, indicating an 8.4% growth from the year-ago figure.Growth in demand for disk drives and food & beverage products is expected to boost the Life Sciences segment’s results. The consensus mark for the segment’s revenues is pegged at $84 million, indicating a 2.4% increase from the year-ago figure.In May 2026, Donaldson acquired Filtration Group’s Facet Filtration business. The buyout, which enhanced the company’s product portfolio of fuel and fluid filtration used in critical applications, is expected to have boosted its top line during the quarter.However, rising costs and operating expenses have been concerns for DCI for some time now. The impacts of high operating costs are likely to have affected its margins and profitability. Also, investments associated with product development and growth initiatives are expected to have hurt the company’s performance. Our proven model does not conclusively predict an earnings beat for DCI this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.Earnings ESP: DCI has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.12 per share. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.Zacks Rank: DCI presently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here. Graco Inc. GGG posted quarterly earnings of 91 cents per share in the second quarter of 2026, beating the Zacks Consensus Estimate of 81 cents per share. This compares with earnings of 75 cents per share a year ago.Graco posted revenues of $591 million for the quarter, missing the Zacks Consensus Estimate by 3%. This compares with year-ago revenues of $572 million.Stanley Black & Decker, Inc. SWK reported second-quarter 2026 adjusted earnings of $1.57 per share, which beat the Zacks Consensus Estimate of $1.20. The bottom line increased 45.4% year over year.Stanley Black’s net sales of $3.96 billion beat the consensus estimate of $3.93 billion. The top line increased 0.4% from the year-ago quarter.Ingersoll Rand Inc. IR reported second-quarter 2026 adjusted earnings of 86 cents per share, which surpassed the Zacks Consensus Estimate of 83 cents. The bottom line increased 7.5% year over year.Total revenues of $2.05 billion beat the consensus estimate of $1.96 billion. The top line increased 8.5% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Donaldson Company, Inc. (DCI) : Free Stock Analysis Report Stanley Black & Decker, Inc. (SWK) : Free Stock Analysis Report Graco Inc. (GGG) : Free Stock Analysis Report Ingersoll Rand Inc. (IR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Nordson Corporation NDSN is scheduled to release third-quarter fiscal 2026 (ended July 31) results on Aug. 19, after market close.The Zacks Consensus Estimate for fiscal third-quarter earnings has remained steady in the past 60 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters. The average surprise was 2.3%.The consensus estimate for fiscal third-quarter revenues is pegged at $779 million, suggesting growth of 5.1% from the year-ago quarter’s figure. The consensus estimate for adjusted earnings is pinned at $3.09 per share, indicating a 13.2% increase from the year-ago quarter’s number.Let’s see how things have shaped up for Nordson this earnings season. The Industrial Precision Solutions segment’s results are likely to benefit from growing demand for industrial coating and polymer processing systems. Continued investments in packaging, product assembly and precision agriculture end markets are expected to have boosted revenues. The consensus mark for the segment’s revenues is pegged at $364 million, indicating a 3.7% increase from the year-ago figure.The Advanced Technology Solutions segment is expected to have benefited on the back of healthy demand for electronics dispense systems. The consensus mark for the segment’s revenues is pegged at $191 million, indicating a 11.7% increase from the year-ago figure.Increased demand for engineered fluid solutions and medical product lines is likely to have aided the Medical and Fluid Solutions segment in the to-be-reported quarter. The consensus mark for the segment’s revenues is pegged at $224 million, indicating a 2.3% increase from the year-ago figure.In March 2026, Nordson acquired CapstanAG to strengthen its precision agriculture portfolio and expand its presence in North America. The buyout, which enhanced the company’s portfolio of advanced solutions for fluid management and precision spraying, is expected to have boosted its top line during the quarter.However, rising costs and operating expenses have been concerns for Nordson for some time now. The impacts of high labor and raw material costs are likely to have affected its margins and profitability. Also, investments associated with product development and growth initiatives are expected to have hurt the company’s performance.Given the company’s substantial international operations, foreign currency headwinds are likely to have marred its margins and profitability. Nordson Corporation price-consensus-eps-surprise-chart | Nordson Corporation Quote Our proven model does not conclusively predict an earnings beat for NDSN this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.Earnings ESP: NDSN has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $3.09 per share. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.Zacks Rank: NDSN presently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here. Graco Inc. GGG posted quarterly earnings of 91 cents per share in the second quarter of 2026, beating the Zacks Consensus Estimate of 81 cents per share. This compares with earnings of 75 cents per share a year ago.Graco posted revenues of $591 million for the quarter, missing the Zacks Consensus Estimate by 3%. This compares with year-ago revenues of $572 million.Stanley Black & Decker, Inc. SWK reported second-quarter 2026 adjusted earnings of $1.57 per share, which beat the Zacks Consensus Estimate of $1.20. The bottom line increased 45.4% year over year.Stanley Black’s net sales of $3.96 billion beat the consensus estimate of $3.93 billion. The top line increased 0.4% from the year-ago quarter.Ingersoll Rand Inc. IR reported second-quarter 2026 adjusted earnings of 86 cents per share, which surpassed the Zacks Consensus Estimate of 83 cents. The bottom line increased 7.5% year over year.Total revenues of $2.05 billion beat the consensus estimate of $1.96 billion. The top line increased 8.5% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Nordson Corporation (NDSN) : Free Stock Analysis Report Stanley Black & Decker, Inc. (SWK) : Free Stock Analysis Report Graco Inc. (GGG) : Free Stock Analysis Report Ingersoll Rand Inc. (IR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

All five Dividend Aristocrats posted better-than-expected Q2 earnings, raised full-year guidance, and carry Buy ratings from top Wall Street firms. American States Water (AWR) crushed Q2 estimates and rewarded shareholders with an 8% dividend hike, extending its 70-year streak of consecutive increases. Stanley Black & Decker (SWK) delivered a massive earnings beat, reporting $1.57 adjusted EPS versus the $1.21 consensus, while yielding 3.24%. It sounds nuts, but SoFi1 is giving new Active Invest users up to $3,000 in stock for a limited time, and all it takes is a $50 deposit to get started.2 See for yourself (Sponsor) Investors love dividend stocks because they provide dependable passive income streams and an excellent opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or portfolio consists of income and stock appreciation. At 24/7 Wall St., we have focused on dividend stocks for over 15 years because, despite the stock market's ups and downs, many people need reliable passive income streams to supplement their income from employment or other sources such as Social Security and pensions. Investors seeking defensive companies that pay substantial dividends are drawn to the Dividend Aristocrats, and with good reason. The 69 companies that made the cut for the 2026 S&P 500 Dividend Aristocrats list have increased their dividends (not just maintained them) for 25 consecutive years. But the requirements go even further, with the following attributes also mandatory for membership on the Aristocrats list: SoFi Active Invest is offering a limited-time promotion. Open an account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock for Active Invest accounts. See for yourself by clicking here now. (Sponsor) Companies must be worth at least $3 billion for each quarterly rebalancing. Their average daily volume must be at least $5 million in transactions for every trailing three-month period at every quarterly rebalancing date. They must be S&P 500 members. With earnings for the second quarter all but over, we decided to screen the Dividend Aristocrats for the companies that posted better-than-expected results and also offered solid forward guidance for the rest of the year. Five top companies hit our screens and look like outstanding ideas for growth and income investors looking to shift their portfolios away from high-beta stocks to more conservative ideas that pay reliable dividends. All five are rated Buy by the top Wall Street firms we cover, and all offer solid entry points. S&P 500 companies that have paid and raised their dividends for 25 years or longer are the types that growth and income investors want to buy and hold in their stock portfolios for the long term. These stocks are mostly conservative, and should we see a dramatic market correction, they will likely keep their ground much better than volatile technology names. When you have products that everyone depends on and pay a very reliable 2.30% dividend that you have raised for 70 years, your investors will likely do well. American States Water (NYSE: AWR) is a holding company with segments in water, electric, and contracted services. The company crushed Q2 expectations, reporting earnings of $1.09 per share. The solid print allowed the company to increase the quarterly dividend by 8%. Within the segments, the company has three principal business units: water and electric service utility operations conducted through its regulated utilities, Golden State Water Company (GSWC) and Bear Valley Electric Service (BVES), respectively, and contracted services conducted through American States Utility Services (ASUS) and its subsidiaries. GSWC is a public water utility engaged in the purchase, production, distribution, and sale of water in 11 counties in the state of California, and provides wastewater collection and treatment services. BVES is a public electric utility that distributes electricity in several San Bernardino County Mountain communities in California. ASUS operates, maintains, and performs construction activities (including renewal and replacement capital work) on water and/or wastewater systems at various United States military bases. Weiss Ratings has a Buy rating but no target price. Coca-Cola (NYSE: KO) is an American multinational corporation founded in 1892. This company remains a top long-time holding of Warren Buffett, whose 400 million shares are 9.3% of the float and 9.9% of the portfolio. The stock pays a dependable 2.41% dividend. The company posted strong results, reporting $13.37 billion in revenue and $0.97 in comparable EPS, beating consensus estimates and raising its full-year earnings growth forecast to 8% to 9%. Coca-Cola is the world's largest beverage company, offering consumers more than 500 sparkling and still brands. Led by Coca-Cola, one of the world's most valuable and recognizable brands, the company's portfolio features 20 billion-dollar brands, including: Diet Coke Coca-Cola Light Coca-Cola Zero Sugar Caffeine-free Diet Coke Cherry Coke Fanta Orange Fanta Zero Orange Fanta Zero Sugar Fanta Apple Sprite Sprite Zero Sugar Simply Orange Simply Apple Simply Grapefruit Fresca Schweppes Dasani Fuze Tea Glacéau Smartwater Glacéau Vitaminwater Gold Peak Ice Dew Powerade Topo Chico Minute Maid Globally, it is the top provider of sparkling beverages, ready-to-drink coffees, juices, and juice drinks. Through the world's most extensive beverage distribution system, consumers in more than 200 countries enjoy the company’s beverages at a rate of over 1.9 billion servings per day. And remember that the company owns 19.5% of Monster Beverage (NASDAQ: MNST), which continues to deliver strong financial results. UBS has a Buy rating with a $104 target price. While somewhat off the radar, this company has increased the 1% dividend for an incredible 70 consecutive years. Dover (NYSE: DOV) is a diversified global manufacturer and solutions provider operating in five primary segments. The company posted strong quarterly results, with adjusted EPS climbing 12% to $2.74. This growth was fueled by a 7% rise in total revenue, including 5% from organic operations. Year over year, bookings surged 16%, pushing the book-to-bill ratio to a solid 1.06, largely thanks to robust demand across the data center, biopharma, and aerospace sectors. On the strength of this performance, Dover raised its full-year guidance for both organic revenue and adjusted earnings. Its five operating segments are: The Engineered Products segment provides a range of equipment, components, software, solutions, and services to the vehicle aftermarket, aerospace, defense, and other industries. Its Clean Energy & Fueling segment provides components, equipment, and software solutions and services. It also designs, manufactures, and supplies vacuum-insulated piping systems for various liquefied gases, including nitrogen, oxygen, carbon dioxide, and other industrial gases. The company's Imaging & Identification segment supplies precision marking and coding, product traceability, brand protection, and digital textile printing equipment. The Pumps & Process Solutions segment manufactures specialty pumps and flow meters, fluid transfer connectors, engineered precision components, instruments, and digital controls. Dover's Climate & Sustainability Technologies segment is a provider of energy-efficient equipment, components, and parts. Baird has an Outperform rating with a $270 target price. Founded in 1962, Federal Realty Investment Trust (NYSE: FRT) has a mission to deliver long-term, sustainable growth through investing in densely populated, affluent communities. While real estate has slowly recovered, demand is still growing, and hard assets are generally considered a prudent investment in times of inflation; this company pays a hefty 3.81% dividend. Federal Realty is a recognized leader in the ownership, operation, and redevelopment of high-quality retail-based properties in major coastal markets from the District of Columbia and Boston to San Francisco and Los Angeles. The company outperformed expectations, posting a strong 96% occupancy rate across its retail portfolio in the second quarter. Consistent growth in rental income underpinned its 59th consecutive annual dividend increase, a milestone that underscores the stability of its business. Its expertise includes creating urban, mixed-use neighborhoods like: Santana Row in San Jose, California Pike & Rose in North Bethesda, Maryland Assembly Row in Somerville, Massachusetts Federal Realty's portfolio comprises approximately 3,500 tenants across 27 million square feet of space and 3,100 residential units. Federal Realty has increased its quarterly dividend to its shareholders for 59 consecutive years, the longest record in the REIT industry. Piper Sandler has an Overweight rating with a $149 target price. Stanley Black & Decker (NYSE: SWK) is the world's largest tool company, with 50 manufacturing facilities in the United States and more than 100 worldwide, and its shares trade at 17.7 times forward earnings. With the potential for the economy to slow down somewhat, consumers are likely to repair rather than buy new, and this legendary stock is a solid idea now, while yielding a dependable 3.19% dividend. The company provides hand tools, power tools, outdoor products, and related accessories in North and South America, Europe, and Asia. The company reported solid Q2 2026 financial results, delivering a big earnings beat as adjusted EPS climbed to $1.57, significantly beating Wall Street consensus expectations of $1.21. Its Tools & Outdoor segment offers professional-grade corded and cordless electric power tools and equipment, including: Drills Impact wrenches and drivers Grinders, saws, routers, and sanders Pneumatic tools and fasteners, such as nail guns, nails, staplers and staples, and concrete and masonry anchors; corded and cordless electric power tools Hand-held vacuums, paint tools, and cleaning appliances Leveling and layout tools, planes, hammers, demolition tools, clamps, vises, knives, saws, chisels, and industrial and automotive tools Drill, screwdriver, router bits, abrasives, saw blades, and threading products Toolboxes, sawhorses, medical cabinets, and engineered storage solutions Electric and gas-powered lawn and garden products This segment sells its products under such brand names as: DeWalt Craftsman Black+Decker Stanley Flex Volt Irwin Lenox The Industrial segment provides: Threaded fasteners, blind rivets and tools, blind inserts and tools Drawn arc weld studs and systems Engineered plastic and mechanical fasteners Self-piercing riveting systems Precision nut running systems Micro fasteners High-strength structural fasteners Axle swage, latches, heat shields, pins, couplings, fittings, and other engineered products Attachments used on excavators and handheld tools The Industrial segment sells its products through a direct sales force and third-party distributors to various industries, including automotive, manufacturing, electronics, construction, aerospace, and others. Citigroup has a Buy rating on the shares and a $107 target price. Looking to grow your money but unsure where to begin? SoFi Active Invest is offering a limited-time promotion—open a new Active Invest account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock. From $0 commission trading3 to fractional shares4 and automated investing, this app is designed to simplify investing for everyone, whether you’re just starting or already experienced. Its easy to sign up and secure your bonus.(Sponsor) Contact [email protected] for any questions or corrections.

Image source: The Motley Fool. Wednesday, July 29, 2026 at 8:00 a.m. ET Vice President of Investor Relations - Michael Wherley President and Chief Executive Officer - Christopher Nelson Executive Vice President, Chief Financial Officer and Chief Administrative Officer - Patrick Hallinan Operator: Welcome to the Stanley Black & Decker Second Quarter Earnings Call. My name is Shannon, and I'll be your operator for today's call. Please note that this conference is being recorded. I will now turn the call over to Vice President of Investor Relations, Michael Wherley. Mr. Wherley, you may begin. Michael Wherley: Good morning, everyone, and thanks for joining us for our second quarter earnings call. With us today are Chris Nelson, President and CEO; and Patrick Hallinan, Executive Vice President, CFO and Chief Administrative Officer. Our earnings release, which was issued earlier this morning and a supplemental presentation, which we will refer to, are available on the IR section of our website. A replay of today's webcast will also be available beginning around 11:00 a.m. Eastern Time. This morning, Chris and Pat will review our second quarter results along with our updated outlook for 2026, followed by a Q&A session. During today's call, we will be making some forward-looking statements based on our current views. Such statements are based on assumptions of future events that may not prove to be accurate, and as such, they involve risk and uncertainty. It's therefore possible that actual results may differ materially from any forward-looking statements that we might make today. We direct you to the cautionary statements in the 8-K that we filed with our press release and in our most recent '34 Act filings. Additionally, we will also discuss non-GAAP financial measures during the call. For applicable reconciliations to the related GAAP financial measures and additional information, please refer to the appendices in today's earnings release and supplemental presentation. I'll now turn the call over to our President and CEO, Chris Nelson. Christopher Nelson: Thank you, Michael, and thank you all for joining us today. Stanley Black & Decker delivered a solid second quarter. Through disciplined execution of our strategy, we are delivering profitable organic growth and remain on track to achieve full year sales and margin targets. We are confident in our strategy and in the team's ability to continue to execute and deliver results. Total revenue for the second quarter was in line with prior year and up 3% organically. This was slightly ahead of our expectations, driven primarily by volume strength in the U.S. across both retail and the commercial and industrial channels within Tools & Outdoor. Our adjusted gross margin rate of 33.7% was up 620 basis points year-over-year, largely supported by gross productivity and product mix. We also received tariff refunds during the second quarter, which contributed to adjusted gross margins. We will use tariff refunds to accelerate growth investments, and we have incorporated the net impact within the revised EPS and cash flow guidance that we will outline today. Second quarter adjusted gross margins included a benefit of approximately 250 basis points from these net tariff refunds. Adjusted EBITDA margin of 11.3% was up 320 basis points year-over-year, slightly ahead of our planning assumptions for the period. Adjusted earnings per share were $1.57, $0.37 above the midpoint of our guidance range. Below the line items contributed about $0.20 and net tariff refunds contributed about $0.17. Pat will discuss this in more detail as well as our underlying guidance assumptions for the balance of the year. Following the sale of our aerospace fasteners business early in the quarter, we were able to deploy those proceeds plus additional operating cash flows to pay down debt by $1.7 billion and buy back 3.2 million SWK shares for $250 million. We are continuing to advance our strategy with a focused portfolio, balance sheet strength and a thoughtful approach to capital allocation. Our priorities remain to invest in growth, support the dividend, repurchase shares and pursue M&A if and when appropriate. Turning to second quarter operating performance by segment. I'll start with Tools & Outdoor. Second quarter revenue was approximately $3.6 billion, up 3% year-over-year. Organic revenue was also up 3%, comprised of 3% volume growth from strong demand generation and flat pricing versus the prior year. Currency was a 1% benefit in the quarter, which was offset by the impact of the previously announced strategic transition to a licensing model for the gas walk-behind outdoor products. We were encouraged by the organic growth we saw across our 3 global priority brands, DEWALT, STANLEY and CRAFTSMAN in the quarter. Supported by well-executed demand generation, Tools & Outdoor second quarter adjusted segment margin was 11.8%, which was up 380 basis points year-over-year. This was predominantly due to net productivity gains and favorable product mix. Net tariff refunds also contributed approximately 150 basis points. Now for additional context on the top line performance by product line in the second quarter. Power tools organic revenue increased by 8% and hand tools, accessories and storage organic revenue increased by 2%, which were both driven by strong market activation and global priority brand performance. Outdoor organic revenue decreased 7%, pressured by fewer replenishment orders as a result of weather-related demand softness. As for Tools & Outdoor performance by region, in North America, organic revenue increased 4%. U.S. retail was up mid-single digit as a result of strong demand generation. This includes strength across DEWALT, STANLEY and CRAFTSMAN and improved penetration and presence with channel partners. Momentum across the U.S. commercial and industrial channel accelerated and revenue in this channel grew low double digits in the quarter with the continuation of key investments complementing strong market demand, which I will elaborate on in a moment. North America point of sale in aggregate was broadly consistent with reported home improvement consumer credit card data with strength in power tools and softness in outdoor. In Europe, organic revenue was down 2%, although growth continued in our prioritized investment markets, including Eastern Europe and Iberia. This was more than offset by challenging market conditions in France and other parts of the region. The Rest of the World organic revenue was up 3%, led by double-digit growth in Latin America with strength driven by innovation and investments in pro channels. Across the rest of the region, there were broad-based contributions, partially offset by pockets of market softness and disruption from the Middle East. Turning now to Engineered Fastening. Second quarter revenue was down 18% as the Aerospace Fasteners divestiture reduced revenue by 21%. On an organic basis, the segment grew 3%, with volume contributing 2% to growth and higher pricing contributing 1%. Currency was flat. Organic revenue performance was driven by low single-digit organic growth in Automotive Systems and Fasteners, which outpaced the market as well as broad-based strength across global industrial markets, resulting in high single-digit organic growth for that portion of the business. Adjusted segment margin for Engineered Fastening was 13% in the quarter. Year-over-year expansion of 220 basis points was largely driven by net productivity gains and favorable volume and mix in automotive. Net tariff refunds contributed approximately 50 basis points. Segment margin continues to be favorable on a year-over-year basis. In summary, through effective market activation and demand generation and consistent execution of operational cost improvements, we delivered second quarter top line and margin performance for both segments slightly ahead of our expectations, and we are confident in achieving our full year targets. Before I turn to our brand and strategic highlights for the quarter, I want to take a moment to remind everyone of our guiding ambition, and that is to empower our end users to conquer their greatest challenges through groundbreaking solutions and becoming their partner of choice. Accomplishing this requires a commitment to quality, agility and innovation. That ambition is shaping how we focus our portfolio, where we invest and how we execute. It is also at the core of the strategic imperatives guiding our company, purposeful brand activation, operational excellence and accelerated innovation. As we continue to build a world-class branded industrial company, the progress we are making across DEWALT, STANLEY and CRAFTSMAN is a reflection of our strategy in action. Across all 3 brands, innovation and platforming are helping us to move faster and serve end users more effectively. We are directing investments towards the markets with the best prospects for growth, working together with our channel partners to serve end-user categories where we see the greatest opportunity to activate each of our brands, deepen market penetration and generate attractive returns. And underpinning all of this is our continued focus on operational excellence, which is enabling us to execute with discipline in what remains a geopolitically uncertain environment. I'll start with DEWALT, which continues to lead as our growth engine focused on the Pro. In a world with limited supply of skilled trade labor, our professional end users are looking for solutions that help them to work more productively and with greater confidence while remaining safe. That need is increasingly relevant in nonresidential construction, where the market context is strong, especially in areas like data centers, power generation and prefabrication manufacturing. The majority of the professional needs in this space are served through the commercial and industrial distribution channel. Against that backdrop, we expect our U.S. commercial and industrial channel annual sales to approach 10% of total Tools & Outdoor sales in 2026, assuming roughly double-digit organic growth this year. Our ambition for DEWALT is to be the partner of choice for the professional end user. This means serving the full cycle of design, construction and operations for large-scale commercial projects. This is more than a statement or an aspiration. It is the direction that has been guiding our investments to drive demand with the professional, including strong penetration within the U.S. commercial and industrial channel. Projects predominantly served by this channel represent trillions of dollars of committed capital spending over the next 5 years. The expectations are demanding. The time lines are tight, and the owners and project managers have no tolerance for downtime. To succeed in this type of environment, holistic solutions are required to support our customers and end users every hour of every day. Over the past 2 years, I have spoken about the investments we are making to strengthen our go-to-market capabilities and expand our field presence. Let me talk about how that comes to life in the U.S. commercial construction market. We have hired professionals with deep experience in large job site processes and project management and dedicated them full time to specific large construction sites. As project solution managers, their role is to serve as the primary point of contact for the general contractor, ensuring DEWALT shows up as a coordinated partner to support successful project execution. Take a look at Slide 6. The person pictured in the center is one of our DEWALT project solution managers. I spent a day with him recently at a major data center project. Our project solution managers are the central hub of all DEWALT activity happening on a project site. In addition, DEWALT assets and capabilities encompass the commercial construction ecosystem and our approach to full-scale project life cycle solutions. We always begin with safety and productivity. Our Perform and Protect product line of over 200 end user-oriented solutions are designed to defend against one or more of the following: dust inhalation, loss of torque control and tool vibration without sacrificing the performance that professional end users demand. These safety features are especially important when we are working with the owners and general contractors at the mega construction sites. We support the end-to-end workflow through an integrated hardware and software portfolio. For example, our anchor and fastening solutions are valued by our end users as part of our comprehensive offerings, which span the design, construction and operations of a job site. DEWALT construction technology, digital solutions also complement our hardware portfolio and all work together to support a safe, productive and profitable job site. We also partner with local distributors to offer on-site product availability, allowing us to serve the professional end users directly on the job site. Next is training. We provide on-job site training resources in partnership with the general contractor. We align with the project schedule to provide tailored application-based training for the specific tools and work being done each day. We take a 360-degree approach to training and recently launched DEWALT On-Demand, which allows users to scan a QR code on a tool and access multilingual manuals and resources online whenever they need them. To surround and engage with the end user, we have invested in hiring hundreds of trade specialists that work with contractors in the market to ensure that they are familiar with and have access to all DEWALT solutions designed for their particular trade. We bring the newest innovations to them and help them operate from their fabrication shop to the job site. We have also hired salespeople to call on the distribution channel to ensure that our products and solutions are always available to end users, contractors and job sites. Further complementing the Global DEWALT brand strategy, including the efforts of our trade specialists in the field and our sales and distribution resources, our global DEWALT No Quit marketing campaign is ramping up across digital channels and our global influencer network continues. We are seeing indicators that this campaign is having a measurable impact on demand generation. We also invest in trade schools to help build a well-trained workforce. Over the last 3 years, we have invested $27 million through our DEWALT Grow the Trades program. and we're committed to investing $60 million by 2030. These efforts support the critical need for skilled tradespeople and are also synergistic with our business strategy. At the same time, we work with the owners and developers of mega construction sites to understand where and how they will need skilled tradespeople for future projects. We then bring these learnings back to trade schools to help build, educate and upskill workers for the future. Through our full ecosystem approach, DEWALT makes sure the right products are in the hands of well-trained end users at the right time. Taken together, these capabilities and initiatives continue to deepen DEWALT's relevance to help improve safety, productivity and profitability for our end users while strengthening our position as a trusted partner. It also further reinforces DEWALT's role as a key driver of profitable organic growth. In addition and just as encouraging is the performance across the STANLEY and CRAFTSMAN brands. While there is work ahead, we believe positive organic growth in the second quarter for both brands is an important indicator that the actions we are taking are translating into results. In the case of STANLEY, a brand revitalization, product refresh and commercial actions are building STANLEY's position in the market and creating a more durable platform for consistent growth over time. Our international field resources are focused on working closer with channel partners to refresh in-store walls and optimize shelves in ways that help improve sell-through, broaden assortment uptake and strengthen conversion into our brand. Similarly, CRAFTSMAN brand positioning and portfolio expansion is resonating with consumers, and the new V20 advanced batteries have been well received and supported strong V20 platform performance in the quarter. CRAFTSMAN continues to strengthen its role within our business portfolio with an improving margin profile and a robust product road map, including the wave of new products hitting shelves now and through the balance of the year. There is an exciting runway for continued growth ahead. None of this would be achievable without the commitment of our teams around the world. I want to thank them for maintaining a customer-centric approach and for continuing to advance our vision of building a world-class branded industrial company. Their focus, resilience and execution are what make our progress possible. I will now pass the call to Pat to discuss more detail on the performance in the quarter, to outline our 2026 guidance and to share progress on a few key performance metrics. Patrick Hallinan: Thank you, Chris, and good morning to everyone joining us today. I will start by providing a bit more detail on our adjusted EPS outperformance in the second quarter and then turn to guidance. As Chris noted, second quarter adjusted EPS was $1.57, exceeding the midpoint of our April guidance range by $0.37. Above-line operating performance was largely in line with our expectations with the outperformance primarily driven by below-the-line items and the net tariff refund benefit. The below-the-line items made up approximately $0.20 of the outperformance, with roughly half of that from discrete tax items, along with lower interest expense and other factors. The tax benefit was purely timing, and we still expect the adjusted tax rate to be at 19% for the full year. Relative to our expectations for 2Q, interest costs came in lower due to strong operational cash flows, which meant less short-term debt on the balance sheet. On a year-over-year basis, interest expense was lower due to the debt reduction following the CAM sale in the quarter. The remainder of the outperformance came from a net tariff refund benefit in the quarter. This net benefit reflects the Phase 1 tariff refunds we received during the second quarter, partially offset by variable incentive compensation, growth investments and taxes associated with those refunds. While a portion of the costs offsetting the refund landed in 2Q, the remaining portion will flow through in the second half of the year, primarily in the form of incremental growth investments. This is why we are not adding the full $0.17 benefit realized during 2Q to our full year EPS guidance as the incremental investments will be reflected in 3Q and 4Q EPS. But the bottom line is this, tariff refunds provide us with the flexibility to accelerate investment in our strategic growth priorities, and we have already started making such investments in the second quarter. Now let me talk you through some of the key underlying assumptions embedded in our updated guidance. First, consistent with the prior guidance assumptions, we maintain our view that the new Section 301 tariffs, including those implemented just last week, are likely to be introduced during the next few months at the same level as the old IEEPA tariffs, which means our underlying run rate tariffs costs are expected to return back to the prior IEEPA levels within a few months. This is our current expectation, but as policies are finalized, we may update our assumptions as appropriate. Second, a temporary period of lower tariff rates continues to persist as the Section 122 tariffs were lower than the former IEEPA tariffs and the subsequent 301s are not yet fully implemented. This temporary tariff tailwind, however, is still being offset by persistent inflationary pressures from battery metals, tungsten, oil and oil derivatives. For 2026 guidance purposes, we expect these to neutralize each other. Given inflationary pressures remain persistent, it appears more likely than not a price increase will be necessary by 2027. Third, as we think about the full year, we are only including the tariff refunds we have received during the second quarter, along with the partially offsetting costs and taxes. We have not included any possible second half tariff refunds in guidance because the timing and amounts remain too uncertain to include. Moving on to our guidance metrics. For 2026, we are raising and tightening adjusted earnings per share to be in the range of $5.20 to $5.80 representing year-over-year growth of 18% at the midpoint and $0.20 higher than the midpoint of our prior guidance range. Approximately $0.15 of the increase is below the line, reflecting lower interest expense due to better cash performance, the share repurchases we did in the second quarter, which will reduce our weighted shares to around 151 million for the year and lower expenses on the other net line from the first half. The remaining $0.05 reflects the expected net tariff refund benefit. We continue to expect our revenue outlook to be consistent with our prior guidance framework. Total company revenue will be about flat compared to last year, and organic revenue is still expected to grow by a low single-digit percentage year-over-year, split about evenly between volume and price. This outlook reflects our continued focus on pivoting to growth and our confidence in seizing the share opportunities across our key markets. Moving to gross margin expectations. In line with prior guidance, we anticipate full year adjusted gross margins will expand by approximately 150 basis points year-over-year, exclusive of the net tariff refund benefit. This is primarily driven by net productivity with additional contributions from pricing and product mix. We estimate that the net tariff refund will add an incremental 60 to 70 basis points to our full year adjusted gross margin forecast. We continue to have conviction in achieving 34% to 35% adjusted gross margin in the second half, and I will talk more about that on the next slide. We now expect SG&A as a percentage of sales to be around 23%, which includes about 60 basis points of incremental costs from compensation accruals and growth investments related to the tariff refunds received. We will continue to manage SG&A thoughtfully, allocating capital to strategic investments that position the business for long-term share gains. Keep in mind, this allocation of refund dollars to growth investments is incremental to the $75 million to $100 million of growth investments we planned for 2026 at the start of the year. They will further advance our robust innovation pipeline and fuel market activation with the goal of enhancing brand health and accelerating organic growth. Free cash flow ranges have been raised to incorporate tariff refunds received in the second quarter. With that, we expect to deliver within the range of $600 million to $800 million, including projected taxes and fees associated with the CAM divestiture. Excluding such payments, free cash flow is expected to be in the range of $800 million to $1 billion. Our free cash flow performance is supported by a disciplined approach to working capital management, progressing inventory towards pre-pandemic norms while remaining attentive to our ongoing tariff mitigation and footprint optimization initiatives. We were pleased to make progress on inventory reduction in the first half. Looking at our segments, we reiterate our plan for organic revenue growth and segment margin expansion in both segments. 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 to down market. Through the remainder of 2026, we expect our demand generation initiatives, new product launches and strategic investments in the brands will position us to grow the top line with a focus on outperforming the market. Adjusted segment margin is expected to improve year-over-year, driven primarily by productivity gains, tariff mitigation and thoughtful SG&A management. Engineered Fastening continues to be on track to grow low single to mid-single digits organically, and we expect both our auto and industrial pieces will outperform the market. Adjusted segment margin is expected to improve year-over-year, primarily due to volume leverage and continuous operating improvement. Turning to our other 2026 assumptions. Our GAAP earnings guidance of $4.60 to $5.45 includes pretax non-GAAP adjustments ranging from $0 to $40 million, inclusive of the second quarter CAM gain. Our full year interest expense is now expected to be about $255 million, which is slightly lower from prior guidance, resulting from a lower debt profile and strong free cash flow performance year-to-date. We now expect other net to be about $230 million, owing to lower cost in the first half. Now for the third quarter guidance. We anticipate net sales to be around $3.7 billion, which will be flat overall due to the portfolio moves, including the CAM divestiture and transition of gas walk-behind mowers to a licensing model. On an organic basis, we expect sales to be up 3% to 4% for the total company as well as for the Tools & Outdoor segment. Adjusted earnings per share are expected to be approximately $1.50 to $1.60, including the incremental investments directly related to the second quarter tariff refunds. Our adjusted EPS for the quarter assumes a planned tax rate of approximately 22% and a share count of about 150 million. Turning now to Slide 8. Our path forward on margin expansion and capital deployment remains consistent with what we outlined previously. In the first half, we overdelivered on the year-over-year improvements we anticipated, whether you include the net tariff refund or factor that out. We are encouraged by this and see it as further evidence of our ability to navigate a difficult macro environment and still meet our targets. As we look to the second half, we continue to have conviction in adjusted gross margin reaching the 34% to 35% range for the half year, a long-standing objective that continues to guide our efforts and priorities. This target assumes no meaningful impact from the tariff refunds received to date since that benefit landed in the second quarter AGM and most of the related second half investments are landing in SG&A. This second half improvement is expected to be driven by productivity and tariff mitigation initiatives, the latter of which should make a meaningful contribution as we continue to make progress on USMCA compliance and shifting production for our U.S. tools business from China to North America. We continue to target 35% to 37% adjusted gross margin by the end of 2028, as we stated on our last earnings call. On capital deployment, we closed the CAM transaction on April 6. We have used the vast majority of the net proceeds towards debt reduction of approximately $1.7 billion in the second quarter. We also executed $250 million of share repurchases during the quarter, as Chris mentioned, we will pursue share repurchases opportunistically. Such repurchases will remain a capital allocation priority for the near term. We are firmly on track for net debt to adjusted EBITDA to be at or around 2.5x by year-end, inclusive of buybacks. Free cash flow outperformed in the first half, landing at approximately $250 million, which included positive contributions from both operational cash flows as well as tariff refunds. We remain committed to disciplined capital allocation and accelerating value creation for our shareholders, including funding organic growth, returning excess capital to shareholders efficiently and if and when appropriate, considering bolt-on M&A. All the while we strive to maintain an investment-grade credit rating. With our sharpened portfolio, disciplined cost and capital allocation and a relentless focus on our customers, we have the foundation in place to respond to market dynamics, deliver growth and create long-term value for our shareholders. Thank you. I will now return the call back to Chris. Christopher Nelson: Thank you, Pat. As you heard this morning, we are focused on what we can control, i.e., executing our strategy. We are confident in our path forward and our ability to activate our brands to generate demand, drive operational excellence for efficiency and productivity gains and accelerate innovation to serve our end users. We remain committed to driving towards our near-term targets and long-term goals. Through disciplined execution of our strategic priorities, we are strengthening Stanley Black & Decker's ability to deliver sustainable, profitable growth and create long-term value for our shareholders. We are now ready for Q&A, Michael. Michael Wherley: Thanks, Chris. Operator, we can now start the Q&A. Operator: [Operator Instructions] Our first question comes from the line of Tim Wojs of Baird. Timothy Wojs: Maybe just first question, Chris, just could you add some color on the rebound that you saw in the power tools business this quarter? I know it's been weaker the past few quarters. So maybe there's some catch-up there. But I think 8% growth in that line of business might be the strongest growth rate we've seen in several years. So just could you talk about kind of what changed and how sustainable that type of growth is? Christopher Nelson: Yes. So first of all, nice to hear from you, Tim. I think it would be obvious to say that we're excited about that trend in the business. And when we think about all the things that we've been talking about doing, not only in the professional segment, but also as we've been working with our retail and channel partners, we really believe that, that is all starting now to come to fruition. We did see increased placement with our -- with a lot of our key channel partners as they have seen the benefits of our pipeline for product development coming through, not only in DEWALT, but also STANLEY and CRAFTSMAN, as we referenced earlier. And I think that it should be noted that as we noted in -- I think it was our previous earnings call, we talked about wanting to really sharpen our focus on how and where we were promoting. And those promotions have been very strong for the company and accretive as you saw as it came through in the margin line. So really excited about the momentum we have. And the nice thing is to see that we're seeing the growth across all 3 of our core brands as well. Timothy Wojs: Okay. Great. And then maybe just as a follow-up, Pat, it sounds like in the guidance, the IEEPA kind of tariff assumptions are kind of offsetting raw materials. But then it also sounds like at some point, you're going to have to kind of take price. So is there any way to kind of bucket or size what the raw material kind of annualized inflation impact might be at this point? Patrick Hallinan: Yes, there's a lot of moving parts, Tim. So I think IEEPA, I wouldn't conflate with inflation, at least not the IEEPA refunds. The IEEPA favorability that we've had this year, meaning that those particular tariffs stopped after the February court ruling and then were replaced by lower level 122 tariffs. They provided favorability this year. And as we've said on the last earnings call, inflation in battery metals, tungsten, oil and oil derivatives have created inflationary headwinds. I'd say the order of magnitude in this year's P&L, roughly kind of $100 million each, right, $100 million of tailwinds, $100 million of headwinds, and those are offsetting. On the actual IEEPA refunds, those are netting out at about $0.05 on the full year. They were $0.17 in the quarter. And the difference between those 2 things are just the timing of the growth investments. The preponderance of the growth investments will take place in the third and fourth quarter. So I know a lot of moving parts. But I would say, in the year, this year, the headwinds and tailwinds offsetting and IEEPA refunds allowing investment. I'd say as we look into next year, you're probably looking at a run rate inflation that's probably roughly equivalent to that headwind, somewhere around $100 million or something like that. But obviously, as we go through the back part of this year, we'll be looking at all the factors that affect '27, and we are very committed to our margin targets and our pivot to growth. So everything will be formulated for the '27 game plan. We'll address inflation as necessary with an eye towards achieving our margins and still driving growth. Operator: Our next question comes from the line of Nigel Coe with Wolfe Research. Nigel Coe: Chris, I just wanted to maybe just expand on Page 6, where you laid out some of the investment priorities. I guess the spirit of my question is on -- in the second quarter, the big pickup in SG&A, it's not easy to efficiently invest so quickly. So I'm just curious, are we seeing here kind of more investment in new product vitality engineering? Are we -- are you hiring more people? Just curious how you're deploying the kind of the investment spend so efficiently? That would be my first question. Christopher Nelson: Yes. Nice to hear from you, Nigel. It's a great question. I think that our confidence in investing and where the investments have gone have been into the core areas that we've been talking about for a while now, specifically in the go-to-market activation with feet on the street. We talked a little bit about what we're doing with enhanced investment in social media for our brand activation as well as the new product pipeline that we've been pushing. I would say that over the past few years, we have been, I'd say, judicious and moderated in how we have been investing those dollars to be able to build the infrastructure and muscles to be able to absorb and take advantage of and then be able to drive accretive growth with those investments. And we have seen not only the growth and the ability to do so, but also the results. And what we did and what we have been doing as we've accelerated that investment, specifically with some of the refund dollars is really doubling down in those areas where we know the market is ready for the investment. Our company has the structure and the leadership to be able to take advantage of those investments. And we've already seen positive progress and payoff to those investments as we've been tracking the ROI as we've gone along. So it's really just taking a look at how we could accelerate and think about pulling forward some of what we already knew we were going to do and with an eye on really focusing on those areas that we have seen the success already. So we feel very, very confident about where we're investing those dollars. Nigel Coe: That's a great point, Chris. So you mentioned pulling forward some investments. Does that imply that we're seeing some 2027 investment here being pulled into 2026? And then just kind of related to that is, I'm guessing your sort of total tariff refunds could be considerably more than $100 million or thereabouts. So I mean, it doesn't feel like maybe do you further accelerate investment spend if you do get more tariff refunds in the second half of the year? Or are there other things that you can kind of invest in to kind of absorb that benefit? Christopher Nelson: So to answer the first of the follow-up questions would be, yes, there is some acceleration. And as we get into kind of planning out our '27, I think that will come through. But clearly, we have been building a multiyear road map on where we wanted to grow and where we wanted to invest. So there was no kind of dearth of opportunities for us to take a look at where we would be willing to accelerate. And then as far as the future tariff refunds, I think at this point, as Pat stated, none of that is in our guidance. And candidly, at this point, it is -- the amount, the timing and whether or not anything or what will come through is a little bit too fuzzy to see right now. So we're not really banking on or including that in any of the guidance. Should there be follow-on, like I said, we've built a road map. We would know what we would do and when and how we would do it. So I feel confident that, that would not be a bottleneck in the process. Operator: Our next question comes from the line of Rob Wertheimer from Melius Research. Robert Wertheimer: I wanted to kind of follow up on your answer and you touched on the prior one. On the growth reinvestments as you've kind of gotten the tariffs and you're reinvesting in some of the stuff, is it just that your marketing is more effective than it was? I don't know how much of these are kind of price discounts and maybe the market is more price sensitive and you're seeing a bigger return there. It just seems like you put together the power tools, 8% and the comments you just made that you're seeing pretty good return. And I'm curious what's changed, whether it's more price sensitivity, whether it's more innovation, whether it's more targeted marketing, and I'll stop there. Christopher Nelson: Yes, Rob, thanks for the question. Yes, I would say that at -- really where we're seeing is that we've been building a lot of momentum in the background as we've been very consistent over a number of years of investing in the people, the go-to-market, the products and the innovation that we need in order to be successful. And as we have now had those in place and as we continue to build upon them, I think what we're seeing is what the opportunity that lies ahead, especially when -- as I mentioned and spent some time in the U.S. commercial and industrial channel, where the market context is so strong, I think that we have our strategy in preparation meeting a very nice market. I do think that there -- it is clear that the consumer is generally more motivated by promotion right now. And thankfully, for us, and how we've laid it out, the products that we want to promote and the products that the consumer is motivated to buy from promotion are also in line with the -- strategically, the products we want to sell and the products that drive the best return and margins for the company. So it's -- there's really no one answer, and it is not a moment in time. I think what you're seeing is a number of quarters of hard work and consistency starting to pay off. Now there's a lot of hard work ahead, and there's going to be a lot -- the macro, I'm sure, will remain volatile. But I am confident in our team's ability to not only continue our consistent approach to the marketplace, but be able to make the decisions that are required in order to continue not only our growth, but our margin journey. And Pat referenced what we have as we look at the back half of the year and inflation that is impending, and we'll make those decisions on how we continue the margin journey accordingly with growth as we go through the back half of the year. Operator: Our next question comes from the line of Adam Baumgarten of Vertical Research Partners. Adam Baumgarten: I just had a question on the year-over-year promotion benefit. Do you have a sense for how much that impacted the volume growth in Tools & Outdoor in the second quarter? Patrick Hallinan: No, Adam, I wouldn't say we do. I mean, I would say, as Chris said, I think the growth we're seeing is part of a multiyear game plan. And obviously, as an enterprise, we continue to work to build momentum across each of the brands with a mix of innovation and marketing levers. I would say we did start talking about as far back as the third or fourth quarter of last year and certainly the first quarter of this year of the fact that we had competitors taking price the first third of this year. And then we were certainly tailoring our promotions a little bit differently this year. But we haven't changed list prices. We don't have kind of an intention to do that on the downside. And all we've been doing is kind of dialing in promotional activity as we've learned more about elasticity kind of in this post-tariff high inflation environment. But I wouldn't say there's anything more going on in that regard than just learning the lessons of consumer level elasticity at the SKU level and deploying that. And as Chris mentioned, we're going to keep on a longer-term investment journey in the form of innovation and brand building to drive continued growth going forward. Adam Baumgarten: Okay. Great. Good to hear. And then just switching to Engineered Fastening, just on the industrial side, maybe the pockets of strength you saw in terms of end markets there would be helpful. Christopher Nelson: Yes. I think in the Engineered Fastening business, first of all, I'd like to give credit to Thomas and the team and really the hard work that they've put in. And it has been less of the headline, but the same type of work has been going on in Engineered Fastening as has been going on in Tools & Outdoor, where we made a conscious pivot in the past 24 months to really focus on the industries where we believe that we had a differentiated advantage that we're going to be growing and that valued our products such that they would drive high margins. And we've been able to invest and succeed in growing above the markets, particularly we noted the success that we've been seeing in automotive. In the industrial segment, we have really been seeing some nice level of success in the solar world as well as there are a lot of the products that are used in data centers as we are working on that in the tools business, the Engineered Fastening comes along with it as well. So I think that the team has not only done a great job at identifying and targeting those high-growth verticals where we would be able to drive above-market growth and at nice margins, but have really shifted our resources, our innovation and our application engineering and our processes to be more reactive to customer needs to be able to be successful in building a better pipeline in those areas as well. So it's really -- I think we're in the early innings of that, but it's good to see some of the progress that team has made. Operator: [Operator Instructions] Our next question comes from the line of Jonathan Matuszewski of Jefferies. Andres Padilla: This is Andres. I'm on for Jonathan. In the past, you've spoken about STANLEY and CRAFTSMAN turning positive by midyear and in the second half of '26. With both brands turning positive organically in 2Q, is it fair to say that those brands are exceeding the time line that you had set? And then looking ahead specifically for CRAFTSMAN, can you talk about how the new product in V20 is setting that brand up to capture share when the DIY demand market recovers? Christopher Nelson: Yes. So I'll start and say that I think that we're still on pace for the STANLEY and CRAFTSMAN progress that I've laid out. It is encouraging to see that all of the 3 core brands grew nicely in the quarter, and we want to highlight that. But there's a lot of hard work ahead in all of the brands that we're going to keep on putting in. I think that the time lines that I laid out about kind of back half of the year for STANLEY and going into '27 for CRAFTSMAN for consistent performance, I think, are still the relevant benchmarks and what we're planning on and what we're holding ourselves and our teams accountable to. As far as it pertains to V20, really, the V20 as we've been improving and launching more advanced batteries and then the products that, that DIY needs alongside those batteries, I think that it has set us up for success as we -- it's kind of one of those things that you -- as you build out a very desirable ecosystem of products, it kind of builds on itself where we get the right products at the right performance point, at the right price point going forward in CRAFTSMAN, I think you're going to see continued momentum. And with the amount of emphasis we've put in the product development in that area, we're going to continue to see the momentum of those new product launches continuing to expand our addressable market with that DIY as well. And I would be remiss to say the amount of work that our channel partners have put in with us to help position that brand and the excitement that they see in the new innovation and as well as the expanded product V20 platform there is exciting, and it's a big part of the equation as well. Operator: Our next question comes from the line of David MacGregor from Longbow Research. David S. MacGregor: I guess I just wanted to ask about working capital. You've guided to $600 million to $800 million. Just how much of that is working capital contribution? I think you'd indicated $200 million last quarter. So I guess I'm just looking for an update. And then I guess related to that, to the extent that you're starting to invest in a lot of these other programs and presumably, that continues into 2027 to the extent they're productive, why wouldn't they? But will they require working capital support? And how will that influence that cash flow? Patrick Hallinan: Yes, David. Yes, for this year, on a full year basis, we're still targeting $200 million of working capital reduction contributing to the overall cash flow for the year. Nothing material has changed in that regard. And as we look forward, I would still say we're still working to get to the 135 days on kind of a run rate days sales and inventory level, which is kind of towards our pre-COVID threshold. And so obviously, we still have some footprint things ahead of us, and those transitions can cause some ebbs and flows, but I don't see anything on the horizon that kind of knocks us off that trajectory. And in fact, I think we'll be a good portion of the way there by the time we get to the end of this year. Operator: Our next question comes from the line of Brett Linzey from Mizuho. Brett Linzey: Lots of moving pieces here. I guess as it relates to the 2Q performance, well ahead, including the gross refunds, but below on an underlying basis, at least versus my forecast. Were there cost or productivity actions that you had planned to take in 2Q that you might have shifted to future quarters as your visibility on refunds began to form? And I guess just how did Q2 underlying performance come in relative to your internal forecast? Patrick Hallinan: Yes, Brett, I would say our 2Q was very much in line with our expectations. You could pick kind of nits and nats, but there's nothing in Q2 that wasn't material. And in fact, as the key metrics of growth, adjusted gross margin without the tariffs and operating income dollars, we're kind of right there or thereabouts on all of them. And in fact, kind of slightly ahead on the growth at AGM. We got benefits in the quarter from a mix of the tariff benefits that came in ahead of the investments we'll make in the third and fourth quarter. And then we had some below-the-line items, interest expense, some pension expense, and a few other items and then a discrete tax item that was about $0.10. So I kind of look at it as operationally on the mark with some positives around sales and gross margin and then below-the-line favorability and tariff refund favorability. The back half of the year, we'll invest a portion of that tariff refund favorability. So what was a $0.17 net in the quarter goes to $0.05 net on the year just through growth investment. And we give you all the nontax benefit that happened below the line and the tax benefit is just timing within the year. So I think, to your point, lots of moving parts. It can be difficult to keep them all straight. But I would say, look, we planned for a tumultuous year for better or worse, that's kind of what we're living. We're expecting both in the quarter and the year to deliver the year operationally, and we hadn't planned for a conflict in the Middle East. So I think that says a lot about our ability to navigate challenges, including new challenges. So operationally in the quarter and the year, delivering -- we have some favorability below the line. We're carrying that forward in our guidance range. And then we have some tariff refunds, which we didn't plan on. We're using most of that to invest in growth, and there'll be a modest amount that nets out. And really, the change of $0.20 on the full year is 3 quarters below-the-line benefit and $0.05 of tariffs. So lots of moving parts, but I take it as all positive that we continue to deliver in a challenging environment. And we're trying to use those funds to both make this a good year and set up future growth. Operator: Our final question comes from the line of Sam Reid of Wells Fargo. Eric Cohen: This is Eric on for Sam. Appreciate the time. You kept the second half gross margin guidance of 34% to 35%. I was just wondering if you can talk to sort of the cadence of how you're looking at Q3 versus 4Q. And then with the rising sort of still elevated costs and tariff changes, does that change sort of how you're thinking about the sequencing or the puts and takes within Q3 or Q4? Patrick Hallinan: Yes, Eric, I would say both of the quarters are going to be in that range, 34% to 35%. Q4 might be slightly ahead of Q3. Recall for our income statement, a lot of what flows through COGS in a given quarter or half year was put on the balance sheet 6 or so months ago. So a lot of what effectively are going to be our cost of goods sold in the back half of the year were cost of goods sold that were put on the balance sheet in the first half of the year. And so while inflation that is unfolding in real time right now has a modest effect on a current quarter, it mostly gets put on the balance sheet and comes off the balance sheet next year, at least the second half inflation does. And so the inflation dynamics we've been talking about, we're just talking about to make people aware that we see them clear eyed, and we're designing plans and actions to make sure that '27 stays on the trajectory we have been telegraphing and that we continue to deliver growth and margin improvement in '27. I think a lot of what is to come with third and fourth quarter gross margin delivery is largely been on our balance sheet and the variances from one quarter to the next are going to have a lot more to do with things like product mix and how much of the holiday season shifts at the end of the third quarter versus in the fourth quarter and those types of dynamics or things like promotional mix within the quarter. But at least the structural cost elements to deliver that 34% to 35% are already in place. Michael Wherley: That is all the time that we have for the Q&A. We'd like to thank everybody for their time and participation on today's call. If you have any further questions, please reach out to me directly. Have a good day. Operator: This concludes today's conference call. Thank you for your participation. You may now disconnect. Before you buy stock in Stanley Black & Decker, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Stanley Black & Decker wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* Now, it’s worth noting Stock Advisor’s total average return is 953% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Stanley Black & Decker (SWK) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Lincoln Electric Holdings, Inc. LECO shares have gained 8% since it reported second-quarter 2026 results on July 30.  Adjusted earnings came in at $2.93 per share, up 12.7% year over year. The figure surpassed the Zacks Consensus Estimate of $2.81 by 4.27%. Including one-time items, the bottom line was $2.88 per share compared with $2.56 in the year-ago quarter. Revenues increased 12% to a record $1.22 billion and beat the consensus estimate of $1.17 billion by 4.45%. Results benefited from 10.1% organic sales growth, with volumes contributing 2.4% and pricing at 7.7%. Acquisitions contributed 1.5%, primarily reflecting the Alloy Steel acquisition, and favorable foreign currency translation added 0.4%. Lincoln Electric Holdings, Inc. price-consensus-eps-surprise-chart | Lincoln Electric Holdings, Inc. Quote Consumables sales increased in the low-teens percentage range, equipment sales rose by a high-single-digit percentage and automation sales advanced by a mid-single-digit percentage. Four of the company’s five major end markets grew, led by a mid-30% increase in general fabrication. However, transportation declined by a mid-single-digit percentage. The cost of goods sold increased 12.8% year over year to $770.7 million. Gross profit rose 10.7% to $449 million, while the gross margin contracted 50 basis points to 36.8%. Selling, general and administrative expenses increased 6.6% to $224.9 million. However, SG&A expenses, as a percentage of sales, declined 100 basis points to 18.4%. Adjusted operating income climbed 14.9% to $224.1 million, with the adjusted operating margin expanding 50 basis points to a record 18.4%. Americas Welding revenues increased 11.2% year over year to $774.4 million. Volume growth of 7.1% reflected gains across all product areas, led by accelerated capital spending. Pricing contributed 3.7%, while currency movements provided a 0.4% benefit. We expected the segment’s net sales to be $754 million in the quarter. Adjusted EBIT rose 14.6% to $158.1 million. The segment’s adjusted EBIT margin improved 110 basis points to 19.7%, aided by operating leverage from higher volumes and a narrower price-cost headwind. Tariff refunds also supported profitability. Our prediction for the segment’s adjusted operating income was $148 million. International Welding sales rose 4.5% to $243.3 million, as a 7% acquisition contribution and modest pricing and currency benefits offset a 4.7% volume decline. Organic sales were hurt by slowing demand in Europe, the Middle East and Africa, including a $2 million impact from the Middle East conflict. We expected the segment’s net sales to be $236 million in the quarter. Adjusted EBIT declined 12.9% to $26.6 million, while the adjusted EBIT margin contracted 210 basis points to 10.6%. Lower EMEA volumes weighed on the segment’s profitability despite growth in Asia Pacific and contributions from Alloy Steel. We predicted an adjusted operating profit of $28.8 million. The Harris Products Group’s sales increased 26.9% to $201.9 million. A 34.2% pricing benefit, reflecting higher year-over-year metal costs, primarily silver, more than offset an 8.2% volume decline. Volumes were down 8.2% as it faced difficult year-over-year comparisons in HVAC and the retail channel. Our projection for the segment’s net sales was $171 million. Adjusted EBIT advanced 32.5% to $42.3 million. The adjusted EBIT margin expanded 100 basis points to 20.4%, supported by SG&A leverage and a tariff refund. Our prediction for the segment’s adjusted operating income was $34.3 million. Cash flow from operations reached a record $253.8 million, up from $143.8 million a year earlier. Free cash flow totaled $222.3 million, resulting in cash conversion of 138%. LECO returned $120 million to shareholders, including $43.4 million in dividends and $76.1 million in share repurchases. Cash and cash equivalents were $242.4 million at quarter-end, while total debt declined to $1.15 billion from $1.29 billion at the end of 2025. Lincoln Electric raised its 2026 net sales growth assumption to the low-double-digit percentage range from the high-single-digit range. Management expects one-third of organic growth to come from volume and two-thirds from pricing. The company anticipates neutral price-cost conditions and a mid-20% incremental adjusted operating margin in the second half. It also projects capital expenditures of $110-$130 million, a low-to-mid-20% tax rate and full-year cash conversion of 100% for the full year. Lincoln Electric’s shares have gained 14.7% in the past year compared with the industry’s 12.3% growth. Image Source: Zacks Investment Research LECO currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Stanley Black & Decker, Inc. SWK reported adjusted earnings of $1.57 per share for the second quarter of 2026, which beat the Zacks Consensus Estimate of $1.20 by 30.8%. The bottom line increased from adjusted earnings of $1.08 per share reported in the year-ago quarter. Stanley Black & Decker’s net sales of $3.96 billion surpassed the consensus estimate of $3.93 billion by 0.7% and increased 0.4% year over year. Higher organic sales, improved gross margins and strong cash generation supported the quarter. Stanley Black & Decker’s also raised its full-year adjusted earnings guidance to $5.20-$5.80 per share, up from the earlier outlook of $4.90-$5.70. Enerpac EPAC came out with quarterly earnings of 60 cents per share in the third quarter of fiscal 2026 (ended May 31, 2026), beating the Zacks Consensus Estimate of 49 cents per share. This compares with earnings of 51 cents per share a year ago. Enerpac posted revenues of $167.6 million for the quarter, surpassing the Zacks Consensus Estimate of $165 million. This marks a 6% increase from year-ago revenues of $158.7 million. Enerpac updated its earnings per share projection for fiscal 2026 to $1.84-$1.89 from the prior stated $1.85-$1.92. Dover Corporation DOV reported second-quarter 2026 adjusted earnings of $2.74 per share, up 12% year over year and beating the Zacks Consensus Estimate of $2.72. The improvement reflected broad-based revenue growth, stronger segmental margins and operational execution that more than offset input-cost inflation. Dover’s revenues rose 7% year over year to $2.19 billion but missed the consensus estimate of $2.21 billion. Organic revenues increased 4.8% in the quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lincoln Electric Holdings, Inc. (LECO) : Free Stock Analysis Report Stanley Black & Decker, Inc. (SWK) : Free Stock Analysis Report Dover Corporation (DOV) : Free Stock Analysis Report Enerpac Tool Group Corp. (EPAC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Stanley Black & Decker, Inc.? Here are five stocks we like better. Second-quarter results exceeded expectations: Adjusted EPS was $1.57, while adjusted gross margin rose 620 basis points to 33.7% and EBITDA margin increased to 11.3%. Revenue was flat year over year but grew 3% organically. Power tools and industrial channels drove growth: Power-tools organic revenue increased 8%, while U.S. commercial and industrial sales grew at a low-double-digit rate; outdoor products declined 7% due to weaker replenishment demand. Stanley Black & Decker raised its outlook and reduced debt: The company increased its 2026 adjusted EPS guidance to $5.20–$5.80 and free-cash-flow guidance to $600 million–$800 million. It also repaid about $1.7 billion of debt and repurchased $250 million of shares during the quarter. 5 Dividend Kings to Buy in July with Irresistible Value and Yield Stanley Black & Decker (NYSE:SWK) said second-quarter revenue was in line with the prior year and rose 3% organically, as strength in its U.S. tools business and commercial and industrial channels helped offset portfolio changes and weakness in outdoor products. President and CEO Chris Nelson said the company delivered “profitable organic growth” and remained on track to meet its full-year sales and margin objectives. Adjusted earnings per share totaled $1.57, exceeding the midpoint of the company’s prior guidance range by $0.37. Adjusted gross margin increased 620 basis points year over year to 33.7%, while adjusted EBITDA margin rose 320 basis points to 11.3%. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now 3 Dividend Kings With Income, Stability, and a Possible Catalyst The quarter’s gross margin included an approximately 250-basis-point benefit from net tariff refunds. Management said it intends to use those refunds to accelerate growth investments, including spending on product innovation, brand activation and go-to-market capabilities. Tools & Outdoor revenue was about $3.6 billion, up 3% from a year earlier. Organic revenue also rose 3%, reflecting 3% volume growth and flat pricing. Currency provided a 1% benefit, which was offset by the company’s transition to a licensing model for gas walk-behind outdoor products. → 3 Value ETFs to Consider as Growth Stocks Lag Behind Father's Day Investing: 3 Stocks Built for Long-Term Returns Power tools organic revenue increased 8%, while hand tools, accessories and storage revenue rose 2%. Outdoor organic revenue declined 7%, which Nelson attributed to fewer replenishment orders following weather-related demand softness. North American organic revenue increased 4%, with U.S. retail sales up by a mid-single-digit percentage. The U.S. commercial and industrial channel grew by a low-double-digit percentage during the quarter. Nelson said the company has increased investment in that channel through job-site support, trade specialists, distribution resources and DEWALT product offerings aimed at large commercial construction projects. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? Tools & Outdoor adjusted segment margin was 11.8%, up 380 basis points year over year. The improvement was driven mainly by productivity gains and favorable product mix, with net tariff refunds adding about 150 basis points. Nelson said DEWALT, STANLEY and CRAFTSMAN all delivered organic growth in the quarter. He cited new products, improved channel placement and more targeted promotions as contributors to the power-tools performance. CRAFTSMAN’s V20 advanced batteries were well received, he said, supporting the brand’s V20 platform performance. Engineered Fastening revenue declined 18%, largely because the sale of the aerospace fasteners business reduced reported revenue by 21%. On an organic basis, however, revenue increased 3%, with volume contributing 2 percentage points and pricing contributing 1 percentage point. Automotive systems and fasteners generated low-double-digit organic growth, while the industrial portion of the business posted high-single-digit organic growth. Nelson pointed to opportunities in solar and data-center-related applications as areas of industrial strength. Adjusted segment margin for Engineered Fastening was 13%, up 220 basis points from a year earlier. Management attributed the increase largely to productivity, automotive volume and mix, while tariff refunds contributed about 50 basis points. Chief Financial Officer Patrick Hallinan said the company raised and tightened its 2026 adjusted EPS outlook to a range of $5.20 to $5.80. The midpoint represents 18% year-over-year growth and is $0.20 above the midpoint of the previous range. About $0.15 of the guidance increase reflects lower interest expense, the impact of second-quarter share repurchases and lower other-net costs in the first half, Hallinan said. The remaining $0.05 reflects the expected full-year net benefit from tariff refunds received during the second quarter. The company maintained its revenue outlook, calling for total revenue to be about flat year over year and low-single-digit organic revenue growth, split roughly evenly between volume and price. It expects adjusted gross margin to expand by approximately 150 basis points for the full year excluding the tariff-refund effect. Refunds are expected to add another 60 to 70 basis points to full-year adjusted gross margin. Third-quarter net sales are expected to be about $3.7 billion, flat on a reported basis and up 3% to 4% organically. Third-quarter adjusted EPS is projected at approximately $1.50 to $1.60. Full-year free cash flow guidance was raised to $600 million to $800 million, including projected taxes and fees associated with the CAM divestiture. Excluding those payments, free cash flow is expected to be $800 million to $1 billion. Hallinan said the company expects second-half adjusted gross margin of 34% to 35%, with the fourth quarter potentially modestly ahead of the third quarter. Productivity, tariff mitigation efforts, increased USMCA compliance and shifting U.S. tools production from China to North America are expected to support results. Following the sale of its aerospace fasteners business early in the quarter, Stanley Black & Decker used proceeds and operating cash flow to reduce debt by approximately $1.7 billion. The company also repurchased 3.2 million shares for $250 million during the quarter. Management said it expects net debt to adjusted EBITDA to be at or around 2.5 times by year-end, including buybacks. The company said its capital-allocation priorities include funding organic growth, supporting the dividend, repurchasing shares and considering bolt-on acquisitions when appropriate. Stanley Black & Decker, Inc (NYSE:SWK) is a leading global manufacturer of industrial tools, engineered fastening systems, and security products. The company's portfolio includes power tools, hand tools, accessories, and storage solutions marketed under well-known brands such as DEWALT, Stanley, Craftsman and Black & Decker. In addition to its core tools and hardware offerings, the company provides customized assembly and installation systems for the automotive, electronics and aerospace industries. Operations are organized across three principal business segments. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Stanley Black & Decker Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Stanley Black & Decker, Inc. SWK reported adjusted earnings of $1.57 per share for the second quarter of 2026, which beat the Zacks Consensus Estimate of $1.20 by 30.8%. The bottom line increased from adjusted earnings of $1.08 per share reported in the year-ago quarter.Net sales of $3.96 billion surpassed the consensus estimate of $3.93 billion by 0.7% and increased 0.4% year over year. Higher organic sales, improved gross margins and strong cash generation supported the quarter, while the company also raised its full-year earnings and free cash flow guidance. Stanley Black generated Tools & Outdoor revenues of $3.56 billion, up 3% year over year, driven by higher volumes in U.S. retail and commercial & industrial channels. Organic revenues for the segment also increased 3%, aided by strength in power tools despite the transition to a licensing model for gas walk-behind outdoor products.Engineered Fastening revenues declined 18% year over year to $396.4 million due to the divestiture of the Consolidated Aerospace Manufacturing (CAM) business. Excluding the divestiture impact, organic revenues increased 3%, supported by industrial demand and continued automotive fastener growth. Stanley Black & Decker, Inc. price-consensus-eps-surprise-chart | Stanley Black & Decker, Inc. Quote Stanley Black's cost of sales declined 7.8% year over year to $2.65 billion. Gross profit increased 22.4% to $1.31 billion, lifting the gross margin by 600 basis points to 33.0%. On an adjusted basis, gross margin expanded 620 basis points to 33.7%, benefiting from tariff refunds and productivity improvements.Selling, general and administrative expenses increased 8.6% year over year to $947.9 million and represented 23.9% of sales compared with 22.1% a year ago. Adjusted EBITDA was $445.7 million, indicating a year-over-year increase of 40.1%. The adjusted EBITDA margin improved 320 basis points to 11.3%, while net earnings rose sharply to $351.3 million from $101.9 million in the prior-year quarter. Stanley Black ended the quarter with cash and cash equivalents of $592.4 million compared with $280.1 million at the end of 2025. Long-term debt was $4.70 billion, largely unchanged from the figure reported at the end of 2025. The company reduced total debt by $1.7 billion during the quarter using proceeds from the CAM divestiture.Cash provided by operating activities totaled $763.1 million compared with $214.3 million in the year-ago quarter. Capital and software expenditures were $64.9 million, resulting in free cash flow of $698.2 million compared with $134.7 million in the year-ago quarter. During the quarter, the company repurchased approximately $250 million of shares and paid dividends of $124.3 million. Management raised its 2026 GAAP earnings guidance to $4.60-$5.45 per share from the prior range of $4.15-$5.35. Adjusted earnings are now projected in the range of $5.20-$5.80 per share, up from the earlier outlook of $4.90-$5.70.The company also increased its free cash flow forecast to $600-$800 million from the previous expectation of $500-$700 million. Management said the revised guidance reflects the benefit from tariff refunds realized in the second quarter as well as taxes and fees associated with the CAM divestiture. Management highlighted that second-quarter sales, margins and cash generation kept the company on track to achieve its full-year sales and profitability targets. The completed CAM divestiture strengthened the balance sheet, enabling debt reduction, share repurchases and continued investments in growth initiatives.The company noted that tariff refunds provided an earnings benefit during the quarter while supporting additional investments. Management reiterated confidence in delivering sustainable profitable growth through disciplined execution of its strategic priorities and capital allocation plan. Stanley Black currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space are discussed below:Applied Industrial Technologies AIT carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Applied Industrial’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 4.0%.  In the past 60 days, the Zacks Consensus Estimate for Applied Industrial’s fiscal 2026 bottom line has inched up 0.1%.Dover Corporation DOV presently carries a Zacks Rank of 2. Dover’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 1.8%. In the past 60 days, the Zacks Consensus Estimate for DOV’s 2026 earnings has increased 0.5%.Generac Holdings GNRC currently carries a Zacks Rank of 2. Generac Holdings’ earnings topped the consensus estimate twice and missed on the other two occasions in the trailing four quarters. The average earnings surprise was 7.4%. In the past 60 days, the Zacks Consensus Estimate for GNRC’s 2026 earnings has been stable. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Stanley Black & Decker, Inc. (SWK) : Free Stock Analysis Report Dover Corporation (DOV) : Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT) : Free Stock Analysis Report Generac Holdings Inc. (GNRC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Stanley Black & Decker (SWK) came out with quarterly earnings of $1.57 per share, beating the Zacks Consensus Estimate of $1.2 per share. This compares to earnings of $1.08 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +30.83%. A quarter ago, it was expected that this tool company would post earnings of $0.61 per share when it actually produced earnings of $0.8, delivering a surprise of +31.15%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Stanley Black & Decker, which belongs to the Zacks Manufacturing - Tools & Related Products industry, posted revenues of $3.96 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.71%. This compares to year-ago revenues of $3.95 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Stanley Black & Decker shares have added about 26.8% since the beginning of the year versus the S&P 500's gain of 8.5%. While Stanley Black & Decker has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Stanley Black & Decker was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.66 on $3.68 billion in revenues for the coming quarter and $5.35 on $15.15 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - Tools & Related Products is currently in the bottom 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Kennametal (KMT), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This engineered products maker is expected to post quarterly earnings of $1.62 per share in its upcoming report, which represents a year-over-year change of +376.5%. The consensus EPS estimate for the quarter has been revised 153.3% higher over the last 30 days to the current level. Kennametal's revenues are expected to be $719.89 million, up 39.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Stanley Black & Decker, Inc. (SWK) : Free Stock Analysis Report Kennametal Inc. (KMT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Total Revenue: In line with prior year, up 3% organically. Adjusted Gross Margin: 33.7%, up 620 basis points year-over-year. Adjusted EBITDA Margin: 11.3%, up 320 basis points year-over-year. Adjusted Earnings Per Share (EPS): $1.57, $0.37 above the midpoint of guidance range. Debt Reduction: Paid down $1.7 billion in debt. Share Repurchase: Bought back 3.2 million shares for $250 million. Tools and Outdoor Revenue: Approximately $3.6 billion, up 3% year-over-year. Power Tools Organic Revenue Growth: Increased by 8%. Hand Tools, Accessories, and Storage Organic Revenue Growth: Increased by 2%. Outdoor Organic Revenue: Decreased by 7%. North America Organic Revenue Growth: Increased by 4%. Europe Organic Revenue: Down 2%. Engineered Fastening Revenue: Down 18%, with 3% organic growth. Free Cash Flow Guidance: Expected to be $600 million to $800 million, excluding certain payments $800 million to $1 billion. 2026 Adjusted EPS Guidance: Raised to $5.20 to $5.80. Full-Year Revenue Outlook: Total company revenue expected to be flat, organic revenue to grow low single-digit percentage. Full-Year Adjusted Gross Margin Expansion: Expected to expand by approximately 150 basis points year-over-year. Warning! GuruFocus has detected 11 Warning Signs with SWK. Is SWK fairly valued? Test your thesis with our free DCF calculator. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Stanley Black & Decker Inc (NYSE:SWK) delivered a solid second quarter with a 3% organic revenue growth, slightly ahead of expectations. Adjusted gross margin rate increased by 620 basis points year-over-year, supported by gross productivity and product mix. The company received tariff refunds, contributing to adjusted gross margins and allowing for accelerated growth investments. Adjusted earnings per share were $1.57, exceeding the midpoint of guidance by $0.37. The sale of the aerospace fasteners business allowed SWK to pay down $1.7 billion in debt and repurchase 3.2 million shares for $250 million. Outdoor organic revenue decreased by 7% due to weather-related demand softness. European organic revenue was down 2%, with challenging market conditions in France and other parts of the region. Engineered fastening segment revenue was down 18% due to the aerospace fasteners divestiture. Persistent inflationary pressures from battery metals, tungsten, oil, and oil derivatives are expected to neutralize tariff benefits. The company anticipates a potential need for price increases by 2027 due to ongoing inflationary pressures. Q: Could you add some color on the rebound in the Power Tools business this quarter? It seems like 8% growth might be the strongest growth rate we've seen in several years. A: We are excited about the trend in the Power Tools business. The growth is a result of increased placement with key channel partners and the benefits of our product development pipeline, particularly in DeWalt, Stanley, and Craftsman. Our focus on strategic promotions has also been strong and accretive, contributing to the momentum across all three core brands. Christopher Nelson, President and CEO Q: In the guidance, it sounds like the IEPA tariff assumptions are offsetting raw materials. Can you size the raw material annualized inflation impact? A: The IEPA favorability this year, due to the February court ruling, provided some relief. However, inflation in battery metals, tungsten, oil, and derivatives has created headwinds. These are roughly $100 million each, offsetting each other. The IEPA refunds are netting out at about $0.05 for the full year, with $0.17 realized in the quarter. Patrick Hallinan, CFO Q: How are you deploying the investment spend so efficiently, especially with the big pick-up in SG&A? A: Our investments have been focused on core areas like go-to-market activation, social media for brand activation, and the new product pipeline. We've been judicious in building the infrastructure to absorb and drive growth with these investments. The refund dollars have allowed us to double down in areas where the market is ready, and we've seen positive progress and ROI. Christopher Nelson, President and CEO Q: Are you pulling forward some 2027 investments into 2026, and how will you handle future tariff refunds? A: Yes, there is some acceleration of investments into 2026. We have a multi-year roadmap for growth and investment, so we are prepared to accelerate where needed. Future tariff refunds are not included in our guidance due to uncertainty, but we have plans in place should they materialize. Christopher Nelson, President and CEO Q: Can you discuss the year-over-year promotion benefit and its impact on volume growth in Tools and Outdoor? A: The growth is part of a multi-year plan, with a mix of innovation and marketing levers. We have tailored promotions differently this year, learning from consumer elasticity in this post-tariff, high-inflation environment. We are committed to a longer-term investment journey in innovation and brand building. Patrick Hallinan, CFO Q: What are the pockets of strength in the industrial side of engineered fastening? A: We've focused on industries where we have a differentiated advantage, such as automotive and solar, and products used in data centers. The team has shifted resources and innovation to target high-growth verticals, driving above-market growth and margins. Christopher Nelson, President and CEO Q: With Stanley and Craftsman turning positive organically in 2Q, are these brands exceeding your timeline expectations? A: We are on pace with the progress laid out for Stanley and Craftsman. While it's encouraging to see growth, there's still work ahead. The timelines for consistent performance remain as planned, with Craftsman benefiting from the V20 advanced batteries and product ecosystem. Christopher Nelson, President and CEO Q: How much of the $600 million to $800 million free cash flow guidance is from working capital contribution? A: We are targeting $200 million of working capital reduction for the year, with a focus on reaching pre-COVID inventory levels. We are progressing towards our goal and expect to be a portion of the way there by year-end. Patrick Hallinan, CFO For the complete transcript of the earnings call, please refer to the full earnings call transcript.