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STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, Millions of Dollars Except Per Share Amounts) 

THIRD QUARTERYEAR-TO-DATE
2026202520262025
NET SALES$3,731.6 $3,756.0 $11,538.7 $11,445.8 
COSTS AND EXPENSES
Cost of sales2,278.1 2,576.9 7,622.1 8,079.4 
Gross profit1,453.5 1,179.1 3,916.6 3,366.4 
% of Net Sales39.0 %31.4 %33.9 %29.4 %
Selling, general and administrative904.5 791.0 2,736.4 2,531.1 
% of Net Sales24.2 %21.1 %23.7 %22.1 %
Other - net64.3 72.2 159.1 187.4 
Loss (gain) on sales of businesses20.4 — (250.2)0.3 
Asset impairment charges19.7 169.1 47.7 169.1 
Restructuring charges29.5 32.1 89.5 52.1 
Income from operations415.1 114.7 1,134.1 426.4 
Interest - net56.9 79.1 192.1 236.5 
EARNINGS BEFORE INCOME TAXES358.2 35.6 942.0 189.9 
Income taxes86.1 (15.8)259.0 (53.8)
NET EARNINGS$272.1 $51.4 $683.0 $243.7 
EARNINGS PER SHARE OF COMMON STOCK
Basic$1.84 $0.34 $4.56 $1.61 
Diluted$1.83 $0.34 $4.54 $1.61 
DIVIDENDS PER SHARE OF COMMON STOCK$0.84 $0.83 $2.50 $2.47 
WEIGHTED-AVERAGE SHARES OUTSTANDING (in thousands)
Basic147,597151,341149,714151,195
Diluted148,626151,958150,462151,800
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STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, Millions of Dollars)
 
October 3, 2026January 3, 2026
ASSETS
Cash and cash equivalents$741.2 $280.1 
Accounts and notes receivable, net1,370.5 919.7 
Inventories, net3,841.5 4,157.1 
Current assets held for sale89.9 262.4 
Other current assets376.9 359.7 
Total current assets6,420.0 5,979.0 
Property, plant and equipment, net1,644.1 1,831.8 
Goodwill and other intangibles, net10,062.7 10,374.8 
Long-term assets held for sale212.4 1,273.9 
Other assets1,705.0 1,784.2 
Total assets$20,044.2 $21,243.7 
LIABILITIES AND SHAREOWNERS’ EQUITY
Short-term borrowings$— $605.6 
Current maturities of long-term debt— 554.8 
Accounts payable2,423.4 2,163.0 
Accrued expenses2,035.8 1,878.1 
Current liabilities held for sale62.4 44.2 
Total current liabilities4,521.6 5,245.7 
Long-term debt4,704.7 4,703.3 
Long-term liabilities held for sale16.3 9.4 
Other long-term liabilities1,960.1 2,230.7 
Shareowners’ equity8,841.5 9,054.6 
Total liabilities and shareowners' equity$20,044.2 $21,243.7 

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STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
SUMMARY OF CASH FLOW ACTIVITY
(Unaudited, Millions of Dollars)
 
THIRD QUARTERYEAR-TO-DATE
2026202520262025
OPERATING ACTIVITIES
Net earnings$272.1 $51.4 $683.0 $243.7 
Depreciation84.6 92.9 270.8 276.7 
Amortization26.2 37.3 82.4 112.0 
Loss (gain) on sales of businesses20.4 — (250.2)0.3 
Asset impairment charges19.7 169.1 47.7 169.1 
Changes in working capital1
34.2 (38.7)(72.5)(380.1)
Other201.3 (90.8)271.6 (406.2)
Net cash provided by operating activities658.5 221.2 1,032.8 15.5 
INVESTING AND FINANCING ACTIVITIES
Capital and software expenditures(73.5)(65.9)(196.9)(210.5)
Proceeds from sales of businesses, net of cash sold— — 1,814.7 5.0 
Payments on long-term debt (53.6)(350.1)(553.7)(850.4)
Net short-term commercial paper borrowings (repayments)— 287.9 (604.8)1,325.9 
Purchases of common stock for treasury(250.9)(2.2)(518.3)(14.7)
Cash settlement on forward stock purchase contract— — (125.0)— 
Cash dividends on common stock(122.9)(125.8)(373.2)(374.3)
Other13.1 2.9 24.2 19.9 
Net cash used in investing and financing activities(487.8)(253.2)(533.0)(99.1)
Effect of exchange rate changes on cash(25.6)(5.8)(38.1)68.3 
Increase (decrease) in cash, cash equivalents and restricted cash145.1 (37.8)461.7 (15.3)
Cash, cash equivalents and restricted cash, beginning of period604.0 315.3 287.4 292.8 
Cash, cash equivalents and restricted cash, end of period$749.1 $277.5 $749.1 $277.5 
Free Cash Flow Computation2
Net cash provided by operating activities$658.5 $221.2 $1,032.8 $15.5 
Less: capital and software expenditures(73.5)(65.9)(196.9)(210.5)
Free cash flow (before dividends)$585.0 $155.3 $835.9 $(195.0)
Reconciliation of Cash, Cash Equivalents and Restricted Cash
October 3,
2026		January 3,
2026
Cash and cash equivalents$741.2 $280.1 
Restricted cash included in Other current assets7.4 7.3 
Cash and cash equivalents included in Current assets held for sale0.5 — 
Cash, cash equivalents and restricted cash$749.1 $287.4 
1
Working capital is comprised of accounts receivable, inventory, accounts payable and deferred revenue.
2
Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important measure of its liquidity, as well as its ability to fund future growth and to provide a return to the shareowners, and is useful information for investors. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company’s common stock and business acquisitions, among other items.
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STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION
(Unaudited, Millions of Dollars)

 
THIRD QUARTERYEAR-TO-DATE
2026202520262025
NET SALES
Tools & Outdoor$3,336.1 $3,255.5 $10,236.0 $9,997.8 
Engineered Fastening1
395.5 500.5 1,302.7 1,448.0 
Total$3,731.6 $3,756.0 $11,538.7 $11,445.8 
SEGMENT PROFIT 2
Tools & Outdoor$568.7 $383.2 $1,233.7 $910.5 
Engineered Fastening1
$46.1 $59.8 $158.6 $133.8 
CORPORATE OVERHEAD 2
$(65.8)$(54.9)$(212.1)$(209.0)
Segment Profit as a Percentage of Net Sales
Tools & Outdoor17.0 %11.8 %12.1 %9.1 %
Engineered Fastening1
11.7 %11.9 %12.2 %9.2 %
1
On April 6, 2026, the Company completed the previously announced sale of its Consolidated Aerospace Manufacturing (“CAM”) business. Based on management’s commitment to sell this business, the assets and liabilities related to CAM were classified as held for sale on the Company’s Condensed Consolidated Balance Sheets as of January 3, 2026. For the three months ended October 3, 2026, the net sales and segment profit for Engineered Fastening did not include results of the CAM business. For the nine months ended October 3, 2026, net sales and segment profit for Engineered Fastening included $117.0 million and $22.0 million, respectively, related to the CAM business.
2
Segment profit is defined as net sales minus cost of sales and SG&A (aside from corporate overhead expenses). The corporate overhead element of SG&A, which is not allocated to the business segments for purposes of determining segment profit, consists of the costs associated with the executive management team and expenses related to centralized functions that benefit the entire Company but are not directly attributable to the business segments, such as legal and corporate finance functions, as well as expenses for the world headquarters facility.

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STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars Except Per Share Amounts)

 
THIRD QUARTER 2026
GAAPNon-GAAP Adjustments
Non-GAAP1
Gross profit$1,453.5 $16.6 $1,470.1 
% of Net Sales39.0 %39.4 %
Selling, general and administrative904.5 (2.8)901.7 
% of Net Sales24.2 %24.2 %
Earnings before income taxes358.2 89.3 447.5 
Income taxes2
86.1 18.0 104.1 
Net earnings272.1 71.3 343.4 
Diluted earnings per share of common stock$1.83 $0.48 $2.31 
THIRD QUARTER 2025
GAAPNon-GAAP Adjustments
Non-GAAP1
Gross profit$1,179.1 $8.0 $1,187.1 
% of Net Sales31.4 %31.6 %
Selling, general and administrative791.0 (4.1)786.9 
% of Net Sales21.1 %21.0 %
Earnings before income taxes35.6 217.6 253.2 
Income taxes2
(15.8)51.3 35.5 
Net earnings51.4 166.3 217.7 
Diluted earnings per share of common stock$0.34 $1.09 $1.43 
1
The Non-GAAP 2026 and 2025 information, as reconciled to GAAP above, is considered relevant to aid analysis and understanding of the Company’s results and business trends aside from the material impact of certain gains and charges and ensures appropriate comparability to operating results of prior periods. See further detail on Non-GAAP adjustments on page 16.
2
Income taxes attributable to Non-GAAP adjustments are determined by calculating income taxes on pre-tax earnings, both inclusive and exclusive of Non-GAAP adjustments, taking into consideration the nature of the Non-GAAP adjustments and the applicable statutory income tax rates.
 


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STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars Except Per Share Amounts)

 
YEAR-TO-DATE 2026
GAAPNon-GAAP Adjustments
Non-GAAP1
Gross profit$3,916.6 $50.5 $3,967.1 
% of Net Sales33.9 %34.4 %
Selling, general and administrative2,736.4 (13.5)2,722.9 
% of Net Sales23.7 %23.6 %
Earnings before income taxes942.0 (51.0)891.0 
Income taxes2
259.0 (69.3)189.7 
Net earnings683.0 18.3 701.3 
Diluted earnings per share of common stock$4.54 $0.12 $4.66 
YEAR-TO-DATE 2025
GAAPNon-GAAP Adjustments
Non-GAAP1
Gross profit$3,366.4 $44.7 $3,411.1 
% of Net Sales29.4 %29.8 %
Selling, general and administrative2,531.1 (78.7)2,452.4 
% of Net Sales22.1 %21.4 %
Earnings before income taxes189.9 332.1 522.0 
Income taxes2
(53.8)80.6 26.8 
Net earnings243.7 251.5 495.2 
Diluted earnings per share of common stock$1.61 $1.65 $3.26 
1
The Non-GAAP 2026 and 2025 information, as reconciled to GAAP above, is considered relevant to aid analysis and understanding of the Company’s results and business trends aside from the material impact of certain gains and charges and ensures appropriate comparability to operating results of prior periods. See further detail on Non-GAAP adjustments on page 16.
2
Income taxes attributable to Non-GAAP adjustments are determined by calculating income taxes on pre-tax earnings, both inclusive and exclusive of Non-GAAP adjustments, taking into consideration the nature of the Non-GAAP adjustments and the applicable statutory income tax rates.
 


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STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars)
 
THIRD QUARTER 2026
GAAP
Non-GAAP Adjustments1
Non-GAAP2
SEGMENT PROFIT
Tools & Outdoor$568.7 $18.2 $586.9 
Engineered Fastening$46.1 $0.3 $46.4 
CORPORATE OVERHEAD$(65.8)$0.9 $(64.9)
Segment Profit as a Percentage of Net Sales
Tools & Outdoor17.0 %17.6 %
Engineered Fastening11.7 %11.7 %
THIRD QUARTER 2025
GAAP
Non-GAAP Adjustments1
Non-GAAP2
SEGMENT PROFIT
Tools & Outdoor$383.2 $6.8 $390.0 
Engineered Fastening$59.8 $4.1 $63.9 
CORPORATE OVERHEAD$(54.9)$1.2 $(53.7)
Segment Profit as a Percentage of Net Sales
Tools & Outdoor11.8 %12.0 %
Engineered Fastening11.9 %12.8 %
1
The 2026 Non-GAAP adjustments for the Tools & Outdoor segment relate primarily to footprint actions. The 2025 Non-GAAP adjustments for the business segments relate primarily to footprint actions and other costs associated with the supply chain transformation. See further discussion on page 16.
2The Non-GAAP 2026 and 2025 business segment and corporate overhead information, as reconciled to GAAP above, is considered relevant to aid analysis and understanding of the Company’s results and business trends aside from the material impact of certain gains and charges and ensures appropriate comparability to operating results of prior periods.












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STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars)
 
YEAR-TO-DATE 2026
GAAP
Non-GAAP Adjustments1
Non-GAAP2
SEGMENT PROFIT
Tools & Outdoor$1,233.7 $61.3 $1,295.0 
Engineered Fastening$158.6 $0.6 $159.2 
CORPORATE OVERHEAD$(212.1)$2.1 $(210.0)
Segment Profit as a Percentage of Net Sales
Tools & Outdoor12.1 %12.7 %
Engineered Fastening12.2 %12.2 %
YEAR-TO-DATE 2025
GAAP
Non-GAAP Adjustments1
Non-GAAP2
SEGMENT PROFIT
Tools & Outdoor$910.5 $70.2 $980.7 
Engineered Fastening$133.8 $29.1 $162.9 
CORPORATE OVERHEAD$(209.0)$24.1 $(184.9)
Segment Profit as a Percentage of Net Sales
Tools & Outdoor9.1 %9.8 %
Engineered Fastening9.2 %11.3 %
1
The 2026 Non-GAAP adjustments for the Tools & Outdoor segment relate primarily to footprint actions. The 2025 Non-GAAP adjustments for the business segments relate primarily to separation benefit costs associated with a voluntary retirement program as well as footprint actions and other costs associated with the supply chain transformation. The 2025 Non-GAAP adjustments for Corporate overhead primarily consist of voluntary retirement program costs and transition services costs related to previously divested businesses. See further discussion on page 16.
2The Non-GAAP 2026 and 2025 business segment and corporate overhead information, as reconciled to GAAP above, is considered relevant to aid analysis and understanding of the Company’s results and business trends aside from the material impact of certain gains and charges and ensures appropriate comparability to operating results of prior periods.












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STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS TO EBITDA
(Unaudited, Millions of Dollars)
THIRD QUARTERYEAR-TO-DATE
2026202520262025
Net earnings$272.1 $51.4 $683.0 $243.7 
% of Net Sales7.3 %1.4 %5.9 %2.1 %
Interest - net56.9 79.1 192.1 236.5 
Income taxes86.1 (15.8)259.0 (53.8)
Depreciation84.6 92.9 270.8 276.7 
Amortization26.2 37.3 82.4 112.0 
EBITDA1
$525.9 $244.9 $1,487.3 $815.1 
% of Net Sales14.1 %6.5 %12.9 %7.1 %
Non-GAAP adjustments before income taxes89.3 217.6 (51.0)332.1 
Less: Accelerated depreciation included in Non-GAAP adjustments before income taxes6.1 1.5 26.8 6.2 
Adjusted EBITDA1
$609.1 $461.0 $1,409.5 $1,141.0 
% of Net Sales16.3 %12.3 %12.2 %10.0 %

SUMMARY OF NON-GAAP ADJUSTMENTS BEFORE INCOME TAXES
(Unaudited, Millions of Dollars)
THIRD QUARTERYEAR-TO-DATE
2026202520262025
Supply Chain Transformation Costs:
Footprint Rationalization2
$16.5 $4.6 $50.7 $16.6 
Material Productivity & Operational Excellence— 3.9 — 11.9 
Voluntary retirement program3
— — (0.5)11.9 
Other charges0.1 (0.5)0.3 4.3 
   Gross profit$16.6 $8.0 $50.5 $44.7 
Supply Chain Transformation Costs:
Footprint Rationalization2
$1.4 $4.0 $10.3 $15.1 
Complexity Reduction & Operational Excellence4
— 4.4 — 24.9 
Transition services costs related to previously divested businesses1.3 — 3.2 8.4 
Voluntary retirement program3
— — (2.7)33.5 
Other charges0.1 (4.3)2.7 (3.2)
   Selling, general and administrative$2.8 $4.1 $13.5 $78.7 
Income related to providing transition services to previously divested businesses$(1.4)$— $(3.3)$(10.3)
Voluntary retirement program3
— — — 6.2 
Deal-related costs and other5
1.7 4.3 1.3 (8.7)
   Other, net$0.3 $4.3 $(2.0)$(12.8)
Loss (gain) on sales of businesses$20.4 $— $(250.2)$0.3 
Asset impairment charges6
19.7 169.1 47.7 169.1 
Restructuring charges 29.5 32.1 89.5 52.1 
   Non-GAAP adjustments before income taxes$89.3 $217.6 $(51.0)$332.1 
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1EBITDA is earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA represents EBITDA excluding certain gains and charges, as summarized above. EBITDA and Adjusted EBITDA, both Non-GAAP measures, are considered relevant to aid analysis and understanding of the Company’s operating results and ensures appropriate comparability to prior periods.
2
Footprint Rationalization costs in 2026 primarily relate to accelerated depreciation of manufacturing equipment driven by plants closed in the second and third quarters of 2026, as well as site transformation and re-configuration costs. Footprint Rationalization costs in 2025 primarily relate to site transformation and re-configuration costs. Facility exit costs related to site closures are reported in Restructuring charges.
3
In June 2025, the Company implemented a voluntary retirement program (“VRP”) to right-size the Company’s corporate and support functions to align with a more focused portfolio following recent divestitures and more streamlined operations as part of the supply chain transformation. The costs associated with the VRP relate to separation benefits provided to eligible employees who voluntarily retired from the Company.
4
Complexity Reduction & Operational Excellence costs in 2025 primarily related to third-party consulting fees to provide expertise in identifying business model changes and quantifying related cost savings opportunities within the Company’s Engineered Fastening business, developing a detailed program and related governance, and assisting the Company with the implementation of actions necessary to achieve the identified objectives.
5Includes an $8.1 million gain on sale of a distribution center in 2025 as part of the supply chain transformation.
6Asset impairment charges in 2026 relate to the write-down of assets associated with the exit of a Tools and Outdoor product line and related plant closure in the first quarter of 2026 and a pre-tax impairment loss in the third quarter of 2026 related to the Excel Industries ("Excel") business. The asset impairment charges in 2025 were primarily related to the Lenox, Troy-Bilt, and Irwin trade names, and the write down of certain minority investments pertaining to legacy corporate ventures.



STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP REVENUE GROWTH TO NON-GAAP ORGANIC GROWTH
(Unaudited)

THIRD QUARTER 2026
GAAP
Revenue
Growth		Less:
Acquisitions		Plus:
Divestitures		Less:
Strategic
Outdoor
Product Line Transition		Less:
Currency
Non-GAAP
Organic
Growth1
Stanley Black & Decker-1 %- %3 %-2 %- %4 %
Tools & Outdoor2 %- %- %-2 %- %4 %
North America3 %- %- %-3 %- %6 %
Europe-1 %- %- %- %-2 %1 %
Rest of World2 %- %- %- %3 %-1 %
Engineered Fastening-21 %- %22 %- %-1 %2 %
1Non-GAAP Organic Growth, as reconciled to GAAP Revenue Growth above, is utilized to describe the change in the Company’s net sales excluding the impacts of foreign currency fluctuations, acquisitions during their initial 12 months of ownership, divestitures, transfers of product lines between segments, and the strategic transition to a licensing model for gas walk-behind outdoor product lines (as previously communicated). Organic growth is also referred to as organic sales growth and organic revenue growth.
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