Stanley Black & Decker Q3 Adjusted EPS Jumps 61.5% to $2.31; Raises 2026 Outlook and Adds $1 Billion Buyback

Stanley Black & Decker raised its full-year earnings outlook and lifted its free cash flow forecast by $400 million after third-quarter profit jumped, helped by tariff refunds and wider margins in its tools business.

Adjusted EPS rose 61.5% to $2.31 from $1.43 a year earlier, according to the earnings release the toolmaker filed with an 8-K on Wednesday. GAAP diluted EPS climbed to $1.83 from $0.34, and net earnings rose to $272.1 million from $51.4 million. Both EPS figures include a benefit from net tariff refunds of an estimated $0.67 per share, the company said.

Net sales slipped 0.6% to $3.73 billion from $3.76 billion, reflecting the April sale of its Consolidated Aerospace Manufacturing business. Organic sales rose 4%, the company said.

"We saw strong underlying performance in the Tools & Outdoor segment in the third quarter," President and CEO Chris Nelson said in the release.

Margins widen sharply

Gross margin expanded to 39.0% from 31.4%, with the company attributing part of the gain to the tariff refunds. Adjusted gross margin was 39.4%.

Tools & Outdoor sales rose 2.5% to $3.34 billion, and segment profit jumped 48.4% to $568.7 million, lifting the segment margin to 17.0% from 11.8%. Engineered Fastening sales fell 21.0% to $395.5 million following the aerospace divestiture, with a segment margin of 11.7%.

Guidance raised

Stanley Black & Decker raised its 2026 GAAP EPS guidance to $5.45 to $5.85 from $4.60 to $5.45. It raised and tightened adjusted EPS guidance to $5.95 to $6.25 from $5.20 to $5.80. Free cash flow guidance rose to $1.0 billion to $1.2 billion from $600 million to $800 million.

Cash flow and buybacks

Operating cash flow rose to $658.5 million from $221.2 million, and free cash flow reached $585.0 million versus $155.3 million a year earlier. The company spent $250.9 million on share repurchases in the quarter, completing its $500 million authorization from April 2026. Its board approved a new $1 billion buyback authorization on Oct. 29 that runs through Oct. 29, 2029.

The quarterly dividend was $0.84 per share, versus $0.83 a year earlier.

By the numbers

• Net sales: $3.73 billion, down 0.6%
• Adjusted EPS: $2.31, up 61.5%
• GAAP EPS: $1.83, versus $0.34
• Gross margin: 39.0%, versus 31.4%
• 2026 adjusted EPS guidance: $5.95 to $6.25
• New buyback authorization: $1 billion

Sources

1. Stanley Black & Decker Form 8-K with third-quarter 2026 earnings release, filed Nov. 4, 2026 (accession 0000093556-26-000036)

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