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Stanley Black & Decker The 9.2% EBITDA Margin Is The Constraint The Recovery Must Overcome!

Stanley Black & Decker reported a 3% increase in total revenue for the first quarter of 2026, with organic revenue holding flat versus the prior year. This performance exceeded the company’s expectations and was primarily driven by a strong outdoor products preseason. Adjusted gross margin slightly declined by 20 basis points to 30.2%, while adjusted EBITDA margin decreased by 50 basis points to 9.2%, both figures aligning closely with forecasted outcomes. Adjusted earnings per share of $0.80 exceeded guidance by $0.20 at the high end. A notable development was the April completion of the sale of the Aerospace Fasteners business, generating approximately $1.6 billion in net proceeds, most of which were applied to debt reduction. This positioned Stanley Black & Decker with a stronger balance sheet and provided greater capital allocation flexibility, including a $500 million share repurchase authorization. Segment performance was mixed.