Stanley Black & Decker, Inc. SWK has been benefiting from strong momentum in the Engineered Fastening segment, driven by persistent strength across the aerospace market. The aerospace business continued its strong trajectory and generated 31% organic growth in the first quarter of 2026.
The company is also witnessing strength in the automotive business, driven by strong North America demand and healthy global fastener system sales across auto OEM markets. The business posted 4% organic growth in the quarter. In first-quarter 2026, the Engineered Fastening segment’s revenues grew 7% on an organic basis year over year. For 2026, AWK expects the segment’s revenues to grow at a low-to-mid single-digit range.
In April 2026, Stanley Black completed the divestment of its Consolidated Aerospace Manufacturing LLC (“CAM”) business, to Howmet Aerospace Inc. HWM for $1.8 billion. The CAM transaction generated nearly $1.57 billion in net proceeds after taxes and fees, most of which the company used to reduce debt in the second quarter of 2026. The company expects the CAM divestiture, along with EBITDA growth, to help achieve its targeted net debt-to-adjusted EBITDA ratio of 2.5x by the year-end.
SWK also remains committed to rewarding its shareholders through dividend payments and share buybacks. In the first quarter, it paid $126 million in dividends, up 1.2% year over year. Also, in April 2026, Stanley Black approved a new $500 million share repurchase program valid for 36 months, replacing the previous April 2022 program.
SWK Stock’s Price Performance
In the past year, this Zacks Rank #3 (Hold) company's shares have gained 28.5% compared with the industry’s 11.1% growth.
However, soft demand for power tools across retail markets in North America and other developed markets is hurting its Tools & Outdoor segment. Persistent softness in the DIY market and tepid demand for hand tools also remain concerning. Following a year-over-year decline of 1.1% in 2025, organic revenues from the segment fell 1% in first-quarter 2026.
The company’s highly leveraged balance sheet remains another concern. Exiting the first quarter, Stanley Black’s long-term debt remained high at $4.7 billion. Also, its cash and cash equivalents of $333.7 million do not look impressive considering the high debt level.
Key Picks
A couple of better-ranked companies from the same space are discussed below.
Core & Main, Inc. CNM currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CNM delivered a trailing four-quarter average earnings surprise of 3.7%. In the past 60 days, the Zacks Consensus Estimate for Core & Main’s fiscal 2026 earnings has increased 0.6%.
Lincoln Electric Holdings, Inc. LECO presently carries a Zacks Rank of 2. LECO delivered a trailing four-quarter average earnings surprise of 5.9%.
In the past 60 days, the consensus estimate for Lincoln Electric’s 2026 earnings has increased 0.8%.
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Stanley Black & Decker, Inc. (SWK): Free Stock Analysis Report
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Howmet Aerospace Inc. (HWM): Free Stock Analysis Report
Core & Main, Inc. (CNM): Free Stock Analysis Report
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