Stanley Black & Decker, Inc. (SWK) SEC Filings & Earnings Calls

Regulatory approval risk for transaction closing.

“The transaction is subject to receipt of required regulatory approvals and other customary closing conditions.” · word for word

Tariff refunds provided significant one-time benefit to margins and EPS; sustainability uncertain

“Gross margin included ~250bps benefit from net tariff refunds; adjusted EPS included ~$0.17 benefit”

Europe organic sales decline in Tools & Outdoor (-2%)

“Europe was flat on a total basis and down 2% organically” · word for word

CAM divestiture reduced sales but improved focus

“Successfully completed the sale of Consolidated Aerospace Manufacturing (‘CAM’) in April” · word for word

Restructuring Execution Risk

“Restructuring charges $15.1 million for the second quarter of 2026.”

Asset Impairment Risk

“Asset impairment charges $5.3 million for the second quarter of 2026.”

Increased financial obligations, but no immediate drawdown; covenants include interest coverage ratio maintenance.

“The Company must maintain ... an interest coverage ratio of not less than 3.50 to 1.00”

Tariff expense and volume deleverage pressure on margins; tariff costs offset pricing gains.

“increased tariff expense, volume deleverage, and other inflation” · word for word

North America retail softness driving volume decline; consumer demand uncertainty.

“The volume decline was primarily due to retail softness in North America” · word for word

Restructuring execution risk

“Restructuring charges $ 44.9 $ 1.2 ... Asset impairment charges $ 22.7 $ —”

Negative free cash flow

“Cash used in operating activities ( 388.8 ) ( 420.0 )” · word for word

Potential dilution from additional shares authorized under equity plan.

“authorization of 7,750,000 additional shares for issuance under the Amended and Restated 2024 Plan”

Tariff changes could still pose indirect risks if mitigation plans are insufficient.

“Forward-looking statements note risks including ability to mitigate tariff impacts via price actions and supply chain adjustments.”

Execution risk in achieving target leverage ratio and capital allocation plans.

“Expects to achieve target leverage ratio of at or around 2.5 times net debt to adjusted EBITDA by year end.”

Tariff and trade policy uncertainty

“changes in trade-related regulations and restrictions such as import and export controls and tariffs and the Company's ability to predict the timing and extent of such regulations, restrictions and tariffs” · word for word

Macroeconomic sensitivity

“changes in macroeconomic conditions, including interest rates” · word for word

Transformation execution risk

“the Company's ability to identify and effectively execute productivity improvements and cost reductions, including complexity reduction through platforming products and SKU reduction initiatives” · word for word

CAM divestiture closing risk

“the failure to consummate, or a delay in the consummation of, the CAM sale transaction for various reasons” · word for word

Tariff and trade policy risk

“In 2025, the U.S. government announced a series of tariffs on imported goods into the U.S., which prompted retaliatory actions from some of its trading partners, and in response, the Company introduced strategies to mitigate the impacts of these changes on its results of operations, including price increases and supply chain adjustments.” · word for word

China rare earth supply disruption

“In April 2025, China restricted export of certain rare earth minerals and may in the future continue to restrict, expand restrictions, or stop exporting these or other materials.” · word for word

Customer concentration risk

“The Home Depot accounted for approximately 15% and 14% of the Company's consolidated net sales in 2025 and 2024, respectively, while Lowe's accounted for approximately 12% and 14% of the Company's consolidated net sales in 2025 and 2024, respectively.” · word for word

Environmental remediation liability

“As of January 3, 2026 and December 28, 2024, the Company had reserves of $259.2 million and $275.4 million, respectively, for remediation activities” · word for word

Volume decline due to retail softness in North America.

“The volume decline was primarily due to retail softness in North America.” · word for word

Uncertainty in 2026 operating environment.

“even if 2026 presents another uncertain, dynamic year” · word for word

Transaction subject to regulatory approvals and customary closing conditions; may not close as expected.

“The transaction is subject to receipt of required regulatory approvals and other customary closing conditions.” · word for word

Asset impairment risk

“Asset impairment charges $169.1 million in Q3 2025 vs $46.9 million in Q3 2024.”

Restructuring execution risk

“Restructuring charges $32.1 million in Q3 2025 vs $22.1 million in Q3 2024.”

Liquidity risk

“Operating cash flow declined significantly YTD from $427.8 million to $15.5 million.”

Non-cash asset impairment charges of $169M on Lenox, Troy-Bilt, Irwin trade names and minority investments.

“Non-cash asset impairment charges of $169 million, stemming from updated brand prioritization and portfolio assessment.” · word for word

Volume decline of 6% due to tariff-related promotional reductions and soft consumer backdrop.

“Volume (-6%) driven by expected tariff related promotional reductions and a soft consumer backdrop.”