Short answer
Stanley Black & Decker (SWK) filed its fiscal 2026 10-K annual report with the SEC on Feb 24, 2026.
- Top risk flagged: China's April 2025 rare earth mineral export restrictions causing component delays and shortages; further restrictions could disrupt production of power tools and battery-dependent products
Stanley Black & Decker FY2026 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Global tools & outdoor and engineered fastening company; $15.1B 2025 revenues, 62% US, 16% Europe, 13% emerging markets
- Industrial segment renamed "Engineered Fastening" in Q1 2025 following portfolio streamlining; CAM business sale announced Dec 2025 for $1.8B cash
- Global Cost Reduction Program completed end-2025, generating ~$2.1B pre-tax run-rate savings, exceeding original $2.0B target
- R&D spend $321.4M (2.1% of net sales) in 2025; platforming method drove 20% faster product development
- Home Depot concentration rose to 15% of consolidated net sales in 2025 vs 14% in 2024, while Lowe's fell to 12% from 14%
Management Discussion & Analysis
- Revenue $15.13B in 2025 vs $15.37B in 2024, down 2%; 3% price increase offset by 4% volume decline and 1% Infrastructure divestiture impact
- GAAP gross margin 30.3% vs 29.4%; adjusted gross margin 30.7% vs 30.0%; GAAP SG&A 22.0% vs 21.7% of net sales
- Tools & Outdoor (best): sales $13.16B, segment margin 10.1% vs 9.0%; Engineered Fastening (worst): sales $1.97B, segment margin 10.0% vs 12.4%, hurt by lower automotive volume
- Operating cash flow $971M vs $1.11B; free cash flow $688M vs $753M; capex $283M vs $354M; dividends $501M; debt repaid $851M; CAM divestiture ($1.8B) proceeds earmarked for further debt reduction
- 2026 guidance: adjusted EPS $4.90–$5.70 (+13% midpoint), free cash flow $700–$900M; key risks include tariff escalation and China supply chain exposure targeted for reduction by end-2026/early 2027
Risk Factors
- China's April 2025 rare earth mineral export restrictions causing component delays and shortages; further restrictions could disrupt production of power tools and battery-dependent products
- Two largest customers ~27% of consolidated net sales; top home centers and mass merchants collectively ~42% of sales, limiting pricing power
- $5.3B principal debt outstanding; interest coverage covenant requires minimum 3.50x ratio (relaxed to 2.50x through Q2 2026)
- Section 301 tariffs triggered supply chain shift of power tools to Mexico in 2025, inadvertently creating new tariff exposure pending USMCA exemption qualification
- $108.4M pre-tax impairment charge in 2025 on Lenox, Troy-Bilt, Irwin trade names; goodwill stands at $7.3B with ongoing impairment risk
Generated from the filing text; verify against the original. How to read a 10-K
Ask about this 10-K
Compare years, dig into a risk factor or check the numbers against insider trades and fund holders.