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Key Points
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Stanley Black & Decker is targeting 34%–35% gross margins by 2027, supported by brand-focused product development, shared components and simpler supply chains. Its development cycle times have fallen 30%.
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Organic growth reached about 4% in the third quarter, with DEWALT, STANLEY and CRAFTSMAN each growing for two consecutive quarters. The company also reported double-digit growth in its U.S. construction and industrial channel.
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The company expects low-single-digit price increases and plans to prioritize growth investment, while maintaining and moderately growing its dividend. Its board has authorized a further $1 billion share-repurchase program, to be used opportunistically.
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Stanley Black & Decker (NYSE:SWK) is targeting a gross margin of 34% to 35% in 2027 as it focuses on brand growth, product development and simpler supply chains, President and CEO Chris Nelson said at Baird’s Global Industrial Conference.
The company reported roughly 4% organic growth in the third quarter and reached a 35% margin even after excluding tariff refunds, Nelson said. Its three core brands—DEWALT, STANLEY and CRAFTSMAN—each posted organic growth for two consecutive quarters, he added.
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Nelson said the company is not anticipating major changes in its markets next year. It also expects to return to a selling, general and administrative expense run rate of about 23%, after using tariff refunds to accelerate some spending on salespeople and brand advertising from 2027 into 2026.
Product Platforms Support Margin Plans
Stanley Black & Decker has reorganized around its brands rather than individual product lines, Nelson said. Under the earlier structure, separate teams developed products such as drills and saws before determining which brand to attach to them. The company now starts with a brand’s positioning and identifies the products and investments needed to serve its target customers, he said.
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The company has also sought to use common components across products, reducing supply-chain complexity and helping speed new releases. Nelson said development cycle times have fallen 30% over the past couple of years.
