Feb 4 (Reuters) - Stanley Black & Decker on Wednesday forecast its 2026 profit below Wall Street estimates, as tariff-fueled price hikes hurt demand for its power tools.
Shares of the company were down about 2.4% in premarket trading.
U.S. President Donald Trump's tariffs and inflationary pressures added to woes for companies already navigating steep raw material costs.
The Connecticut-based power tools maker said tariff mitigation measures such as higher pricing resulted in weaker North American and developed markets sales in the tools and outdoor segment.
Stanley Black & Decker also implemented a series of cost-saving measures over the past year, including supply chain adjustments to offset the tariff hit.
Its cost reduction program helped it save roughly $120 million during the fourth quarter.
Net sales in its largest segment, tools and outdoor that makes power tools and lawn and garden equipment, fell 2% to about $3.16 billion.
The company now sees 2026 adjusted per share profit between $4.90 and $5.70, the midpoint of which is below analysts' estimates of $5.66 per share, according to data compiled by LSEG.
Stanley Black & Decker's adjusted profit fell to $1.41 per share in the fourth quarter from $1.49 per share a year ago.
The company's fourth-quarter net sales fell to $3.68 billion from $3.72 billion a year earlier.
(Reporting by Parth Chandna; Editing by Maju Samuel)
Stanley Black & Decker, Inc. specializes in the design, manufacturing and marketing of tools and engineering solutions for professional, industrial and construction and consumer use. Net sales break down by family of products as follows:
- electric tools and accessories (87%): tools and electric devices (drills wire, sanders, saws, grinders, batteries, etc.), garden tools (shears, cutting edge, trimmers, aerators , grinders, chainsaws, etc.), vacuum cleaners, lamps, lights, battery chargers, starter batteries, power converters, hand tools (measuring and leveling tools, planes, hammers, knives, blades, screwdrivers, saws, etc.), consumer mechanics tools (wrenches and sockets), plastic tool boxes, pneumatic tools and fasteners (nail guns, staplers, staples, etc.);
- industrial products (13%): professional and automotive mechanics tools (wrenches, sockets, electronic diagnostic tools, etc.), storage systems, plumbing, heating and air conditioning tools (pipe wrenches, pliers, tubing cutters, etc.), hydraulic tools, etc.
Net sales are distributed geographically as follows: the United States (61.6%), Canada (4.5%), the Americas (5.6%), Europe (20.3%) and Asia (8%).
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