Stanley Black & Decker Targets Margin Gains as DEWALT Takes Share

Stanley Black & Decker Targets Margin Gains as DEWALT Takes Share

DEWALT is gaining market share as Stanley Black & Decker expands the brand beyond residential trades into commercial, industrial and infrastructure-related applications, including data centers and energy construction.

The company is targeting a 35% gross margin, up from roughly 32% , through product platforming, lean manufacturing, automation and consolidation of its production footprint—without relying on a major recovery in demand.

Stanley Black & Decker has reduced tariff exposure by shifting more production to North America, while improving finances could make share repurchases the near-term capital-allocation priority ahead of targeted tools-related acquisitions.

Stanley Black & Decker NYSE: SWK CEO Chris Nelson said the company is progressing against three priorities: strengthening its core brands, improving operational execution and accelerating innovation.

Speaking at the Morgan Stanley 14th Annual Laguna Conference, Nelson said the company reported growth in its three core focus brands during the most recent quarter and remains on track toward its margin objectives despite what he described as a less-than-robust volume environment.

“Our say/do ratio has been high,” Nelson said, adding that the company remains aligned with the three-year plan outlined at its investor day.

While demand conditions have been relatively flat and geopolitical and trade-policy volatility have been greater than expected, he said the company has developed greater organizational flexibility and resilience.

Nelson said commercial and industrial professional markets have been strong for the company, while the housing market has not shown a meaningful inflection.

Consumer and do-it-yourself demand has remained resilient, he said, though it has not been a major source of growth.

DEWALT remains the company’s largest franchise, accounting for about half of company revenue, according to Nelson.

The brand has historically been strong in residential and carpentry trades, but Stanley Black & Decker has been expanding its offerings and market presence in commercial, industrial, mechanical, electrical, plumbing and concrete applications.

Nelson said DEWALT has been growing above the market and taking share, supported by product development and investments in customer service capabilities such as training, product availability and replacement support.

He said the company sees durable opportunities in areas including data centers and energy-related construction.

The company is also working to reposition and refresh its Stanley and Craftsman brands.

Nelson said Stanley, which generates more than 60% of its business in Europe, is being positioned around smaller residential contractors and certain DIY users, with an emphasis on layout, measurement, cutting and hand tools.

The company has been adding dedicated sales resources in Europe and is launching a product refresh this year and next year.

For Craftsman, Nelson said the company has refined the product line for DIY customers in areas including garage mechanics, lawn and garden, and home renovation.

He said Craftsman is expected to have its largest product launch cycle since Stanley Black & Decker acquired the brand in 2017, with launches continuing into next year.

Nelson said the company has adjusted its manufacturing and supply-chain footprint to reduce tariff exposure.