Nantucket Recap: Organic Growth, Capacity Optimization, Lower Leverage Ahead

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Nantucket Recap: Organic Growth, Capacity Optimization, Lower Leverage Ahead

Stanley Black & Decker, Inc. (SWK)

Equity Research

June 17, 2026

Data Center Build-Outs Present A Growth Opportunity. Certain competitors have had a ‘running start’

given their backbone in the Electrical trade, but nevertheless, management sees opportunity for SWK.

To date, SWK has had wins on both the safety side and by leveraging its competitive strengths in the

concrete trade to roll out automated drilling tools. Field service investments will help here.

Field Service Investments Ahead. 600 field service professionals have been added over the past two

years, and management expects a healthy ongoing clip of investment over the medium-term for tool

education and relationship building. This is also supported by management view that growth with be

centered around Pro and Construction vs. DIY.

Greenworks Pro Not a Competitive Threat. Management does not view the Greenworks Pro launch

at Walmart as a concern, noting it largely replaces Hart at price points well below CRAFTSMAN.

Capacity Optimization Still on the Table. Management remarked that, without tariffs, they would have

been further along in this journey. We expect a handful of closures annually, in aggregate, across

geographies.

Capital Allocation Prioritizes Organic Growth and Finishing the Margin Journey. Management also

plans to preserve a growing dividend. It’s our view that the growth won’t be meaningful given the scale

of the business has changed vs. what was once a $20B business, and as such, we would expect

the yield to move down in the years ahead. Tuck-ins to expand product categories or geographies

have potential over a medium-term horizon, but not near-term. Management does not see massive