Stanley Black & Decker forecasts 2026 profit below estimates on lower tools demand

Feb 4 (Reuters) - Stanley Black & Decker SWK.N 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.