SWK · 10-Q · 2026Q4 · Full report

Tariff Refunds

STANLEY BLACK & DECKER, INC. · 2026-11-04 · Importance 25 · Surprise 42 · No source text

Stanley Black & Decker reported receiving refunds related to the U.S. International Emergency Economic Powers Act (IEEPA) during the third quarter of 2026. Management identified the refunds, alongside higher earnings and working-capital changes, as drivers of the year-over-year increase in operating cash flow for both the quarter and the first nine months of 2026. The filing does not quantify the refunds separately.

Key facts

• The Company recognized pretax gains related to IEEPA tariff refunds of approximately $181 million for the three months and $299 million for the nine months ended October 3, 2026. source
• Directly attributable variable incentive compensation and growth investment costs partially offset the tariff refund gains by approximately $48 million for the three months and $132 million for the nine months ended October 3, 2026. source
• The Company submitted claims through the CAPE system and separately through CBP seeking refunds of previously paid IEEPA tariffs. source
• The Company expected pretax gains recognized in the second and third quarters of 2026 to be further offset by additional growth investments in the fourth quarter of 2026. source
• The Company stated there was no guarantee it would receive additional refunds beyond amounts realized through the third quarter of 2026 or that ultimate refunds would equal all IEEPA tariffs paid. source
• Third-quarter gross margin improvement was driven by operational cost improvements, favorable product mix, and approximately 430 basis points from the net impact of tariff refunds. source
• Tools & Outdoor segment profit margin improvement reflected net productivity gains, favorable product mix, and a net benefit of approximately 430 basis points from tariff refunds and directly attributable offsetting costs. source

Impact estimates