Stanley Black & Decker, Inc. (NYSE: SWK) reported fourth-quarter adjusted earnings that exceeded analyst expectations, though revenue fell short of forecasts as softer North American retail demand pressured volumes. Shares declined more than 4% in premarket trading following the release.

The tools and outdoor products manufacturer posted adjusted earnings per share of $1.41, well above the consensus estimate of $1.28. Revenue totaled $3.7 billion, below expectations of $3.78 billion and down 1% from the prior year. Organic revenue declined 3% year over year.

The revenue shortfall was primarily driven by a 7% decline in volumes, reflecting retail softness in North America. This was partially offset by higher pricing, which contributed 4%, and favorable foreign exchange impacts of 2%.

Despite the revenue miss, profitability improved materially. Adjusted gross margin expanded 210 basis points year over year to 33.3%, supported by pricing actions, tariff mitigation efforts, and supply chain cost reductions.

For 2026, Stanley Black & Decker projected adjusted earnings per share of $4.90 to $5.70, implying 13% growth at the midpoint. The company also expects free cash flow between $700 million and $900 million.