:max_bytes(150000):strip_icc()/GettyImages-2213091523-f237cc497dcb45a6a8146f6a2ed023ba.jpg "Why Stanley Black & Decker Stock is Surging Monday")
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Key Takeaways
- Stanley Black & Decker said it has reached a deal to sell its Consolidated Aerospace Manufacturing business to Howmet Aerospace for $1.8 billion in cash.
- The company best known for its tools said the move would help reduce debt and help it focus on its biggest brands and businesses.
Shares of Stanley Black & Decker (SWK) jumped Monday after the company announced an agreement to sell its Consolidated Aerospace Manufacturing business to aircraft metal components manufacturer Howmet Aerospace (HWM) for $1.8 billion in cash.
Stanley Black & Decker said it plans to use the net cash proceeds from the transaction, which is expected to close in the first half of next year, to reduce debt. Until the transaction closes, Stanley Black & Decker plans to have the unit continue operating.
CEO Chris Nelson said the sale of Consolidated Aerospace Manufacturing “reflects our ongoing dedication to enhancing shareholder value and focusing on growing our biggest brands and businesses.” The unit makes fasteners, fittings and engineered components for the aerospace and defense industries.
Howmet said it sees Consolidated Aerospace Manufacturing generating 2026 fiscal year revenue of about $485 million to $495 million, with adjusted EBITDA margin greater than 20% before synergies.
Stanley Black & Decker shares were up 3.5% in mid-afternoon trading, after rising as much as 7% this morning. Even with today’s gains, the stock has lost about 6% of its value since the start of the year.
Howmet shares were up 2% this afternoon and have risen more than 90% since the start of 2025.
