SWK · CIK 93556
What Stanley Black & Decker, Inc. told the SEC could break it.
Stanley Black & Decker's risks run through its supply chain and cost base. It has broad, generally unhedged commodity exposure — brass, nickel, resin, aluminum, copper, zinc, steel and energy used to make its finished goods — managed mainly through pricing and procurement actions. Substantially all of its imports are subject to tariffs and trade restrictions, including U.S. Section 301 tariffs, and it is working (without guarantee) to qualify for USMCA exemptions, while supply-chain shifts to mitigate are slow and can raise manufacturing costs. Most pointedly, for certain products it and its suppliers rely on one or very few suppliers for components needing rare earth minerals sourced from China and cobalt, and China's April 2025 rare-earth export restrictions already caused component delays and shortages.
3 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Commodity & input dependence
- brass, nickel, resin, aluminum, copper, zinc, steel and energyhigh
Stanley Black & Decker has broad commodity-price exposure across its businesses — brass, nickel, resin, aluminum, copper, zinc, steel and energy used to produce finished goods — generally unhedged and instead managed through pricing actions and procurement cost-reduction.
“The Company has exposure to commodity prices in many businesses, particularly brass, nickel, resin, aluminum, copper, zinc, steel, and energy used in the production of finished goods.”
Regulatory & policy
- Section 301 tariffs, USMCA qualification, and global trade restrictionshigh
Substantially all of Stanley Black & Decker's imports are subject to customs/trade restrictions and tariffs — including US Section 301 tariffs — and it is working to qualify for USMCA exemptions to mitigate added tariff costs (no guarantee of success); supply-chain shifts to mitigate are time-consuming and may raise manufacturing costs.
“Substantially all of the Company's import operations are subject to customs requirements, trade restrictions and protection measures, and to tariffs, quotas and taxes on imports set by governments through mutual agreements, bilateral actions or, in some cases unilateral action, such as tariffs implemented by the U.S. government under Section 301 of the Trade Act of 1974.”
Sole-source dependency
- rare earth minerals (China) and cobalt — few/single suppliers; China export restrictionshigh
For certain products, Stanley Black & Decker and its suppliers rely on one or very few suppliers (or suppliers concentrated in one region) for components requiring rare earth minerals sourced from China and cobalt; China's April 2025 export restrictions on certain rare earths already caused component delays and shortages.
“Generally, raw materials and components are available from several different suppliers, however, for certain products, such as components requiring rare earth minerals sourced from China and components requiring cobalt, the Company and its suppliers may rely on one or very few suppliers or suppliers concentrated in certain regions.”
The hidden graph
Who it depends on, and who depends on it.
Relationships surfaced from filings, including ones disclosed by the other side, which is how the non-obvious ones come to light.
Its customers
Spectrum Brands Holdings, Inc.
“Subject to Black & Decker trademark license agreement 11.7 % 11.9 % 12.0 %”
Cited →
In the MyPRIA app, this is checked against the companies you actually own.
← World Watch