Snap-on Incorporated
News Release
Release: IMMEDIATE
Snap-on Announces Second Quarter 2025 Results
Sales of $1,179.4 million and diluted EPS of $4.72 for the second quarter of 2025; Gross margin of 50.5% and operating earnings before financial services margin of 22.0%; Tools Group segment sales up 1.9% versus last year.
KENOSHA, Wis. — July 17, 2025 — Snap-on Incorporated (NYSE: SNA), a leading global innovator, manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions for professional users performing critical tasks, today announced operating results for the second quarter of 2025.
- Net sales of $1,179.4 million in the second quarter of 2025 were unchanged from 2024 levels, reflecting an $8.6 million, or 0.7%, organic decline offset by $8.6 million of favorable foreign currency translation.
- Operating earnings before financial services for the quarter of $259.1 million, or 22.0% of net sales, compared to $280.3 million, or 23.8% of net sales, last year, which included a benefit of $11.2 million, or 100 basis points, for the final payments received associated with a legal matter.
- Financial services revenue in the quarter of $101.7 million compared to $100.5 million in 2024; financial services operating earnings of $68.2 million compared to $70.2 million last year.
- Consolidated operating earnings for the quarter of $327.3 million, or 25.5% of revenues, compared to $350.5 million, or 27.4% of revenues, in 2024, which included a benefit of $11.2 million, or 90 basis points, for the legal payments.
- The second quarter effective income tax rate was 22.5% in 2025 and 22.6% in 2024.
- Net earnings in the quarter of $250.3 million, or $4.72 per diluted share, compared to net earnings of $271.2 million, or $5.07 per diluted share, a year ago. In 2024, net earnings included an $8.7 million, or $0.16 per diluted share, after-tax benefit from the legal payments.
CEO Commentary
Nick Pinchuk, Snap-on chairman and chief executive officer, stated, "We're encouraged by our second quarter results, from the return of sales growth in the U.S. Tools Group to the resilient gross margins and solid operating earnings performance of the overall enterprise, all achieved against the persistent headwinds of general uncertainty and trade turbulence. During the period, we maintained our actions to overcome the continued variation in confidence among vehicle repair technicians, driving the product-development, manufacturing and marketing programs that enabled our pivot to quick payback items, gaining significant traction in matching current customer preferences and reestablishing positive momentum in the quarter. Beyond that, we advanced with OEM dealerships and independent shop owners and managers, particularly with our powerful diagnostics platforms, and secured gains in the critical precision-torque arena, where technological progress is increasing the need for sophisticated solutions across essential repair markets. Despite the volatile nature of the ongoing environment, we believe our deeply-rooted strategy to make in the markets where we sell, our structural strengths in broadly-established facilities, know-how and people, and our strong commitment to our Snap-on Value Creation processes, position us well in navigating the multi-varied challenges of today and tomorrow. As such, we proceed with confidence that our balanced approach of growth and improvement will prevail as we move forward and upward. Finally, I want to thank our franchisees and associates worldwide for their many contributions, for their unwavering dedication, and for their steadfast belief in our ability to take full advantage of the abundant opportunities ahead."
Segment Results
- Commercial & Industrial Group: Segment sales of $347.8 million compared to $372.0 million last year, reflecting a $28.7 million, or 7.6%, organic decline. Operating earnings were $46.9 million compared to $62.2 million in 2024, with an operating margin of 13.5% compared to 16.7% a year ago.
- Snap-on Tools Group: Segment sales of $491.0 million compared to $482.0 million last year, reflecting a $7.8 million, or 1.6%, organic sales gain. Operating earnings were $116.7 million compared to $114.8 million in 2024, with an operating margin of 23.8% unchanged from last year.
- Repair Systems & Information Group: Segment sales of $468.6 million compared to $454.8 million last year, reflecting a $10.7 million, or 2.3%, organic sales increase. Operating earnings were $119.8 million compared to $113.6 million in 2024, with an operating margin of 25.6% compared to 25.0% a year ago.
- Financial Services: Operating earnings were $68.2 million on revenue of $101.7 million in the quarter compared to operating earnings of $70.2 million on revenue of $100.5 million last year.
- Corporate: Corporate expenses in the second quarter were $24.3 million compared to $10.3 million last year.
Outlook
Snap-on expects to make ongoing progress along its decisive runways for coherent growth, leveraging capabilities proven in the automotive repair arena and expanding its professional customer base. Capital expenditures in 2025 are projected to approximate $100 million. The company anticipates its full-year 2025 effective income tax rate will be in the range of 22% to 23%.
Conference Call and Webcast
A discussion of this release will be webcast on Thursday, July 17, 2025, at 9:00 a.m. Central Time. To access the webcast, visit Snap-on Investor Events.
Non-GAAP Measures
References to "organic sales" refer to sales from continuing operations adjusted to exclude acquisition-related sales and the impact of foreign currency translation. Management believes this provides useful information to investors for identifying underlying growth trends.
About Snap-on
Snap-on Incorporated, founded in 1920, is a leading global innovator, manufacturer, and marketer of tools, equipment, diagnostics, repair information, and systems solutions for professional users in vehicle repair, aerospace, military, natural resources, and manufacturing. Products are sold through a network of franchisee vans, as well as direct and distributor channels. Snap-on is an S&P 500 company that generated sales of $4.7 billion in 2024 and is headquartered in Kenosha, Wisconsin.
Forward-looking Statements
Statements in this news release that are not historical facts are forward-looking statements. These are subject to risks and uncertainties that could cause actual results to differ materially. Factors are detailed in the company's SEC filings, including its Annual Report on Form 10-K.
Contact Information
Investors: Sara Verbsky, 262/656-4869
Media: Samuel Bottum, 262/656-5793
For additional information, please visit www.snapon.com.
Condensed Consolidated Statements of Earnings
| Three Months Ended | Six Months Ended | |||
|---|---|---|---|---|
| June 28, 2025 | June 29, 2024 | June 28, 2025 | June 29, 2024 | |
| Net sales | $ 1,179.4 | $ 1,179.4 | $ 2,320.5 | $ 2,361.7 |
| Cost of goods sold | (583.9) | (582.1) | (1,146.5) | (1,167.7) |
| Gross profit | 595.5 | 597.3 | 1,174.0 | 1,194.0 |
| Operating expenses | (336.4) | (317.0) | (671.8) | (642.8) |
| Operating earnings before financial services | 259.1 | 280.3 | 502.2 | 551.2 |
| Financial services revenue | 101.7 | 100.5 | 203.8 | 200.1 |
| Financial services expenses | (33.5) | (30.3) | (65.3) | (61.6) |
| Operating earnings from financial services | 68.2 | 70.2 | 138.5 | 138.5 |
| Operating earnings | 327.3 | 350.5 | 640.7 | 689.7 |
| Interest expense | (12.3) | (12.3) | (24.7) | (24.8) |
| Other income (expense) – net | 14.3 | 18.7 | 28.7 | 36.8 |
| Earnings before income taxes | 329.3 | 356.9 | 644.7 | 701.7 |
| Income tax expense | (72.5) | (79.3) | (141.2) | (154.5) |
| Net earnings | 256.8 | 277.6 | 503.5 | 547.2 |
| Net earnings attributable to noncontrolling interests | (6.5) | (6.4) | (12.7) | (12.5) |
| Net earnings attributable to Snap-on Incorporated | $ 250.3 | $ 271.2 | $ 490.8 | $ 534.7 |
Net earnings per share attributable to Snap-on Incorporated:
| Basic | Diluted | |
|---|---|---|
| Three Months Ended June 28, 2025 | $ 4.80 | 4.72 |
| Three Months Ended June 29, 2024 | $ 5.15 | 5.07 |
| Six Months Ended June 28, 2025 | $ 9.38 | 9.24 |
| Six Months Ended June 29, 2024 | $ 10.15 | 9.98 |
Supplemental Segment Information
| Three Months Ended | Six Months Ended | |||
|---|---|---|---|---|
| June 28, 2025 | June 29, 2024 | June 28, 2025 | June 29, 2024 | |
| Net sales: | ||||
| Commercial & Industrial Group | $ 347.8 | $ 372.0 | $ 691.7 | $ 731.9 |
| Snap-on Tools Group | 491.0 | 482.0 | 953.9 | 982.1 |
| Repair Systems & Information Group | 468.6 | 454.8 | 944.5 | 918.6 |
| Segment net sales | 1,307.4 | 1,308.8 | 2,590.1 | 2,632.6 |
| Intersegment eliminations | (128.0) | (129.4) | (269.6) | (270.9) |
| Total net sales | 1,179.4 | 1,179.4 | 2,320.5 | 2,361.7 |
| Financial Services revenue | 101.7 | 100.5 | 203.8 | 200.1 |
| Total revenues | $ 1,281.1 | $ 1,279.9 | $ 2,524.3 | $ 2,561.8 |
| Operating earnings: | ||||
| Commercial & Industrial Group | $ 46.9 | $ 62.2 | $ 100.1 | $ 117.6 |
| Snap-on Tools Group | 116.7 | 114.8 | 209.1 | 232.1 |
| Repair Systems & Information Group | 119.8 | 113.6 | 241.9 | 226.5 |
| Financial Services | 68.2 | 70.2 | 138.5 | 138.5 |
| Segment operating earnings | 351.6 | 360.8 | 689.6 | 714.7 |
| Corporate | (24.3) | (10.3) | (48.9) | (25.0) |
| Operating earnings | 327.3 | 350.5 | 640.7 | 689.7 |
| Interest expense | (12.3) | (12.3) | (24.7) | (24.8) |
| Other income (expense) – net | 14.3 | 18.7 | 28.7 | 36.8 |
| Earnings before income taxes | $ 329.3 | $ 356.9 | $ 644.7 | $ 701.7 |
Condensed Consolidated Balance Sheets
| June 28, 2025 | December 28, 2024 | |||
|---|---|---|---|---|
| Assets | ||||
| Cash and cash equivalents | $ 1,458.3 | $ 1,360.5 | ||
| Trade and other accounts receivable - net | 842.4 | 815.6 | ||
| Finance receivables - net | 629.2 | 610.3 | ||
| Contract receivables - net | 114.2 | 120.0 | ||
| Inventories - net | 997.7 | 943.4 | ||
| Prepaid expenses and other current assets | 177.8 | 139.6 | ||
| Total current assets | 4,219.6 | 3,989.4 | ||
| Property and equipment – net | 557.8 | 542.6 | ||
| Operating lease right-of-use assets | 90.1 | 89.4 | ||
| Deferred income tax assets | 78.5 | 78.0 | ||
| Long-term finance receivables – net | 1,305.3 | 1,312.0 | ||
| Long-term contract receivables – net | 424.3 | 418.3 | ||
| Goodwill | 1,102.6 | 1,056.8 | ||
| Other intangible assets - net | 275.1 | 267.6 | ||
| Pension assets | 130.5 | 125.4 | ||
| Other long-term assets | 18.0 | 17.3 | ||
| Total assets | $ 8,201.8 | $ 7,896.8 | ||
| Liabilities and Equity | ||||
| Notes payable | $ 17.7 | $ 13.7 | ||
| Accounts payable | 269.8 | 265.9 | ||
| Accrued benefits | 54.7 | 67.2 | ||
| Accrued compensation | 72.9 | 86.1 | ||
| Franchisee deposits | 72.1 | 70.9 | ||
| Other accrued liabilities | 454.3 | 457.7 | ||
| Total current liabilities | 941.5 | 961.5 | ||
| Long-term debt | 1,186.0 | 1,185.5 | ||
| Deferred income tax liabilities | 78.6 | 73.5 | ||
| Retiree health care benefits | 18.4 | 19.4 | ||
| Pension liabilities | 77.1 | 78.4 | ||
| Operating lease liabilities | 67.4 | 68.6 | ||
| Other long-term liabilities | 93.3 | 92.9 | ||
| Total liabilities | 2,462.3 | 2,479.8 | ||
| Equity | ||||
| Shareholders' equity attributable to Snap-on Incorporated | ||||
| Common stock | 67.5 | 67.5 | ||
| Additional paid-in capital | 563.3 | 557.7 | ||
| Retained earnings | 7,850.5 | 7,584.3 | ||
| Accumulated other comprehensive loss | (402.5) | (575.0) | ||
| Treasury stock at cost | (2,363.3) | (2,240.4) | ||
| Total shareholders' equity attributable to Snap-on Incorporated | 5,715.5 | 5,394.1 | ||
| Noncontrolling interests | 24.0 | 22.9 | ||
| Total equity | 5,739.5 | 5,417.0 | ||
| Total liabilities and equity | $ 8,201.8 | $ 7,896.8 | ||
Condensed Consolidated Statements of Cash Flows
| Three Months Ended | Six Months Ended | |||
|---|---|---|---|---|
| June 28, 2025 | June 29, 2024 | June 28, 2025 | June 29, 2024 | |
| Operating activities: | ||||
| Net earnings | $ 256.8 | $ 277.6 | $ 503.5 | $ 547.2 |
| Adjustments to reconcile net earnings to net cash provided (used) by operating activities: | ||||
| Depreciation | 18.5 | 18.2 | 36.8 | 36.4 |
| Amortization of other intangible assets | 5.9 | 6.4 | 11.6 | 12.7 |
| Provisions for losses on finance receivables | 18.3 | 17.2 | 36.5 | 35.4 |
| Provisions for losses on non-finance receivables | 3.9 | 6.9 | 9.7 | 11.8 |
| Stock-based compensation expense | 8.5 | 6.0 | 13.0 | 15.8 |
| Deferred income tax benefit | (3.6) | (6.0) | 0.1 | (4.4) |
| Gain on sales of assets | (0.1) | (0.3) | ||
| Changes in operating assets and liabilities: | ||||
| Trade and other accounts receivable | 21.3 | 27.1 | (12.1) | (20.8) |
| Contract receivables | 1.8 | 0.3 | 4.7 | (3.7) |
| Inventories | (15.4) | (0.2) | (18.4) | 21.9 |
| Prepaid expenses and other assets | 5.9 | (8.4) | (3.5) | (11.9) |
| Accounts payable | (15.9) | 14.8 | 2.6 | 38.1 |
| Accrued and other liabilities | (68.8) | (58.7) | (48.8) | (28.4) |
| Net cash provided by operating activities | 237.2 | 301.1 | 535.7 | 649.8 |
| Investing activities: | ||||
| Additions to finance receivables | (243.5) | (256.2) | (462.4) | (504.2) |
| Collections of finance receivables | 217.1 | 215.0 | 427.8 | 422.8 |
| Capital expenditures | (19.7) | (23.2) | (42.6) | (45.0) |
| Disposals of property and equipment | 0.5 | 0.5 | 0.6 | 1.6 |
| Other | (0.4) | 3.7 | (1.4) | 1.4 |
| Net cash used by investing activities | (46.0) | (60.2) | (78.0) | (123.4) |
| Financing activities: | ||||
| Net increase (decrease) in other short-term borrowings | (0.5) | 0.8 | 4.0 | 0.4 |
| Cash dividends paid | (111.8) | (98.0) | (224.0) | (196.2) |
| Purchases of treasury stock | (79.0) | (47.4) | (166.2) | (117.6) |
| Proceeds from stock purchase plans and stock option exercises | 26.9 | 23.4 | 45.2 | 51.7 |
| Other | (6.5) | (6.7) | (23.5) | (30.4) |
| Net cash used by financing activities | (170.9) | (127.9) | (364.5) | (292.1) |
| Effect of exchange rate changes on cash and cash equivalents | 3.1 | (1.3) | 4.6 | (3.1) |
| Increase in cash and cash equivalents | 23.4 | 111.7 | 97.8 | 231.2 |
| Cash and cash equivalents at beginning of period | 1,434.9 | 1,121.0 | 1,360.5 | 1,001.5 |
| Cash and cash equivalents at end of period | $ 1,458.3 | $ 1,232.7 | $ 1,458.3 | $ 1,232.7 |
| Supplemental cash flow disclosures: | ||||
| Cash paid for interest | $ (8.5) | $ (8.3) | $ (22.1) | $ (22.0) |
| Net cash paid for income taxes | (135.2) | (139.0) | (155.0) | (153.7) |
