SNA 10-K & 10-Q changes, risk factors and insider trading
Snap-on Inc · NYSE · Cutlery, Handtools & General Hardware · CIK 91440 · All filings on SEC.gov
At a glance
What changed in the latest 10-K
Risk Factors
Largest changes
Snap-on’s supply of raw materials and purchased components are generally available from numerous suppliers, and the company continuously works to expand its supplier base to ensure availability. The principal raw material used in the manufacture of our products is steel, which we purchase in competitive, price-sensitive markets. To meet Snap-on’s high quality standards, a portion of our steel needs include specialized alloys, which are available only from a limited group of approved suppliers. Additionally, certain electronic components are sourced from a finite set of suppliers. Some of these specialized materials and components have been, and in the future may be, in short supply, particularly in the event of mill shutdowns or production cut backs. In addition,see in full comparisonoutbreaks of infectious diseases, weather events, armed conflicts,government actions (including those affecting trade), armed conflicts, weather events, outbreaks of infectious diseases or other circumstances beyond our control could also impact the availability of raw materials and components.Physical risks of climate change may also impact the availability and cost of materials, sources and supply of energy and could also increase operating costs. Raw materials, components and certain purchased finished goods can exhibit price and demand cyclicality, including as a result of tariffs, other trade protection measures, inflationary factors, and supply chain inefficiencies. Associated unexpected variability has resulted, and in the future could result, in an increase in product costs and require Snap-on to increase prices or reduce costs to maintain margins.
In addition to the specific risks above, we, our franchisees and our customers, may be adversely affected by changing economic conditions, including conditions that may particularly impact specific regions. These conditions may result in reduced consumer and investor confidence, instability in the credit and financial markets, volatile corporate profits, and reduced business and consumer spending. We, our franchisees and our customers, and the economy as a whole, also may be affected by future world or local events outside our control, such assee in full comparisontariffstariffs, sanctions and other trade protection measures put in place by the United States or other countries, acts of terrorism, developments in the war on terrorism, armed conflicts (including the ongoing war in Ukraine, as well as conflicts inthe Middle East andother regions), civil unrest, conflicts in international situations, supply chain inefficiencies, labor interruptions, weather events and naturaldisasters,disasters (including physical impacts of climate change), outbreaks of infectious diseases, as well as government-related developments or issues, including changes in government appropriations, modifications to tax laws and regulations, new or enhanced regulations related to climate change and other sustainability matters, and changes in financial accounting standards. These factors may affect the results of operations by reducing our sales, margins and/or net earnings as a result of a slowdown in customer orders or order cancellations, impact the availability and/or pricing of raw materials and/or the supply chain, and could potentially lead to future impairment of goodwill or other intangible assets. In addition, political, social turmoil, international conflicts and terrorist acts may put pressure on global economic conditions. Unstable political, social and economic conditions may make it difficult for our franchisees, customers, suppliers and us to accurately forecast and plan future business activities. If such conditions persist, our business, financial condition, results of operations and cash flows could be negatively affected.
“Raw materials, components and certain purchased finished goods can exhibit price and demand cyclicality, including as a result of tariffs, other trade protection measures, inflationary factors and supply chain inefficiencies. Starting in the first quarter of 2025, the United States government announced additional tariffs on goods imported into the U.S. from numerous countries and multiple nations countered with reciprocal tariffs and other actions in response. …”see in full comparison
“Additionally, as a government contractor, purchasing regulations contain many operational requirements and a failure to comply with such requirements could result in civil and criminal penalties or other actions that could have a material adverse effect on the company’s reputation, business, financial condition and results of operations.”see in full comparison
“In recent years there has been increased public awareness, concern and focus on environmental and sustainability issues, including matters related to climate change, and we expect these trends to continue. The current focus on these matters is resulting in additional and/or more restrictive regulations, such as the Corporate Sustainability Reporting Directive (CSRD) in the European Union and the currently stayed SEC regulations relating to climate change disclosures. …”see in full comparison
see in full comparisonIncreasedRegulations, such as the Corporate Sustainability Reporting Directive (CSRD) in the European Union, as well as various industry and third-party requirements or standards have been developed that are intended to address environmental or sustainability risks. New or increased regulatory requirements or standards may result inincreasedhigher compliance or input costs, including those related to energy or raw materials, for us and our suppliers. If environmental laws or regulations or industry standards are either changed or adopted, and impose significant operational restrictions and compliance requirements upon the company, the company's business, reputation, results of operations, financial condition and competitive position could be negatively impacted.For example, if significant increases in fuel economy requirements or changes to vehicle emissions requirements for internal combustion engine vehicles were imposed, there could be a decrease in demand for such vehicles and a reduction in miles driven, which could adversely impact the demand for certain of our products and services. Furthermore, anAn inability to successfullymanage climate changeorsustainability matters, or toeffectively respond to new, or changes in, legal or regulatory requirements concerning sustainability matters, or increased operating or manufacturing costs due to changes in the regulatory environment, could adversely affect our business.
Full comparison: every changed paragraph (13)
Approximately 29% of our revenues in 20242025 were generated outside of the United States. Future growth rates and success of our business depends in large part on continued growth in our non-U.S. operations, including growth in emerging markets and critical industries. Numerous risks and uncertainties affect our non-U.S. operations. These include political, economic and social instability, such as acts of war, armed conflicts, civil disturbance or acts of terrorism, local labor conditions, and adverse changes in trade relations with China.China, Canada, the European Union and other nations. These also include changes in government policies and regulations, including those intended to address climate change and other sustainability-related factors, imposition of, or increases in withholding and other taxes on remittances and other payments by international subsidiaries, increases in trade sanctions, tariffs and other related measures, as well as exposure to liabilities under anti-bribery and anti-corruption laws in various countries, such as the U.S. Foreign Corrupt Practices Act. Risks related to our non-U.S. operations could further include currency volatility, supply chain inefficiencies, transportation delays or interruptions, sovereign debt uncertainties and difficulties in enforcement of contract and intellectual property rights, as well as reputational risks related to, among other factors, different standards and practices among countries. Should the economic environment in our non-U.S. markets deteriorate from current levels, our results of operations and financial position could be materially impacted, including as a result of the effects of potential impairment write-downs of goodwill and/or other intangible assets related to these businesses.
Snap-on’s supply of raw materials and purchased components are generally available from numerous suppliers, and the company continuously works to expand its supplier base to ensure availability. The principal raw material used in the manufacture of our products is steel, which we purchase in competitive, price-sensitive markets. To meet Snap-on’s high quality standards, a portion of our steel needs include specialized alloys, which are available only from a limited group of approved suppliers. Additionally, certain electronic components are sourced from a finite set of suppliers. Some of these specialized materials and components have been, and in the future may be, in short supply, particularly in the event of mill shutdowns or production cut backs. In addition, outbreaks of infectious diseases, weather events, armed conflicts, government actions (including those affecting trade), armed conflicts, weather events, outbreaks of infectious diseases or other circumstances beyond our control could also impact the availability of raw materials and components. Physical risks of climate change may also impact the availability and cost of materials, sources and supply of energy and could also increase operating costs. Raw materials, components and certain purchased finished goods can exhibit price and demand cyclicality, including as a result of tariffs, other trade protection measures, inflationary factors, and supply chain inefficiencies. Associated unexpected variability has resulted, and in the future could result, in an increase in product costs and require Snap-on to increase prices or reduce costs to maintain margins.
Raw materials, components and certain purchased finished goods can exhibit price and demand cyclicality, including as a result of tariffs, other trade protection measures, inflationary factors and supply chain inefficiencies. Starting in the first quarter of 2025, the United States government announced additional tariffs on goods imported into the U.S. from numerous countries and multiple nations countered with reciprocal tariffs and other actions in response. While Snap-on is relatively advantaged in the tariff environment, generally manufacturing products in the markets where they are sold, the company’s costs can be affected by trade policies. Unexpected variability associated with these and other factors has resulted, and in the future could result, in an increase in product costs and require Snap-on to increase prices or reduce costs to maintain margins.
We use various energy sources to transport, produce and distribute products, and some of our products have components that are petroleum based. Petroleum and energy prices have periodically increased significantly over short periods of time; future volatility and changes may be caused by market fluctuations, supply and demand,demand imbalances (including due to the proliferation of AI data centers), currency fluctuations,variabilities, production and transportation disruptions, climate change regulations, world events, including armed conflicts, and governmental actions. Energy price increases raise both our operating costs and the costs of our materials, and we may not be able to increase our prices enough to offset these costs. Higher prices also may reduce the level of future customer orders and our profitability.
In response to the evolving cyber threat environment, we continue to invest in data security and address these risks and uncertainties by implementing security technologies, internal controls, network and data center resiliency, and redundancy and recovery processes, as well as by securing insurance. Our efforts are intended to reduce the risk of, or moderate the consequences of, potential cyber threats and incidents. Future problemsProblems that impair or compromise the company’s information technology infrastructure, or that of our third party service providers, including those due to natural disasters, power outages, major network failures, security breaches or malicious attacks, or those occurring during system upgrades and/or new system implementations could impede our operations. Such impacts could interfere with our ability to record or process orders, manufacture and ship in a timely manner, manage our financial services operations including originating, processing, accounting for and collecting receivables, protect sensitive data of the company, our customers, our suppliers and business partners, or otherwise carry on business in the normal course.
As previously disclosed, in 2022, theThe company has experienced and responded to a cyber incidentincidents. thatNo didevent nothas havehad a significant impact on the results of our operations. Future cyberCyber events, however, could cause us to lose customers and/or revenue and could require us to incur significant expense to remediate, including as a result of legal or regulatory claims, proceedings, fines or penalties, and could also damage our reputation.
A decline in industry and/or economic conditions has the potential to weaken the financial position of some of our customers, including financial services customers. If circumstances surrounding our customers’ ability to repay their credit obligations were to deteriorate and result in the write-down or write-off of such receivables, it would negatively affect our operating results for the relevant period and, if large, could have a material adverse effect on our business, financial condition, results of operations and cash flows.
A decline in industry and/or economic conditions has the potential to weaken the financial position of some of our customers, including financial services customers. If circumstances surrounding our customers’ ability to repay their credit obligations were to deteriorate and result in the write-down or write-off of such receivables, it would negatively affect our operating results for the relevant period and, if large, could have a material adverse effect on our business, financial condition, results of operations and cash flows. The company maintains allowances for credit losses for receivables to provide for defaults and nonperformance. These allowances represent an estimate of expected credit losses over the remaining contractual life of the receivables, using historical loss experience, asset specific risk characteristics, current conditions, reasonable and supportable forecasts, and an appropriate reversion period, when applicable. The determination of the appropriate levels of the allowances for credit losses involves a high degree of subjectivity and judgement,judgment, and requires the company to make estimates of credit risks, which may undergo material changes as a result of economic conditions and other factors. The company’s allowances may not be adequate to cover actual losses, and future provisions for credit losses could materially and adversely affect our financial condition, results of operations and cash flows.
In recent years there has been increased public awareness, concern and focus on environmental and sustainability issues, including matters related to climate change, and we expect these trends to continue. The current focus on these matters is resulting in additional and/or more restrictive regulations, such as the Corporate Sustainability Reporting Directive (CSRD) in the European Union and the currently stayed SEC regulations relating to climate change disclosures. In addition, various industry and third-party requirements or standards have been developed that are intended to reduce or mitigate climate change as well as other environmental or sustainability risks.
IncreasedRegulations, such as the Corporate Sustainability Reporting Directive (CSRD) in the European Union, as well as various industry and third-party requirements or standards have been developed that are intended to address environmental or sustainability risks. New or increased regulatory requirements or standards may result in increasedhigher compliance or input costs, including those related to energy or raw materials, for us and our suppliers. If environmental laws or regulations or industry standards are either changed or adopted, and impose significant operational restrictions and compliance requirements upon the company, the company's business, reputation, results of operations, financial condition and competitive position could be negatively impacted. For example, if significant increases in fuel economy requirements or changes to vehicle emissions requirements for internal combustion engine vehicles were imposed, there could be a decrease in demand for such vehicles and a reduction in miles driven, which could adversely impact the demand for certain of our products and services. Furthermore, anAn inability to successfully manage climate change or sustainability matters, or to effectively respond to new, or changes in, legal or regulatory requirements concerning sustainability matters, or increased operating or manufacturing costs due to changes in the regulatory environment, could adversely affect our business.
These developments, and otherOther potential future legislation and regulations, including the increasing global regulation of privacy rights and use of AI, may also adversely affect the customers to which, and the markets into which, we sell our products, and increase our costs and otherwise negatively affect our business, reputation, results of operations and financial condition, including in ways that cannot yet be foreseen.
Additionally, as a government contractor, purchasing regulations contain many operational requirements and a failure to comply with such requirements could result in civil and criminal penalties or other actions that could have a material adverse effect on the company’s reputation, business, financial condition and results of operations.
In addition to the specific risks above, we, our franchisees and our customers, may be adversely affected by changing economic conditions, including conditions that may particularly impact specific regions. These conditions may result in reduced consumer and investor confidence, instability in the credit and financial markets, volatile corporate profits, and reduced business and consumer spending. We, our franchisees and our customers, and the economy as a whole, also may be affected by future world or local events outside our control, such as tariffstariffs, sanctions and other trade protection measures put in place by the United States or other countries, acts of terrorism, developments in the war on terrorism, armed conflicts (including the ongoing war in Ukraine, as well as conflicts in the Middle East and other regions), civil unrest, conflicts in international situations, supply chain inefficiencies, labor interruptions, weather events and natural disasters,disasters (including physical impacts of climate change), outbreaks of infectious diseases, as well as government-related developments or issues, including changes in government appropriations, modifications to tax laws and regulations, new or enhanced regulations related to climate change and other sustainability matters, and changes in financial accounting standards. These factors may affect the results of operations by reducing our sales, margins and/or net earnings as a result of a slowdown in customer orders or order cancellations, impact the availability and/or pricing of raw materials and/or the supply chain, and could potentially lead to future impairment of goodwill or other intangible assets. In addition, political, social turmoil, international conflicts and terrorist acts may put pressure on global economic conditions. Unstable political, social and economic conditions may make it difficult for our franchisees, customers, suppliers and us to accurately forecast and plan future business activities. If such conditions persist, our business, financial condition, results of operations and cash flows could be negatively affected.
Management's Discussion & Analysis (MD&A)
New heading “Current Trade Environment”
Removed heading “Recent Acquisitions”
Largest changes
“During the fourth quarter of 2025, Snap-on refined its footprint and aspects of its go-to-market strategy within the Commercial & Industrial Group. These activities included the sale of a building for a net gain of $15.9 million, the retirement of certain trademarks at a cost of $8.9 million, and restructuring charges of $2.5 million (collectively, the “2025 footprint actions”). The 2025 footprint actions resulted in a net benefit to operating expenses of $4.5 million.”see in full comparison
“As disclosed in Part I, Item 1A: Risk Factors, the company’s business is subject to risks related to, among other factors, tariffs and additional trade protection measures put in place by the United States or other countries, as well as U.S. international trade relations, including those with China, Canada, the European Union and other nations. Starting in the first quarter of 2025, the United States government announced additional tariffs on goods imported into the U.S. from numerous countries and multiple nations countered with reciprocal tariffs and other actions in response. …”see in full comparison
Based on forward-looking capital market expectations, Snap-on selected an expected return on plan assets assumption for its U.S. pension plans of 7.5%, the same rate used insee in full comparison2024,2025, to be used in determining pension expense for2025.2026.InTheestimatingprocess for determining thedomesticoverall expected long-term return on planassets,assetsSnap-onbeginsutilizesby establishing long-term assumptions for core economic variables such as U.S. Gross Domestic Product (GDP) growth and inflation, and long-term assumptions for market variables such as interest rates, credit spreads, earnings growth, and equity valuations. When developing these variables, economic relationships and market histories are applied to anominalforecastreturnsofforecastingfuturemethod.conditions.ForIn addition to this valuation component, the total return calculation also factors in fundamentals such as coupons, dividend yields and earnings growth, among others by eachasset class, future returns are estimated by identifying the premium of riskier asset classes over lower risk alternatives. The methodology constructs expected returns using a “building block” approach to the individual components of total return. These forecasts are stated in both nominal and real (after inflation) terms. This process first considers the long-term historical return premium based on the longest set of data available for eachrespective asset class.These premiums, calculated using the geometric mean, are then adjusted based on current relative valuation levels, macro-economic conditions, and the expected alpha related to active investment management.The asset return assumption is also adjusted by any expected outperformance related to active investment management and an implicit expense load for estimated administrative andinvestment-relatedinvestment related expenses. Risk and correlation assumptions are developed based on historical analysis as well as an assessment of future conditions. Since asset allocation is a key determinant of expected investment returns, the current and expected mix of plan assets are also considered when setting the assumption.
Gross profit ofsee in full comparison$2,377.9$2,385.4 million in20242025 compared to$2,349.1$2,377.9 million lastyear, an increase of $28.8 million or 1.2%.year. Gross margin (gross profit as a percentage of net sales)improveddecreased8020 basis points (100 basis points (“bps”) equals 1.0 percent) from20232024primarilyreflectingdue20tobps of unfavorable foreign currency effects. The impact of tariffs in 2025 was largely offset by benefits from the company’s RCIinitiatives, increased sales in higher-gross-margin businesses, and lower material and other costs.initiatives.
Full comparison: every changed paragraph (103)
We believe our 20242025 operating performance demonstrates the possibilitiesadvantages forinherent growth acrossin our businesses,strategy, confirmsgenerally making in the markets where we sell, and in our structure, our ability to produce many of our solutions in most geographies by leveraging our 36 manufacturing facilities worldwide, including our 15 plants in the United States. Despite the complexities of the current macroeconomic and trade environments, we believe the special resilience of our markets, and reflects the considerable capability of our combined operationsoperations, and our experienced team enable us to prevail in the difficulties of the current macroeconomic environment.today. Throughout the recent uncertainty, we maintained and further extended our ongoing advantages in our products, in our brands and in our people. At the same time, we leveragedremained existing proficienciescommitted to focus on expanding our professional customer base, not only in automotive repair, but in adjacent markets, additional geographies and other areas, including critical industries, where the cost and penalties for failure can beare high. Snap‑on’s value proposition of making work easier for serious professionals is an ongoing strength as we proceed along our strategic runways for coherent growth:
•Enhancing the franchise network, where we continued to focus on helpingraising ourfranchisee franchiseesproductivity increaseand theirimproving reachcoverage, throughincreasing innovativenew product introductions, and refining the selling processesprocess andwith productivityprograms initiativesto that breakamplify the traditionalpower timeof and space barriers inherent in aour mobile van channel;
•Further extending to critical industries, where we continued targeting places where tasks require repeatability and reliability, building a deep understanding of the work, and providing specialized productivity solutions for critical activities; and
•Further extending to critical industries, where we continued to grow our lines of products customized for specific industries, including through further integration of acquisitions; and
•Building in emerging markets, where we continued tooptimizing maintainproduct lines, manufacturing capacity, as well as refine product linescapability, and distribution capabilities.for local markets.
Our strategic priorities and plans for 20252026 also involve continuing to build on our Snap-on Value Creation Processes – our suite of strategic principles and processes we employ every day designed to create value, and employed in the areas of safety, quality, customer connection, innovation and Rapid Continuous Improvement (“RCI”). We expect to continue to deploy these processes in our existing operations as well as into our more recently acquired businesses.
Recent Acquisitions
On November 20, 2023, Snap-on acquired certain assets of SAVTEQ, Inc. (“SAVTEQ”) for a cash purchase price of $3.0 million. SAVTEQ, based in Lexington, Kentucky, provides precise non-contact measuring capabilities that Snap-on is leveraging in its product offerings.
On November 1, 2023, Snap-on acquired Mountz, Inc. (“Mountz”) for a cash purchase price of $39.6 million. Mountz, based in San Jose, California, is a leading developer, manufacturer and marketer of high-precision torque tools, including measurement, calibration and documentation products. The acquisition of Mountz has complemented and expanded Snap-on’s torque offerings to customers in a variety of critical industries including aerospace, transportation and advanced manufacturing.
For segment reporting purposes, the results of operations and assets of SAVTEQ have been included in the Repair Systems & Information Group and those of Mountz have been included in the Commercial & Industrial Group since the respective acquisition dates.
Pro forma financial information has not been presented for these acquisitions as the net effects, individually and collectively, were neither significant nor material to Snap-on’s results of operations or financial position.
Snap-on’s fiscal year ends on the Saturday that is on or nearest to December 31. Unless otherwise indicated, references in this document to “fiscal 2025” or “2025” refer to the fiscal year ended January 3, 2026; references to “fiscal 2024” or “2024” refer to the fiscal year ended December 28, 2024; and references to “fiscal 2023” or “2023” refer to the fiscal year ended December 30, 2023; and references to “fiscal 2022” or “2022” refer to the fiscal year ended December 31, 2022.2023. References in this document to 2024,2025, 20232024 and 20222023 year end refer to January 3, 2026, December 28, 2024, and December 30, 2023, and December 31, 2022, respectively. Snap-on’s 2024, 2023 and 2022 fiscal years each contained 52 weeks of operating results.
Snap-on’s 2025 fiscal year contained 53 weeks of operating results with the extra week occurring in the fourth quarter. Snap-on’s 2024 and 2023 fiscal years each contained 52 weeks of operating results. The impact of the additional week of operations in fiscal 2025 was not material to Snap-on’s full year or fourth quarter total revenues or net earnings.
Current Trade Environment
As disclosed in Part I, Item 1A: Risk Factors, the company’s business is subject to risks related to, among other factors, tariffs and additional trade protection measures put in place by the United States or other countries, as well as U.S. international trade relations, including those with China, Canada, the European Union and other nations. Starting in the first quarter of 2025, the United States government announced additional tariffs on goods imported into the U.S. from numerous countries and multiple nations countered with reciprocal tariffs and other actions in response. While the company is relatively advantaged in the tariff environment, generally manufacturing products in the markets where they are sold, its costs can be affected by trade policies. In that regard, in the fourth quarter and for the year ended January 3, 2026, Snap-on mitigated the effects of incremental tariffs.
Consolidated net sales of $4,707.4$4,743.2 million in 20242025 represented aan decreaseincrease of $22.8$35.8 million, or 0.5%,0.8%, from 20232024 levels, reflecting a $40.6$16.5 million, or 0.9%,0.3%, organic declinesales gain and $5.5$19.3 million of unfavorablefavorable foreign currency translation, partially offset by $23.3 million of acquisition-related sales.translation.
Operating earnings before financial services of $1,045.9 million in 2025, including a $22.0 million benefit from the settlement of a legal matter (the “2025 legal settlement”), compared to $1,068.8 million in 2024, includingwhich included a $22.5 million benefit for the final payments received associated with a separate legal matter, which were received in the first six months of 2024matter (the “2024 legal payments”), compared to $1,039.9 million in 2023.. As a percentage of net sales, operating earnings before financial services were 22.7%22.1% compared to 22.0%22.7% last year.
The effects of the benefits from the 2025 legal settlement and the 2024 legal payments (collectively, the “legal items”) were included in operating expenses, operating earnings before financial services, and operating earnings in 2025 and 2024, respectively.
Operating earnings of $1,327.7 million in 2025 compared to $1,345.7 million in 2024, including a $22.5 million benefit from the legal payments, compared to $1,310.4 million in 2023.2024. As a percentage of revenues (net sales plus financial services revenue), operating earnings were 26.3%25.8% compared to 25.7%26.3% last year.
Net earnings attributable to Snap-on of $1,016.9 million, or $19.19 per diluted share, in 2025, included a $16.2 million, or $0.31 per diluted share, after-tax benefit from the 2025 legal settlement and an $18.5 million, or $0.35 per diluted share, after-tax year-over-year increase in non-service net periodic benefit costs. Net earnings attributable to Snap-on of $1,043.9 million, or $19.51 per diluted share, in 2024, included a $17.5 million, or $0.32 per diluted share, after-tax benefit from the 2024 legal payments.
Net earnings attributable to Snap-on of $1,043.9 million, or $19.51 per diluted share, in 2024, including a $17.5 million, or $0.32 per diluted share, after-tax benefit from the legal payments, compared to $1,011.1 million, or $18.76 per diluted share, in 2023, an increase of $32.8 million or $0.75 per diluted share.
The Commercial & Industrial Group consists of business operations serving a broad range of industrial and commercial customers worldwide, including customers in the aerospace, natural resources, government and military, power generation, transportation, and technical education market segments (collectively, “critical industries”), primarily through direct and distributor channels. Segment net sales of $1,476.8$1,457.5 million in 20242025 represented ana increasedecrease of $18.5$19.3 million, or 1.3%, from 20232024 levels, reflecting a $1.5$30.9 million, or 0.1%,2.1%, organic gainsales and $23.3 million of acquisition-related sales,decline, partially offset by $6.3$11.6 million of unfavorablefavorable foreign currency translation. The organic increasedecrease is primarily reflectsdue to a mid single-digit gain in sales to customers in critical industries, partially offset by a double-digit reduction in the powersegment’s toolsAsia operationPacific operations and a low single-digit decline in the European-based hand tools business.business, partially offset by a mid single-digit increase in specialty torque. Segment operating earnings of $218.2 million in 2025 compared to $242.1 million in 2024 compared to $226.1 million in 2023, an increase of $16.0 million or 7.1%.2024.
The Snap-on Tools Group consists of business operations primarily serving vehicle service and repair technicians through the company’s multinational mobile tool distribution channel. Segment net sales of $1,989.2$1,964.9 million in 20242025 represented a decrease of $99.6$24.3 million, or 4.8%,1.2%, from 20232024 levels, reflecting a $100.9 million, or 4.8%, organic sales decline, partially offset by $1.3 million of favorable foreign currency translation.levels. The organic decreasedecline is due to a midlow single-digit declinedecrease in the U.S., partially offset by a low single-digit gain in the segment’s international operations. Segment operating earnings of $426.3 million in 2025 compared to $447.3 million in 2024 compared to $493.8 million in 2023, a decrease of $46.5 million or 9.4%.2024.
The Repair Systems & Information Group consists of business operations serving other professional vehicle repair customers worldwide, primarily owners and managers of independent repair shops and original equipment manufacturer (“OEM”) dealership service and repair shops (“OEM dealerships”) through direct and distributor channels. Segment net sales of $1,797.9$1,877.1 million in 20242025 represented an increase of $16.7$79.2 million, or 0.9%,4.4%, from 20232024 levels, reflecting ana $18.1$70.6 million, or 1.0%,3.9%, organic sales gain,gain partiallyand offset by $1.4$8.6 million of unfavorablefavorable foreign currency translation. The organic improvement primarily reflects a mid single-digitdouble-digit increase in activity with OEM dealerships,dealerships and a mid single-digit rise in sales of diagnostic and repair information products to independent repair shop owners and managers, partially offset by a low single-digit decline in sales of undercar equipment. Segment operating earnings of $500.8 million in 2025, including a $22.0 million benefit from the 2025 legal settlement, compared to $455.2 million in 2024 compared to $433.2 million in 2023, an increase of $22.0 million or 5.1%.2024.
•ExpandingExtending the product offering with new products and services, thereby providing more to sell to repair shop owners and managers;
•Further building our proprietary databases to enhance software solutionssolutions, including using artificial intelligence (“AI”) to accelerate expansion in that arena;
Net cash provided by operating activities of $1,081.7 million in 2025 compared to $1,217.5 million in 20242024. comparedThe to $1,154.2$135.8 million in 2023. The $63.3 million increasedecrease is primarily due to a $34.3$26.6 million increasedecline in net earnings and a $18.0$105.6 million change in net operating assets and liabilities.
Net cash used by investing activities of $73.1 million in 2025 included additions to finance receivables of $913.6 million, which were partially offset by collections of $888.9 million. Net cash used by investing activities of $204.1 million in 2024 included additions to finance receivables of $966.0 million, which were partially offset by collections of $837.8 million. Net cash used by investing activities of $331.8 million in 2023 included additions to finance receivables of $1,029.0 million, partially offset by collections of $833.5 million, as well as $42.6 million of cash used for acquisitions. Capital expenditures in 20242025 and 20232024 totaled $83.5$76.0 million and $95.0$83.5 million, respectively. Capital expenditures in both years included continued investments related to the company’s execution of its strategic growth initiatives and Value Creation Processes around safety, quality, customer connection, innovation and RCI.
Net cash used by financing activities of $749.9 million in 2025 included $462.2 million for dividend payments to shareholders and $328.6 million for the repurchase of 987,000 shares of Snap-on’s common stock. These amounts were partially offset by $73.9 million of proceeds from stock purchase plans and stock option exercises, and net proceeds from other short-term borrowings of $3.3 million. Net cash used by financing activities of $649.8 million in 2024 included $406.4 million for dividend payments to shareholders, $290.0 million for the repurchase of 952,000 shares of Snap-on’s common stock, and net repayments of other short-term borrowings of $1.3 million. These amounts were partially offset by $92.3 million of proceeds from stock purchase plans and stock option exercises.
Net cash used by financing activities of $649.8 million in 2024 included $406.4 million for dividend payments to shareholders, $290.0 million for the repurchase of 952,000 shares of Snap-on’s common stock, and net repayments of other short-term borrowings of $1.3 million. These amounts were partially offset by $92.3 million of proceeds from stock purchase plans and stock option exercises. Net cash used by financing activities of $572.9 million in 2023 included $355.6 million for dividend payments to shareholders, $294.7 million for the repurchase of 1,126,000 shares of Snap-on’s common stock, and net repayments of other short-term borrowings of $1.7 million. These amounts were partially offset by $113.6 million of proceeds from stock purchase plans and stock option exercises.
Net sales of $4,707.4$4,743.2 million in 20242025 represented aan decreaseincrease of $22.8$35.8 million, or 0.5%,0.8%, from 20232024 levels, reflecting a $40.6$16.5 million, or 0.9%,0.3%, organic declinesales gain and $5.5$19.3 million of unfavorablefavorable foreign currency translation, partially offset by $23.3 million of acquisition-related sales.translation.
Gross profit of $2,377.9$2,385.4 million in 20242025 compared to $2,349.1$2,377.9 million last year, an increase of $28.8 million or 1.2%.year. Gross margin (gross profit as a percentage of net sales) improveddecreased 8020 basis points (100 basis points (“bps”) equals 1.0 percent) from 20232024 primarilyreflecting due20 tobps of unfavorable foreign currency effects. The impact of tariffs in 2025 was largely offset by benefits from the company’s RCI initiatives, increased sales in higher-gross-margin businesses, and lower material and other costs.initiatives.
Operating expenses of $1,309.1$1,339.5 million in 2024,2025, including a $22.0 million benefit from the 2025 legal settlement, compared to $1,309.1 million last year, which included a $22.5 million benefit from the 2024 legal payments, compared to $1,309.2 million last year.payments. Operating expenses as a percentage of net sales rose 1040 bps from last year primarily reflectingdue theto effectsincreased ofbrand-building, lowerpersonnel salesand volumes,other partially offset by benefits from the legal payments.costs.
The effects of the legal items were included in operating expenses, operating earnings before financial services, and operating earnings in 2025 and 2024, respectively. As a percentage of net sales, the legal items contributed a 50 bps benefit to operating expenses and operating earnings before financial services in their respective periods. As a percentage of revenues, operating earnings also included a 40 bps benefit from the legal items in both 2025 and 2024. Therefore, the legal items had no net effect on these year-over-year comparisons.
Operating earnings before financial services of $1,045.9 million in 2025 compared to $1,068.8 million in 2024, including a $22.5 million benefit from the legal payments, compared to $1,039.9 million in 2023.2024. As a percentage of net sales, operating earnings before financial services were 22.7%22.1% compared to 22.0%22.7% last year.
Operating earnings of $1,327.7 million in 2025 compared to $1,345.7 million in 2024, including a $22.5 million benefit from the legal payments, compared to $1,310.4 million in 2023.2024. As a percentage of revenues, operating earnings were 26.3%25.8% compared to 25.7%26.3% last year.
Interest expense in 20242025 decreasedincreased $0.3$0.9 million compared tofrom last year. See Note 9 to the Consolidated Financial Statements for additional information on debt and credit facilities.
Other income (expense) – net primarily includes interest income, non-service components of net periodic benefit costs, and net gains and losses associated with hedging and currency exchange rate transactions. In 2025, other income (expense) - net included $23.9 million of increased year-over-year non-service net periodic benefit costs, primarily reflecting higher amortization of actuarial losses. See Note 17 to the Consolidated Financial Statements for additional information on Other income (expense) – net.
Net earnings attributable to Snap-on in 2025 of $1,016.9 million, or $19.19 per diluted share, included a $16.2 million, or $0.31 per diluted share, after-tax benefit from the 2025 legal settlement and an $18.5 million, or $0.35 per diluted share, after-tax, year-over-year increase in non-service net periodic benefit costs. Net earnings attributable to Snap-on in 2024 of $1,043.9 million, or $19.51 per diluted share, included a $17.5 million, or $0.32 per diluted share, after-tax benefit from the 2024 legal payments.
Net earnings attributable to Snap-on of $1,043.9 million, or $19.51 per diluted share, in 2024, including a $17.5 million, or $0.32 per diluted share, after-tax benefit from the legal payments, compared to $1,011.1 million, or $18.76 per diluted share, in 2023, an increase of $32.8 million or $0.75 per diluted share.
Snap-on’s operating segmentssegments, which represent Snap-on’s reportable segments, are based on the organizationorganizational structure used by managementthe forChief makingExecutive Office, its CODM, to make operating and investment decisionsdeterminations and forto assessingassess performance. Snap-on’s reportable operating segments are: (i) the Commercial & Industrial Group; (ii) the Snap-on Tools Group; (iii) the Repair Systems & Information Group; and (iv) Financial Services. The Commercial & Industrial Group consists of business operations serving a broad range of industrial and commercial customers worldwide, including customers in the aerospace, natural resources, government and military, power generation, transportation and technical education market segments, primarily through direct and distributor channels. The Snap-on Tools Group consists of business operations primarily serving vehicle service and repair technicians through the company’s multinational mobile tool distribution channel. The Repair Systems & Information Group consists of business operations serving other professional vehicle repair customers worldwide, primarily owners and managers of independent repair shops and OEM dealerships, through direct and distributor channels. Financial Services consists of the business operations of Snap-on’s finance subsidiaries.
Snap-onThe CODM evaluates the performance of the Commercial & Industrial Group, the Snap-on Tools Group and the Repair Systems & Information Group operating segments based on segment net sales and segment operating earnings. The segment net sales of the Snap-on Tools Group segment net sales reflect external net sales, while the segment net sales of the Commercial & Industrial Group and the Repair Systems & Information Group segment net sales include both external and intersegment net sales. Snap-on accounts for intersegment net sales and transfers based primarily on standard costs with reasonable mark-ups established between the segments. The Financial Services operating segment is evaluated based on financial services revenue and segment operating earnings. Corporate expenses primarily reflect stock-based compensation and other costs not attributable to an operating segment. Intersegment amounts are eliminated to arrive at Snap-on’s consolidated financial results.
Segment net sales of $1,476.8$1,457.5 million in 20242025 represented ana increasedecrease of $18.5$19.3 million, or 1.3%, from 20232024 levels, reflecting a $1.5$30.9 million, or 0.1%,2.1%, organic gainsales and $23.3 million of acquisition-related sales,decline, partially offset by $6.3$11.6 million of unfavorablefavorable foreign currency translation. The organic increasedecrease is primarily due to a mid single-digit gain in sales to customers in critical industries, partially offset by a double-digit reduction in the powersegment’s toolsAsia operationPacific operations and a low single-digit decline in the European-based hand tools business.business, partially offset by a mid single-digit increase in specialty torque.
Segment gross margin in 20242025 improveddecreased 21070 bps from last year,year primarily reflecting increasedthe reduced sales volumesvolumes, inhigher higher-gross-marginmaterial criticaland industryother sectors,costs, and 30 bps of unfavorable currency effects, partially offset by savings from the segment’s RCI initiatives, lower material and other costs, and 40 bps of benefits from acquisitions.initiatives.
During the fourth quarter of 2025, Snap-on refined its footprint and aspects of its go-to-market strategy within the Commercial & Industrial Group. These activities included the sale of a building for a net gain of $15.9 million, the retirement of certain trademarks at a cost of $8.9 million, and restructuring charges of $2.5 million (collectively, the “2025 footprint actions”). The 2025 footprint actions resulted in a net benefit to operating expenses of $4.5 million.
Segment operating expenses as a percentage of net sales in 20242025 rose 12070 bps as compared to 20232024 primarily due to the impact of lower sales volumes, and increased personnel and other costs, andpartially aoffset 50by bpsthe impactnet benefit from acquisitions.the 2025 footprint actions.
As a result of these factors, segment operating earnings of $218.2 million in 2025 compared to $242.1 million in 2024 compared to $226.1 million in 2023, an increase of $16.0 million or 7.1%.2024. Segment operating margin (segment operating earnings as a percentage of segment net sales) for the Commercial & Industrial Group of 16.4%15.0% in 20242025 compared to 15.5%16.4% last year.
Segment net sales of $1,989.2$1,964.9 million in 20242025 represented a decrease of $99.6$24.3 million, or 4.8%,1.2%, from 20232024 levels, reflecting a $100.9 million, or 4.8%, organic sales decline, partially offset by $1.3 million of favorable foreign currency translation.levels. The organic decreasedecline is due to a midlow single-digit declinedecrease in the U.S., partially offset by a low single-digit gain in the segment’s international operations.
Segment gross margin in 20242025 improveddecreased 2030 bps from last year primarily reflectingas decreaseda salesresult of lower-gross-marginthe products.reduced volumes.
Segment operating expenses as a percentage of net sales in 20242025 rose 13050 bps fromas lastcompared yearto 2024 primarily due to the lower sales volumes.volumes, as well as increased brand-building and other costs.
As a result of these factors, segment operating earnings of $426.3 million in 2025 compared to $447.3 million in 2024 compared to $493.8 million in 2023, a decrease of $46.5 million or 9.4%.2024. Operating margin for the Snap‑on Tools Group of 22.5%21.7% in 20242025 compared to 23.6%22.5% last year.
Segment net sales of $1,797.9$1,877.1 million in 20242025 represented an increase of $16.7$79.2 million, or 0.9%,4.4%, from 20232024 levels, reflecting ana $18.1$70.6 million, or 1.0%,3.9%, organic sales gain,gain partiallyand offset by $1.4$8.6 million of unfavorablefavorable foreign currency translation. The organic improvement primarily reflects a mid single-digitdouble-digit increase in activity with OEM dealerships,dealerships and a mid single-digit rise in sales of diagnostic and repair information products to independent repair shop owners and managers, partially offset by a low single-digit decline in sales of undercar equipment.
Segment gross margin in 20242025 improved 14040 bps from last year primarily due to the increased sales of higher-gross-margin products and savingsbenefits from the segment’s RCI initiatives.initiatives, partially offset by higher material and other costs.
Segment operating expenses in 2025 included a $22.0 million benefit from the 2025 legal settlement. Segment operating expenses as a percentage of net sales in 20242025 roseimproved 40100 bps from 20232024 primarily reflecting increaseda personnel120 andbps otherbenefit costs.from the 2025 legal settlement.
As a result of these factors, segment operating earnings of $500.8 million in 2025, including a $22.0 million benefit from the 2025 legal settlement, compared to $455.2 million in 2024 compared to $433.2 million in 2023, an increase of $22.0 million or 5.1%.2024. Operating margin for the Repair Systems & Information Group of 25.3%26.7% in 20242025 compared to 24.3%25.3% last year.
Financial services revenue is generally dependent on the size of the average financial services portfolio during the period, as well as on the average yield on receivables. Financial services revenue of $401.0$412.9 million in 20242025 represented an increase of $22.9$11.9 million, or 6.1%,3.0%, from 2023.2024, and included $7.4 million of revenue resulting from a full additional week of interest income from the 53-week 2025 fiscal year. In both 20242025 and 2023,2024, the respective average yieldyields on finance receivables waswere 17.6% and 17.7%. In 20242025 and 2023,2024, the average yields on contract receivables were 9.0%9.1% and 8.8%,9.0%, respectively. Originations of $1,182.9$1,120.9 million in 20242025 represented a decrease of $52.6$62.0 million, or 4.3%,5.2%, from 20232024 levels.
Financial services expenses primarily include personnel-related and other general and administrative costs, as well as provisions for credit losses. These expenses are generally more dependent on changes in the size of the financial services portfolio than they are on the revenue of the segment. Financial services expenses in 20242025 increased $7.0 million primarily due to $2.4 million of higher provisions for credit losseslosses, as comparedwell toas thoseincreased recordedpersonnel inand 2023.other costs. As a percentage of the average financial services portfolio, financial services expenses were 5.2% in 2025 and 5.0% in 2024 and 4.5% in 2023.2024.
As a result of these factors, segment operating earnings of $276.9$281.8 million in 20242025 compared to $270.5$276.9 million inlast 2023, an increase of $6.4 million, or 2.4%.year.
Snap-on’s general corporate expenses in 20242025 of $75.8$99.4 million compared to $113.2$75.8 million recorded in 2023.2024. The year-over-year decreaseincrease primarily reflects the benefits from the legal payments received in the first six months of 2024 and lower stock-based compensation costs.2024.
Net sales of $1,198.7$1,231.9 million in the fourth quarter of 20242025 represented an increase of $2.1$33.2 million, or 0.2%,2.8%, from 20232024 levels, reflecting a $2.0$17.6 million, or 0.2%,1.4%, organic gain and $2.1$15.6 million of acquisition-related sales, partially offset by $2.0 million of unfavorablefavorable foreign currency translation.
What changed in the latest 10-Q
Risk Factors
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Management's Discussion & Analysis (MD&A)
New heading “Recent Acquisitions”
Largest changes
Gross profit ofsee in full comparison$608.3$635.2 million in thefirstsecond quarter of 2026 compared to$578.5$595.5 million last year. Gross margin (gross profit as a percentage of net sales) in the quarterdecreasedimproved3090 basis points (100 basis points (“bps”) equals 1.0 percent) from thefirstsecond quarter of 2025 primarily reflecting40 bps of unfavorable foreign currency effects. The benefit ofthe increasedvolumesales volumes andsavingsbenefits from the company’s “Rapid Continuous Improvement” or “RCI”initiatives in the first quarter were largely offset by higher tariffs and other material costs. While the company is relatively advantaged in the tariff environment, principally manufacturing in the markets where it sells, overall costs, however, can be somewhat impacted by trade policies.initiatives.
Segment gross margin in thesee in full comparisonfirstsecond quarterimproveddecreased3050 bps from last year primarily reflectingfavorable business mix and savings from the segment’s RCI initiatives, partially offset byhighertariffs and material costs, and 40 bpssales ofunfavorablelowerforeigngrosscurrencymargineffects.products.
Segment gross margin in thesee in full comparisonfirstsecond quarterdecreasedincreased230260 bps from last year primarily due tohigherincreasedtariffssales andmaterial costs, and 50 bps of unfavorable foreign currency effects, partially offset by benefitssavings from theincreasedsegment’ssales.RCI initiatives.
“On June 8, 2026, Snap-on acquired Diesel Laptops, LLC (“Diesel Laptops”) for a preliminary cash purchase price of $99.7 million (or $99.1 million, net of cash acquired). Diesel Laptops, based in Irmo, South Carolina, specializes in diagnostics, repair information, and digital solutions for commercial trucks and off-highway vehicles serving heavy-duty repair shops, fleets, and other equipment customers such as those in mining, agriculture, and infrastructure. …”see in full comparison
“On April 30, 2026, Snap-on acquired Hi-Force Group Holdings Ltd. (“Hi-Force”) for a preliminary cash purchase price of $58.0 million (or $54.9 million, net of cash acquired). Hi-Force, based in Daventry, United Kingdom, designs and manufactures high-pressure hydraulic tools, heavy lifting systems, as well as torque and tensioning equipment. The acquisition of Hi-Force complements and expands Snap-on’s offerings in the growing torque arena across a variety of industries including oil & gas, power generation, railways, mining, and heavy engineering. …”see in full comparison
Full comparison: every changed paragraph (81)
Recent Acquisitions
On June 8, 2026, Snap-on acquired Diesel Laptops, LLC (“Diesel Laptops”) for a preliminary cash purchase price of $99.7 million (or $99.1 million, net of cash acquired). Diesel Laptops, based in Irmo, South Carolina, specializes in diagnostics, repair information, and digital solutions for commercial trucks and off-highway vehicles serving heavy-duty repair shops, fleets, and other equipment customers such as those in mining, agriculture, and infrastructure. The acquisition expands Snap-on’s capabilities in these growing markets and further strengthens the company’s library of proprietary experienced-based data, as well as its product offerings to support the diagnosis and repair of increasingly complex vehicles and equipment. The operating results and assets of Diesel Laptops have been included in the Repair Systems & Information Group segment since the acquisition date.
On April 30, 2026, Snap-on acquired Hi-Force Group Holdings Ltd. (“Hi-Force”) for a preliminary cash purchase price of $58.0 million (or $54.9 million, net of cash acquired). Hi-Force, based in Daventry, United Kingdom, designs and manufactures high-pressure hydraulic tools, heavy lifting systems, as well as torque and tensioning equipment. The acquisition of Hi-Force complements and expands Snap-on’s offerings in the growing torque arena across a variety of industries including oil & gas, power generation, railways, mining, and heavy engineering. The operating results and assets of Hi-Force have been included in the Commercial & Industrial Group segment since the acquisition date.
Pro forma financial information has not been presented for these acquisitions as the net effects were not significant to Snap-on’s results of operations or financial position.
Results of operations for the three months ended AprilJuly 4, 2026, and MarchJune 29,28, 2025, are as follows:
Net sales of $1,207.2$1,235.1 million in the firstsecond quarter of 2026 represented an increase of $66.1$55.7 million, or 5.8%,4.7%, from 2025 levels, reflecting a $39.2$35.5 million, or 3.4%,3.0%, organic gaingain, $11.5 million of acquisition-related sales, and $26.9$8.7 million of favorable foreign currency translation.
Gross profit of $608.3$635.2 million in the firstsecond quarter of 2026 compared to $578.5$595.5 million last year. Gross margin (gross profit as a percentage of net sales) in the quarter decreasedimproved 3090 basis points (100 basis points (“bps”) equals 1.0 percent) from the firstsecond quarter of 2025 primarily reflecting 40 bps of unfavorable foreign currency effects. The benefit ofthe increased volumesales volumes and savingsbenefits from the company’s “Rapid Continuous Improvement” or “RCI” initiatives in the first quarter were largely offset by higher tariffs and other material costs. While the company is relatively advantaged in the tariff environment, principally manufacturing in the markets where it sells, overall costs, however, can be somewhat impacted by trade policies.initiatives.
Operating expenses of $357.5$366.3 million in the firstsecond quarter of 2026 compared to $335.4$336.4 million in 2025. Operating expenses as a percentage of net sales rose 20110 bps from last year primarily reflectingdue to increased personnel costs and expandedother technology investments, partially offset by the favorable effects of sales volume.costs.
Operating earnings before financial services of $250.8$268.9 million in the firstsecond quarter of 2026 compared to $243.1$259.1 million in 2025. As a percentage of net sales, operating earnings before financial services were 20.8% including 40 bps of unfavorable foreign currency effects and21.8% compared to 21.3%22.0% last year.
Financial services revenue of $101.1$99.7 million in the firstsecond quarter of 2026 compared to $102.1$101.7 million last year. Financial services operating earnings of $68.0$67.5 million compared to $70.3$68.2 million in 2025.
Operating earnings of $318.8$336.4 million in the firstsecond quarter of 2026 compared to $313.4$327.3 million in 2025. As a percentage of revenues (net sales plus financial services revenue), operating earnings in the quarter were 24.4% including 40 bps of unfavorable foreign currency effects and25.2% compared to 25.2%25.5% last year.
Interest expense in the firstsecond quarter of 2026 of $12.4$12.3 million was unchanged from last year. See Note 8 to the Condensed Consolidated Financial Statements for additional information on debt and credit facilities.
The effective income tax rate on earnings attributable to Snap-on in the firstsecond quarter was 22.0%21.9% in 2026 and 22.2%22.5% in 2025. See Note 7 to the Condensed Consolidated Financial Statements for additional information on income taxes.
Net earnings attributable to Snap-on of $247.0$260.6 million, or $4.69$4.96 per diluted share, in the firstsecond quarter of 2026 compared to $240.5$250.3 million, or $4.51$4.72 per diluted share, in the firstsecond quarter of 2025.
Results of operations for the six months ended July 4, 2026, and June 28, 2025 are as follows:
Net sales of $2,442.3 million in the first six months of 2026 represented an increase of $121.8, or 5.2%, from 2025 levels, reflecting a $74.7 million, or 3.2%, organic gain, $35.6 million of favorable foreign currency translation, and $11.5 million of acquisition-related sales.
Gross profit of $1,243.5 million in the first six months 2026 compared to $1,174.0 million last year. Gross margin in the first six months improved 30 basis points from 2025 primarily reflecting the benefit of increased volume and savings from the company’s RCI initiatives, partially offset by higher material and other costs, as well as 20 bps of unfavorable foreign currency effects.
Operating expenses of $723.8 million in the first six months of 2026 compared to $671.8 million in 2025. Operating expenses as a percentage of net sales rose 60 bps from last year primarily reflecting increased personnel costs and expanded technology investments, partially offset by the favorable effects of sales volume.
Operating earnings before financial services of $519.7 million in the first six months of 2026 compared to $502.2 million in 2025. As a percentage of net sales, operating earnings before financial services were 21.3% including 20 bps of unfavorable foreign currency effects and compared to 21.6% last year.
Financial services revenue of $200.8 million in the first six months of 2026 compared to $203.8 million last year. Financial services operating earnings of $135.5 million compared to $138.5 million in 2025.
Operating earnings of $655.2 million in the first six months of 2026 compared to $640.7 million in 2025. As a percentage of revenues, operating earnings in the first six months were 24.8% including 20 bps of unfavorable foreign currency effects and compared to 25.4% last year.
Interest expense in the first six months of 2026 of $24.7 million was unchanged from last year. See Note 8 to the Condensed Consolidated Financial Statements for additional information on debt and credit facilities.
Other income (expense) – net primarily includes interest income, non-service components of net periodic benefit costs, and net gains and losses associated with hedging and currency exchange rate transactions. See Note 16 to the Condensed Consolidated Financial Statements for additional information on Other income (expense) – net.
The effective income tax rate on earnings attributable to Snap-on in the first six months was 21.9% in 2026 and 22.3% in 2025. See Note 7 to the Condensed Consolidated Financial Statements for additional information on income taxes.
Net earnings attributable to Snap-on of $507.6 million, or $9.65 per diluted share, in the first six months of 2026 compared to $490.8 million, or $9.24 per diluted share, in the first six months of 2025.
Segment net sales of $381.0$395.8 million in the firstsecond quarter of 2026 represented an increase of $37.1$48.0 million, or 10.8%,13.8%, from 2025 levels, reflecting a $25.2$38.7 million, or 7.1%,11.0%, organic gaingain, $6.8 million of acquisition-related sales, and $11.9$2.5 million of favorable foreign currency translation. The organic increaseimprovement reflects gainsincreases in each of the segment’s operations,businesses, including double-digit gains in the Asia Pacific, European-based hand tools, specialty torque and power tools operations, as well as a highmid single-digit improvementrise in activity with customers in critical industries and a double-digit rise in the specialty torque business.industries.
Segment gross margin in the firstsecond quarter decreasedincreased 230260 bps from last year primarily due to higherincreased tariffssales and material costs, and 50 bps of unfavorable foreign currency effects, partially offset by benefitssavings from the increasedsegment’s sales.RCI initiatives.
Segment operating expenses as a percentage of net sales in the firstsecond quarter improved 12070 bps as compared to 2025 primarily reflecting the higher sales volumes.
As a result of these factors, segment operating earnings of $66.5 million in the firstsecond quarter of 2026 of $54.9 million compared to $53.2$46.9 million in 2025. Operating margin (segment operating earnings as a percentage of segment net sales) for the Commercial & Industrial Group of 16.8% in the firstsecond quarter of 2026 of 14.4%, including 50 bps of unfavorable foreign currency effects, compared to 15.5%13.5% last year.
Segment net sales of $776.8 million in the first six months of 2026 represented an increase of $85.1 million, or 12.3%, from 2025 levels, reflecting a $63.9 million, or 9.0%, organic gain, $14.4 million of favorable foreign currency translation, and $6.8 million of acquisition-related sales. The organic rise reflects double-digit gains in the segment’s Asia Pacific and specialty torque operations, a high single-digit improvement in the European-based hand tools business, and mid single-digit increases with customers in critical industries and in the power tools operation.
Segment gross margin in the first six months improved 20 bps from last year primarily due to increased sales and savings from the segment’s RCI initiatives, partially offset by higher material and other costs, as well as 30 bps of unfavorable foreign currency effects.
Segment operating expenses as a percentage of net sales in the first six months improved 90 bps as compared to 2025 primarily reflecting the higher sales volumes.
As a result of these factors, segment operating earnings of $121.4 million in the first six months of 2026 compared to $100.1 million in 2025. Operating margin for the Commercial & Industrial Group of 15.6% in the first six months of 2026 included 30 bps of unfavorable foreign currency effects and compared to 14.5% last year.
Segment net sales of $486.0$508.8 million in the firstsecond quarter of 2026 represented an increase of $23.1$17.8 million, or 5.0%,3.6%, from 2025 levels, reflecting a $15.9$14.9 million, or 3.4%,3.0%, organic sales gain and $7.2$2.9 million of favorable foreign currency translation. The organic rise was due to low single-digit gains both in the U.S. and in the segment’s international operations.
Segment gross margin in the firstsecond quarter improveddecreased 14030 bps from last year primarily duereflecting toa theyear-over-year increasedshift salesin andproduct mix, partially offset by savings from the segment’s RCI initiatives, partially offset by higher material and other costs.initiatives.
Segment operating expenses as a percentage of net sales in the firstsecond quarter improvedrose 2090 bps as compared to 2025 primarilydue reflectingto theincreased higherpersonnel, salesfreight volumes.and other costs.
As a result of these factors, segment operating earnings of $105.0$115.1 million in the firstsecond quarter of 2026 compared to $92.4$116.7 million in 2025. Operating margin for the Snap-on Tools Group of 21.6%22.6% in the firstsecond quarter of 2026 compared to 20.0%23.8% last year.
Segment net sales of $994.8 million in the first six months of 2026 represented an increase of $40.9 million, or 4.3%, from 2025 levels, reflecting a $30.8 million, or 3.2%, organic sales gain and $10.1 million of favorable foreign currency translation. The organic improvement was due to low single-digit increases both in the U.S. and in the segment’s international operations.
Segment gross margin in the first six months improved 40 bps from last year primarily due to savings from the segment’s RCI initiatives.
Segment operating expenses as a percentage of net sales in the first six months increased 20 bps as compared to 2025 reflecting increased personnel and other costs.
As a result of these factors, segment operating earnings of $220.1 million in the first six months of 2026 compared to $209.1 million in 2025. Operating margin for the Snap-on Tools Group of 22.1% in the first six months of 2026 compared to 21.9% last year.
Segment net sales of $485.3$480.3 million in the firstsecond quarter of 2026 represented an increase of $9.4$11.7 million, or 2.0%,2.5%, from 2025 levels, primarily reflecting $9.1a $3.2 million, or 0.7%, organic gain, $4.7 million of acquisition-related sales, and $3.8 million of favorable foreign currency translation. On an organic basis, a low single-digit increasegains in undercar equipment and sales of diagnostic and repair information products to independent repair shop owners and managers waswere partially offset by lowera low single-digit decline in activity with OEM dealerships, while sales of undercar equipment were essentially flat.dealerships.
Segment gross margin in the firstsecond quarter improveddecreased 3050 bps from last year primarily reflecting favorable business mix and savings from the segment’s RCI initiatives, partially offset by higher tariffs and material costs, and 40 bpssales of unfavorablelower foreigngross currencymargin effects.products.
Segment operating expenses as a percentage of net sales in the firstsecond quarter increased 140110 bps from 2025 primarily due to expandedhigher technology investmentspersonnel and higher personnelother costs, as well as 20expanded bpstechnology of unfavorable foreign currency effects.investments.
As a result of these factors, segment operating earnings of $115.1 million in the firstsecond quarter of 2026 of $119.5 million compared to $122.1$119.8 million in 2025. Operating margin for the Repair Systems & Information Group of 24.0% in the firstsecond quarter of 2026 of 24.6%, including 60 bps of unfavorable foreign currency effects, compared to 25.7%25.6% last year.
Segment net sales of $965.6 million in the first six months of 2026 represented an increase of $21.1 million, or 2.2%, from 2025 levels, reflecting a $3.5 million, or 0.4%, organic gain, $12.9 million of favorable foreign currency translation, and $4.7 million of acquisition-related sales. On an organic basis, low single-digit gains in undercar equipment and sales of diagnostic and repair information products to independent repair shop owners and managers were offset by a low single-digit decrease in activity with OEM dealerships.
Segment gross margin in the first six months decreased 10 bps from last year primarily reflecting higher material costs and 30 bps of unfavorable foreign currency effects, mostly offset by favorable business mix and savings from the segment’s RCI initiatives.
Segment operating expenses as a percentage of net sales in the first six months increased 120 bps from 2025 primarily due to higher personnel and other costs, as well as expanded technology investments.
As a result of these factors, segment operating earnings of $234.6 million in the first six months of 2026 compared to $241.9 million in 2025. Operating margin for the Repair Systems & Information Group of 24.3% in the first six months of 2026 included 40 bps of unfavorable foreign currency effects and compared to 25.6% last year.
Financial services revenue is generally dependent on the size of the average financial services portfolio during the period, as well as on the average yield on receivables. Financial services revenue of $101.1$99.7 million in the firstsecond quarter of 2026 represented a decrease of $1.0$2.0 million, or 1.0%,2.0%, from last year, primarily due to the lower year-over-year average portfolio. In the firstsecond quarters of both2026 and 2025, the respective average yields on finance receivables were 17.6% and 17.5%. In the second quarters of 2026 and 2025, the average yield on finance receivables was 17.6% and the average yieldyields on contract receivables waswere 9.1%.9.0% and 9.1%, respectively. Originations of $264.6$281.0 million in the firstsecond quarter of 2026 represented a decrease of $4.1$12.0 million, or 1.5%,4.1%, from 2025 levels.
Financial services expenses primarily include personnel-related and other general and administrative costs, as well as provisions for credit losses. These expenses are generally more dependent on changes in the size of the financial services portfolio than they are on the revenue of the segment. Financial services expenses in the second quarter of 2026 decreased $1.3 million from last year primarily due to lower provisions for credit losses. As a percentage of the average financial services portfolio, expenses were 1.3% in the firstsecond quarters of both 2026 and 2025.
As a result of these factors, segment operating earnings of $68.0$67.5 million in the firstsecond quarter of 2026 compared to $70.3$68.2 million in 2025.
Financial services revenue of $200.8 million in the first six months of 2026 represented a decrease of $3.0 million, or 1.5%, from last year, primarily reflecting the lower year-over-year average portfolio. In the first six months of both 2026 and 2025, the average yield on finance receivables was 17.6% and the average yield on contract receivables was 9.1%. Originations of $545.6 million in the first six months of 2026 represented a decrease of $16.1 million, or 2.9%, from 2025 levels.
Financial services expenses in the first six months of 2026 were unchanged from last year. As a percentage of the average financial services portfolio, expenses were 2.6% in the first six months of both 2026 and 2025.
As a result of these factors, segment operating earnings of $135.5 million in the first six months of 2026 compared to $138.5 million in 2025.
Snap-on’s firstsecond quarter 2026 general corporate expenses of $28.6$27.8 million compared to $24.6$24.3 million last year. The year-over-year increase in general corporate expenses primarily reflects higher stock-based and performance-based compensation costs. For the first six months of 2026, general corporate expenses of $56.4 million compared to $48.9 million in 2025. The year-over-year increase in general corporate expenses primarily reflects higher stock-based compensation and other costs.
Non-GAAP Supplemental Consolidating Data – Supplemental Condensed Statements of Earnings information for the three months ended AprilJuly 4, 2026, and MarchJune 29,28, 2025, is as follows:
Non-GAAP Supplemental Consolidating Data – Supplemental Condensed BalanceStatements Sheetsof Earnings information asfor ofthe Aprilsix months ended July 4, 2026, and JanuaryJune 3,28, 2026,2025, is as follows:
Non-GAAP Supplemental Consolidating Data – Supplemental Condensed Balance Sheets information as of July 4, 2026, and January 3, 2026, is as follows:
Due to Snap-on’s credit rating over the years, external funds have been available at an acceptable cost. As of AprilJuly 17, 2026, Snap-on’s long-term debt and commercial paper were rated, respectively, A2 and P-1 by Moody’s Investors Service; A- and A-2 by Standard & Poor’s; and A and F1 by Fitch Ratings. Snap-on believes that its current credit arrangements are sound and that the strength of its balance sheet affords the company the financial flexibility, including through access to financial markets for potential new financing, to respond to both internal growth opportunities and those available through acquisitions. However, Snap-on cannot provide any assurance that financing will be available in the future on acceptable terms, or that its debt ratings will not decrease.
SNA insider buying and selling (Form 4)
Since 2026-04-11, insiders reported open-market purchases in 0 Form 4 filings and open-market sales in 13 filings (8 insiders, 12 trade dates, 82,067 shares, about $32.3M; 10 of these filings say the sales were made under a Rule 10b5-1 trading plan). Net open-market shares: -82,067 (purchases minus sales); net value about -$32.3M.Totals add up every open-market (code P and S) line in those filings, using the prices reported in the filings. Awards, option exercises, tax withholding and gifts are listed below but not counted.
| Trade date | Insider | Transaction | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-08-31 | Adams David Charles |
Gift | 1,732 | — | — |
| 2026-08-31 | Adams David Charles |
Gift | 1,732 | — | — |
| 2026-08-26 | Ozolins Marty V. |
Open-market sale |
800 | $400.00 | $320.0K |
| 2026-08-26 | Ozolins Marty V. |
Option exercise |
800 | $168.70 | $135.0K |
| 2026-08-18 | Pinchuk Nicholas T |
Open-market sale |
600 | $397.50 | $238.5K |
| 2026-08-18 | Pinchuk Nicholas T |
Open-market sale |
1,640 | $401.93 | $659.2K |
| 2026-08-18 | Pinchuk Nicholas T |
Option exercise |
33,750 | $168.70 | $5.7M |
| 2026-08-18 | Pinchuk Nicholas T |
Open-market sale |
7,475 | $399.01 | $3.0M |
| 2026-08-18 | Pinchuk Nicholas T |
Open-market sale |
9,720 | $399.60 | $3.9M |
| 2026-08-18 | Pinchuk Nicholas T |
Open-market sale |
3,454 | $400.73 | $1.4M |
| 2026-08-13 | Pagliari Aldo John |
Option exercise |
8,000 | $168.70 | $1.3M |
| 2026-08-13 | Pagliari Aldo John |
Open-market sale |
1,447 | $403.14 | $583.3K |
| 2026-08-13 | Pagliari Aldo John |
Open-market sale |
2,564 | $403.90 | $1.0M |
| 2026-08-13 | Pagliari Aldo John |
Open-market sale |
40 | $409.69 | $16.4K |
| 2026-08-13 | Pagliari Aldo John |
Open-market sale |
831 | $405.94 | $337.3K |
| 2026-08-13 | Pagliari Aldo John |
Open-market sale |
208 | $406.98 | $84.7K |
| 2026-08-13 | Pagliari Aldo John |
Open-market sale |
441 | $404.95 | $178.6K |
| 2026-08-11 | Lemerand June C |
Option exercise | 1,200 | $168.70 | $202.4K |
| 2026-08-11 | Lemerand June C |
Open-market sale | 2,275 | $413.37 | $940.4K |
| 2026-08-11 | Lemerand June C |
Open-market sale | 1,952 | $413.99 | $808.1K |
| 2026-08-11 | Lemerand June C |
Open-market sale | 125 | $413.92 | $51.7K |
| 2026-08-11 | Lemerand June C |
Option exercise | 1,200 | $161.18 | $193.4K |
| 2026-08-06 | Boyd Iain |
Open-market sale |
1,878 | $423.00 | $794.4K |
| 2026-08-06 | Boyd Iain |
Option exercise |
160 | $269.00 | $43.0K |
| 2026-08-06 | Boyd Iain |
Option exercise |
160 | $249.26 | $39.9K |
| 2026-08-06 | Boyd Iain |
Option exercise |
1,558 | $211.67 | $329.8K |
| 2026-07-31 | Holden James P |
Grant/award | 33 | $410.41 | $13.5K |
| 2026-07-28 | Chambers Timothy L |
Open-market sale |
9,091 | $419.36 | $3.8M |
| 2026-07-28 | Chambers Timothy L |
Open-market sale |
20 | $420.00 | $8.4K |
| 2026-07-28 | Chambers Timothy L |
Option exercise |
9,111 | $168.70 | $1.5M |
| 2026-07-17 | Chambers Timothy L |
Option exercise |
389 | $168.70 | $65.6K |
| 2026-07-17 | Chambers Timothy L |
Open-market sale |
389 | $419.43 | $163.2K |
| 2026-07-01 | Miller Richard Thomas |
Open-market sale |
2,000 | $405.92 | $811.8K |
| 2026-07-01 | Miller Richard Thomas |
Option exercise |
2,000 | $155.92 | $311.8K |
| 2026-06-10 | Miller Richard Thomas |
Open-market sale |
427 | $389.55 | $166.3K |
| 2026-06-10 | Arregui Jesus |
Open-market sale | 573 | $382.84 | $219.4K |
| 2026-06-10 | Arregui Jesus |
Open-market sale | 602 | $384.55 | $231.5K |
| 2026-06-10 | Arregui Jesus |
Open-market sale | 400 | $385.83 | $154.3K |
| 2026-06-10 | Arregui Jesus |
Disposition to issuer | 3,249 | $389.45 | $1.3M |
| 2026-06-10 | Arregui Jesus |
Option exercise | 7,500 | $168.70 | $1.3M |
| 2026-06-10 | Arregui Jesus |
Open-market sale | 2,676 | $383.72 | $1.0M |
| 2026-06-04 | Pagliari Aldo John |
Open-market sale | 1,330 | $379.27 | $504.4K |
| 2026-05-14 | Pagliari Aldo John |
Option exercise |
8,000 | $168.70 | $1.3M |
| 2026-05-14 | Pagliari Aldo John |
Open-market sale |
1,674 | $367.96 | $616.0K |
| 2026-05-14 | Pagliari Aldo John |
Open-market sale |
3,029 | $367.09 | $1.1M |
| 2026-05-14 | Pagliari Aldo John |
Open-market sale |
1,010 | $366.20 | $369.9K |
| 2026-05-05 | Pinchuk Nicholas T |
Open-market sale |
2,480 | $377.52 | $936.2K |
| 2026-05-05 | Pinchuk Nicholas T |
Open-market sale |
6,957 | $376.77 | $2.6M |
| 2026-05-05 | Pinchuk Nicholas T |
Open-market sale |
6,850 | $375.83 | $2.6M |
| 2026-05-05 | Pinchuk Nicholas T |
Open-market sale |
1,581 | $372.53 | $589.0K |
| 2026-05-05 | Pinchuk Nicholas T |
Open-market sale |
704 | $374.20 | $263.4K |
| 2026-05-05 | Pinchuk Nicholas T |
Option exercise |
33,750 | $168.70 | $5.7M |
| 2026-05-05 | Pinchuk Nicholas T |
Open-market sale |
640 | $371.28 | $237.6K |
| 2026-05-05 | Pinchuk Nicholas T |
Open-market sale |
389 | $378.59 | $147.3K |
| 2026-05-05 | Pinchuk Nicholas T |
Open-market sale |
3,795 | $374.77 | $1.4M |
| 2026-04-30 | Holden James P |
Grant/award | 91 | $383.40 | $34.9K |
Well-known investors holding SNA (13F)
| Investor | Quarter | Shares | Reported value | % of their 13F | Change vs prior quarter |
|---|---|---|---|---|---|
| AQR Capital Management (Cliff Asness) | 2026-06-30 | 251,421 | $100.2M | 0.03% | Reduced 5% |
| Renaissance Technologies | 2026-06-30 | 136,180 | $54.8M | 0.08% | Added 20% |
| Gotham Asset Management (Joel Greenblatt) | 2026-06-30 | 87,045 | $35.0M | 0.08% | Added 70% |
| Citadel Advisors (Ken Griffin) | 2026-06-30 | 43,878 | $17.7M | 0.01% | Added 100% |
| D. E. Shaw & Co. | 2026-06-30 | 19,570 | $7.9M | 0.0% | Added 67% |
| Two Sigma Investments | 2026-06-30 | 18,960 | $7.6M | 0.01% | Reduced 41% |
| Millennium Management (Israel Englander) | 2026-06-30 | 6,278 | $2.5M | 0.0% | Reduced 91% |
| Bridgewater Associates | 2026-06-30 | 2,823 | $1.1M | 0.0% | Reduced 83% |