Snap-on (SNA) investor relations material

Executive summary

• Third quarter 2025 sales reached $1,190.8 million, up 3.8% year-over-year, with organic sales up 3.0% and favorable currency effects.

• Diluted EPS was $5.02, including a $0.31 per share benefit from a $22 million legal settlement, the highest ever for a third quarter.

• Net earnings attributable to shareholders rose 5.7% to $265.4 million, up from $251.1 million a year ago.

• The company demonstrated resilience amid global economic and political headwinds, including tariffs, supply chain disruptions, and market volatility.

• The auto repair market remained robust, with increased miles driven, aging vehicles, and rising repair complexity supporting demand.

Financial highlights

• Gross margin for Q3 2025 was 50.9%, down 30 basis points year-over-year, mainly due to unfavorable currency effects.

• Operating expenses as a percentage of sales improved, aided by a $22 million legal settlement.

• Consolidated operating earnings reached $347.4 million, with a margin of 26.9% versus 26.0% last year.

• Financial services revenue was $101.1 million, with operating earnings of $68.9 million, down from $71.7 million last year.

• Net cash provided by operating activities for the quarter was $277.9 million.

Outlook and guidance

• Capital expenditures for 2025 are expected to approximate $100 million, with $62.5 million incurred in the first nine months.

• The full-year 2025 effective income tax rate is anticipated to be in the range of 22% to 23%.

• Fiscal 2025 will include 53 weeks, with the extra week not expected to significantly impact results.

• Management projects continued progress leveraging strengths in automotive repair and expansion into adjacent and critical industries.

• Forward-looking statements are subject to risks and uncertainties, with actual results potentially differing materially from projections.