Snap-on (SNA) Q4 2025 earnings summary

Executive summary

• Fourth quarter net sales rose 2.8% year-over-year to $1,231.9 million, with organic growth of 1.4% and a favorable currency impact of $15.6 million.

• Diluted EPS for the quarter was $4.94, up from $4.82 last year, with net earnings of $260.7 million.

• Gross margin declined 50 basis points to 49.2% due to higher material costs and lower-margin business mix, partially offset by RCI initiatives.

• The company demonstrated resilience amid tariffs, shutdowns, and global uncertainty, with continued investment in product, brand, and people.

• Dividend increased by 14%, marking the 16th consecutive annual increase.

Financial highlights

• Operating earnings before financial services for Q4 were $265.2 million, margin at 21.5%, down from 22.1% last year.

• Financial services revenue was $108.0 million, up from $100.5 million, with operating earnings of $74.4 million, benefiting from an extra week in the fiscal year.

• Net cash provided by operating activities for the year was $1,081.7 million, down from $1,217.5 million in 2024.

• Year-end cash position was $1,624.5 million, up from $1,360.5 million, with no outstanding borrowings.

• Net debt to capital ratio improved to (7.7)% at Q4 2025 from (3.1)% at Q4 2024.

Outlook and guidance

• Capital expenditures for 2026 are expected to be around $100 million.

• Effective income tax rate for 2026 is anticipated to be 22%-23%.

• Corporate costs are projected at approximately $28 million per quarter.

• Expects continued progress in 2026, leveraging strengths in automotive repair and expanding into adjacent markets and geographies.

• Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially.