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 1.4% organic growth and a $15.6 million favorable currency impact.

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

• Automotive repair and critical industries remained robust, supported by aging vehicles, rising complexity, and improved customer activity.

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

Financial highlights

• Operating earnings before financial services were $265.2 million, 21.5% of sales, down from 22.1% last year.

• Financial services revenue grew to $108.0 million, with operating earnings of $74.4 million, both up from last year.

• Cash and cash equivalents at year-end were $1,624.5 million, up from $1,360.5 million in 2024.

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

• Free cash flow for Q4 was $265.8 million, with $201.3 million from operations and $64.5 million from financial services.

Outlook and guidance

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

• Capital expenditures for 2026 anticipated at ~$100 million.

• Effective income tax rate for 2026 projected at 22%-23%.

• Corporate costs expected to be ~$28 million per quarter in 2026.

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