Quarterly Financial Review Fourth Quarter 2025 Q4-2025 Quarterly Review © 2026 Snap-on Incorporated 2 Cautionary Statement Q4-2025 Quarterly Review © 2026 Snap-on Incorporated 3 These slides should be read in conjunction with comments from the February 5, 2026 conference call. The financial statement information included herein is unaudited. Statements made during the February 5, 2026 conference call and/or information included in this presentation may contain statements, including earnings projections, tha ...

Financial Performance - Fourth quarter 2025 net sales reached $1,231.9 million, an increase of $33.2 million or 2.8% from Q4 2024, with organic sales growth of $17.6 million or 1.4%[4] - Full year 2025 net sales totaled $4,743.2 million, reflecting an increase of $35.8 million or 0.8% from 2024, with an organic sales gain of $16.5 million or 0.3%[4] - Total net sales for Q4 2025 reached $1,231.9 million, a 2.8% increase from $1,198.7 million in Q4 2024[23] - Full year total revenues for 2025 were $5,156.1 million, compared to $5,108.4 million in 2024, reflecting a growth of 0.9%[23] - Net earnings for Q4 2025 were $267.0 million, slightly higher than $264.2 million in Q4 2024[27] - Full year net earnings for 2025 were $1,016.9 million, or $19.19 per diluted share, including a $16.2 million after-tax benefit from a legal settlement[4] Operating Earnings - Operating earnings before financial services for the quarter were $265.2 million, unchanged from last year, representing 21.5% of net sales compared to 22.1% in 2024[4] - Operating earnings for Q4 2025 were $339.6 million, up from $331.9 million in Q4 2024, indicating a 0.5% increase[23] - Operating earnings before financial services for the full year 2025 were $1,045.9 million, down from $1,068.8 million in 2024, a decrease of 2.1%[37] Segment Performance - The Commercial & Industrial Group segment reported sales of $398.1 million, a 2.8% organic gain, driven by higher activity in critical industries[6] - The Tools Group segment sales were $505.0 million, reflecting a 0.7% organic sales decline, primarily due to lower activity in the U.S.[8] - The Repair Systems & Information Group segment achieved sales of $467.8 million, a 1.0% organic sales increase, supported by higher activity with OEM dealerships[10] Cash and Assets - Cash and cash equivalents at the end of 2025 were $1,624.5 million, an increase from $1,360.5 million at the end of 2024[25] - Total assets increased to $8,412.3 million in 2025 from $7,896.8 million in 2024, marking a growth of 6.5%[25] - Total assets as of fiscal year-end 2025 were $7,204.4 million, up from $6,687.4 million in 2024, indicating a growth of 7.7%[40] - Cash and cash equivalents increased to $1,624.1 million in 2025 from $1,360.4 million in 2024, a rise of 19.4%[40] Liabilities and Retained Earnings - Total liabilities decreased slightly to $2,455.5 million in 2025 from $2,479.8 million in 2024[25] - Total liabilities decreased to $1,247.6 million in 2025 from $1,270.4 million in 2024, a reduction of 1.8%[40] - The company’s retained earnings rose to $8,137.5 million in 2025 from $7,584.3 million in 2024, reflecting a growth of 7.3%[25] Future Outlook - Snap-on anticipates capital expenditures of approximately $100 million in 2026 to support growth initiatives[13] - The company expects its full-year 2026 effective income tax rate to be in the range of 22% to 23%[14] Financial Services - Financial services revenue in Q4 2025 was $108.0 million, up from $100.5 million in 2024, with operating earnings of $74.4 million compared to $66.7 million last year[11] - Financial services revenue for 2025 was $412.9 million, an increase from $401.0 million in 2024, representing a growth of 3.7%[37]

Core Insights - Snap-On (SNA) is expected to report quarterly earnings of $4.86 per share, reflecting a 0.8% increase year-over-year, with revenues forecasted at $1.22 billion, representing a 1.6% year-over-year increase [1] Financial Projections - Analysts predict 'Net Sales- Financial Services Revenue' will reach $102.29 million, indicating a year-over-year change of +1.8% [4] - 'Net Sales- Repair Systems & Information Group' is estimated to be $475.17 million, with a year-over-year change of +4.1% [4] - 'Net Sales- Snap-on Tools Group' is projected to reach $512.86 million, reflecting a year-over-year change of +1.2% [4] - 'Net Sales- Commercial & Industrial Group' is expected to be $379.39 million, suggesting a change of +0.1% year-over-year [5] Operating Earnings Estimates - 'Operating earnings / (losses)- Financial services' is projected at $66.65 million, slightly down from $66.70 million reported in the same quarter last year [5] - 'Operating earnings / (losses)- Commercial & Industrial Group' is expected to be $59.71 million, down from $63.50 million reported in the same quarter last year [6] - 'Operating earnings / (losses)- Snap-on Tools Group' is estimated at $110.24 million, up from $106.90 million reported in the same quarter last year [6] - 'Operating earnings / (losses)- Repair Systems & Information Group' is forecasted at $124.80 million, up from $121.40 million reported in the same quarter of the previous year [7] Stock Performance - Shares of Snap-On have increased by +5.8% over the past month, compared to a +0.9% change in the Zacks S&P 500 composite [7] - Snap-On holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the overall market in the near future [7]

Core Viewpoint - Snap-on Incorporated (SNA) is expected to report growth in both revenue and earnings for the fourth quarter of 2025, with revenue estimated at $1.22 billion, reflecting a 1.6% increase year-over-year, and earnings per share (EPS) projected at $4.86, indicating a 0.8% growth from the previous year [1][2][11]. Group 1: Financial Estimates - The Zacks Consensus Estimate for revenues is $1.22 billion, which indicates a rise of 1.6% from the year-ago quarter's reported level [1]. - The Zacks Consensus Estimate for earnings is pegged at $4.86 per share, which indicates growth of 0.8% from the year-ago quarter's reported figure [2]. - The consensus mark for earnings has remained unchanged in the past 30 days [2]. Group 2: Business Performance Drivers - Snap-on is enhancing its business model through initiatives focused on safety, service quality, customer satisfaction, and innovation, which are expected to support growth [3]. - The company is expanding its franchise network and deepening relationships with repair shop owners while increasing its presence in emerging markets [3]. - The focus on Rapid Continuous Improvement aims to boost efficiency, control costs, and enhance organizational performance [4]. Group 3: Market Conditions and Demand - Continued strength in the auto repair market is driven by rising miles driven, an aging vehicle fleet, and increasing vehicle complexity, which supports spending on tools and diagnostics [5]. - The Repair Systems & Information (RS&I) Group is expected to perform well due to strong demand for advanced diagnostics and repair information from OEM dealerships and independent repair shops [6]. - The Tools Group segment is showing improvement, aided by product innovation and positive franchisee sentiment following the annual Snap-on Franchisee Conference [7]. Group 4: Industry Opportunities and Challenges - Snap-on sees opportunities in critical industries such as aviation, natural resources, military, and heavy-duty fleets, where demand for precision tools remains strong [8]. - Despite strengths, Snap-on faces macroeconomic pressures, including geopolitical tensions and economic softness in Europe and Asia, which may limit growth in international markets [9]. - Persistent raw material and operating cost inflation remains a risk to profitability [9]. Group 5: Valuation and Stock Performance - Snap-on is trading at a forward 12-month price-to-earnings ratio of 18.03X, which is below its five-year high and near the Tools - Handheld industry's average, indicating attractive valuation [13]. - SNA shares have gained 8.4% in the past three months compared to the industry's 12.8% growth [15].

Core Insights - Snap-on Incorporated (SNA) is making significant progress on its strategic priorities, leveraging its strong brand, differentiated business model, and robust customer relationships [1][5] Operational Efficiency - The company's focus on the Rapid Continuous Improvement (RCI) process is enhancing operational efficiency, driving productivity gains, and supporting cost control, which reinforces margin resilience [2][8] - RCI initiatives aim to improve organizational efficiency, reduce costs, and drive sales and margin expansion through ongoing productivity gains and process improvements [2] Franchise Network and Market Presence - Snap-on is strengthening its franchise network and deepening relationships with repair shop owners, while expanding its presence in critical industries across emerging markets [3] - The company offers a portfolio of premium hand tools, diagnostics, and specialty torque products, supported by continuous innovation and a proprietary database that enhances productivity for customers [3] Market Outlook - Snap-on expects the vehicle repair market to remain resilient, supported by innovative tool offerings and a comprehensive database [4] - Recent launches of new hand tools and growth in torque products, along with increased activity in aviation and general industrial markets, are encouraging [4] Long-term Positioning - Snap-on is well-positioned for sustainable growth, supported by strong execution and a resilient business model, with consistent cash generation and a focus on operational excellence [5] - Management anticipates continued progress by leveraging capabilities in automotive repair and expanding its customer base across geographies and critical industries [6] Financial Projections - The Zacks Consensus Estimate for SNA's 2026 sales and earnings per share (EPS) indicates a rise of 3.6% and 5.7%, respectively, year over year [9]

Core Insights - Snap-on Incorporated's growth strategy focuses on strengthening its franchise network, deepening relationships with repair shop owners and managers, and expanding its presence in critical industries across emerging markets [1][9] Group 1: Growth Strategy and Operational Efficiency - The company is committed to disciplined strategic principles, including the Rapid Continuous Improvement (RCI) process, aimed at enhancing organizational effectiveness, minimizing costs, and boosting sales and margins [2][9] - Snap-on's business trends have shown robustness, with the RCI initiative contributing to continuous productivity and process improvements [2] Group 2: Product Innovation and Market Position - New models introduced by Snap-on feature advanced drivetrains, motor configurations, and high-tech electrical systems that support driver-assisted vehicle autonomy [3] - The company is advancing growth with innovative tools, such as the heavy-duty cordless torque multiplier, CTM 800, which has been expanding in torque [4][9] Group 3: Market Resilience and Future Outlook - Management expects Snap-on's markets and operations to demonstrate considerable resilience against uncertainties, anticipating continued progress in the automotive repair sector and expansion across geographies [5] - The company is poised for growth, with strengths likely to bolster sales and profits in the future [5] Group 4: Financial Performance and Valuation - Snap-on's shares have gained 13.5% over the past six months, slightly outperforming the industry's growth of 13.2% [6] - The company trades at a forward price-to-earnings ratio of 17.49X, which is comparable to the industry average of 17.52X [7] Group 5: Earnings Estimates - The Zacks Consensus Estimate for Snap-on's 2025 earnings indicates a year-over-year drop of 2%, while the estimate for 2026 implies a rise of 5.7% [10] - Current estimates for Snap-on's earnings per share (EPS) for 2025 and 2026 have remained stable over the past 30 days [10]

Company Overview - Snap-on Incorporated (SNA) is based in Kenosha, Wisconsin, and specializes in building and selling professional tools, equipment, diagnostics, and repair solutions, serving automotive, aerospace, energy, and transportation markets through various channels [1] Stock Performance - SNA stock is currently trading approximately 4.1% below its January high of $365.78 and has gained 5.2% over the past three months, outperforming the State Street Industrial Select Sector SPDR ETF (XLI), which rose 3.4% [2] - Over the past 52 weeks, SNA stock has decreased by 1.4%, but it has posted a 3.3% gain year-to-date (YTD). In contrast, XLI has increased by 13.8% over the same period and nearly 19% YTD, indicating Snap-on's relative underperformance [4] Technical Analysis - Technically, SNA stock has maintained a steady position, remaining above its 50-day moving average of $339.90 and its 200-day moving average of $328.49 since early December, which signals improving sentiment [5] Recent Financial Performance - On October 16, SNA shares surged nearly 3.5% following a stronger-than-expected Q3 fiscal 2025 report. The Repair Systems & Information group contributed to a 3.8% year-over-year increase in net sales to $1.19 billion, surpassing analyst estimates of $1.15 billion. Net earnings rose by 5.7% to $265.4 million, with adjusted EPS at $4.71 per share, exceeding forecasts of $4.59 [6] Competitive Landscape - SNA's competitor, Kennametal Inc. (KMT), has gained 8.8% over the past 52 weeks and 22.1% YTD, indicating that Snap-on has room to catch up [7] - Analysts maintain a positive outlook for SNA, with a "Moderate Buy" consensus rating from 10 analysts and a mean price target of $365.29, suggesting a premium of 4.1% to current levels [7]

Core Insights - Snap-on Incorporated's growth strategy emphasizes enhancing the franchise network, improving relationships with repair shop owners and managers, and expanding in emerging markets [1][9] - The company is committed to strategic principles like Rapid Continuous Improvement (RCI) to create value and enhance organizational effectiveness while minimizing costs [2][9] Business Performance - Snap-on's RCI process has led to increased sales and margins, reflecting continuous productivity and process improvements [2] - The company has introduced new models featuring advanced drivetrains and high-tech electrical systems, supporting driver-assisted vehicle autonomy [3] - Snap-on's specialty torque business is performing well, with new products like the heavy-duty cordless torque multiplier, CTM 800, contributing to its growth [4] Market Outlook - Management anticipates resilience in SNA's markets and operations, expecting continued progress in automotive repair and critical industries [5] - For 2025, Snap-on expects to make progress along its defined growth pathways, which are likely to enhance sales and profits [5] Stock Performance and Valuation - Snap-on shares have increased by 9.8% over the past six months, outperforming the industry growth of 4.8% [6] - The company trades at a forward price-to-earnings ratio of 17.12X, slightly above the industry average of 16.53X [7] Earnings Estimates - The Zacks Consensus Estimate for SNA's 2025 earnings indicates a year-over-year decline of 2%, while the estimate for 2026 suggests a rise of 5.7% [10] - Current estimates for SNA's earnings per share (EPS) for 2025 and 2026 have been revised upward in the past 30 days [10]

Company Overview - Snap-on Incorporated (SNA) is valued at a market cap of $17.5 billion and is a leading manufacturer of premium tools, equipment, diagnostics, and repair solutions for professional technicians across various sectors including automotive, aviation, industrial, and heavy-duty [1] Market Performance - Over the past 52 weeks, SNA shares have declined by 9%, while the S&P 500 Index has gained 11%. Year-to-date, SNA is down 1.9%, compared to the S&P 500's 14% return [2] - SNA has also underperformed the Industrial Select Sector SPDR Fund (XLI), which has seen a 5.2% increase over the past 52 weeks and a 13.8% rise year-to-date [3] Recent Earnings - On October 16, SNA shares rose by 3.5% following a better-than-expected Q3 earnings release. The company's total net sales increased by 3.8% year-over-year to $1.2 billion, exceeding consensus estimates by 3.5%. Net earnings rose by 5.7% from the prior-year quarter to $265.4 million [4] Earnings Forecast - For the current fiscal year ending in December, analysts expect SNA's EPS to decline by 2% year-over-year to $18.80. The company's earnings surprise history is mixed, with three out of the last four quarters exceeding consensus estimates [5] Analyst Ratings - Among the 10 analysts covering SNA, the consensus rating is a "Moderate Buy," which includes three "Strong Buy," one "Moderate Buy," five "Hold," and one "Moderate Sell" rating [5] - Tigress Financial maintained a "Buy" rating on SNA and raised its price target to $405, indicating a potential upside of 21.6% from current levels. The mean price target is $365.29, representing a 9.7% premium from SNA's current price [6]

Core Insights - Snap-on is a leader in the auto aftermarket and other industries, focusing on providing specialized tools for critical tasks where failure has significant consequences [1][2] - The company emphasizes direct engagement with customers at their work sites to identify specific challenges that can be addressed with Snap-on tools, rather than relying on surveys or analyses [2] Company Overview - Snap-on operates across various industries, including automotive repair and aviation, targeting customers who require reliable and repeatable solutions [2] - The company has a diverse product range with 85,000 SKUs and continues to expand its offerings to solve a wide array of problems [2]