Snap-on Incorporated (SNA) SEC Filings & Earnings Calls

Diesel price spike causing franchisee inventory destructuring, creating temporary headwind for Tools Group

“unprecedentedly accelerated rise in diesel prices, which in our mobile van channel prompted franchisees to reduce inventories despite very stable demand from their technician customers” · word for word

Tools Group organic sales decline of 7.0% and operating margin compression from 21.7% to 18.0%

“Snap-on Tools Group segment sales $471.5M vs $506.0M; operating margin 18.0% vs 21.7%”

Repair Systems & Information Group organic decline due to reduced OEM dealership activity

“Repair Systems & Information Group segment sales $454.7M vs $464.8M; organic decline of 5.5% due to reduced activity with OEM dealerships”

Snap-on Tools Group sales decline

“Segment net sales of $471.5 million in the third quarter of 2026 represented a decrease of $34.5 million, or 6.8%, from 2025 levels” · word for word

OEM dealership weakness

“The organic decrease is primarily due to a double-digit decline in activity with OEM dealerships” · word for word

Higher operating expenses

“Operating expenses of $355.5 million in the third quarter of 2026 compared to $327.4 million in 2025” · word for word

Repair Systems & Information Group margin pressure

“Operating margin for the Repair Systems & Information Group of 24.0% in the second quarter of 2026 compared to 25.6% last year.” · word for word

Higher operating expenses

“Operating expenses as a percentage of net sales rose 110 bps from last year primarily due to increased personnel and other costs.” · word for word

Operating margin slightly declined in Snap-on Tools Group and Repair Systems & Information Group; financial services originations down 4.1%.

“Operating margin of 22.6% compared to 23.8% a year ago (Snap-on Tools Group); 24.0% vs 25.6% (Repair Systems).” · word for word

Tariff and Material Cost Pressure

“Segment gross margin in the first quarter decreased 230 bps from last year primarily due to higher tariffs and material costs, and 50 bps of unfavorable foreign currency effects, partially offset by benefits from the increased sales.” · word for word

Foreign Exchange Headwind

“Gross margin (gross profit as a percentage of net sales) in the quarter decreased 30 basis points (100 basis points (“bps”) equals 1.0 percent) from the first quarter of 2025 primarily reflecting 40 bps of unfavorable foreign currency effects.” · word for word

Technician customer base uncertainty in U.S.

“meaningful headwinds persist, including broad uncertainty among our technician customer base in the U.S.” · word for word

International supply chain disruptions

“international supply chain disruptions” · word for word

Global conflicts

“a number of global conflicts” · word for word

Foreign currency headwinds on margins

“40 basis points of unfavorable currency effects on gross margin; 50bps on C&I margin; 60bps on RS&I margin”

Below-target incentive payouts indicate performance challenges

“annual incentive payments to our NEOs based on fiscal 2025 corporate financial performance and personal strategic business goals ranged from 25% to 45% of target.” · word for word

Franchise van network sales decline

“lower sales to our franchised mobile van network serving vehicle repair technicians.” · word for word

Tariff and Trade Policy Risk

“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.” · word for word

U.S. Demand Softness in Snap-on Tools Group

“The decline is due to a low single-digit decrease in the U.S., partially offset by a low single-digit gain in the segment’s international operations.” · word for word

Asia Pacific Operations Decline

“The organic decrease is primarily due to a mid single-digit reduction in the segment’s Asia Pacific operations and a low single-digit decline in the European-based hand tools business” · word for word

Financial Services Originations Decline

“Originations of $1,120.9 million in 2025 represented a decrease of $62.0 million, or 5.2%, from 2024 levels.” · word for word

Inventory Build Due to Trade Uncertainty

“Inventories – net of $1,025.2 million as of 2025 year end increased $81.8 million from 2024 year-end levels primarily due to uncertainty in the current trade environment” · word for word

Margin pressure from mix shift to lower-margin businesses in C&I segment.

“Operating earnings of $60.6 million in the period, including the impact of increased sales in lower-margin businesses” · word for word

Uncertainty from tariff fluctuations, government shutdown, and geopolitical incidents.

“Recent months have seen significant disruptions, including fluctuating tariff levels, a prolonged U.S. government shutdown, and a number of unprecedented international and domestic incidents” · word for word