Snap-on Incorporated (NYSE:SNA) on Thursday reported fourth-quarter 2025 earnings of $4.94 per diluted share, up from $4.82 per share in the prior year, exceeding analysts’ expectations of $4.92.
Total revenues for the quarter reached $1.34 billion, surpassing analysts’ expectations of $1.23 billion.
Net sales for the quarter reached $1.23 billion, reflecting a 2.8% increase from $1.20 billion in the fourth quarter of 2024. This growth was driven by a 1.4% organic sales gain and favorable foreign currency translation, highlighting the company’s strong performance despite a challenging market environment.
Operating earnings for the quarter were $339.6 million, or 25.3% of revenue, compared to $331.9 million, or 25.5%, in the previous year. Operating earnings before financial services remained steady at $265.2 million.
CEO Nick Pinchuk emphasized the company’s resilience amid a volatile market, citing factors like fluctuating tariffs, a prolonged U.S. government shutdown, and global disruptions that heightened customer uncertainty. However, Snap-on’s strong product portfolio, brand, and workforce were key in navigating these challenges.
“We’re encouraged by our fourth quarter results, delivering overall sales growth and maintaining solid levels of profitability…all achieved against the extraordinary turbulence of today’s environment,” Pinchuk said.
“As we move into 2026, we’ll enhance the franchise network by fortifying our design efforts, our manufacturing, and our marketing, expand our already prominent position with shop owners and managers by serving the rising complexity of vehicle repair, and extend in critical industries by refining our capabilities to take full advantage of the growing need for customized solutions. At the same time, we’ll engage our Snap-on Value Creation Processes, driving improvements across the enterprise that we believe, when combined with our runways for growth, will produce substantial and strategic gains,” he stated.
Segment Performance
The Commercial & Industrial Group saw sales rise 2.8% to $398.1 million, although operating earnings declined due to increased sales in lower-margin businesses.
The Snap-on Tools Group experienced a slight 0.7% organic sales decline, with revenue of $505.0 million, primarily impacted by lower activity in the U.S., partially offset by growth in international markets.
The Repair Systems & Information Group saw sales increase 1.0% to $467.8 million. Financial services revenue rose to $108.0 million, with operating earnings growing to $74.4 million from $66.7 million in 2024.
For the full year, Snap-on’s net sales rose 0.8% to $4.74 billion, with net earnings totaling $1.02 billion, or $19.19 per diluted share. The company also recognized a $16.2 million after-tax benefit from a legal settlement and an $18.5 million increase in non-service net periodic benefit costs.
Outlook
Looking ahead, Snap-on expects a 2026 effective income tax rate between 22% and 23%.
The company plans to invest in its franchise network, expand into critical industries, and enhance its manufacturing and marketing capabilities. Capital expenditures for 2026 are projected at approximately $100 million.
SNA Price Action: Snap-on shares were down 2.07% at $375.00 at the time of publication on Thursday, according to Benzinga Pro data.
Photo by Michael Vi via Shutterstock
