Snap-on's Q4 Earnings Beat Estimates, Higher Organic Sales Aid

Snap-on Inc. SNA has reported solid fourth-quarter 2025 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate and grew year over year. Results showed ongoing momentum, along with the ability to effectively manage uncertainty and trade turbulence.

Snap-on’s earnings of $4.94 per share surpassed the Zacks Consensus Estimate of $4.86. The figure increased from adjusted earnings of $4.82 in the year-ago quarter.

SNA’s Quarterly Performance: Key Metrics & Insights

Net sales totaled $1.232 billion, up 2.8% from the prior year and exceeded the Zacks Consensus Estimate of $1.218 billion. An organic sales rise of 1.4% ($17.6 million) and $15.6 million of positive foreign currency fluctuation aided sales.

The gross profit of $605.5 million rose 1.6% year over year, whereas the gross margin contracted 50 basis points (bps) year over year to 49.2%. Our model expected a gross margin of 49%, down 70 bps from the year-ago quarter. 

Snap-On Incorporated Price, Consensus and EPS Surprise

Snap-On Incorporated price-consensus-eps-surprise-chart | Snap-On Incorporated Quote

Snap-on’s operating earnings before financial services totaled $265.2 million, flat year over year. As a percentage of sales, operating earnings before financial services decreased 60 bps to 21.5% in the fourth quarter.

Consolidated operating earnings (including financial services) were $339.6 million, up 2.3% year over year. As a percentage of revenues, operating earnings fell 20 bps year over year to 25.3%.

Snap-on’s Segmental Analysis

Sales in the Commercial & Industrial Group edged up 5% from the year-ago quarter to $398.1 million due to a $7.9 million gain in favorable foreign currency translation and a $11 million or 2.8% organic sales rise. The organic increase is mainly owing to gains with customers in critical industries and higher activity in the power tools and specialty torque operations, somewhat offset by lower sales to U.S. markets by the Asia Pacific business. For the fourth quarter, we expected sales of $378.1 million for the segment.

The Tools Group segment’s sales dipped 0.3% year over year to $505 million. We estimated sales of $512.2 million for the segment. The decrease resulted from an organic sales drop of 0.7%, due to lower activity in the US, partly offset by increased sales in the segment’s international operations. However, a $1.8 million benefit from foreign currency translation aided sales.

Sales in Repair Systems & Information Group improved 2.5% year over year to $467.8 million, with organic sales growth of 1% and a $6.4 million boost from foreign currency translation. Organic sales grew, driven by increased activity with OEM dealerships and higher sales of diagnostic and repair information products to independent repair shops, though partially offset by flat undercar equipment sales. Our estimate for sales from this segment was $468 million.

The Financial Services business’ revenues rose 7.5% year over year to $108 million. Our estimate for sales from this segment was $102.5 million.

SNA's Financial Snapshot

Snap-on ended the third quarter of 2025 with cash and cash equivalents of $1.62 billion, with shareholders’ equity (before non-controlling interest) of $5.93 billion. The company expects a capital expenditure of $100 million for 2026.

What’s Ahead for Snap-on?

Management expects SNA’s markets and operations to have considerable resilience against the uncertainties of the operating landscape. For 2026, the company expects to continue advancing its core growth strategies, leveraging its strengths in automotive repair while expanding into adjacent markets, new geographies and other areas like critical industries. SNA expects an effective tax rate of 22-23% for 2026.

The Zacks Rank #3 (Hold) company’s shares have gained 12.2% in the past three months compared with the industry's 16% growth.

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RL delivered a trailing four-quarter earnings surprise of 9.8%, on average. The Zacks Consensus Estimate for Ralph Lauren’s current financial-year sales indicates growth of 10.3% from the year-ago number. 

Boyd Gaming BYD, which is a gaming company, currently carries a Zacks Rank #2 (Buy). 

BYD delivered a trailing four-quarter earnings surprise of 9.6%, on average. The Zacks Consensus Estimate for BYD’s current financial-year EPS indicates growth of 10.7% from the year-ago number. 

Columbia Sportswear Company COLM, which is a marketer and distributor of outdoor and active lifestyle apparel, footwear, accessories and equipment, currently carries a Zacks Rank of 2.

The Zacks Consensus Estimate for COLM’s current financial-year sales is expected to rise 2.1% from the corresponding year-ago reported figure. COLM delivered a trailing four-quarter earnings surprise of 25.2%, on average.

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This article originally published on Zacks Investment Research (zacks.com).

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