Snap-on Announces Second Quarter 2025 Results
Snap-on Incorporated, a global leader in tools, equipment, diagnostics, repair information, and systems solutions for professional users, has released its financial results for the second quarter of 2025. The company reported stable net sales and a slight decline in net earnings compared to the same period last year.
Financial Highlights
For the second quarter of 2025, Snap-on reported net sales of $1,179.4 million, unchanged from the previous year. The company experienced an organic sales decline of 0.7%, which was offset by favorable foreign currency translation. Operating earnings before financial services were $259.1 million, representing 22.0% of net sales, down from $280.3 million or 23.8% of net sales in the same quarter last year. The gross margin stood at 50.5%, and the diluted earnings per share (EPS) were $4.72, compared to $5.07 in the second quarter of 2024.
Business and Operational Highlights
The Tools Group segment saw a 1.9% increase in sales, reaching $491.0 million, driven by higher sales in the U.S. The Repair Systems & Information Group also reported a 2.3% increase in sales, totaling $468.6 million, with notable gains in OEM dealerships and diagnostic products. However, the Commercial & Industrial Group experienced a 7.6% decline in sales, primarily due to reduced activity in Asia Pacific and European markets.
Strategic Initiatives and Corporate Developments
Snap-on continues to focus on product development, manufacturing, and marketing programs to align with current customer preferences. The company is also advancing its presence in OEM dealerships and independent repair shops, particularly with its diagnostics platforms. Capital expenditures for 2025 are projected to be around $100 million, with $42.6 million already incurred in the first half of the year.
Management's Perspective
Nick Pinchuk, Snap-on's chairman and CEO, expressed optimism about the company's performance despite the challenging environment. He highlighted the return of sales growth in the U.S. Tools Group and the resilience of gross margins and operating earnings. Pinchuk emphasized the company's commitment to its Snap-on Value Creation processes and its strategy to make products in the markets where they are sold.
Future Outlook
Looking ahead, Snap-on expects to continue leveraging its capabilities in the automotive repair arena and expanding its professional customer base into adjacent markets and geographies. The company anticipates its full-year 2025 effective income tax rate to be in the range of 22% to 23%.
SEC Filing: Snap-on Inc [ SNA ] - 8-K - Jul. 17, 2025