Snap On Incorporated : Q1 2026 Slides

Published: 2026-04-23 06:37:08 ET SNA

Published on 04/23/2026 at 06:37 am EDT

‌Quarterly Financial Review

Q1-2026 Quarterly Review

‌2

These slides should be read in conjunction with comments from the April 23, 2026 conference call. The financial statement information included herein is unaudited.

Statements made during the April 23, 2026 conference call and/or information included in this presentation may contain statements, including earnings projections, that are forward-looking in nature and, accordingly, are subject to risks and uncertainties regarding Snap-on's expected results; actual results may differ materially from those described or contemplated in these forward-looking statements. Factors that may cause actual results to differ materially from those contained in the forward-looking statements, including those found in Snap-on's reports filed with the Securities and Exchange Commission, and the information under "Safe Harbor" and "Risk Factors" headings in its most recent Annual Report on Form 10-K, which are incorporated herein by reference. Snap-on disclaims any responsibility to update any forward-looking statement provided during the April 23, 2026 conference call and/or included in this presentation, except as required by law.

This presentation includes certain non-GAAP measures of financial performance, which are not meant to be considered in isolation or as a substitute for their GAAP counterparts. Additional information regarding these non-GAAP measures is included in Snap-on's April 23, 2026 press release and Form 8-K, which can be found on the company's website in the investors section at https://www.snapon.com.

Q1-2026 Quarterly Review

‌Nick Pinchuk

Q1-2026 Quarterly Review

‌Aldo Pagliari

Q1-2026 Quarterly Review

($ in millions, except per share data - unaudited)

Q1 2026

Q1 2025

Change

Net sales

$ 1,207.2

$ 1,141.1

5.8 %

39.2

3.4 %

26.9

2.4 %

Gross profit

$ 608.3

50.4 %

$ 578.5

50.7 %

Operating expenses

357.5

29.6 %

335.4

29.4 %

Operating earnings before financial services

$ 250.8

20.8 %

$ 243.1

21.3 %

3.2 %

Financial services revenue

$ 101.1

$ 102.1

(1.0)%

Financial services operating earnings

68.0

70.3

(3.3)%

Operating earnings

$ 318.8

24.4 %

$ 313.4

25.2 %

1.7 %

Diluted EPS - as reported

$ 4.69

$ 4.51

4.0 %

Organic sales

Currency translation

Net sales of $1,207.2 million in the first quarter of 2026 represented an increase of $66.1 million, or 5.8%, from 2025 levels, reflecting a $39.2 million, or 3.4%, organic gain and $26.9 million of favorable foreign currency translation

Gross margin decreased 30 basis points ("bps") to 50.4% from 50.7% last year primarily reflecting 40 bps of unfavorable foreign currency effects

Operating expenses as a percentage of net sales rose 20 bps from last year primarily reflecting increased personnel costs and expanded technology investments, partially offset by the favorable effects of sales volume

As a percentage of net sales, operating earnings before financial services were 20.8% including 40 bps of unfavorable foreign currency effects and compared to 21.3% last year

($ in millions - unaudited)

Q1 2026

Q1 2025

Change

Segment sales

Organic sales

Currency translation

$ 381.0

25.2

11.9

$ 343.9

10.8 %

7.1 %

3.7 %

Gross profit

% of sales

$ 153.6

40.3 %

$ 146.5

42.6 %

Operating expenses

% of sales

$ 98.7

25.9 %

$ 93.3

27.1 %

Operating earnings

% of sales

$ 54.9

14.4 %

$ 53.2

15.5 %

(110) bps

Organic sales increase of $25.2 million, or 7.1%, reflects gains in each of the segment's operations, including a high single-digit improvement with customers in critical industries and a double-digit rise in the specialty torque business

Gross margin 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

Operating expenses as a percentage of net sales improved 120 bps from 2025 primarily reflecting the higher sales volumes

Operating earnings of $54.9 million compared to $53.2 million in 2025; the operating margin of 14.4%, including 50 bps of unfavorable foreign currency effects, compared to 15.5% last year

($ in millions - unaudited)

Q1 2026

Q1 2025

Change

Segment sales

$ 486.0

$ 462.9

5.0 %

15.9

3.4 %

7.2

1.6 %

Gross profit

$ 231.6

$ 214.5

% of sales

47.7 %

46.3 %

Operating expenses

$ 126.6

$ 122.1

% of sales

26.1 %

26.3 %

Operating earnings

$ 105.0

$ 92.4

% of sales

21.6 %

20.0 %

160 bps

Organic sales

Currency translation

Organic sales rise of $15.9 million, or 3.4%, was due to low single-digit gains both in the U.S. and in the segment's international operations

Gross margin improved 140 bps from last year primarily due to the increased sales and savings from the segment's RCI initiatives, partially offset by higher material and other costs

Operating expenses as a percentage of net sales improved 20 bps from 2025 primarily reflecting the higher sales volumes

Operating earnings of $105.0 million compared to $92.4 million in 2025; the operating margin of 21.6% compared to 20.0% last year

($ in millions - unaudited)

Q1 2026

Q1 2025

Change

Segment sales

$ 485.3

$ 475.9

2.0 %

0.3

0.1 %

9.1

1.9 %

Gross profit

$ 223.1

$ 217.5

% of sales

46.0 %

45.7 %

Operating expenses

$ 103.6

$ 95.4

% of sales

21.4 %

20.0 %

Operating earnings

$ 119.5

$ 122.1

% of sales

24.6 %

25.7 %

(110) bps

Organic sales

Currency translation

On an organic basis, a low single-digit increase in sales of diagnostic and repair information products to independent repair shop owners and managers was offset by lower activity with OEM dealerships, while sales of undercar equipment were essentially flat

Gross margin improved 30 bps from last year primarily reflecting favorable business mix and savings from the segment's RCI initiatives, partially offset by higher tariffs and material costs, and 40 bps of unfavorable foreign currency effects

Operating expenses as a percentage of net sales increased 140 bps from 2025 primarily due to expanded technology investments and higher personnel costs, as well as 20 bps of unfavorable foreign currency effects

Operating earnings of $119.5 million compared to $122.1 million in 2025; the operating margin of 24.6%, including 60 bps of unfavorable foreign currency effects, compared to 25.7% last year

($ in millions - unaudited)

Q1 2026

Q1 2025

Change

Segment revenue

$ 101.1

$ 102.1

(1.0)%

Operating earnings

$ 68.0

$ 70.3

(3.3)%

Originations

$ 264.6

$ 268.7

(1.5)%

Originations decreased $4.1 million or 1.5%

Average yield on finance receivables was 17.6% in both periods

Average yield on contract receivables was 9.1% in both periods

($ in millions - unaudited)

United States

International

Extended Credit

Total

Extended Credit

Total

Gross finance portfolio

$ 1,690.2

$ 2,127.0

$ 254.7

$ 357.6

Portfolio net losses (TTM)

$ 68.0

$ 70.0

$ 4.9

$ 5.7

60+ Delinquency: As of 03/31/26 As of 12/31/25 As of 09/30/25 As of 06/30/25 As of 03/31/25

1.9 %

2.1 %

2.0 %

1.8 %

2.0 %

1.5 %

1.7 %

1.5 %

1.6 %

1.0 %

1.1 %

0.9 %

1.0 %

Gross finance portfolio of $2,484.6 million as of Q1 2026

Compares to $2,509.5 million as of Q4 2025

TTM - Trailing twelve months

($ in millions - unaudited)

First Quarter

2026

2025

Net cash provided by operating activities

$ 368.7

253.5

25.0

3.8

15.3

42.2

28.9

$ 298.5

246.7

24.0

3.7

(17.9)

20.0

22.0

Net increase in finance receivables

$ (2.5)

$ (8.2)

Capital expenditures

$ (21.2)

$ (22.9)

Free cash flow

$ 345.0

$ 267.4

Free cash flow from Operations

$ 284.1

$ 203.4

Free cash flow from Financial Services

$ 60.9

$ 64.0

Increase in cash

$ 128.8

$ 74.4

Net earnings

Depreciation and amortization

Changes in deferred income taxes

Changes in working investment

Changes in accrued and other liabilities

Changes in all other operating activities

Changes in working investment - Net changes in trade and other accounts receivable, inventories and accounts payable

Free cash flow - Net cash provided by operating activities less net change in finance receivables and capital expenditures

Free cash flow from Operations - Net cash provided by operating activities, exclusive of financial services, less capital expenditures

Free cash flow from Financial Services - Net cash provided by financial services operating activities, less net change in finance receivables and capital expenditures

($ in millions - unaudited)

April 4,

2026

January 3,

2026

Trade & Other Accounts Receivable - net Days Sales Outstanding

$ 890.7

$ 881.4

Finance Receivables - net Contract Receivables - net

$ 1,871.5

$ 545.0

$ 1,889.0

$ 553.1

Inventories - net Inventory turns - TTM

$ 1,020.5

2.4

$ 1,025.2

2.4

Cash Total debt Net debt

Net debt to capital ratio

$ 1,753.3

$ 1,203.1

$ (550.2)

(10.2)%

$ 1,624.5

$ 1,202.6

$ (421.9)

(7.7)%

Disclaimer

Snap On Inc. published this content on April 23, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 23, 2026 at 10:36 UTC.