Company Overview - Snap-On (SNA) is based in Kenosha and operates in the Consumer Discretionary sector, with a year-to-date share price change of -1.59% [3] - The company currently pays a dividend of $2.14 per share, resulting in a dividend yield of 2.56%, which is higher than the Tools - Handheld industry's yield of 1.76% and the S&P 500's yield of 1.55% [3] Dividend Performance - Snap-On's annualized dividend of $8.56 has increased by 10.9% from the previous year, with the company raising its dividend five times over the last five years, averaging an annual increase of 14.76% [4] - The current payout ratio for Snap-On is 45%, indicating that the company distributes 45% of its trailing 12-month earnings per share as dividends [4] Earnings Outlook - The Zacks Consensus Estimate for Snap-On's earnings in 2025 is projected at $19.76 per share, reflecting a year-over-year growth rate of 1.28% [5] Investment Considerations - Snap-On is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7]

Core Insights - Snap-on Incorporated (SNA) is performing well due to effective business strategies and value-creation processes, particularly through Rapid Continuous Improvement (RCI) initiatives [1][2] Business Strategy and Growth - The company is enhancing its franchise network and improving relationships with repair shop owners while expanding into critical industries in emerging markets [2] - RCI aims to enhance organizational effectiveness, reduce costs, and boost sales and margins through continuous productivity and process improvements [3] - Snap-on is focused on customer connection and innovation, with expectations of a strong vehicle repair market [4] Product Development - The specialty torque business is progressing well, with new products like the CTM 800 heavy-duty cordless torque multiplier, which delivers torque from 160 footpounds [5] - The CTM 800 is designed for versatility, safety, access, durability, and precision, which is expected to bolster sales and profits [5] Challenges and Risks - Snap-on faces macroeconomic headwinds, including geographic challenges in critical industries, with weak performance noted in China [6] - Rising cost inflation from higher raw material expenses and increased operating expenses, which rose 3.5% year over year, is impacting performance [7] Stock Valuation - Snap-on stock is currently trading at a price/earnings ratio of 16.97 on a forward 12-month basis, slightly lower than the industry average of 17.26 and below its five-year high of 18.63 [8] Future Outlook - Management anticipates resilience in markets and operations, with continued progress expected in the automotive repair sector and expansion across geographies [10] - The Zacks Consensus Estimate for SNA's 2025 sales and earnings per share (EPS) indicates a rise of 2.9% and 1.4% year over year, respectively, with further growth expected in 2026 [11]

Core Viewpoint - Snap-on Incorporated (SNA) has demonstrated strong stock performance, with a 30.1% gain over the past year, outperforming the Consumer Discretionary sector and the S&P 500 index [1] Group 1: Stock Performance - Snap-on stock is currently priced at $338.92, which is a 9.4% discount from its 52-week high of $373.90 and a 34% premium to its 52-week low [2] - The stock is trading at a price/earnings ratio of 16.97 on a forward 12-month basis, lower than the industry average of 17.26 and its five-year high of 18.63 [10] Group 2: Growth Strategies - The company is enhancing its franchise network and relationships with repair shop owners while expanding into critical industries in emerging markets [3] - Snap-on's Rapid Continuous Improvement (RCI) process aims to enhance organizational effectiveness, reduce costs, and boost sales and margins [4] - Management expects the vehicle repair market to remain strong, supported by innovative hardware and a proprietary comprehensive database [5] Group 3: Product Development and Market Position - Snap-on has launched a new lineup of hand tools aimed at improving customer connection, with encouraging sales in the specialty torque business and activities in aviation and general industries [6] - The company's robust business model enhances value-creation processes, improving safety, service quality, customer satisfaction, and innovation [6] Group 4: Challenges and Outlook - Snap-on faces macroeconomic headwinds, including geographic challenges and weak performance in China, which may impact overall performance [8] - Rising cost inflation and increased operating expenses, which rose 3.5% year over year, are additional challenges [9] - Management anticipates resilience in markets and operations, with continued progress expected in the automotive repair sector and expansion across geographies [11] Group 5: Financial Projections - The Zacks Consensus Estimate for SNA's 2025 sales and earnings per share (EPS) indicates a rise of 2.9% and 1.4% year over year, respectively [12] - For 2026, the consensus estimates imply a jump of 4% in sales and 6.8% in EPS year over year, reflecting analysts' confidence in the stock [12]

Core Insights - Snap-On's international operations are crucial for assessing its financial resilience and growth prospects, especially in the context of a global economic landscape [1][2][3] Revenue Performance - For the quarter ended December 2024, Snap-On reported total revenue of $1.2 billion, reflecting a year-over-year increase of 0.2% [4] - European revenue accounted for 15.51% of total revenue, amounting to $185.9 million, which was a surprise increase of 3.2% compared to Wall Street's expectation of $180.14 million [5] - Other International revenue contributed $115.6 million, or 9.64% of total revenue, which was below the consensus estimate of $118.23 million, representing a surprise decrease of 2.22% [6] Future Projections - Analysts project Snap-On's total revenue for the current fiscal quarter to be $1.2 billion, indicating a 1.7% increase from the previous year, with Europe and Other International expected to contribute $184.14 million (15.3%) and $121.38 million (10.1%) respectively [7] - For the full year, total revenue is expected to reach $4.85 billion, a 3% increase from the prior year, with Europe and Other International projected to contribute $757.97 million (15.6%) and $499.94 million (10.3%) respectively [8] Strategic Considerations - Snap-On's reliance on international markets presents both opportunities and challenges, making it essential to monitor international revenue trends for accurate future projections [9][10]

[Business Overview](index=4&type=section&id=Item%201%3A%20Business) Snap-on is a global provider of tools, equipment, and diagnostics, focusing on strategic growth and operational efficiency through its Value Creation Processes [Company Overview and Strategy](index=4&type=section&id=Company%20Overview%20and%20Strategy) Snap-on, founded in 1920, is a global manufacturer of tools and diagnostics, strategically expanding its customer base and enhancing efficiency through its Value Creation Processes - Snap-on is a leading global provider of tools, equipment, diagnostics, and repair solutions for professional users in sectors like vehicle repair, aerospace, military, and manufacturing[17](index=17&type=chunk) - The company's core strategies include "coherent growth" to expand its customer base and the "Value Creation Processes" (including RCI) to drive efficiency and operational improvements[19](index=19&type=chunk) - Primary customer segments include commercial/industrial professionals, vehicle repair technicians (served via mobile vans), and owners/managers of repair shops and OEM dealerships[20](index=20&type=chunk) [Operating Segments](index=5&type=section&id=Operating%20Segments) Snap-on operates through four segments: Commercial & Industrial, Snap-on Tools, Repair Systems & Information, and Financial Services, with performance evaluated by net sales and operating earnings - The company's four reportable operating segments are: Commercial & Industrial Group, Snap-on Tools Group, Repair Systems & Information Group, and Financial Services[23](index=23&type=chunk) - Performance for the three main operating groups is measured by segment net sales and operating earnings, while Financial Services is evaluated on its revenue and operating earnings[24](index=24&type=chunk) [Products and Services](index=6&type=section&id=Products%20and%20Services) The company's offerings are categorized into Tools, Diagnostics/Information/Management Systems, and Equipment, marketed under various well-known brands, with Tools being the largest category by net sales Consolidated Net Sales by Product Category (2022-2024) | Product Category | 2024 Net Sales (in millions) | 2023 Net Sales (in millions) | 2022 Net Sales (in millions) | | :--- | :--- | :--- | :--- | | Tools | $2,546.2 | $2,528.9 | $2,399.4 | | Diagnostics, information and management systems | $1,028.1 | $991.2 | $942.4 | | Equipment | $1,133.1 | $1,210.1 | $1,151.0 | | **Total** | **$4,707.4** | **$4,730.2** | **$4,492.8** | - The **Tools** category includes hand tools, power tools, and tool storage[29](index=29&type=chunk) - **Diagnostics, information and management systems** include diagnostic products, repair information, and business management systems[30](index=30&type=chunk) - **Equipment** includes solutions like wheel alignment, vehicle lifts, and collision repair equipment[31](index=31&type=chunk) - The company markets its products under a wide range of well-known brand names, including Snap-on, BAHCO, Blue-Point, Car-O-Liner, Mitchell1, and Sun[34](index=34&type=chunk) [Markets and Distribution Channels](index=8&type=section&id=Markets%20and%20Distribution%20Channels) Snap-on serves vehicle service and industrial markets through diverse channels, prominently featuring its mobile van franchise network, alongside direct sales, independent distributors, and e-commerce - The two largest market sectors are the vehicle service and repair sector and the industrial sector[37](index=37&type=chunk) - Key distribution channels include the mobile van franchise network, company direct sales, independent distributors, and e-commerce[43](index=43&type=chunk) - As of fiscal year-end 2024, the company had approximately **4,700 total routes**, including about **3,400 in the United States**[47](index=47&type=chunk) - Franchise fee revenue, including initial and ongoing monthly fees, totaled **$19.4 million in fiscal 2024**, up from **$18.7 million in 2023**[45](index=45&type=chunk) [Human Capital and ESG](index=11&type=section&id=Human%20Capital%20and%20ESG) Snap-on employed 13,000 people globally in 2024, prioritizing workplace safety and reporting 89,085 metric tons of Scope 1 and 2 GHG emissions, with ESG strategy overseen by the Board - The company employed approximately **13,000 people globally** as of year-end 2024, with **7,300 in the U.S.** and **5,700 internationally**[68](index=68&type=chunk) - In 2024, the company's total Scope 1 and Scope 2 GHG emissions were **89,085 metric tons of CO2e**, with an intensity of **18.9 metric tons per million dollars of net sales**[71](index=71&type=chunk) - The overall safety incident rate for 2024 was **1.08** (number of injuries and illnesses multiplied by 200,000, divided by hours worked)[73](index=73&type=chunk) [Risk Factors](index=13&type=section&id=Item%201A%3A%20Risk%20Factors) The company faces various business, operational, financial, market, legal, regulatory, and cybersecurity risks that could impact its performance [Business and Operational Risks](index=13&type=section&id=Business%20and%20Operational%20Risks) Business and operational risks include dependence on the vehicle repair market and franchisee success, intense competition, new product introduction challenges, manufacturing disruptions, and raw material price volatility - The Snap-on Tools Group, which relies on the company's franchisee network, accounted for approximately **39% of consolidated net revenues in 2024**, making franchisee success critical[81](index=81&type=chunk) - The company's ability to compete depends on its continuous introduction of new products that respond to customer needs and technological changes, such as emerging vehicle drivetrains and ADAS[80](index=80&type=chunk)[84](index=84&type=chunk) - Risks exist from potential disruptions in manufacturing operations and supply chain inefficiencies, including price inflation and shortages of key raw materials like specialized steel alloys and electronic components[90](index=90&type=chunk)[91](index=91&type=chunk) - Failure to protect intellectual property or claims of infringement could adversely affect the business[85](index=85&type=chunk) - The company faces strong competition across all market segments[86](index=86&type=chunk) [Financial and Market Risks](index=17&type=section&id=Financial%20and%20Market%20Risks) Financial and market risks encompass competitive financing, customer credit risk, foreign currency fluctuations, goodwill impairment, credit market volatility, and pension plan asset and obligation volatility - Approximately **29% of revenues in 2024** were generated outside the United States, exposing the company to foreign currency, political, and economic risks[87](index=87&type=chunk) - The company's ability to offer competitive financing is a key component of its business, and an inability to do so could adversely impact operating results[103](index=103&type=chunk)[104](index=104&type=chunk) - A substantial amount of goodwill and intangible assets, primarily in the Commercial & Industrial and Repair Systems & Information groups, is subject to impairment risk if market conditions deteriorate[114](index=114&type=chunk)[115](index=115&type=chunk) - The company is exposed to risks from its defined benefit pension plans, where poor investment returns or changes in interest rates could require additional cash contributions and impact financial results[110](index=110&type=chunk)[111](index=111&type=chunk) [Legal, Regulatory, and Cybersecurity Risks](index=16&type=section&id=Legal%2C%20Regulatory%2C%20and%20Cybersecurity%20Risks) Legal, regulatory, and cybersecurity risks include compliance with financial services and environmental regulations, product liability claims, and the critical need to protect IT infrastructure from cyber threats - The company depends heavily on its IT infrastructure and is susceptible to cyber attacks[95](index=95&type=chunk) - A 2022 cyber incident was managed without significant impact, but future events remain a risk[97](index=97&type=chunk) - The business is subject to complex regulations, including those for financial services, franchisee classification, and increasing sustainability/climate change disclosure requirements, which could increase compliance costs[119](index=119&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk) - The company faces risks from product liability claims, litigation, and potential costs related to environmental liabilities and compliance with health and safety regulations[126](index=126&type=chunk)[127](index=127&type=chunk)[129](index=129&type=chunk) [Management's Discussion and Analysis (MD&A)](index=28&type=section&id=Item%207%3A%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition, results of operations, liquidity, capital resources, and critical accounting policies [Results of Operations (2024 vs. 2023)](index=32&type=section&id=Results%20of%20Operations%20%282024%20vs.%202023%29) In fiscal 2024, net sales decreased by 0.5% to $4.71 billion, while operating earnings and net earnings attributable to Snap-on increased, partly due to a legal payment benefit Consolidated Results of Operations (2024 vs. 2023) | (Amounts in millions, except per share data) | 2024 | 2023 | Change (%) | | :--- | :--- | :--- | :--- | | Net sales | $4,707.4 | $4,730.2 | (0.5)% | | Gross profit | $2,377.9 | $2,349.1 | 1.2% | | Gross Margin | 50.5% | 49.7% | +80 bps | | Operating earnings | $1,345.7 | $1,310.4 | 2.7% | | Net earnings attributable to Snap-on Inc. | $1,043.9 | $1,011.1 | 3.2% | | Diluted EPS | $19.51 | $18.76 | 4.0% | - The **0.5% decrease in net sales** was due to a **$40.6 million (0.9%) organic decline** and **$5.5 million of unfavorable currency translation**, partially offset by **$23.3 million from acquisitions**[168](index=168&type=chunk)[185](index=185&type=chunk) - Gross margin improved by **80 bps to 50.5%**, primarily due to benefits from RCI initiatives, a favorable sales mix towards higher-margin businesses, and lower material costs[186](index=186&type=chunk) - Operating earnings included a **$22.5 million benefit from legal payments**, and net earnings included a **$17.5 million after-tax benefit ($0.32 per diluted share)** from these payments[169](index=169&type=chunk)[171](index=171&type=chunk) [Segment Performance (Full Year)](index=33&type=section&id=Segment%20Performance%20%28Full%20Year%29) In 2024, Commercial & Industrial and Repair Systems & Information segments achieved organic sales growth, while Snap-on Tools Group experienced a decline, and Financial Services saw revenue and earnings increases Segment Performance Summary (2024 vs. 2023) | Segment | 2024 Net Sales (in millions) | YoY Change | Organic Change | 2024 Operating Earnings (in millions) | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Commercial & Industrial | $1,476.8 | 1.3% | 0.1% | $242.1 | 7.1% | | Snap-on Tools Group | $1,989.2 | (4.8)% | (4.8)% | $447.3 | (9.4)% | | Repair Systems & Information | $1,797.9 | 0.9% | 1.0% | $455.2 | 5.1% | | Financial Services (Revenue) | $401.0 | 6.1% | N/A | $276.9 | 2.4% | - **Commercial & Industrial:** Organic growth was driven by a mid single-digit gain in critical industries, offset by declines in power tools and European hand tools[173](index=173&type=chunk)[196](index=196&type=chunk) - **Snap-on Tools Group:** The organic decline was due to a mid single-digit decrease in the U.S., partially offset by a low single-digit gain internationally[174](index=174&type=chunk)[200](index=200&type=chunk) - **Repair Systems & Information:** Organic growth was led by a mid single-digit increase with OEM dealerships, partly offset by lower sales of undercar equipment[175](index=175&type=chunk)[202](index=202&type=chunk) - **Financial Services:** Originations decreased **4.3% to $1,182.9 million**[179](index=179&type=chunk) - The increase in operating earnings was modest due to higher provisions for credit losses[207](index=207&type=chunk) [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) Snap-on maintained strong liquidity in 2024 with increased cash and robust operating cash flow, continuing its capital allocation strategy through expenditures, dividends, and share repurchases Key Cash Flow Data (2024 vs. 2023) | (Amounts in millions) | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,217.5 | $1,154.2 | | Capital expenditures | ($83.5) | ($95.0) | | Cash dividends paid | ($406.4) | ($355.6) | | Purchases of treasury stock | ($290.0) | ($294.7) | | **Increase in cash and cash equivalents** | **$359.0** | **$244.3** | - Working capital increased to **$3,027.9 million** from **$2,710.4 million** at 2023 year-end, primarily due to an increase in cash and cash equivalents[246](index=246&type=chunk) - The company has a **$900 million multicurrency revolving credit facility**, which was undrawn as of year-end 2024[256](index=256&type=chunk) - The company was in compliance with all debt covenants[259](index=259&type=chunk) - On November 8, 2024, the Board increased the quarterly cash dividend by **15.1% to $2.14 per share**[269](index=269&type=chunk) - Snap-on has paid consecutive quarterly dividends since 1939[269](index=269&type=chunk) [Critical Accounting Policies and Estimates](index=48&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Management's critical accounting policies involve significant judgment in estimating allowances for credit losses, goodwill impairment, and pension benefits, which can materially impact financial results - **Allowance for Credit Losses:** Management estimates expected losses on its finance receivables portfolio[280](index=280&type=chunk) - A hypothetical **100 bps increase** in the allowance ratio as of Dec 28, 2024, would have increased the provision for credit losses by approximately **$20.0 million**[281](index=281&type=chunk) - **Goodwill Impairment:** Goodwill is tested annually using a discounted cash flow approach[282](index=282&type=chunk) - The 2024 test resulted in no impairment[287](index=287&type=chunk) - A sensitivity analysis showed that a hypothetical **10% decrease** in the fair value of each of the 11 reporting units would not have resulted in impairment[287](index=287&type=chunk) - **Pension Benefits:** Key assumptions include the expected return on plan assets (**7.5% for U.S. plans in 2025**) and the discount rate (**5.6% for U.S. plans at year-end 2024**)[288](index=288&type=chunk)[290](index=290&type=chunk) - Changes in these assumptions can significantly impact pension expense and obligations[293](index=293&type=chunk) [Outlook](index=51&type=section&id=Outlook) For fiscal 2025, Snap-on anticipates continued progress on strategic growth initiatives, projecting approximately $100 million in capital expenditures and an effective income tax rate of 22% to 23% - Projected capital expenditures for 2025 are approximately **$100 million**[297](index=297&type=chunk) - The anticipated full-year 2025 effective income tax rate is expected to be in the range of **22% to 23%**[298](index=298&type=chunk) [Financial Statements and Supplementary Data](index=54&type=section&id=Item%208%3A%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's consolidated financial statements, including earnings, balance sheet, and cash flow data, along with detailed notes on revenue recognition, receivables, and segment performance [Consolidated Financial Statements](index=64&type=section&id=Consolidated%20Financial%20Statements) The 2024 consolidated financial statements report $4.71 billion in net sales, $1.04 billion in net earnings, $7.90 billion in total assets, and $1.22 billion in operating cash flow Consolidated Statement of Earnings (in millions) | | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Net sales | $4,707.4 | $4,730.2 | $4,492.8 | | Gross profit | $2,377.9 | $2,349.1 | $2,181.1 | | Operating earnings | $1,345.7 | $1,310.4 | $1,207.2 | | Net earnings attributable to Snap-on | $1,043.9 | $1,011.1 | $911.7 | Consolidated Balance Sheet (in millions) | | 2024 | 2023 | | :--- | :--- | :--- | | Total current assets | $3,989.4 | $3,652.0 | | Total assets | $7,896.8 | $7,544.9 | | Total current liabilities | $961.5 | $941.6 | | Total liabilities | $2,479.8 | $2,451.5 | | Total equity | $5,417.0 | $5,093.4 | Consolidated Statement of Cash Flows (in millions) | | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $1,217.5 | $1,154.2 | $675.2 | | Net cash used by investing activities | ($204.1) | ($331.8) | ($206.2) | | Net cash used by financing activities | ($649.8) | ($572.9) | ($485.0) | | Increase (decrease) in cash | $359.0 | $244.3 | ($22.8) | [Note 2: Revenue Recognition](index=73&type=section&id=Note%202%3A%20Revenue%20Recognition) In 2024, total revenues were $5.11 billion, with North America and vehicle service professionals being the largest contributors, and most sales recognized at a point in time External Net Sales by Geography (2024) | Geography | External Net Sales (in millions) | | :--- | :--- | | North America | $3,519.4 | | Europe | $722.3 | | All other | $465.7 | | **Total** | **$4,707.4** | External Net Sales by Customer Type (2024) | Customer Type | External Net Sales (in millions) | | :--- | :--- | | Vehicle service professionals | $3,602.4 | | All other professionals | $1,105.0 | | **Total** | **$4,707.4** | [Note 4: Receivables](index=77&type=section&id=Note%204%3A%20Receivables) Total net finance and contract receivables increased to $2.46 billion in 2024, with the allowance for credit losses rising to $72.4 million and delinquent receivables at $68.1 million Rollforward of Allowance for Credit Losses - Finance Receivables (in millions) | | 2024 | 2023 | | :--- | :--- | :--- | | Beginning of year | $67.8 | $60.9 | | Provision for credit losses | $71.1 | $57.2 | | Charge-offs | ($75.6) | ($58.8) | | Recoveries | $9.3 | $8.4 | | **End of year** | **$72.4** | **$67.8** | - Finance receivables are generally written off when an account becomes **120 days past due**, absent a repossession[408](index=408&type=chunk)[455](index=455&type=chunk) - As of year-end 2024, total finance receivables past due were **$68.1 million**, compared to **$58.3 million** at year-end 2023[462](index=462&type=chunk) [Note 19: Segments](index=112&type=section&id=Note%2019%3A%20Segments) Segment data for 2024 shows Snap-on Tools Group as the largest by external sales, Repair Systems & Information as most profitable, and the United States as the primary revenue contributor Financial Data by Segment - 2024 (in millions) | Segment | External Net Sales | Segment Operating Earnings | Total Assets | | :--- | :--- | :--- | :--- | | Commercial & Industrial | $1,187.6 | $242.1 | $1,230.8 | | Snap-on Tools Group | $1,989.2 | $447.3 | $937.5 | | Repair Systems & Information | $1,530.6 | $455.2 | $1,695.5 | | Financial Services | N/A (Revenue: $401.0) | $276.9 | $2,491.9 | Capital Expenditures by Segment - 2024 (in millions) | Segment | Capital Expenditures | | :--- | :--- | | Commercial & Industrial Group | $19.4 | | Snap-on Tools Group | $39.6 | | Repair Systems & Information Group | $22.2 | | Financial Services | $0.6 | | Corporate | $1.7 | | **Total** | **$83.5** | [Shareholder and Market Information](index=25&type=section&id=Item%205%3A%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) This section details the market for the company's common equity, related stockholder matters, and issuer purchases of equity securities [Issuer Purchases of Equity Securities](index=25&type=section&id=Issuer%20Purchases%20of%20Equity%20Securities) In Q4 2024, Snap-on repurchased 315,000 shares for $110.6 million at an average price of $351.04, with $429.4 million remaining under authorized repurchase programs Share Repurchases - Q4 2024 | Period | Shares Purchased | Average Price per Share | | :--- | :--- | :--- | | 09/29/24 to 10/26/24 | 21,000 | $324.26 | | 10/27/24 to 11/23/24 | 157,000 | $350.74 | | 11/24/24 to 12/28/24 | 137,000 | $355.49 | | **Total** | **315,000** | **$351.04** | - As of December 28, 2024, approximately **$429.4 million** remained available for repurchase under outstanding Board authorizations, including the **$500 million authorization from August 2024**[148](index=148&type=chunk)[149](index=149&type=chunk)

Group 1 - The article highlights the positive investment decision of purchasing Snap-on (NYSE: SNA) shares, indicating it as one of the best career choices for building a diversified retirement portfolio [1] - The author emphasizes a long-term investment strategy and expresses a strong interest in discussing investments, showcasing a commitment to research and analysis [1] - The article reflects a personal opinion on investment without constituting professional investment advice, stressing the importance of due diligence by readers [1] Group 2 - The disclosure mentions that the author holds a beneficial long position in Snap-on shares, indicating confidence in the company's performance [1] - The article does not provide any specific financial metrics or performance data related to Snap-on or the broader industry [2]

Core Insights - Snap-on Inc. reported fourth-quarter 2024 results with revenues and earnings exceeding Zacks Consensus Estimates, showing year-over-year growth driven by operations in critical industries and repair shop owners [1][2][4] Financial Performance - Earnings per share reached $4.82, surpassing the Zacks Consensus Estimate of $4.80, and improved by 1.5% from $4.75 in the same quarter last year [2] - Net sales increased by 0.2% year over year to $1.199 billion, exceeding the Zacks Consensus Estimate of $1.189 billion, attributed to a 0.2% rise in organic sales and $2.1 million from acquisitions, partially offset by $2 million from unfavorable foreign currency translation [4] - Gross profit rose 3.2% year over year to $596.1 million, with gross margin expanding by 140 basis points to 49.7%, compared to an expected gross margin of 49.1% [5] - Operating earnings before financial services totaled $265.2 million, up 2.8% year over year, with operating earnings as a percentage of sales expanding by 50 basis points to 22.1% [6] - Consolidated operating earnings, including financial services, were $331.9 million, reflecting a 1.9% year-over-year increase, with operating earnings as a percentage of sales expanding by 30 basis points to 25.5% [8] Segment Analysis - Sales in the Commercial & Industrial Group improved by 4.2% year over year to $379.2 million, driven by a 3.9% rise in organic sales [9] - The Tools Group segment experienced a sales decline of 1.3% year over year to $506.6 million, primarily due to a 1.4% drop in organic sales, offset by a $0.6 million positive impact from foreign currency [10] - Sales in the Repair Systems & Information Group increased by 1.3% year over year to $456.6 million, with organic sales growth of 1.6% [11] - The Financial Services business saw revenues rise by 3.4% year over year to $100.5 million [12] Financial Snapshot - Snap-on ended 2024 with cash and cash equivalents of $1.36 billion and shareholders' equity of $5.4 billion, with a projected capital expenditure of $100 million for 2025 [13] Future Outlook - Management anticipates resilience in markets and operations against uncertainties, expecting progress in 2025 by leveraging capabilities in automotive repair and expanding the customer base [14]

Financial Data and Key Metrics Changes - Overall sales for Q4 2024 were $1,198.7 million, up 0.2% both as reported and organically, marking a return to positive territory [9][50] - Gross margin improved to 49.7%, an increase of 140 basis points from 48.3% last year [10][51] - Operating income (OpCo OI) margin reached 22.1%, up 50 basis points, representing an all-time high for the fourth quarter [10][48] - Earnings per share (EPS) for the quarter was $4.82, up from $4.75 recorded last year [10][53] Business Line Data and Key Metrics Changes - **Commercial and Industrial (C&I)**: Sales of $379.2 million, up 3.9% organically, with operating earnings of $63.5 million, an increase of 17.4% [26][56] - **Tools Group**: Quarterly sales of $506.6 million, down 1.4% organically, with operating earnings of $106.9 million, down 4.1% [32][58] - **Repair System Information (RS&I)**: Sales of $456.6 million, up 1.6% organically, with operating earnings of $121.4 million, an increase of 7.1% [40][62] Market Data and Key Metrics Changes - The vehicle repair market remains robust, driven by the increasing complexity of modern vehicles and an aging car park averaging 12.6 years [12][13] - Sales in critical industries showed positive trends, with gains in aviation and general industries, although mixed results were noted across different regions [21][22] Company Strategy and Development Direction - The company is focused on leveraging its Snap-on value creation process, emphasizing safety, quality, customer protection, innovation, and rapid continuous improvement [24][78] - There is a strategic pivot towards quick payback items in response to customer preferences, particularly in the Tools Group [19][32] - The company aims to expand its position in the vehicle repair market by enhancing its product offerings and maintaining strong customer connections [24][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the vehicle repair market despite ongoing macroeconomic uncertainties [7][74] - The company anticipates continued growth opportunities in both auto repair and critical industries, supported by innovative product development [23][76] - Management highlighted the importance of adapting to customer preferences and maintaining operational strength amid market turbulence [19][34] Other Important Information - Financial services revenue increased to $100.5 million, up 3.4% from the previous year, although operating earnings in this segment decreased slightly [63] - The company reported a year-end cash position of $1.36 billion, reflecting strong cash flow from operations [69] Q&A Session Summary Question: Can you discuss the confidence at the shop level? - Management noted that while confidence in vehicle repair remains high, technicians are cautious due to cash flow concerns and macroeconomic uncertainties [86][90] Question: Are you fully pivoted in making the products you want? - Management indicated progress in the pivot, with a narrowing gap in sales decline, suggesting a positive trajectory [95][96] Question: Can you provide external sales figures for C&I and RS&I? - External sales for RS&I were noted to be stronger, while C&I external sales were approximately half of RS&I's figures [100][101] Question: What is driving the decline in originations? - The decline is primarily attributed to lower sales of big-ticket items, particularly tool storage, as customers prefer quick payback items [106][110] Question: Can you elaborate on the strength in specialty torque? - Management confirmed that specialty torque is a focus area for investment and growth, with recent acquisitions supporting this strategy [115][116]

Snap-On (SNA) came out with quarterly earnings of $4.82 per share, beating the Zacks Consensus Estimate of $4.80 per share. This compares to earnings of $4.75 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 0.42%. A quarter ago, it was expected that this tool and diagnostic equipment maker would post earnings of $4.58 per share when it actually produced earnings of $4.70, delivering a surprise of 2.62%.Over the last four quart ...

Exhibit 99 Snap-on Announces Fourth Quarter and Full Year 2024 Results Diluted EPS of $4.82 for the quarter compares to $4.75 in Q4 2023; Operating margin before financial services in Q4 2024 improves 50 basis points to 22.1%; Sales of $1,198.7 million in the quarter compares to $1,196.6 million last year Operating earnings of $63.5 million in the period compared to $54.1 million in 2023. The operating margin (operating earnings as a percentage of segment sales) improved 180 basis points to 16.7% from 14.9% ...