Snap-on(SNA) - 2025 Q1 - Quarterly Results

Financial Performance - Net sales for Q1 2025 were $1,141.1 million, a decrease of$ 41.2 million, or 3.5%, from 2024 levels, with an organic decline of $27.3 million, or 2.3%[4] - Operating earnings before financial services were$ 243.1 million, or 21.3% of net sales, compared to $270.9 million, or 22.9% of net sales in the previous year[4] - Consolidated operating earnings for the quarter were$ 313.4 million, or 25.2% of revenues, down from $339.2 million, or 26.5% of revenues in 2024[4] - Net earnings for the quarter were$ 240.5 million, or $4.51 per diluted share, compared to$ 263.5 million, or $4.91 per diluted share in 2024[4] - Net earnings for the three months ended March 29, 2025, were$ 246.7 million, a decrease of 8.8% compared to $269.6 million for the same period in 2024[24] - Operating earnings before financial services decreased to$ 243.1 million in Q1 2025, down from $270.9 million in Q1 2024, reflecting a decline of 10.3%[29] - The company reported a gross profit of$ 578.5 million for the three months ended March 29, 2025, down from $596.7 million in the same period last year, a decrease of 3.4%[29] Revenue Segments - Financial services revenue increased to$ 102.1 million from $99.6 million in 2024, with operating earnings rising to$ 70.3 million from $68.3 million[4] - The Repair Systems & Information Group segment saw sales increase by$ 12.1 million, or 3.7%, to $475.9 million, driven by higher activity with OEM dealerships[8] - The Snap-on Tools Group segment reported a sales decrease of$ 33.6 million, or 6.8%, to $462.9 million, primarily due to lower activity in the U.S.[7] - Financial services revenue for the three months ended March 29, 2025, was$ 102.1 million, compared to $99.6 million in the same period last year, representing a growth of 2.5%[29] Expenses and Liabilities - Corporate expenses increased to$ 24.6 million from $14.7 million in the previous year, which included a benefit from legal payments[10] - Total current liabilities rose to$ 999.9 million in March 2025, up from $961.5 million in December 2024, indicating an increase of 4.0%[22] - Total liabilities increased to$ 1,303.9 million from $1,270.4 million, marking a growth of 2.6%[32] Assets and Equity - Total assets increased to$ 8,069.0 million in March 2025, up from $7,896.8 million in December 2024, representing a growth of 2.18%[22] - Total current assets grew to$ 3,427.5 million, compared to $3,282.5 million, reflecting a rise of 4.4%[32] - Total shareholders' equity attributable to Snap-on Incorporated increased to$ 5,520.8 million in March 2025, up from $5,394.1 million in December 2024, an increase of 2.34%[22] - Total shareholders' equity attributable to Snap-on reached$ 5,520.8 million, up from $5,394.1 million, showing an increase of 2.3%[32] Cash Flow and Dividends - Cash and cash equivalents at the end of the period increased to$ 1,434.9 million, compared to $1,360.5 million at the beginning of the year, marking a rise of 5.5%[24] - Cash dividends paid increased to$ 112.2 million in Q1 2025, compared to $98.2 million in Q1 2024, reflecting a rise of 14.0%[24] - The company’s net cash provided by operating activities was$ 298.5 million for the three months ended March 29, 2025, down from $348.7 million in the same period in 2024, a decrease of 14.4%[24] Tax and Capital Expenditures - The effective income tax rate for Q1 2025 was 22.2%, consistent with the previous year[4] - The company expects capital expenditures in 2025 to approximate$ 100 million, with $22.9 million incurred in the first quarter[11] Inventory and Receivables - Trade and other accounts receivable – net increased to$ 851.4 million from $815.0 million, a growth of 4.5%[32] - Inventories – net rose to$ 961.2 million, compared to $943.4 million, indicating an increase of 1.8%[32] Other Financial Metrics - Cash and cash equivalents rose to$ 1,434.7 million, up from $1,360.4 million, indicating an increase of 5.4%[32] - Long-term debt and intersegment long-term debt remained stable at approximately$ 2,002.0 million[32] - The company reported a slight increase in accrued benefits to $72.8 million from$ 67.2 million, reflecting an increase of 8.3%[32] - Goodwill increased to $1,077.7 million from$ 1,056.8 million, representing a growth of 2.0%[32]