Snap-on(US:SNA)2026-02-12 22:05Financial Performance - Snap-on's consolidated net sales for 2025 reached $4,743.2 million, a slight increase from $4,730.2 million in 2023[25]. - Consolidated net sales for fiscal 2025 were $4,743.2 million, an increase of $35.8 million, or 0.8%, from 2024, with a $16.5 million, or 0.3%, organic sales gain[157]. - Net earnings attributable to Snap-on were $1,016.9 million, or $19.19 per diluted share, in 2025, down from $1,043.9 million, or $19.51 per diluted share, in 2024[160]. - Operating earnings before financial services were $1,045.9 million in 2025, a decrease from $1,068.8 million in 2024, representing 22.1% of net sales compared to 22.7% the previous year[158]. - Financial services revenue increased to $412.9 million in 2025, up 3.0% from $401.0 million in 2024, with operating earnings from financial services at $281.8 million[166][176]. - Net cash provided by operating activities decreased to $1,081.7 million in 2025 from $1,217.5 million in 2024, a decline of $135.8 million[167]. - Net earnings attributable to Snap-on in Q4 2025 were $260.7 million, or $4.94 per diluted share, compared to $258.1 million, or $4.82 per diluted share, in Q4 2024[210]. Sales by Segment - The Tools product category generated $2,541.9 million in net sales for 2025, while Diagnostics, Information and Management Systems sales were $1,112.2 million, and Equipment sales totaled $1,089.1 million[25]. - The Commercial & Industrial Group reported net sales of $1,457.5 million in 2025, a decrease of $19.3 million, or 1.3%, from 2024 levels[161]. - The Snap-on Tools Group's net sales were $1,964.9 million in 2025, a decrease of $24.3 million, or 1.2%, from 2024[162]. - The Repair Systems & Information Group achieved net sales of $1,877.1 million in 2025, an increase of $79.2 million, or 4.4%, from 2024, with a $70.6 million, or 3.9%, organic sales gain[163]. - Segment net sales for the Commercial & Industrial Group in Q4 2025 were $398.1 million, an increase of $18.9 million, or 5.0%, from 2024 levels, driven by a $11.0 million organic gain[211]. - Snap-on Tools Group reported segment net sales of $505.0 million in Q4 2025, a decrease of $1.6 million, or 0.3%, from 2024 levels, with a $3.4 million organic sales decline[214]. Strategic Initiatives - Snap-on's coherent growth strategy focuses on expanding its professional customer base in automotive and adjacent markets, as well as critical industries[18]. - The company has pursued a series of coherent acquisitions to enhance capabilities in critical industries and expand its service offerings[22]. - Snap-on's RCI initiatives aim to improve operational efficiency and productivity, contributing to cost savings through various process improvements[18]. - Snap-on's strategic priorities for 2026 include enhancing the franchise network, expanding with repair shop owners, targeting critical industries, and building in emerging markets[151]. Market Presence - Snap-on markets its products in over 130 countries, with the largest market being the United States, followed by significant presence in Europe and Asia Pacific[17]. - Approximately 38% of Snap-on's consolidated net revenues in 2025 were generated by the Snap-on Tools Group, which serves vehicle service and repair technicians through a mobile tool distribution channel[78]. - 29% of Snap-on's revenues in 2025 were generated outside of the United States, highlighting the importance of non-U.S. operations for future growth[84]. Workforce and Operations - The company employed approximately 13,000 people worldwide as of January 3, 2026, with around 7,300 in the United States and 5,700 outside the U.S.[64]. - As of the end of 2025, Snap-on's total route count was approximately 4,700, with about 3,400 routes in the United States, indicating a stable distribution network[43]. - Snap-on's facilities in the United States occupy approximately 4.5 million square feet, with 71% owned, while facilities outside the U.S. occupy about 4.0 million square feet, also with 71% owned[133]. Innovation and Technology - Snap-on held approximately 945 active and pending patents in the United States and about 3,590 outside the U.S. as of the end of 2025, showcasing its commitment to innovation[56]. - The vehicle service and repair sector is driven by technological advancements and increasing vehicle complexity, presenting opportunities for Snap-on to innovate[36]. - Snap-on's digital ecosystem includes various platforms for customer engagement and direct product purchases, indicating a focus on digital commerce[50]. Sustainability and Environmental Impact - The company is committed to sustainability and has not observed significant supply shortages or cost increases due to climate change factors[54]. - In 2025, Snap-on's total Scope 1 and Scope 2 greenhouse gas emissions were 89,041 metric tons of CO2e, with an intensity of 18.8 metric tons of CO2e per million in net sales[70]. - The company has been reporting its Scope 1 and Scope 2 GHG emissions to the CDP annually since 2008, demonstrating a long-term commitment to sustainability[70]. Risks and Challenges - Price inflation and shortages of raw materials have impacted Snap-on's ability to obtain necessary materials, potentially affecting future operations[88]. - The company faces intense price competition and must maintain customer satisfaction to uphold its premium brand image[83]. - Snap-on's operations are subject to various risks, including political and economic instability in foreign markets, which could adversely affect financial performance[84]. - Cybersecurity threats are a significant concern, and the company continues to invest in data security to mitigate risks associated with potential breaches[93]. - The company faces risks related to the inability to attract and retain qualified personnel, which could negatively impact revenue and profitability[97]. - Integration challenges from acquisitions may adversely affect the company's financial condition and results of operations[98]. - Legal and regulatory changes could impose significant compliance burdens, potentially impacting the company's financial condition and operations[112].