Core Viewpoint - Roth Capital raised the price target on Snap-On (SNA) to $409 from $385 while maintaining a Buy rating after the company's Q4 earnings exceeded expectations [1] Group 1: Earnings Performance - Snap-On's Q4 earnings beat expectations, prompting Roth Capital to increase its price target [1] - The Tools segment revenue flattened out in Q4 due to ongoing soft repair technician confidence, despite previous successful shifts towards more affordable tools [1] Group 2: Market Outlook - Roth Capital maintains a positive outlook on Snap-On, emphasizing the recession-resistant nature of end demand and the durability of the company's business model [1]

Core Insights - Snap-on Inc. reported strong fourth-quarter 2025 results, with both earnings and revenue exceeding expectations and showing year-over-year growth [1][9] Financial Performance - Earnings per share (EPS) reached $4.94, surpassing the Zacks Consensus Estimate of $4.86, and increased from $4.82 in the same quarter last year [1] - Net sales amounted to $1.232 billion, a 2.8% increase from the previous year, exceeding the Zacks Consensus Estimate of $1.218 billion [2] - Gross profit was $605.5 million, up 1.6% year over year, while gross margin contracted by 50 basis points to 49.2% [3] - Consolidated operating earnings, including financial services, were $339.6 million, reflecting a 2.3% year-over-year increase [4] Segment Analysis - The Commercial & Industrial Group's sales increased by 5% to $398.1 million, driven by favorable foreign currency translation and organic sales growth [5] - The Tools Group segment experienced a slight decline of 0.3% in sales to $505 million, attributed to lower activity in the U.S. market [6] - Sales in the Repair Systems & Information Group rose by 2.5% to $467.8 million, supported by increased activity with OEM dealerships [7] - Financial Services revenues grew by 7.5% year over year to $108 million, surpassing estimates [8] Financial Snapshot - As of the end of the third quarter of 2025, Snap-on had cash and cash equivalents of $1.62 billion and shareholders' equity of $5.93 billion [9] - The company anticipates capital expenditures of $100 million for 2026 [10] Future Outlook - Management expects resilience in 2026, focusing on core growth strategies and expansion into new markets and critical industries [11] - An effective tax rate of 22-23% is projected for 2026 [11]

Quarterly Financial Review Fourth Quarter 2025 Q4-2025 Quarterly Review © 2026 Snap-on Incorporated 2 Cautionary Statement Q4-2025 Quarterly Review © 2026 Snap-on Incorporated 3 These slides should be read in conjunction with comments from the February 5, 2026 conference call. The financial statement information included herein is unaudited. Statements made during the February 5, 2026 conference call and/or information included in this presentation may contain statements, including earnings projections, tha ...

Core Insights - The company reported full-year revenues of $15.1 billion, with notable growth in DEWALT and aerospace fasteners, which increased by low single digits and 25% respectively, despite an overall organic revenue decline of about 1% [1] - The adjusted gross margin improved by 70 basis points to 30.7% for the full year 2025, driven by tariff mitigation actions and supply chain efficiencies [5][21] - The company generated strong free cash flow of nearly $700 million in 2025, which supported dividends, debt reduction, and investments in brand and innovation [7][24] Financial Performance - Adjusted earnings per share grew by 7% in 2025, reaching $4.67, while adjusted EBITDA increased by 5% [6][11] - The fourth quarter saw a revenue decline of 1% overall and 3% organically, with a 4% price increase and a 2% currency tailwind offset by a 7% volume decline [9][10] - The adjusted gross margin rate for the fourth quarter was 33.3%, reflecting strong supply chain cost reductions and pricing strategies [10][21] Strategic Initiatives - The company completed a global cost reduction program, achieving $2.1 billion in run rate pretax cost savings since mid-2022 [5][22] - A definitive agreement was announced to sell the aerospace fasteners business for over $1.5 billion, with proceeds aimed at debt reduction and enhancing capital allocation flexibility [7][8][25] - The company plans to invest an additional $75 million to $100 million in brand initiatives for Stanley and Craftsman in 2026, alongside maintaining a strong dividend [76][79] Market Outlook - For 2026, the company anticipates adjusted earnings per share to range from $4.90 to $5.70, representing a midpoint growth of 13% [28] - Total company revenue is expected to grow in the low single digits year over year, with organic revenue growth anticipated to follow a similar trend [30] - The transition to a licensed model for gas-powered walk-behind outdoor products is expected to reduce revenue by approximately $120 million to $140 million in 2026, but enhance margins [31][32] Operational Focus - The company aims for adjusted gross margins above 35% by 2026, supported by ongoing tariff mitigation efforts and operational improvements [23][33] - The first quarter of 2026 is projected to reflect the highest level of tariff expense, impacting gross margins, but improvements are expected in the second half of the year [38] - The company is committed to maintaining a solid investment-grade credit rating while focusing on organic growth and shareholder value creation [26][40]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point for fast-moving stocks, which can lead to limited upside or potential losses [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify suitable candidates [3] Group 2: Stanley Black & Decker (SWK) Analysis - Stanley Black & Decker (SWK) has shown a four-week price change of 8.9%, indicating growing investor interest [4] - Over the past 12 weeks, SWK's stock has gained 23.3%, with a beta of 1.2, suggesting it moves 20% more than the market [5] - SWK has a Momentum Score of B, indicating a favorable time to invest based on momentum [6] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [7] - SWK is currently trading at a Price-to-Sales ratio of 0.84, suggesting it is undervalued at 84 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides SWK, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

Economic Outlook - The GDP estimate for the fourth quarter is projected to exceed 5% according to the Atlanta Fed, indicating a potential economic rebound [2] - Full-year GDP estimates for 2026 are being revised upwards to around 3%, compared to previous estimates closer to 2% [3] Market Trends - A new paradigm is emerging with a reflation of cyclical sectors, suggesting a broadening market approach compared to the previous years [2][4] - Positive earnings reports from various sectors, including banks, indicate that economic conditions may be better than previously thought [4] Investment Opportunities - There is a growing focus on semiconductor capital equipment due to increased demand from AI companies, highlighting a significant deficit in the chip equipment ecosystem [5] - Companies involved in workwear, such as Boot Barn, are performing well, with Boot Barn up 7% year-to-date and 21% over the past 52 weeks, suggesting a shift in consumer preferences towards value-oriented goods [9] Consumer Behavior - The consumer market is showing a trend towards more value-driven purchases, particularly in high-end goods, which may indicate a cooling off from the luxury revival seen in recent years [7][8] - The upcoming cold weather is expected to boost demand for workwear, benefiting companies like Carhartt [10]

Group 1: Price Target and Analyst Insights - Wells Fargo raised the price target on Stanley Black & Decker, Inc. (NYSE:SWK) to $82 from $75 while maintaining an Equal Weight rating on the stock [1] - The analyst noted that 2026 has started on a shaky note with increased volatility, and warned that investments tied closely to builders appear especially risky after a recent rally [1] - The broader products space is sending mixed signals and does not look compelling, advising investors not to chase the stock after its recent price increase [1] Group 2: Business Transaction and Financial Impact - Stanley Black & Decker announced a definitive agreement to sell its Consolidated Aerospace Manufacturing (CAM) business to Howmet Aerospace for $1.8 billion in cash [2] - The CAM business is expected to generate approximately $405 million to $415 million in FY 2025 revenue, with an adjusted EBITDA margin in the high-teens [3] - The company plans to use the net cash proceeds primarily to pay down debt, which is expected to strengthen its balance sheet [3] Group 3: Transaction Details - Until the transaction closes, CAM's financial results will remain under continuing operations and will not be classified as discontinued operations [4] - The sale is anticipated to close in the first half of 2026, pending regulatory approvals and other standard closing conditions [4] - Stanley Black & Decker is recognized as a global tools and industrial company, known for its hand tools, power tools, outdoor equipment, and engineered fastening solutions [4]

Core Viewpoint - DEWALT, a brand under Stanley Black & Decker, is set to unveil new concrete solutions at the 2026 World of Concrete Trade Show, highlighting innovations in their POWERSHIFT line, including a powerful cut-off saw and a demolition hammer [1][3]. Product Innovations - The DEWALT POWERSHIFT™ 12 in. Cut-Off Saw (DCPS612AG2) is the most powerful cordless cut-off saw in the industry, capable of cutting up to 4-3/4 in. deep through various materials, and can make up to 156 cuts in 5 rebar on a single charge [4][6]. - The DEWALT POWERSHIFT™ 1-1/8 in. Hex Demolition Hammer (DCPS966AG2) delivers up to 45 joules of impact energy, designed for demanding applications, and features SHOCKS Active Vibration Control® technology to reduce user fatigue [5][6]. - The DEWALT 20V MAX* XR® Brushless 21° Plastic Collated Duplex Nailer (DCN910B) is noted for achieving up to 3X productivity as the lightest battery-powered duplex nailer [6]. - The DEWALT 20V MAX* XR® Brushless Concrete Chemical Sprayer (DCCS1100B) offers up to 150 PSI of spray pressure and a 10-speed adjustable flow rate, designed for concrete spraying applications [7]. Event Participation - DEWALT will showcase its products at the World of Concrete Trade Show, providing interactive demos, prizes, and opportunities for attendees to engage with brand ambassadors [8].

Core Viewpoint - Stanley Black & Decker announced the sale of its Consolidated Aerospace Manufacturing business to Howmet Aerospace for $1.8 billion in cash, which led to a rise in its stock price [1][5]. Group 1: Transaction Details - The transaction is expected to close in the first half of next year, and until then, the Consolidated Aerospace Manufacturing unit will continue to operate [2]. - The net cash proceeds from the sale will be used to reduce debt [2][5]. Group 2: Financial Impact - Howmet Aerospace anticipates that the Consolidated Aerospace Manufacturing unit will generate revenue of approximately $485 million to $495 million in the fiscal year 2026, with an adjusted EBITDA margin exceeding 20% before synergies [3]. Group 3: Market Reaction - Following the announcement, Stanley Black & Decker's shares increased by 3.5%, having risen as much as 7% earlier in the day, although the stock has lost about 6% of its value since the beginning of the year [4]. - Howmet's shares rose by 2% and have increased more than 90% since the start of 2025 [4].

Core Viewpoint - Stanley Black & Decker, Inc. (SWK) is a diversified global provider in the tools and accessories industry, with a market cap of $11.7 billion, indicating its significant size and influence [1][2]. Company Overview - SWK offers a wide range of products including hand tools, power tools, mechanical access solutions, electronic security solutions, healthcare solutions, and engineered fastening systems [1]. - The company is characterized by a diversified portfolio, strong brand equity, and technological capabilities, which position it well for growth, particularly in the cordless power tools segment [2]. Stock Performance - SWK's stock has experienced a decline of 16.9% from its 52-week high of $91.06, reached on January 28, and has underperformed the Nasdaq Composite, which gained 4.8% over the same three-month period [3]. - Over a six-month period, SWK shares rose by 12.3%, but they fell by 8.5% over the past 52 weeks, underperforming the Nasdaq's gains of 18% and 16.5% over the same time frames [4]. Financial Results - In Q3, SWK reported an adjusted EPS of $1.43, surpassing Wall Street's expectations of $1.19, although its revenue of $3.76 billion fell short of the forecast of $3.77 billion [5]. Analyst Sentiment - Analysts maintain a "Moderate Buy" consensus rating for SWK, with a mean price target of $81.33, suggesting a potential upside of 7.5% from current levels [6].