What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-04-17 compared with 2024-10-17 · 127 added, 248 removed, 281 unchanged (57% of the section changed)

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Accordingly, forward-looking statements should not be relied upon as a prediction of actual results or regarded as a representation by the company or its management that the projected results will be achieved.

For those forward-looking statements, Snap-on cautions the reader that numerous important factors, such as those listed below, as well as those factors discussed in its Annual Report on Form 10-K for the fiscal year ended December 30, 2023 (“ 2023 year end”), and those discussed in this document, could affect the company’s actual results and could cause its actual consolidated results to differ materially from those expressed in any forward-looking statement made by, or on behalf of, Snap-on.

Risk Factors, and those discussed in this document, could affect the company’s actual results and could cause its actual consolidated results to differ materially from those expressed in any forward-looking statement made by, or on behalf of, Snap-on.

Risks and uncertainties include, without limitation:

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• The timing and progress with which Snap-on can attain value through its Snap-on Value Creation Processes, including its ability to (i) realize efficiencies and savings from its rapid continuous improvement and other cost reduction initiatives, (ii) improve workforce productivity, (iii) achieve improvements in the company’s manufacturing footprint and greater efficiencies in its supply chain, and (iv) enhance machine maintenance, plant productivity and manufacturing line set-up and change-over practices, any or all of which could result in production inefficiencies, higher costs and/or lost revenues;

• Snap-on’s capability to successfully implement future strategies with respect to its existing businesses;

• Snap-on’s capability to successfully implement future strategies with respect to its existing businesses, including increasing or optimizing selling, designing, or manufacturing capacity;

• Snap-on’s ability to refine its brand and franchise strategies, retain and attract franchisees, and further enhance service and value to franchisees in order to help improve the sales and profitability of franchisees;

• The company’s ability to introduce successful new products;

• Significant changes in the current competitive environment;

• Risks related to pursuing, completing and integrating acquisitions;

• Inflation, interest rate changes and other monetary and market fluctuations;

• Price and supply fluctuations related to raw materials, components and certain purchased finished goods, such as steel, plastics, and electronics;

• The effects of external economic factors, including adverse developments in world financial markets, disruptions related to tariffs and other trade or sanction issues, and global supply chain inefficiencies, including as a result of the current war in Ukraine and other regional conflicts;

• Snap-on’s ability to successfully manage changes in prices and the availability of energy sources, including gasoline;

• Snap-on’s ability to withstand disruption arising from natural disasters, including climate-related events or other unusual occurrences;

• The effects of external economic factors, including adverse developments in world financial markets, disruptions related to tariffs and other trade or sanction issues, and global supply chain inefficiencies, including as a result of the ongoing war in Ukraine, as well as conflicts in the Middle East and other regions;

• Significant changes in the current competitive environment;

• Risks related to pursuing, completing and integrating acquisitions;

• Snap-on’s ability to successfully manage changes in prices and the availability of energy;

• The company’s ability to withstand disruption arising from natural disasters, including climate-related events or other unusual occurrences;

• Risks associated with data security and technological systems and protections, including the effects of cyber incidents and from new legislation, regulations or government-related developments;

• The impact of labor interruptions or challenges, and Snap-on’s ability to effectively manage human capital resources;

• Weakness in certain geographic areas, including as a result of localized recessions, and the impact of matters related to the United Kingdom’s exit from the European Union;

• Snap-on’s ability to effectively manage human capital resources;

• The impact of production and sourcing challenges, including labor interruptions and supply chain disruptions, to both Snap-on and relevant third parties;

• Weakness in certain geographic areas, including as a result of localized recessions;

• Changes in tax rates, laws and regulations as well as uncertainty surrounding potential changes;

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OF OPERATIONS

• The effects of new requirements, legislation, regulations or government-related developments or issues, as well as third party actions, including those addressing climate change;

• The effects of new or changing requirements, legislation, regulations or government-related developments or issues, as well as third party actions, including those addressing climate change;

• Potential reputational damages and costs related to litigation;

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Management believes that the non-GAAP financial measure of organic sales is meaningful to investors as it provides them with useful information to aid in identifying underlying growth trends in the company’s businesses and facilitates comparisons of its sales performance with prior periods.

Recent Developments

As disclosed in Part I, Item 1A:

Risk Factors, of our Annual Report on Form 10-K for the fiscal year ended December 28, 2024, the company’s business is subject to risks related to, among other factors, tariffs and other trade protection measures put in the place by the United States or other countries, as well as U.S.

international trade relations, including those with China, Canada and the European Union.

Starting in the first quarter of 2025, the United States government announced additional tariffs on goods imported into the U.S.

from numerous countries and multiple nations countered with reciprocal tariffs and other actions in response.

government stated that it is willing to negotiate with other countries regarding the tariffs.

While the company generally manufactures products in the markets where they are sold, the tariffs may negatively impact demand and result in an increase in some product costs.

Snap-on is currently analyzing the impacts of the tariffs and actions that can be taken to moderate and/or minimize their effects.

SNAP-ON INCORPORATED

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RESULTS OF OPERATIONS

Results of operations for the three months ended September 28, 2024, and September 30, 2023, are as follows:

Results of operations for the three months ended March 29, 2025, and March 30, 2024, are as follows:

Three Months Ended

(Amounts in millions) September 28, 2024 September 30, 2023 Change

(Amounts in millions) March 29, 2025 March 30, 2024 Change

Net sales $ 1,141.1 100.0 % $ 1,182.3 100.0 % $ (41.2) (3.5) %

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All income statement line item percentages below “Operating earnings from financial services” are calculated as a percentage of the sum of Net sales and Financial services revenue.

Net sales of $1,147.0 million in the third quarter of 2024 represented a decrease of $12.3 million, or 1.1%, from 2023 levels, reflecting a $19.2 million, or 1.7%, organic decline and $0.3 million of unfavorable foreign currency translation, partially offset by $7.2 million of acquisition-related sales.

Gross profit of $587.8 million in the third quarter of 2024 compared to $578.2 million last year.

Gross margin (gross profit as a percentage of net sales) in the quarter improved 130 basis points (100 basis points (“bps”) equals 1.0 percent) from the third quarter of 2023 primarily reflecting increased sales in higher-gross-margin businesses, benefits from the company’s “Rapid Continuous Improvement” or “RCI” initiatives, and lower material and other costs.

Net sales of $1,141.1 million in the first quarter of 2025 represented a decrease of $41.2 million, or 3.5%, from 2024 levels, reflecting a $27.3 million, or 2.3%, organic decline and $13.9 million of unfavorable foreign currency translation.

Gross profit of $578.5 million in the first quarter of 2025 compared to $596.7 million last year.

Gross margin (gross profit as a percentage of net sales) in the quarter improved 20 basis points (100 basis points (“bps”) equals 1.0 percent) from the first quarter of 2024 primarily reflecting benefits from the company’s “Rapid Continuous Improvement” or “RCI” initiatives.

Snap-on’s RCI initiatives employ a structured set of tools and processes across multiple businesses and geographies intended to eliminate waste and improve operations.

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Unless individually significant, it is not practicable to disclose each RCI activity that generated savings and/or segregate RCI savings embedded in sales volume increases.

Operating expenses of $335.4 million in the third quarter of 2024 compared to $333.0 million last year.

Operating expenses as a percentage of net sales rose 50 bps from 2023 primarily due to the lower sales volumes.

Operating earnings before financial services of $252.4 million in the third quarter of 2024 compared to $245.2 million in the third quarter of 2023.

As a percentage of net sales, operating earnings before financial services were 22.0% compared to 21.2% last year.

Financial services revenue of $100.4 million in the third quarter of 2024 compared to $94.9 million last year.

Operating expenses of $335.4 million in the first quarter of 2025 compared to $325.8 million last year, which included an $11.3 million benefit for payments received in 2024 associated with a legal matter (the “legal payments”).

Operating expenses as a percentage of net sales rose 180 bps from last year primarily due to a 90 bps non-recurring benefit from the legal payments in 2024 and the effects of lower sales volumes, partially offset by savings from RCI initiatives.

Operating earnings before financial services of $243.1 million in the first quarter of 2025 compared to $270.9 million in 2024, which included an $11.3 million benefit from the legal payments.

As a percentage of net sales, operating earnings before financial services were 21.3% compared to 22.9% last year, which included a 90 bps benefit from the legal payments.

Financial services revenue of $102.1 million in the first quarter of 2025 compared to $99.6 million last year.

Financial services operating earnings of $70.3 million compared to $68.3 million in 2024.

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OF OPERATIONS

Operating earnings of $324.1 million in the third quarter of 2024 compared to $314.6 million last year.

As a percentage of revenues (net sales plus financial services revenue), operating earnings were 26.0% in the quarter compared to 25.1% last year.

Interest expense in the third quarter of 2024 increased $0.1 million from last year.

See Note 8 to the Condensed Consolidated Financial Statements for additional information on debt and credit facilities.

Other income (expense) – net primarily includes interest income, non-service components of net periodic benefit costs, and net gains and losses associated with hedging and currency exchange rate transactions.

See Note 16 to the Condensed Consolidated Financial Statements for additional information on Other income (expense) – net.

The effective income tax rate on earnings attributable to Snap-on was 22.9% and 22.6% in the third quarters of 2024 and 2023, respectively.

S ee Note 7 to the Condensed Consolidated Financial Statements for additional information on income taxes.

Net earnings attributable to Snap-on of $251.1 million, or $4.70 per diluted share, in the third quarter of 2024 compared to $243.1 million, or $4.51 per diluted share, in the third quarter of 2023.

Results of operations for the nine months ended September 28, 2024, and September 30, 2023, are as follows:

Nine Months Ended

(Amounts in millions) September 28, 2024 September 30, 2023 Change

Net sales $ 3,508.7 100.0 % $ 3,533.6 100.0 % $ (24.9) (0.7) %

Cost of goods sold (1,726.9) (49.2) % (1,762.1) (49.9) % 35.2 2.0 %

Gross profit 1,781.8 50.8 % 1,771.5 50.1 % 10.3 0.6 %

Operating expenses (978.2) (27.9) % (989.5) (28.0) % 11.3 1.1 %

Operating earnings before financial services 803.6 22.9 % 782.0 22.1 % 21.6 2.8 %

Financial services revenue 300.5 100.0 % 280.9 100.0 % 19.6 7.0 %

Financial services expenses (90.3) (30.0) % (78.3) (27.9) % (12.0) (15.3) %

Operating earnings from financial services 210.2 70.0 % 202.6 72.1 % 7.6 3.8 %

Operating earnings 1,013.8 26.6 % 984.6 25.8 % 29.2 3.0 %

Interest expense (37.3) (1.0) % (37.4) (1.0) % 0.1 0.3 %

Other income (expense) – net 57.4 1.5 % 50.0 1.3 % 7.4 14.8 %

Earnings before income taxes 1,033.9 27.1 % 997.2 26.1 % 36.7 3.7 %

Income tax expense (229.2) (6.0) % (223.9) (5.8) % (5.3) (2.4) %

Net earnings 804.7 21.1 % 773.3 20.3 % 31.4 4.1 %

Net earnings attributable to noncontrolling interests (18.9) (0.5) % (17.5) (0.5) % (1.4) (8.0) %

Net earnings attributable to Snap-on Inc.

$ 785.8 20.6 % $ 755.8 19.8 % $ 30.0 4.0 %

Percentage Disclosure:

All income statement line item percentages below “Operating earnings from financial services” are calculated as a percentage of the sum of Net sales and Financial services revenue.

Net sales of $3,508.7 million in the first nine months of 2024 represented a decrease of $24.9 million , or 0.7% , from 2023 levels, reflecting a $42.6 million , or 1.2% , organic decline and $3.5 million of unfavorable foreign currency translation, partially offset by $21.2 million of acquisition-related sales.

Gross profit of $1,781.8 million in the first nine months of 2024 compared to $1,771.5 million last year.

Gross margin in the first nine months improved 70 bps from 2023 primarily due to benefits from the company’s RCI initiatives and lower material and other costs.

Operating expenses of $978.2 million in the first nine months of 2024, including a $22.5 million benefit for the final payments received associated with a legal matter in the first six months of 2024 (the “legal payments”), compared to $ 989.5 million last year.

Operating expenses as a percentage of net sales improved 10 bps from 2023 primarily reflecting benefits from the legal payments, partially offset by the effects of lower sales volumes.

SNAP-ON INCORPORATED

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS

OF OPERATIONS

Operating earnings before financial services of $803.6 million in the first nine months of 2024, including a $22.5 million benefit from the legal payments, compared to $782.0 million in 2023.

As a percentage of net sales, operating earnings before financial services were 22.9% compared to 22.1% last year.

Financial services revenue of $300.5 million in the first nine months of 2024 compared to $280.9 million last year.

Financial services operating earnings of $210.2 million compared to $202.6 million in 2023.

Operating earnings of $1,013.8 million in the first nine months of 2024, including a $22.5 million benefit from the legal payments, compared to $984.6 million last year.

As a percentage of revenues, operating earnings were 26.6% in the period compared to 25.8% last year.

Interest expense in the first nine months of 2024 decreased $0.1 million from last year.

Operating earnings of $313.4 million in the first quarter of 2025 compared to $339.2 million in 2024, which included an $11.3 million benefit from the legal payments.

As a percentage of revenues (net sales plus financial services revenue), operating earnings were 25.2% in the quarter compared to 26.5% last year, which included a 90 bps benefit from the legal payments.

Interest expense in the first quarter of 2025 decreased $0.1 million from last year.

See Note 7 to the Condensed Consolidated Financial Statements for additional information on debt and credit facilities.

In the first quarter of 2025, other income (expense) – net included $6.1 million of increased year-over-year non-service net periodic benefit costs, primarily reflecting higher amortization of actuarial losses.

See Note 15 to the Condensed Consolidated Financial Statements for additional information on Other income (expense) – net.

The effective income tax rate on earnings attributable to Snap-on was 22.6% and 22.9% in the first nine months of 2024 and 2023, respectively.

The effective income tax rate on earnings attributable to Snap-on was 22.2% in the first quarters of both 2025 and 2024.

S ee Note 6 to the Condensed Consolidated Financial Statements for additional information on income taxes.

Net earnings attributable to Snap-on of $785.8 million , or $ 14.69 per diluted share, in the first nine months of 2024, including a $17.5 million, or $0.32 per diluted share, after-tax benefit from the legal payments, compared to $755.8 million , or $ 14.00 per diluted share, in the first nine months of 2023.

Net earnings attributable to Snap-on of $240.5 million, or $4.51 per diluted share, in the first quarter of 2025 compared to $263.5 million, or $4.91 per diluted share, in the first quarter of 2024, which included an $8.8 million, or $0.16 per diluted share, after-tax benefit from the legal payments.

Segment Results

Snap-on’s business segments are based on the organization structure used by management for making operating and investment decisions and for assessing performance.

Snap-on’s reportable business segments are:

Snap-on’s operating segments, which represent Snap-on’s reportable segments, are based on the organizational structure used by the Chief Executive Officer, its CODM, to make operating and investment determinations and to assess performance.

Snap‑on’s reportable operating segments are:

(i) the Commercial & Industrial Group;

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and (iv) Financial Services.

The Commercial & Industrial Group consists of business operations serving a broad range of industrial and commercial customers worldwide, including customers in the aerospace, natural resources, government and military, power generation, transportation, and technical education market segments (collectively, “critical industries”), primarily through direct and distributor channels.

The Commercial & Industrial Group consists of business operations serving a broad range of industrial and commercial customers worldwide, including customers in the aerospace, natural resources, government and military, power generation, transportation and technical education market segments, primarily through direct and distributor channels.

The Snap-on Tools Group consists of business operations primarily serving vehicle service and repair technicians through the company’s multinational mobile tool distribution channel.

The Repair Systems & Information Group consists of business operations serving other professional vehicle repair customers worldwide, primarily owners and managers of independent repair shops and original equipment manufacturer (“OEM”) dealership service and repair shops (“OEM dealerships”), through direct and distributor channels.

The Repair Systems & Information Group consists of business operations serving other professional vehicle repair customers worldwide, primarily owners and managers of independent repair shops and OEM dealerships, through direct and distributor channels.

Financial Services consists of the business operations of Snap-on’s finance subsidiaries.

Snap-on evaluates the performance of its operating segments based on segment revenues and segment operating earnings.

The Snap-on Tools Group segment revenues include external net sales, while the Commercial & Industrial Group and the Repair Systems & Information Group segment revenues include both external and intersegment net sales.

The CODM evaluates the performance of the Commercial & Industrial Group, the Snap-on Tools Group and the Repair Systems & Information Group operating segments based on segment net sales and segment operating earnings.

The segment net sales of the Snap-on Tools Group reflect external net sales, while the segment net sales of the Commercial & Industrial Group and the Repair Systems & Information Group include both external and intersegment net sales.

Snap-on accounts for intersegment net sales and transfers based primarily on standard costs with reasonable mark-ups established between the segments.

Identifiable assets by segment are those assets used in the respective reportable segment’s operations.

Corporate assets consist of cash and cash equivalents (excluding cash held at Financial Services), deferred income taxes and certain other assets.

The Financial Services operating segment is evaluated based on financial services revenue and segment operating earnings.

Corporate expenses primarily reflect stock-based compensation and other costs not attributable to an operating segment.

Intersegment amounts are eliminated to arrive at Snap-on’s consolidated financial results.

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Three Months Ended

(Amounts in millions) September 28, 2024 September 30, 2023 Change

External net sales $ 288.7 78.9 % $ 280.5 76.6 % $ 8.2 2.9 %

Intersegment net sales 77.0 21.1 % 85.9 23.4 % (8.9) (10.4) %

Segment net sales 365.7 100.0 % 366.4 100.0 % (0.7) (0.2) %

Cost of goods sold (214.9) (58.8) % (223.4) (61.0) % 8.5 3.8 %

Gross profit 150.8 41.2 % 143.0 39.0 % 7.8 5.5 %

Operating expenses (89.8) (24.5) % (84.9) (23.1) % (4.9) (5.8) %

Segment operating earnings $ 61.0 16.7 % $ 58.1 15.9 % $ 2.9 5.0 %

Segment net sales of $365.7 million in the third quarter of 2024 represented a decrease of $0.7 million, or 0.2%, from 2023 levels, reflecting a $7.8 million, or 2.1%, organic sales decline and $0.1 million of unfavorable foreign currency translation, partially offset by $7.2 million of acquisition-related sales.

The organic decrease is primarily due to a double-digit reduction in the power tools operation and a mid single-digit decline in the European-based hand tools business, partially offset by a gain in sales to customers in critical industries, including a high single-digit increase in specialty torque.

Segment gross margin in the third quarter improved 220 bps from last year, primarily reflecting increased sales volumes in higher-gross-margin critical industry sectors, lower material and other costs, savings from the segment’s RCI initiatives, and 50 bps of benefits from acquisitions.

These improvements were partially offset by 30 bps of unfavorable foreign currency effects.

Segment operating expenses as a percentage of net sales in the third quarter rose 140 bps as compared to 2023 primarily due to increased personnel and other costs, and a 50 bps impact from acquisitions.

As a result of these factors, segment operating earnings of $61.0 million in the third quarter of 2024 compared to $58.1 million in 2023, an increase of $2.9 million or 5.0%.

Operating margin (segment operating earnings as a percentage of segment net sales) for the Commercial & Industrial Group of 16.7% in the third quarter of 2024 compared to 15.9% in 2023.

Nine Months Ended

(Amounts in millions) September 28, 2024 September 30, 2023 Change

(Amounts in millions) March 29, 2025 March 30, 2024 Change

External net sales $ 276.7 80.5 % $ 291.0 80.9 % $ (14.3) (4.9) %

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Segment net sales 343.9 100.0 % 359.9 100.0 % (16.0) (4.4) %

Cost of goods sold (644.8) (58.7) % (666.2) (60.9) % 21.4 3.2 %

Gross profit 452.8 41.3 % 428.2 39.1 % 24.6 5.7 %

Operating expenses (274.2) (25.0) % (256.2) (23.4) % (18.0) (7.0) %

Segment cost of goods sold (197.4) (57.4) % (213.2) (59.2) % 15.8 7.4 %

Segment gross profit 146.5 42.6 % 146.7 40.8 % (0.2) (0.1) %

Segment operating expenses (93.3) (27.1) % (91.3) (25.4) % (2.0) (2.2) %

Segment operating earnings $ 53.2 15.5 % $ 55.4 15.4 % $ (2.2) (4.0) %

Segment net sales of $1,097.6 million in the first nine months of 2024 represented an increase of $ 3.2 million , or 0.3% , from 2023 levels, reflecting $21.2 million of acquisition-related sales, partially offset by a $12.7 million , or 1.2% , organic sales decline and $5.3 million of unfavorable foreign currency translation.

The organic decrease is primarily due to a double-digit reduction in the power tools operation and a mid single-digit decline in the European-based hand tools business, partially offset by a mid single-digit gain in sales to customers in critical industries.

Segment gross margin in the first nine months improved 220 bps from last year, primarily reflecting increased sales volumes in higher-gross-margin critical industry sectors, savings from the segment’s RCI initiatives, lower material and other costs, and 50 bps of benefits from acquisitions.

Segment operating expenses as a percentage of net sales in the first nine months rose 160 bps as compared to 2023 primarily due to increased personnel and other costs, and a 60 bps impact from acquisitions.

SNAP-ON INCORPORATED

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS

OF OPERATIONS

As a result of these factors, segment operating earnings of $178.6 million in the first nine months of 2024 compared to $172.0 million in 2023, an increase of $6.6 million or 3.8% .

Operating margin for the Commercial & Industrial Group of 16.3% in the first nine months of 2024 compared to 15.7% in 2023.

Segment net sales of $343.9 million in the first quarter of 2025 represented a decrease of $16.0 million, or 4.4%, from 2024 levels, reflecting a $10.4 million, or 2.9%, organic sales decline and $5.6 million of unfavorable foreign currency translation.

The organic reduction includes a low single-digit decrease in activity with customers in critical industries, where lower sales to the military more than offset gains in other critical industry sectors, and a low single-digit decline in the European-based hand tools business.

Segment gross margin in the first quarter improved 180 bps from last year primarily reflecting lower material and other costs, increased volumes in the higher-gross-margin sectors of critical industries, and savings from the segment’s RCI initiatives.

Segment operating expenses as a percentage of net sales in the first quarter rose 170 bps as compared to 2024 primarily due to the impact of lower sales volumes.

As a result of these factors, segment operating earnings of $53.2 million in the first quarter of 2025 compared to $55.4 million in 2024.

Operating margin (segment operating earnings as a percentage of segment net sales) for the Commercial & Industrial Group of 15.5% in the first quarter of 2025 compared to 15.4% in 2024.

Snap-on Tools Group

Three Months Ended

(Amounts in millions) September 28, 2024 September 30, 2023 Change

Segment net sales $ 500.5 100.0 % $ 515.4 100.0 % $ (14.9) (2.9) %

Cost of goods sold (264.0) (52.7) % (276.8) (53.7) % 12.8 4.6 %

Gross profit 236.5 47.3 % 238.6 46.3 % (2.1) (0.9) %

Operating expenses (128.2) (25.7) % (125.2) (24.3) % (3.0) (2.4) %

Segment operating earnings $ 108.3 21.6 % $ 113.4 22.0 % $ (5.1) (4.5) %

Segment net sales of $500.5 million in the third quarter of 2024 represented a decrease of $14.9 million, or 2.9%, from 2023 levels, reflecting a $15.8 million, or 3.1%, organic sales decline, partially offset by $0.9 million of favorable foreign currency translation.

The organic decrease is due to a mid single-digit decline in the U.S., partially offset by a low single-digit gain in the segment’s international operations.

Segment gross margin in the third quarter improved 100 bps from last year primarily due to lower material and other costs, and benefits from RCI initiatives.

Segment operating expenses as a percentage of net sales in the third quarter rose 140 bps as compared to 2023 primarily reflecting the lower sales volumes.

As a result of these factors, segment operating earnings of $108.3 million in the third quarter of 2024 compared to $113.4 million in 2023, a decrease of $5.1 million or 4.5%.

Operating margin for the Snap-on Tools Group of 21.6% in the third quarter of 2024 compared to 22.0% last year.

Nine Months Ended

(Amounts in millions) September 28, 2024 September 30, 2023 Change

(Amounts in millions) March 29, 2025 March 30, 2024 Change

Segment net sales $ 462.9 100.0 % $ 500.1 100.0 % $ (37.2) (7.4) %

Cost of goods sold (769.8) (51.9) % (826.5) (52.5) % 56.7 6.9 %

Gross profit 712.8 48.1 % 749.0 47.5 % (36.2) (4.8) %

Operating expenses (372.4) (25.1) % (366.2) (23.2) % (6.2) (1.7) %

Segment cost of goods sold (248.4) (53.7) % (259.0) (51.8) % 10.6 4.1 %

Segment gross profit 214.5 46.3 % 241.1 48.2 % (26.6) (11.0) %

Segment operating expenses (122.1) (26.3) % (123.8) (24.7) % 1.7 1.4 %

Segment operating earnings $ 92.4 20.0 % $ 117.3 23.5 % $ (24.9) (21.2) %

Segment net sales of $1,482.6 million in the first nine months of 2024 represented a decrease of $92.9 million , or 5.9% , from 2023 levels, reflecting a $93.6 million , or 5.9% , organic sales decline, partially offset by $0.7 million of favorable foreign currency translation.

Segment net sales of $462.9 million in the first quarter of 2025 represented a decrease of $37.2 million, or 7.4%, from 2024 levels, reflecting a $33.6 million, or 6.8%, organic sales decline and $3.6 million of unfavorable foreign currency translation.

The organic decrease is due to a high single-digit decline in the U.S., partially offset by a low single-digit gain in the segment’s international operations.

Segment gross margin in the first nine months improved 60 bps from last year primarily reflecting decreased sales of lower-gross-margin products.

Segment operating expenses as a percentage of net sales in the first nine months rose 190 bps as compared to 2023 primarily due to the lower sales volumes.

As a result of these factors, segment operating earnings of $340.4 million in the first nine months of 2024 compared to $382.8 million in 2023, a decrease of $42.4 million or 11.1% .

Operating margin for the Snap-on Tools Group of 23.0% in the first nine months of 2024 compared to 24.3% last year.

Segment gross margin in the first quarter decreased 190 bps from last year primarily due to a year-over-year shift in product mix, as well as a result of the reduced volumes.

Segment operating expenses as a percentage of net sales in the first quarter rose 160 bps as compared to 2024 primarily reflecting the lower sales volumes.

As a result of these factors, segment operating earnings of $92.4 million in the first quarter of 2025 compared to $117.3 million in 2024.

Operating margin for the Snap-on Tools Group of 20.0% in the first quarter of 2025 compared to 23.5% last year.

SNAP-ON INCORPORATED

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Three Months Ended

(Amounts in millions) September 28, 2024 September 30, 2023 Change

External net sales $ 357.8 84.6 % $ 363.4 84.2 % $ (5.6) (1.5) %

Intersegment net sales 64.9 15.4 % 68.4 15.8 % (3.5) (5.1) %

Segment net sales 422.7 100.0 % 431.8 100.0 % (9.1) (2.1) %

Cost of goods sold (222.2) (52.6) % (235.2) (54.5) % 13.0 5.5 %

Gross profit 200.5 47.4 % 196.6 45.5 % 3.9 2.0 %

Operating expenses (93.2) (22.0) % (91.7) (21.2) % (1.5) (1.6) %

Segment operating earnings $ 107.3 25.4 % $ 104.9 24.3 % $ 2.4 2.3 %

Segment net sales of $422.7 million in the third quarter of 2024 represented a decrease of $9.1 million, or 2.1%, from 2023 levels, reflecting an $8.2 million, or 1.9%, organic sales decline and $0.9 million of unfavorable foreign currency translation.

The organic decrease is due to a mid single-digit decline in sales of undercar equipment and a low single-digit reduction in activity with OEM dealerships, partially offset by a low single-digit gain in sales of diagnostic and information products to independent repair shop owners and managers.

Segment gross margin in the third quarter improved 190 bps from last year primarily reflecting increased sales of higher-gross-margin products.

Segment operating expenses as a percentage of net sales in the third quarter rose 80 bps from 2023 primarily due to the lower sales volumes and increased personnel and other costs.

As a result of these factors, segment operating earnings of $107.3 million in the third quarter of 2024 compared to $104.9 million in 2023, an increase of $2.4 million or 2.3%.

Operating margin for the Repair Systems & Information Group of 25.4% in the third quarter of 2024 compared to 24.3% last year.

Nine Months Ended

(Amounts in millions) September 28, 2024 September 30, 2023 Change

(Amounts in millions) March 29, 2025 March 30, 2024 Change

External net sales $ 401.5 84.4 % $ 391.2 84.3 % $ 10.3 2.6 %

1 unchanged sentence

Segment net sales 475.9 100.0 % 463.8 100.0 % 12.1 2.6 %

Cost of goods sold (725.1) (54.1) % (736.1) (55.3) % 11.0 1.5 %

Gross profit 616.2 45.9 % 594.3 44.7 % 21.9 3.7 %

Operating expenses (282.4) (21.0) % (274.4) (20.7) % (8.0) (2.9) %

Segment cost of goods sold (258.4) (54.3) % (254.9) (55.0) % (3.5) (1.4) %

Segment gross profit 217.5 45.7 % 208.9 45.0 % 8.6 4.1 %

Segment operating expenses (95.4) (20.0) % (96.0) (20.7) % 0.6 0.6 %

Segment operating earnings $ 122.1 25.7 % $ 112.9 24.3 % $ 9.2 8.1 %

Segment net sales of $1,341.3 million in the first nine months of 2024 represented an increase of $10.9 million , or 0.8% , from 2023 levels, reflecting a $10.8 million , or 0.8% , organic sales gain and $0.1 million of favorable foreign currency translation.

The organic improvement reflects a mid single-digit increase in activity with OEM dealerships, partially offset by low single-digit declines in both sales of undercar equipment and of diagnostic and information products to independent repair shop owners and managers.

Segment gross margin in the first nine months improved 120 bps from last year primarily due to savings from RCI initiatives, and lower material and other costs.

Segment operating expenses as a percentage of net sales in the first nine months rose 30 bps from 2023 primarily reflecting increased personnel and other costs.

As a result of these factors, segment operating earnings of $333.8 million in the first nine months of 2024 compared to $319.9 million in 2023, an increase of $13.9 million or 4.3% .

Operating margin for the Repair Systems & Information Group of 24.9% in the first nine months of 2024 compared to 24.0% last year.

SNAP-ON INCORPORATED

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS

OF OPERATIONS

Segment net sales of $475.9 million in the first quarter of 2025 represented an increase of $12.1 million, or 2.6%, from 2024 levels, reflecting a $17.0 million, or 3.7%, organic sales gain, partially offset by $4.9 million of unfavorable foreign currency translation.

The organic improvement includes a double-digit increase in activity with OEM dealerships and a low single-digit gain in sales of diagnostic and repair information products to independent repair shop owners and managers, partially offset by a mid single-digit decline in sales of undercar equipment.

Segment gross margin in the first quarter improved 70 bps from last year primarily reflecting increased sales of higher-gross-margin products and benefits from the segment’s RCI initiatives, partially offset by higher material and other costs.

Segment operating expenses as a percentage of net sales in the first quarter improved 70 bps from 2024 primarily due to the higher sales volumes and savings from RCI initiatives.

As a result of these factors, segment operating earnings of $122.1 million in the first quarter of 2025 compared to $112.9 million in 2024.

Operating margin for the Repair Systems & Information Group of 25.7% in the first quarter of 2025 compared to 24.3% last year.

Financial Services

Three Months Ended

(Amounts in millions) September 28, 2024 September 30, 2023 Change

(Amounts in millions) March 29, 2025 March 30, 2024 Change

Financial services revenue $ 102.1 100.0 % $ 99.6 100.0 % $ 2.5 2.5 %

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Financial services revenue is generally dependent on the size of the average financial services portfolio during the period, as well as on the average yield on receivables.

Financial services revenue of $100.4 million in the third quarter of 2024 increased $5.5 million, or 5.8%, from last year.

In the third quarters of both 2024 and 2023, the average yield on finance receivables was 17.7%.

In the third quarters of 2024 and 2023, the average yields on contract receivables were 9.1% and 8.8%, respectively.

Originations of $288.0 million in the third quarter of 2024 represented a decrease of $17.2 million, or 5.6%, from 2023 levels.

Financial services revenue of $102.1 million in the first quarter of 2025 represented an increase of $2.5 million, or 2.5%, from last year.

In the first quarters of 2025 and 2024, the respective average yields on finance receivables were 17.6% and 17.7% .

In the first quarters of 2025 and 2024, the average yields on contract receivables were 9.1% and 9.0%, respectively.

Originations of $268.7 million in the first quarter of 2025 represented a decrease of $33.0 million, or 10.9%, from 2024 levels.

Financial services expenses primarily include personnel-related and other general and administrative costs, as well as provisions for credit losses.

These expenses are generally more dependent on changes in the size of the financial services portfolio than they are on the revenue of the segment.

Financial services expenses in the third quarter of 2024 increased primarily due to higher provisions for credit losses as compared to those recorded in the third quarter of 2023.

As a percentage of the average financial services portfolio, expenses were 1.1% in the third quarters of both 2024 and 2023.

As a result of these factors, segment operating earnings of $71.7 million in the third quarter of 2024 compared to $69.4 million in 2023 , an increase of $2.3 million, or 3.3%.

Nine Months Ended

(Amounts in millions) September 28, 2024 September 30, 2023 Change

Financial services revenue $ 300.5 100.0 % $ 280.9 100.0 % $ 19.6 7.0 %

Financial services expenses (90.3) (30.0) % (78.3) (27.9) % (12.0) (15.3) %

Segment operating earnings $ 210.2 70.0 % $ 202.6 72.1 % $ 7.6 3.8 %

Financial services revenue of $300.5 million in the first nine months of 2024 increased $19.6 million , or 7.0% , from last year.

In the first nine months of both 2024 and 2023, the average yield on finance receivables was 17.7% .

In the first nine months of 2024 and 2023, the average yields on contract receivables were 9.0% and 8.7% , respectively.

Originations of $ 897.8 million in the first nine months of 2024 represented a decrease of $ 34.6 million , or 3.7% , from 2023 levels.

Financial services expenses in the first nine months of 2024 increased primarily due to higher provisions for credit losses as compared to those recorded last year.

As a percentage of the average financial services portfolio, expenses were 3.6% and 3.3% in the respective first nine months of 2024 and 2023.

As a result of these factors, segment operating earnings of $210.2 million in the first nine months of 2024 compared to $202.6 million in 2023 , an increase of $7.6 million , or 3.8%.

Snap-on’s third quarter 2024 general corporate expenses of $24.2 million compared to $31.2 million last year.

The year-over-year decrease primarily reflects lower performance-based compensation and other costs.

For the first nine months of 2024, general corporate expenses of $49.2 million compared to $92.7 million recorded in 2023.

The year-over-year decrease primarily reflects benefits from the legal payments received in the first six months of 2024 and lower performance-based compensation and other costs.

As a percentage of the average financial services portfolio, expenses were 1.3% in the first quarters of both 2025 and 2024.

As a result of these factors, segment operating earnings of $70.3 million in the first quarter of 2025 compared to $68.3 million in 2024.

SNAP-ON INCORPORATED

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OF OPERATIONS

Snap-on’s first quarter 2025 general corporate expenses of $24.6 million compared to $14.7 million last year.

The year-over-year increase primarily reflects benefits from the legal payments received in the first quarter of 2024.

Non-GAAP Supplemental Data

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Transactions between the Operations and Financial Services businesses are eliminated to arrive at the Condensed Consolidated Financial Statements.

Non-GAAP Supplemental Consolidating Data – Supplemental Condensed Statements of Earnings information for the three months ended September 28, 2024, and September 30, 2023, is as follows:

Operations* Financial Services

(Amounts in millions) September 28, 2024 September 30, 2023 September 28, 2024 September 30, 2023

Net sales $ 1,147.0 $ 1,159.3 $ — $ —

Cost of goods sold (559.2) (581.1) — —

Gross profit 587.8 578.2 — —

Operating expenses (335.4) (333.0) — —

Operating earnings before financial services 252.4 245.2 — —

Financial services revenue — — 100.4 94.9

Financial services expenses — — (28.7) (25.5)

Operating earnings from financial services — — 71.7 69.4

Operating earnings 252.4 245.2 71.7 69.4

Interest expense (12.5) (12.4) — —

Intersegment interest income (expense) – net 16.8 16.1 (16.8) (16.1)

Other income (expense) – net 20.6 17.9 — 0.1

Earnings before income taxes and equity earnings 277.3 266.8 54.9 53.4

Income tax expense (62.0) (57.3) (12.7) (13.8)

Earnings before equity earnings 215.3 209.5 42.2 39.6

Financial services – net earnings attributable to Snap-on 42.2 39.6 — —

Net earnings 257.5 249.1 42.2 39.6

Net earnings attributable to noncontrolling interests (6.4) (6.0) — —

Net earnings attributable to Snap-on $ 251.1 $ 243.1 $ 42.2 $ 39.6

* Snap-on with Financial Services presented on the equity method.

SNAP-ON INCORPORATED

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS

OF OPERATIONS

Non-GAAP Supplemental Consolidating Data – Supplemental Condensed Statements of Earnings information for the nine month periods ended September 28, 2024, and September 30, 2023, is as follows:

Non-GAAP Supplemental Consolidating Data – Supplemental Condensed Statements of Earnings information for the three months ended March 29, 2025, and March 30, 2024, is as follows:

Operations* Financial Services

(Amounts in millions) September 28, 2024 September 30, 2023 September 28, 2024 September 30, 2023

(Amounts in millions) March 29,

2025 March 30,

2024 March 29, 2025 March 30, 2024

Net sales $ 1,141.1 $ 1,182.3 $ — $ —

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OF OPERATIONS

Non-GAAP Supplemental Consolidating Data – Supplemental Condensed Balance Sheets information as of September 28, 2024, and December 30, 2023, is as follows:

Non-GAAP Supplemental Consolidating Data – Supplemental Condensed Balance Sheets information as of March 29, 2025, and December 28, 2024, is as follows:

Operations* Financial Services

(Amounts in millions) September 28,

2024 December 30, 2023 September 28,

(Amounts in millions) March 29,

2025 December 28, 2024 March 29,

2025 December 28, 2024

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Operations* Financial Services

(Amounts in millions) September 28,

2024 December 30, 2023 September 28,

(Amounts in millions) March 29,

2025 December 28, 2024 March 29,

2025 December 28, 2024

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Due to Snap-on’s credit rating over the years, external funds have been available at an acceptable cost.

As of October 11, 2024, Snap-on’s long-term debt and commercial paper were rated, respectively, A2 and P-1 by Moody’s Investors Service;

As of April 11, 2025, Snap-on’s long-term debt and commercial paper were rated, respectively, A2 and P-1 by Moody’s Investors Service;

A- and A-2 by Standard & Poor’s;

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The following discussion focuses on information included in the accompanying Condensed Consolidated Balance Sheets.

Working capital (current assets less current liabilities) of $3,044.3 million as of September 28, 2024, represented an increase of $333.9 million from $2,710.4 million as of December 30, 2023 (fiscal 2023 year end), primarily as a result of the net changes discussed below.

The following represents the company’s working capital position as of September 28, 2024, and December 30, 2023:

(Amounts in millions) September 28,

Working capital (current assets less current liabilities) of $3,141.5 million as of March 29, 2025, represented an increase of $113.6 million from $3,027.9 million as of December 28, 2024 (fiscal 2024 year end), primarily as a result of the net changes discussed below.

The following represents the company’s working capital position as of March 29, 2025, and December 28, 2024:

(Amounts in millions) March 29,

2025 December 28, 2024

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Working capital $ 3,141.5 $ 3,027.9

Cash and cash equivalents of $1,313.3 million as of September 28, 2024, represented an increase of $311.8 million from 2023 year-end levels primarily due to:

Cash and cash equivalents of $1,434.9 million as of March 29, 2025, represented an increase of $74.4 million from 2024 year-end levels primarily due to:

(i) $298.5 million of cash generated from operations;

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and (iv) the funding of $22.9 million of capital expenditures.

Of the $1,313.3 million of cash and cash equivalents as of September 28, 2024, $507.7 million was held outside of the United States.

Of the $1,434.9 million of cash and cash equivalents as of March 29, 2025, $511.8 million was held outside of the United States.

Snap-on maintains non-U.S.

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and/or (iii) take advantage of business expansion opportunities as they arise.

Although the Tax Cuts and Jobs Act (“Tax Act”) generally eliminated U.S.

Although the Tax Cuts and Jobs Act generally eliminated U.S.

federal taxation of dividends from foreign subsidiaries, such dividends may still be subject to state income taxation and foreign withholding taxes.

3 unchanged sentences

OF OPERATIONS

Trade and other accounts receivable – net of $796.4 million as of September 28, 2024, compared to $791.3 million as of December 30, 2023, an increase of $5.1 million primarily due to an increase in days sales outstanding, partially offset by $1.6 million of foreign currency translation.

Days sales outstanding (trade and other accounts receivable – net as of the respective period end, divided by the respective trailing 12 months of sales, times 360 days) was 61 days for September 28, 2024, and 60 days for December 30, 2023.

The current portions of net finance and contract receivables of $746.8 million as of September 28, 2024, compared to $714.9 million at 2023 year end.

The long-term portions of net finance and contract receivables of $1,731.1 million as of September 28, 2024, compared to $1,692.1 million at 2023 year end.

The combined $70.9 million increase in net current and long-term finance and contract receivables over 2023 year-end levels is primarily due to net receivable originations and $4.9 million of foreign currency translation.

Inventories – net of $995.8 million as of September 28, 2024, decreased $10.1 million compared to $1,005.9 million as of December 30, 2023, primaril y due to easing supply chain disruptions, partially offset by $0.8 million of foreign currency translation.

Inventory turns (trailing 12 months of cost of goods sold, divided by the average of the beginning and ending inventory balances for the trailing 12 months) were 2.3 turns as of both September 28, 2024, and December 30, 2023.

Inventories accounted for using the first-in, first-out (“FIFO”) method approximated 58% of total inventories as of September 28, 2024, and 59% of total inventories as of December 30, 2023.

Trade and other accounts receivable – net of $852.7 million as of March 29, 2025, represented an increase of $37.1 million from 2024 year-end levels primarily due to an increase in days sales outstanding and $9.6 million of foreign currency translation.

Days sales outstanding (trade and other accounts receivable – net as of the respective period end, divided by the respective trailing 12 months of sales, times 360 days) was 66 days for March 29, 2025, and 62 days for December 28, 2024.

The current portions of net finance and contract receivables of $736.8 million as of March 29, 2025, compared to $730.3 million at 2024 year end.

The long-term portions of net finance and contract receivables of $1,716.4 million as of March 29, 2025, compared to $1,730.3 million at 2024 year end.

Inventories – net of $961.2 million as of March 29, 2025, represented an increase of $17.8 million from December 28, 2024, primaril y due to $15.5 million of foreign currency translation.

Inventory turns (trailing 12 months of cost of goods sold, divided by the average of the beginning and ending inventory balances for the trailing 12 months) were 2.4 turns as of both March 29, 2025, and December 28, 2024.

Inventories accounted for using the first-in, first-out (“FIFO”) method approximated 59% of total inventories as of March 29, 2025, and 57% of total inventories as of December 28, 2024.

All other inventories are accounted for using the last-in, first-out (“LIFO”) method.

The company’s LIFO reserve was $125.7 million and $115.9 million as of September 28, 2024, and December 30, 2023, respectively.

Notes payable of $14.3 million as of September 28, 2024, compared to $15.6 million as of 2023 year end.

Accounts payable of $270.0 million as of September 28, 2024, compared to $238.0 million as of December 30, 2023, an increase of $32.0 million primarily due to the timing of payments, partially offset by $1.2 million of foreign currency translation.

Other accrued liabilities of $450.0 million as of September 28, 2024, compared to $447.4 million as of 2023 year end, an increase of $2.6 million, including $0.3 million of foreign currency translation.

Long-term debt of $1,185.3 million as of September 28, 2024, consisted of:

The company’s LIFO reserve was $123.1 million and $122.4 million as of March 29, 2025, and December 28, 2024, respectively.

Notes payable of $18.2 million as of March 29, 2025, compared to $13.7 million as of 2024 year end.

Accounts payable of $281.3 million as of March 29, 2025, represented an increase of $15.4 million from December 28, 2024, primarily due to the timing of payments and $3.2 million of foreign currency translation.

Other accrued liabilities of $492.6 million as of March 29, 2025, represented an increase of $34.9 million from 2024 year-end levels primarily due to an increase in accrued income taxes and $4.8 million of foreign currency translation.

Long-term debt of $1,185.7 million as of March 29, 2025, consisted of:

(i) $300 million of unsecured 3.25% notes that mature on March 1, 2027 (the “2027 Notes”);

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The Credit Facility contains an accordion feature that, subject to certain customary conditions, may allow the maximum commitment to be increased by up to $450 million with the approval of the lenders providing additional commitments.

No amounts were borrowed or outstanding under the Credit Facility during the nine months ended and as of September 28, 2024.

No amounts were borrowed or outstanding under the Credit Facility during the three months ended and as of March 29, 2025.

Borrowings under the Credit Facility bear interest at varying rates based on either:

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Snap-on may, up to two times during any five-year period during the term of the Credit Facility (including any extensions thereof), elect to increase the maximum Leverage Ratio to 0.65 to 1.00 and/or increase the maximum Consolidated Net Debt to EBITDA Ratio to 4.00 to 1.00 for four consecutive fiscal quarters in connection with certain material acquisitions (as defined in the related credit agreement).

As of September 28, 2024, the company’s consolidated cash balance, net of certain adjustments, exceeded consolidated debt resulting in actual ratios of (0.01) and (0.03), respectively.

As of March 29, 2025, the company’s consolidated cash balance, net of certain adjustments, exceeded consolidated debt resulting in actual ratios of (0.03) and (0.10), respectively.

Both ratios are within the permitted ranges set forth in this financial covenant.

Snap-on generally issues commercial paper to fund its financing needs on a short-term basis and uses the Credit Facility as back-up liquidity to support such commercial paper issuances.

As of September 28, 2024, there were no commercial paper issuances outstanding.

As of March 29, 2025, there were no commercial paper issuances outstanding.

SNAP-ON INCORPORATED

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Operating Activities

Net cash provided by operating activities was $924.0 million and $857.3 million in the first nine months of 2024 and 2023, respectively.

The $66.7 million year-over-year increase in net cash provided by operating activities primarily reflects a $23.7 million change in net operating assets and liabilities and a $31.4 million increase in net earnings.

Net cash provided by operating activities was $298.5 million and $348.7 million in the respective first three months of 2025 and 2024.

The $50.2 million year-over-year decrease in net cash provided by operating activities primarily reflects a $24.7 million change in net operating assets and liabilities and a $22.9 million decrease in net earnings.

Investing Activities

Net cash used by investing activities of $163.9 million in the first nine months of 2024 included additions to finance receivables of $731.3 million, partially offset by collections of $629.3 million.

Net cash used by investing activities of $227.2 million in the first nine months of 2023 included additions to finance receivables of $779.8 million, partially offset by collections of $626.5 million.

Net cash used by investing activities of $32.0 million in the first three months of 2025 included additions to finance receivables of $218.9 million, partially offset by collections of $210.7 million.

Net cash used by investing activities of $63.2 million in the first three months of 2024 included additions to finance receivables of $248.0 million, partially offset by collections of $207.8 million.

Finance receivables are comprised of extended-term installment payment contracts to both technicians and independent shop owners (i.e., franchisees’ customers) to enable them to purchase tools, diagnostics, and equipment products on an extended-term payment plan, with average payment terms of approximately four years.

Capital expenditures were $65.4 million and $73.9 million in the first nine months of 2024 and 2023, respectively.

Capital expenditures were $22.9 million and $21.8 million in the respective first three months of 2025 and 2024.

Capital expenditures in both years included continued investments related to the company’s execution of its strategic Value Creation Processes around safety, quality, customer connection, innovation and RCI.

Financing Activities

Net cash used by financing activities was $448.3 million in the first nine months of 2024 and $423.9 million in the first nine months of 2023.

Proceeds from stock purchase plans and stock option exercises totaled $61.6 million and $94.5 million in the first nine months of 2024 and 2023, respectively.

In the first nine months of 2024, Snap-on repurchased 637,000 shares of its common stock for $177.5 million under its previously announced share repurchase programs.

In the first nine months of 2023, Snap-on repurchased 909,000 shares of its common stock for $233.8 million under its previously announced share repurchase programs.

As of September 28, 2024, Snap-on had remaining availability to repurchase up to an additional $471.5 million in common stock pursuant to its Board’s authorizations.

Net cash used by financing activities was $193.6 million in the first three months of 2025 and $164.2 million in the first three months of 2024.

Proceeds from stock purchase plans and stock option exercises totaled $18.3 million and $28.3 million in the respective first three months of 2025 and 2024.

In the first three months of 2025, Snap-on repurchased 260,000 shares of its common stock for $87.2 million under its previously announced share repurchase programs.

In the first three months of 2024, Snap-on repurchased 248,000 shares of its common stock for $70.2 million under its previously announced share repurchase programs.

As of March 29, 2025, Snap-on had remaining availability to repurchase up to an additional $398.4 million in common stock pursuant to its Board’s authorizations.

The repurchase of Snap-on common stock to offset dilution related to equity plan issuances or for other corporate purposes is at the company’s discretion, subject to prevailing financial and market conditions.

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Snap-on has paid consecutive quarterly cash dividends, without interruption or reduction, since 1939.

Cash dividends totaled $294.1 million and $257.6 million in the first nine months of 2024 and 2023, respectively.

Cash dividends totaled $112.2 million and $98.2 million in the respective first three months of 2025 and 2024.

On November 8, 2024, the Board increased the quarterly cash dividend by 15.1% to $2.14 per share ($8.56 per share annualized).

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We believe that our markets and our operations possess and have demonstrated continuing and considerable resilience against the uncertainties of the current environment.

For the remainder of 2024, Snap-on expects to make ongoing progress along its defined runways for coherent growth, leveraging capabilities already demonstrated in the automotive repair arena and developing and expanding its professional customer base, not only in automotive repair, but in adjacent markets, additional geographies and other areas, including extending in critical industries, where the cost and penalties for failure can be high.

In pursuit of these initiatives, we project that capital expenditures in 2024 will approximate $100 million, of which $65.4 million was incurred in the first nine months of the year.

In 2025, Snap-on expects to make ongoing progress along its decisive runways for coherent growth, leveraging capabilities already proven in the automotive repair arena, developing and expanding its professional customer base, not only in automotive repair, but in adjacent markets, additional geographies and other areas, including extending in critical industries, where the cost and penalties for failure can be high.

In pursuit of these initiatives, we project that capital expenditures in 2025 will approximate $100 million, of which $22.9 million was incurred in the first three months of the year.

Snap-on currently anticipates that its full-year 2025 effective income tax rate will be in the range of 22% to 23%.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis