What changed in this filing

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Item 1. Financial Statements

2026-10-22 compared with 2026-07-23 · 237 added, 223 removed, 1134 unchanged (29% of the section changed)

3 unchanged sentences

(Amounts in millions, except per share data)

Three Months Ended Six Months Ended

2026 June 28,

Three Months Ended Nine Months Ended

2026 September 27,

2025 October 3,

2026 September 27,

Net sales $ 1,183.7 $ 1,190.8 $ 3,626.0 $ 3,511.3

26 unchanged sentences

(Amounts in millions)

Three Months Ended Six Months Ended

2026 June 28,

Three Months Ended Nine Months Ended

2026 September 27,

2025 October 3,

2026 September 27,

Comprehensive income:

4 unchanged sentences

Defined benefit pension and postretirement plans:

Amortization of net unrecognized losses

Amortization of net unrecognized losses and prior service costs

4.3 5.3 13.0 15.9

38 unchanged sentences

SNAP-ON INCORPORATED

CONDENSED CONSOLIDATED BALANCE SHEETS

CONDENSED CONSOLIDATED BALANCE SHEETS (continued)

(Amounts in millions, except share data)

36 unchanged sentences

(Amounts in millions, except share data)

The following summarizes the changes in total equity for the three month period ended July 4, 2026:

The following summarizes the changes in total equity for the three month period ended October 3, 2026:

Shareholders’ Equity Attributable to Snap-on Incorporated

6 unchanged sentences

Interests Total

Balance at April 4, 2026 $ 67.5 $ 575.1 $ 8,257.4 $ ( 375.9 ) $ ( 2,566.0 ) $ 25.0 $ 5,983.1

Net earnings for the three months ended July 4, 2026

Balance at July 4, 2026 $ 67.5 $ 595.1 $ 8,391.1 $ ( 382.6 ) $ ( 2,629.8 ) $ 25.0 $ 6,066.3

Net earnings for the three months ended October 3, 2026

— — 243.0 — — 6.6 249.6

Other comprehensive loss — — — ( 6.7 ) — — ( 6.7 )

Other comprehensive income — — — 2.4 — — 2.4

Cash dividends – $ 2.44 per share

4 unchanged sentences

Other — — ( 0.5 ) — — ( 6.6 ) ( 7.1 )

Balance at July 4, 2026 $ 67.5 $ 595.1 $ 8,391.1 $ ( 382.6 ) $ ( 2,629.8 ) $ 25.0 $ 6,066.3

The following summarizes the changes in total equity for the six month period ended July 4, 2026:

Balance at October 3, 2026 $ 67.5 $ 603.5 $ 8,507.5 $ ( 380.2 ) $ ( 2,703.4 ) $ 25.0 $ 6,119.9

The following summarizes the changes in total equity for the nine month period ended October 3, 2026:

Shareholders’ Equity Attributable to Snap-on Incorporated

7 unchanged sentences

Balance at January 3, 2026 $ 67.5 $ 578.5 $ 8,137.5 $ ( 354.8 ) $ ( 2,496.9 ) $ 25.0 $ 5,956.8

Net earnings for the six months ended July 4, 2026

Net earnings for the nine months ended October 3, 2026

— — 750.6 — — 18.7 769.3

6 unchanged sentences

Other — — ( 1.3 ) — — ( 18.7 ) ( 20.0 )

Balance at July 4, 2026 $ 67.5 $ 595.1 $ 8,391.1 $ ( 382.6 ) $ ( 2,629.8 ) $ 25.0 $ 6,066.3

Balance at October 3, 2026 $ 67.5 $ 603.5 $ 8,507.5 $ ( 380.2 ) $ ( 2,703.4 ) $ 25.0 $ 6,119.9

See Notes to Condensed Consolidated Financial Statements.

The following summarizes the changes in total equity for the three month period ended June 28, 2025:

SNAP-ON INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (continued)

(Amounts in millions, except share data)

The following summarizes the changes in total equity for the three month period ended September 27, 2025:

Shareholders’ Equity Attributable to Snap-on Incorporated

6 unchanged sentences

Interests Total

Balance at March 29, 2025 $ 67.5 $ 543.5 $ 7,712.4 $ ( 499.5 ) $ ( 2,303.1 ) $ 23.3 $ 5,544.1

Net earnings for the three months ended June 28, 2025

Balance at June 28, 2025 $ 67.5 $ 563.3 $ 7,850.5 $ ( 402.5 ) $ ( 2,363.3 ) $ 24.0 $ 5,739.5

Net earnings for the three months ended September 27, 2025

— — 265.4 — — 6.4 271.8

6 unchanged sentences

Other — — ( 0.5 ) — — ( 5.6 ) ( 6.1 )

Balance at June 28, 2025 $ 67.5 $ 563.3 $ 7,850.5 $ ( 402.5 ) $ ( 2,363.3 ) $ 24.0 $ 5,739.5

The following summarizes the changes in total equity for the six month period ended June 28, 2025:

Balance at September 27, 2025 $ 67.5 $ 572.4 $ 8,003.9 $ ( 393.7 ) $ ( 2,431.1 ) $ 24.8 $ 5,843.8

The following summarizes the changes in total equity for the nine month period ended September 27, 2025:

Shareholders’ Equity Attributable to Snap-on Incorporated

7 unchanged sentences

Balance at December 28, 2024 $ 67.5 $ 557.7 $ 7,584.3 $ ( 575.0 ) $ ( 2,240.4 ) $ 22.9 $ 5,417.0

Net earnings for the six months ended June 28, 2025

Net earnings for the nine months ended September 27, 2025

— — 756.2 — — 19.1 775.3

6 unchanged sentences

Other — — ( 1.1 ) — — ( 17.2 ) ( 18.3 )

Balance at June 28, 2025 $ 67.5 $ 563.3 $ 7,850.5 $ ( 402.5 ) $ ( 2,363.3 ) $ 24.0 $ 5,739.5

Balance at September 27, 2025 $ 67.5 $ 572.4 $ 8,003.9 $ ( 393.7 ) $ ( 2,431.1 ) $ 24.8 $ 5,843.8

See Notes to Condensed Consolidated Financial Statements.

2 unchanged sentences

(Amounts in millions)

Six Months Ended

2026 June 28,

Nine Months Ended

2026 September 27,

Operating activities:

6 unchanged sentences

Stock-based compensation expense 24.2 21.7

Deferred income tax provision 6.8 0.1

Deferred income tax provision (benefit) 13.9 ( 0.7 )

Net gain on sales of assets ( 5.0 ) ( 0.1 )

Changes in operating assets and liabilities, net of effects of acquisitions:

36 unchanged sentences

These financial statements should be read in conjunction with, and have been prepared in conformity with, the accounting principles reflected in the consolidated financial statements and related notes included in Snap-on’s 2025 Annual Report on Form 10-K for the fiscal year ended January 3, 2026 (“2025 year end”).

The company’s 2026 fiscal second quarter ended on July 4, 2026, and its 2025 fiscal second quarter ended on June 28, 2025.

The company’s 2026 and 2025 fiscal second quarters each contained 13 weeks of operating results.

The company’s 2026 fiscal third quarter ended on October 3, 2026, and its 2025 fiscal third quarter ended on September 27, 2025.

The company’s 2026 and 2025 fiscal third quarters each contained 13 weeks of operating results.

The company’s 2026 fiscal year, which ends on January 2, 2027, will contain 52 weeks of operating results.

The company’s 2025 fiscal year contained 53 weeks of operating results, with the additional week occurring in the fourth quarter.

In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for the fair presentation of the Condensed Consolidated Financial Statements for the three and six month periods ended July 4, 2026, and June 28, 2025, have been made.

In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for the fair presentation of the Condensed Consolidated Financial Statements for the three and nine month periods ended October 3, 2026, and September 27, 2025, have been made.

Interim results of operations are not necessarily indicative of the results to be expected for the full fiscal year.

5 unchanged sentences

The carrying value of the company’s non-derivative financial instruments either approximates fair value, due to their short-term nature, or the amount disclosed for fair value is based upon a discounted cash flow analysis or quoted market values.

See Note 9 for additional information on financial instruments.

See Note 9, Financial Instruments, for additional information.

New accounting standards:

17 unchanged sentences

The following table shows the consolidated revenues by revenue source:

Three Months Ended Six Months Ended

(Amounts in millions) July 4,

2026 June 28,

Three Months Ended Nine Months Ended

(Amounts in millions) October 3,

2026 September 27,

2025 October 3,

2026 September 27,

Revenue from contracts with customers $ 1,174.3 $ 1,182.1 $ 3,598.1 $ 3,486.3

10 unchanged sentences

The following tables represent external net sales disaggregated by geography, based on the customers’ billing addresses:

For the Three Months Ended July 4, 2026

For the Three Months Ended October 3, 2026

Commercial Snap-on Repair Systems

10 unchanged sentences

Total revenue $ 404.3 $ 471.5 $ 454.7 $ 98.6 $ ( 146.8 ) $ 1,282.3

For the Six Months Ended July 4, 2026

For the Nine Months Ended October 3, 2026

Commercial Snap-on Repair Systems

12 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

For the Three Months Ended June 28, 2025

For the Three Months Ended September 27, 2025

Commercial Snap-on Repair Systems

9 unchanged sentences

Total revenue $ 367.7 $ 506.0 $ 464.8 $ 101.1 $ ( 147.7 ) $ 1,291.9

For the Six Months Ended June 28, 2025

For the Nine Months Ended September 27, 2025

Commercial Snap-on Repair Systems

10 unchanged sentences

* North America is comprised of the United States, Canada and Mexico.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The following tables represent external net sales disaggregated by customer type:

For the Three Months Ended July 4, 2026

For the Three Months Ended October 3, 2026

Commercial Snap-on Repair Systems

8 unchanged sentences

Total revenue $ 404.3 $ 471.5 $ 454.7 $ 98.6 $ ( 146.8 ) $ 1,282.3

For the Six Months Ended July 4, 2026

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

For the Nine Months Ended October 3, 2026

Commercial Snap-on Repair Systems

8 unchanged sentences

Total revenue $ 1,181.1 $ 1,466.3 $ 1,420.3 $ 299.4 $ ( 441.7 ) $ 3,925.4

For the Three Months Ended June 28, 2025

For the Three Months Ended September 27, 2025

Commercial Snap-on Repair Systems

8 unchanged sentences

Total revenue $ 367.7 $ 506.0 $ 464.8 $ 101.1 $ ( 147.7 ) $ 1,291.9

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

For the Six Months Ended June 28, 2025

For the Nine Months Ended September 27, 2025

Commercial Snap-on Repair Systems

8 unchanged sentences

Total revenue $ 1,059.4 $ 1,459.9 $ 1,409.3 $ 304.9 $ ( 417.3 ) $ 3,816.2

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Nature of goods and services:

18 unchanged sentences

The remaining duration of these unsatisfied performance obligations ranges from one month up to 60 months.

Snap-on had $ 190.2 million of long-term contracts that have fixed consideration that extends beyond one year as of July 4, 2026.

Snap-on had $ 166.5 million of long-term contracts that have fixed consideration that extends beyond one year as of October 3, 2026.

Snap‑on expects to recognize approximately 60 % of these contracts as revenue by the end of fiscal 2027, an additional 35 % by the end of fiscal 2029, and the balance thereafter.

2 unchanged sentences

The timing of payment is typically on a monthly, quarterly, or annual basis.

The balance of total contract liabilities was $ 90.8 million and $ 73.5 million at July 4, 2026, and January 3, 2026, respectively.

The balance of total contract liabilities was $ 84.2 million and $ 73.5 million at October 3, 2026, and January 3, 2026, respectively.

The current portion of contract liabilities is included in “Other accrued liabilities” and the non-current portion of such liabilities is included in “Other long-term liabilities” on the accompanying Condensed Consolidated Balance Sheets.

During the three and six months ended July 4, 2026, Snap-on recognized $ 11.5 million and $ 49.4 million of revenue that was included in the contract liability balance at January 3, 2026, which was primarily from the amortization of software subscriptions, extended warranties and other subscription agreements.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

During the three and nine months ended October 3, 2026, Snap‑on recognized $ 5.4 million and $ 54.8 million of revenue that was included in the contract liability balance at January 3, 2026, which was primarily from the amortization of software subscriptions, extended warranties and other subscription agreements.

On June 8, 2026, Snap-on acquired Diesel Laptops, LLC (“Diesel Laptops”) for a preliminary cash purchase price of $ 99.7 million (or $ 99.1 million, net of cash acquired).

The preliminary purchase price is subject to change based on the finalization of a working capital adjustment that is expected to be completed in the third quarter of 2026.

The preliminary purchase price is subject to change based on the finalization of a working capital adjustment that is expected to be completed in the fourth quarter of 2026.

Diesel Laptops, based in Irmo, South Carolina, specializes in diagnostics, repair information, and digital solutions for commercial trucks and off-highway vehicles serving heavy-duty repair shops, fleets, and other equipment customers such as those in mining, agriculture, and infrastructure.

In the second quarter of 2026, the company recorded, on a preliminary basis, the $ 97.0 million excess of the purchase price over the fair value of the net assets acquired in “Goodwill” on the accompanying Condensed Consolidated Balance Sheets.

The company recorded, on a preliminary basis, the $ 96.1 million excess of the purchase price over the fair value of the net assets acquired in “Goodwill” on the accompanying Condensed Consolidated Balance Sheets.

The company does not expect that the goodwill will be tax deductible.

The company anticipates completing the purchase accounting for the acquired net assets of Diesel Laptops in the second half of 2026.

During the third quarter, the company progressed with the purchase accounting valuations for the acquired net assets of Diesel Laptops, including intangible assets, and anticipates completing the valuations in the fourth quarter of 2026.

For segment reporting purposes, the results of operations and assets of Diesel Laptops have been included in the Repair Systems & Information Group since the acquisition date.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

On April 30, 2026, Snap-on acquired Hi-Force Group Holdings Ltd.

(“Hi-Force”) for a preliminary cash purchase price of $ 58.0 million (or $ 54.9 million, net of cash acquired).

The preliminary purchase price is subject to change based on the finalization of a working capital adjustment that is expected to be completed in the third quarter of 2026.

(“Hi-Force”) for a cash purchase price of $ 57.2 million (or $ 54.2 million, net of cash acquired), which reflects a $ 0.7 million working capital adjustment finalized in the third quarter of 2026.

Hi-Force, based in Daventry, United Kingdom, designs and manufactures high-pressure hydraulic tools, heavy lifting systems, as well as torque and tensioning equipment.

In the second quarter of 2026, the company recorded, on a preliminary basis, the $ 37.7 million excess of the purchase price over the fair value of the net assets acquired in “Goodwill” on the accompanying Condensed Consolidated Balance Sheets.

The company recorded, on a preliminary basis, the $ 36.9 million excess of the purchase price over the fair value of the net assets acquired in “Goodwill” on the accompanying Condensed Consolidated Balance Sheets.

The company does not expect that the goodwill will be tax deductible.

The company anticipates completing the purchase accounting for the acquired net assets of Hi-Force in the second half of 2026.

During the third quarter, the company progressed with the purchase accounting valuations for the acquired net assets of Hi-Force, including intangible assets, and anticipates completing the valuations in the fourth quarter of 2026.

For segment reporting purposes, the results of operations and assets of Hi-Force have been included in the Commercial & Industrial Group since the acquisition date.

6 unchanged sentences

Pro forma financial information has not been presented for the acquisitions as the net effects were not significant to Snap-on’s results of operations or financial position.

See Note 6 for additional information on goodwill and other intangible assets.

See Note 6, Goodwill and Other Intangible Assets, for additional information.

Trade and other accounts receivable:

Snap-on’s trade and other accounts receivable primarily arise from the sale of tools, diagnostics, and equipment products to a broad range of industrial and commercial customers and to Snap-on’s independent franchise van channel with payment terms generally ranging from 30 to 120 days.

The components of Snap-on’s trade and other accounts receivable as of July 4, 2026, and January 3, 2026, are as follows:

(Amounts in millions) July 4,

The components of Snap-on’s trade and other accounts receivable as of October 3, 2026, and January 3, 2026, are as follows:

(Amounts in millions) October 3,

2026 January 3, 2026

2 unchanged sentences

Total trade and other accounts receivable – net $ 922.1 $ 881.4

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The following is a rollforward of the allowances for credit losses related to trade and other accounts receivable for the three and six month periods ended July 4, 2026, and June 28, 2025:

Three Months Ended Six Months Ended

(Amounts in millions) July 4,

2026 June 28,

The following is a rollforward of the allowances for credit losses related to trade and other accounts receivable for the three and nine month periods ended October 3, 2026, and September 27, 2025:

Three Months Ended Nine Months Ended

(Amounts in millions) October 3,

2026 September 27,

2025 October 3,

2026 September 27,

Allowances for credit losses:

6 unchanged sentences

End of period $ 41.4 $ 41.2 $ 41.4 $ 41.2

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Finance and contract receivables:

6 unchanged sentences

Finance and contract receivables are generally secured by the underlying tools, diagnostics and/or equipment products financed and, for contracts to franchisees, other franchisee assets.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The components of Snap-on’s current finance and contract receivables as of July 4, 2026, and January 3, 2026, are as follows:

(Amounts in millions) July 4,

The components of Snap-on’s current finance and contract receivables as of October 3, 2026, and January 3, 2026, are as follows:

(Amounts in millions) October 3,

2026 January 3, 2026

20 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The components of Snap-on’s finance and contract receivables with payment terms beyond one year as of July 4, 2026, and January 3, 2026, are as follows:

(Amounts in millions) July 4,

The components of Snap-on’s finance and contract receivables with payment terms beyond one year as of October 3, 2026, and January 3, 2026, are as follows:

(Amounts in millions) October 3,

2026 January 3, 2026

18 unchanged sentences

Total long-term finance and contract receivables – net $ 1,673.9 $ 1,721.9

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Credit quality:

3 unchanged sentences

When extending credit, Snap-on evaluates the collectability of the receivables based on a combination of various financial and qualitative factors that may affect a customer’s ability to pay.

These factors may include the customer’s financial condition, past payment experience, and credit bureau and proprietary Snap-on credit model information, as well as the value of the underlying collateral.

These factors may include the customer’s financial condition, past payment experience, credit bureau data, and proprietary Snap-on credit model information, as well as the value of the underlying collateral.

For finance and contract receivables, Snap-on assesses quantitative and qualitative factors through the use of credit quality indicators consisting primarily of delinquency classification, collection experience and credit exposure by customer.

5 unchanged sentences

However, customer receivables are monitored prior to becoming 30 days past due.

The amortized cost basis of finance and contract receivables by origination year as of July 4, 2026, and charge-offs recorded in the six months ended July 4, 2026, by origination year, are as follows:

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The amortized cost basis of finance and contract receivables by origination year as of October 3, 2026, and charge-offs recorded in the nine months ended October 3, 2026, by origination year, are as follows:

(Amounts in millions) 2026 2025 2024 2023 2022 Prior Total

14 unchanged sentences

Amounts determined to be uncollectable are charged directly against the allowances, while amounts recovered on previously written off accounts increase the allowances.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

For both finance and contract receivables, write-offs include the uncollectable principal amount of the receivable as well as the uncollectable accrued interest, net of repossessions.

12 unchanged sentences

The WARM methodology is used since contract receivables have limited loss experience over generally longer terms and, therefore, the predictive loss patterns are more difficult to estimate.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The company performed a correlation analysis to compare historical losses to many economic factors.

5 unchanged sentences

The allowances for credit losses are adjusted each period for changes in the credit risk and expected lifetime credit losses.

The following is a rollforward of the allowances for credit losses for finance and contract receivables for the three and six month periods ended July 4, 2026, and June 28, 2025:

The following is a rollforward of the allowances for credit losses for finance and contract receivables for the three and nine month periods ended October 3, 2026, and September 27, 2025:

Three Months Ended

July 4, 2026 Six Months Ended

October 3, 2026 Nine Months Ended

October 3, 2026

(Amounts in millions) Finance

9 unchanged sentences

End of period $ 73.7 $ 6.9 $ 73.7 $ 6.9

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Three Months Ended

June 28, 2025 Six Months Ended

June 28, 2025

September 27, 2025 Nine Months Ended

September 27, 2025

(Amounts in millions) Finance

16 unchanged sentences

In limited instances, Snap-on’s financial services business may modify certain receivables.

The amount and number of finance and contract receivable modifications as of July 4, 2026, and January 3, 2026, were immaterial to both the financial services portfolio and the company’s results of operations and financial position.

The amount and number of finance and contract receivable modifications as of October 3, 2026, and January 3, 2026, were immaterial to both the financial services portfolio and the company’s results of operations and financial position.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The aging of finance and contract receivables as of July 4, 2026, and January 3, 2026, is as follows:

The aging of finance and contract receivables as of October 3, 2026, and January 3, 2026, is as follows:

(Amounts in millions) 30-59

2 unchanged sentences

Past Due Total Greater

July 4, 2026:

October 3, 2026:

Finance receivables $ 24.8 $ 15.2 $ 27.6 $ 67.6 $ 1,864.0 $ 1,931.6 $ 23.3

17 unchanged sentences

Such finance and contract receivables are covered by the company’s respective allowances for credit losses and are written off against the allowances when appropriate.

The amount of finance and contract receivables on nonaccrual status as of July 4, 2026, and January 3, 2026, is as follows:

(Amounts in millions) July 4,

The amount of finance and contract receivables on nonaccrual status as of October 3, 2026, and January 3, 2026, is as follows:

(Amounts in millions) October 3,

2026 January 3, 2026

4 unchanged sentences

Inventories by major classification are as follows:

(Amounts in millions) July 4,

(Amounts in millions) October 3,

2026 January 3, 2026

5 unchanged sentences

Total inventories – net $ 1,079.6 $ 1,025.2

Inventories accounted for using the first-in, first-out (“FIFO”) method approximated 62 % of total inventories for both periods ended July 4, 2026, and January 3, 2026.

Inventories accounted for using the first-in, first-out (“FIFO”) method approximated 60 % and 62 % of total inventories for the periods ended October 3, 2026, and January 3, 2026, respectively.

The company accounts for its non-U.S.

inventory on the FIFO method.

As of July 4, 2026, approximately 40 % of the company’s U.S.

As of October 3, 2026, approximately 39 % of the company’s U.S.

inventory was accounted for using the FIFO method and 61 % was accounted for using the last-in, first-out (“LIFO”) method.

There were no LIFO inventory liquidations in the three and six month periods ended July 4, 2026, and June 28, 2025.

There were no LIFO inventory liquidations in the three and nine month periods ended October 3, 2026, and September 27, 2025.

Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill by segment for the six months ended July 4, 2026, are as follows:

The changes in the carrying amount of goodwill by segment for the nine months ended October 3, 2026, are as follows:

(Amounts in millions) Commercial

5 unchanged sentences

Acquisitions 39.0 — 96.1 135.1

Balance as of July 4, 2026 $ 379.8 $ 12.4 $ 839.3 $ 1,231.5

Goodwill of $ 1,231.5 million as of July 4, 2026, included $ 97.0 million from the acquisition of Diesel Laptops, on a preliminary basis, $ 37.7 million from the acquisition of Hi-Force, on a preliminary basis, and $ 2.1 million from the acquisition of Car-O-Liner Australia.

Balance as of October 3, 2026 $ 377.1 $ 12.4 $ 836.8 $ 1,226.3

Goodwill of $ 1,226.3 million as of October 3, 2026, included $ 96.1 million from the acquisition of Diesel Laptops, on a preliminary basis, $ 36.9 million from the acquisition of Hi-Force, on a preliminary basis, and $ 2.1 million from the acquisition of Car-O-Liner Australia.

During the third quarter, the preliminary goodwill from the Diesel Laptops and Hi-Force acquisitions decreased by $ 0.9 million and $ 0.8 million, respectively.

The goodwill from the Diesel Laptops acquisition is reported in the Repair Systems & Information Group segment and the goodwill from the Hi-Force and Car-O-Liner Australia acquisitions is reported in the Commercial & Industrial Group segment.

See Note 3 for additional information on acquisitions.

See Note 3, Acquisitions, for additional information.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Additional disclosures related to other intangible assets are as follows:

July 4, 2026 January 3, 2026

October 3, 2026 January 3, 2026

(Amounts in millions) Gross Carrying Value Accumulated

11 unchanged sentences

Total other intangible assets $ 514.0 $ ( 247.5 ) $ 266.5 $ 504.6 $ ( 233.9 ) $ 270.7

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Snap-on completed its annual impairment testing of goodwill and other indefinite-lived intangible assets in the second quarter of 2026, the results of which did not result in any impairment.

Provisions for impairment of goodwill and/or other intangible assets could arise in a future period due to significant and unanticipated changes in circumstances, such as declines in profitability and cash flow due to long-term deterioration in macroeconomic, industry and market conditions, the loss of key customers, changes in technology or markets, changes in key personnel or litigation, a sustained decrease in share price and/or other events.

As of July 4, 2026, the company had no accumulated impairment losses.

As of October 3, 2026, the company had no accumulated impairment losses.

The weighted-average amortization periods related to other intangible assets are as follows:

4 unchanged sentences

Intangible asset renewal costs are expensed as incurred.

The aggregate amortization expense was $ 4.7 million and $ 10.0 million for the respective three and six month periods ended July 4, 2026, and $ 5.9 million and $ 11.6 million for the respective three and six month periods ended June 28, 2025.

Based on current levels of amortizable intangible assets and estimated weighted-average useful lives, estimated annual amortization expense is expected to be $ 19.0 million in 2026, $ 17.0 million in 2027, $ 14.1 million in 2028, $ 11.7 million in 2029, $ 10.8 million in 2030, and $ 8.6 million in 2031.

Snap-on’s effective income tax rate on earnings attributable to Snap-on was 21.9 % and 22.3 % in the first six months of fiscal 2026 and 2025, respectively.

The aggregate amortization expense was $ 5.3 million and $ 15.3 million for the respective three and nine month periods ended October 3, 2026, and $ 5.7 million and $ 17.3 million for the respective three and nine month periods ended September 27, 2025.

Based on current levels of amortizable intangible assets and estimated useful lives, annual amortization expense is expected to be $ 20.2 million in 2026, $ 18.9 million in 2027, $ 16.0 million in 2028, $ 13.5 million in 2029, $ 12.5 million in 2030, and $ 9.7 million in 2031.

Snap-on’s effective income tax rate on earnings attributable to Snap-on was 22.1 % and 22.4 % in the first nine months of fiscal 2026 and 2025, respectively.

Snap-on and its subsidiaries file income tax returns in the United States and in various state, local and foreign jurisdictions.

5 unchanged sentences

Short-term and Long-term Debt

Short-term and long-term debt as of July 4, 2026, and January 3, 2026, consisted of the following:

(Amounts in millions) July 4,

Short-term and long-term debt as of October 3, 2026, and January 3, 2026, consisted of the following:

(Amounts in millions) October 3,

2026 January 3, 2026

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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 six months ended and as of July 4, 2026.

No amounts were borrowed or outstanding under the Credit Facility during the nine months ended and as of October 3, 2026.

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 July 4, 2026, the company’s consolidated cash balance, net of certain adjustments, exceeded consolidated debt resulting in actual ratios of ( 0.05 ) and ( 0.21 ), respectively.

As of October 3, 2026, the company’s consolidated cash balance, net of certain adjustments, exceeded consolidated debt resulting in actual ratios of ( 0.05 ) and ( 0.22 ), respectively.

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

Snap-on may issue commercial paper to fund future financing needs on a short-term basis, with the Credit Facility as back-up liquidity to support such commercial paper issuances.

There was no commercial paper issued or outstanding during the six months ended and as of July 4, 2026.

There was no commercial paper issued or outstanding during the nine months ended and as of October 3, 2026.

Financial Instruments

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The fair value changes of these contracts are reported in earnings as foreign exchange gain or loss, which is included in “Other income (expense) – net” on the accompanying Condensed Consolidated Statements of Earnings.

See Note 16 for additional information on Other income (expense) – net.

See Note 16, Other Income (Expense) – Net, for additional information.

Interest rate risk management:

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The change in the fair value of the derivative is recorded in “Long-term debt” on the accompanying Condensed Consolidate d Balance Sheets.

T here were no outstanding interest rate swaps as of both July 4, 2026, and January 3, 2026 .

T here were no outstanding interest rate swaps as of both October 3, 2026, and January 3, 2026 .

Treasury locks:

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Upon the issuance of debt, the related amount in Accumulated OCI is released over the term of the debt and recognized as an adjustment to interest expense on the Condensed Consolidated Statements of Earnings.

There were no treasury locks outstanding as of both July 4, 2026, and January 3, 2026.

There were no treasury locks outstanding as of both October 3, 2026, and January 3, 2026.

Stock-based deferred compensation risk management:

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Since stock-based deferred compensation liabilities increase as the company’s stock price rises and decrease as the company’s stock price declines, the equity forwards are intended to mitigate the potential impact on deferred compensation expense that may result from such mark-to-market changes.

As of July 4, 2026, and January 3, 2026, Snap‑on had equity forwards in place intended to manage market risk with respect to 73,500 shares and 73,000 shares, respectively, of Snap-on common stock associated with its deferred compensation plans.

As of both October 3, 2026, and January 3, 2026, Snap‑on had equity forwards in place intended to manage market risk with respect to 73,000 shares of Snap-on common stock associated with its deferred compensation plans.

Counterparty risk:

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The fair values of financial instruments that do not approximate the carrying values in the financial statements are as follows:

July 4, 2026 January 3, 2026

October 3, 2026 January 3, 2026

(Amounts in millions) Carrying

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Snap-on’s pension net periodic benefit cost included the following components:

Three Months Ended Six Months Ended

(Amounts in millions) July 4,

2026 June 28,

Three Months Ended Nine Months Ended

(Amounts in millions) October 3,

2026 September 27,

2025 October 3,

2026 September 27,

Service cost $ 4.9 $ 4.9 $ 14.9 $ 14.7

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Amortization of unrecognized loss 4.5 5.5 13.7 16.7

Amortization of prior service cost 0.1 0.1 0.1 0.1

Net periodic benefit cost $ 2.4 $ 4.2 $ 7.3 $ 12.5

The components of pension net periodic benefit cost, other than the service cost component, are included in “Other income (expense) – net” on the accompanying Condensed Consolidated Statements of Earnings.

See Note 16 for additional information on other income (expense) – net.

See Note 16, Other Income (Expense) – Net, for additional information.

Snap-on intends to make contributions of $ 4.5 million to its foreign pension plans and $ 3.7 million to its domestic pension plans in 2026, as required by law.

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Snap-on’s postretirement health care net periodic benefit cost (credit) included the following components:

Three Months Ended Six Months Ended

(Amounts in millions) July 4,

2026 June 28,

Three Months Ended Nine Months Ended

(Amounts in millions) October 3,

2026 September 27,

2025 October 3,

2026 September 27,

Interest cost $ 0.4 $ 0.4 $ 1.2 $ 1.3

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The components of postretirement health care net periodic benefit cost (credit) are included in “Other income (expense) – net” on the accompanying Condensed Consolidated Statements of Earnings.

See Note 16 for additional information on Other income (expense) – net.

See Note 16, Other Income (Expense) – Net, for additional information.

Stock-based Compensation and Other Stock Plans

The 2011 Incentive Stock and Awards Plan (the “2011 Plan”) provides for the grant of stock options, performance share units (“PSUs”), stock appreciation rights (“SARs”) and restricted stock awards (which may be designated as “restricted stock units” or “RSUs”).

As of July 4, 2026, the 2011 Plan had 1,391,868 shares available for future grants.

As of October 3, 2026, the 2011 Plan had 1,405,176 shares available for future grants.

The company uses treasury stock to deliver shares under the 2011 Plan.

Net stock-based compensation expense was $ 9.4 million and $ 16.2 million for the respective three and six month periods ended July 4, 2026, and $ 8.5 million and $ 13.0 million for the respective three and six month periods ended June 28, 2025.

Cash received from stock purchase plans and stock option exercises totaled $ 36.5 million and $ 67.1 million during the three and six month periods ended July 4, 2026, and $ 26.9 million and $ 45.2 million during the respective three and six month periods ended June 28, 2025.

The tax benefit realized from both the exercise and vesting of share-based payment arrangements was $ 4.3 million and $ 13.2 million for the respective three and six month periods ended July 4, 2026, and $ 2.2 million and $ 10.5 million for the respective three and six month periods ended June 28, 2025.

Net stock-based compensation expense was $ 8.0 million and $ 24.2 million for the respective three and nine month periods ended October 3, 2026, and $ 8.7 million and $ 21.7 million for the respective three and nine month periods ended September 27, 2025.

Cash received from stock purchase plans and stock option exercises totaled $ 14.0 million and $ 81.1 million during the three and nine month periods ended October 3, 2026, and $ 14.8 million and $ 60.0 million during the respective three and nine month periods ended September 27, 2025.

The tax benefit realized from both the exercise and vesting of share-based payment arrangements was $ 4.1 million and $ 17.3 million for the respective three and nine month periods ended October 3, 2026, and $ 2.5 million and $ 13.0 million for the respective three and nine month periods ended September 27, 2025.

Stock options:

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treasury yield curve on the grant date for the expected term of the stock option.

The following weighted-average assumptions were used in calculating the fair value of stock options granted during the six month periods ended July 4, 2026, and June 28, 2025, using the Black-Scholes valuation model:

Six Months Ended

2026 June 28,

The following weighted-average assumptions were used in calculating the fair value of stock options granted during the nine month periods ended October 3, 2026, and September 27, 2025, using the Black-Scholes valuation model:

Nine Months Ended

2026 September 27,

Expected term of stock option (in years)

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Below is a summary of stock option activity as of and for the six months ended July 4, 2026:

Below is a summary of stock option activity as of and for the nine months ended October 3, 2026:

(in thousands)

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Forfeited or expired ( 21 ) 339.16

Outstanding at July 4, 2026 1,477 236.82 5.4 $ 258.8

Exercisable at July 4, 2026 1,089 197.50 4.2 233.7

Outstanding at October 3, 2026 1,392 238.75 5.3 $ 183.1

Exercisable at October 3, 2026 1,014 198.29 4.1 173.0

* Weighted-average

The weighted-average grant date fair value of stock options granted during the respective six month periods ended July 4, 2026, and June 28, 2025, was $ 73.31 and $ 70.62 .

The intrinsic value of stock options exercised was $ 17.1 million and $ 41.9 million during the respective three and six month periods ended July 4, 2026, and $ 8.9 million and $ 24.6 million during the respective three and six month periods ended June 28, 2025.

The fair value of stock options vested was $ 11.8 million and $ 10.4 million during the respective six month periods ended July 4, 2026, and June 28, 2025.

As of July 4, 2026, there was $ 21.9 million of unrecognized compensation cost related to non-vested stock options, which is expected to be recognized as a charge to earnings over a weighted-average period of 2.0 years.

The weighted-average grant date fair value of stock options granted during the respective nine month periods ended October 3, 2026, and September 27, 2025, was $ 73.31 and $ 70.62 .

The intrinsic value of stock options exercised was $ 16.5 million and $ 58.4 million during the respective three and nine month periods ended October 3, 2026, and $ 14.7 million and $ 39.3 million during the respective three and nine month periods ended September 27, 2025.

The fair value of stock options vested was $ 11.8 million and $ 10.4 million during the respective nine month periods ended October 3, 2026, and September 27, 2025.

As of October 3, 2026, there was $ 18.4 million of unrecognized compensation cost related to non-vested stock options, which is expected to be recognized as a charge to earnings over a weighted-average period of 1.7 years.

Performance share units:

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in recent years, forfeitures have not been significant.

The weighted-average grant date fair value of PSUs granted during the six month periods ended July 4, 2026, and June 28, 2025, was $ 378.55 and $ 339.73 , respectively.

PSUs related to 38,082 shares and 62,171 shares were paid out during the six month periods ended July 4, 2026, and June 28, 2025, respectively.

The weighted-average grant date fair value of PSUs granted during the nine month periods ended October 3, 2026, and September 27, 2025, was $ 378.55 and $ 339.73 , respectively.

PSUs related to 38,082 shares and 62,171 shares were paid out during the nine month periods ended October 3, 2026, and September 27, 2025, respectively.

Earned PSUs vest and are generally paid out following the conclusion of the applicable performance period upon approval by the Organization and Executive Compensation Committee of the company’s Board of Directors (the “Board”).

Changes to the company’s non-vested PSUs during the six months ended July 4, 2026, are as follows:

Changes to the company’s non-vested PSUs during the nine months ended October 3, 2026, are as follows:

(in thousands)

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Performance assumption change** ( 20 ) 305.13

Non-vested PSUs at July 4, 2026 105 334.09

Cancellations and other ( 1 ) 349.72

Non-vested PSUs at October 3, 2026 102 335.50

* Weighted-average

** Reflects the number of PSUs adjusted based on performance metrics.

As of July 4, 2026, there was $ 20.1 million of unrecognized compensation cost related to non-vested PSUs, which is expected to be recognized as a charge to earnings over a weighted-average period of 1.6 years.

As of October 3, 2026, there was $ 17.0 million of unrecognized compensation cost related to non-vested PSUs, which is expected to be recognized as a charge to earnings over a weighted-average period of 1.4 years.

SNAP-ON INCORPORATED

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in recent years, forfeitures have not been significant.

The weighted-average grant date fair value of RSUs granted during the six month periods ended July 4, 2026, and June 28, 2025, was $ 378.55 and $ 339.73 , respectively.

Changes to the company’s non-vested RSUs during the six months ended July 4, 2026, are as follows:

The weighted-average grant date fair value of RSUs granted during the nine month periods ended October 3, 2026, and September 27, 2025, was $ 378.55 and $ 339.73 , respectively.

Changes to the company’s non-vested RSUs during the nine months ended October 3, 2026, are as follows:

(in thousands)

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Vested ( 23 ) 249.34

Non-vested RSUs at July 4, 2026 59 326.59

Cancellations and other ( 1 ) 350.61

Non-vested RSUs at October 3,2026 58 326.39

* Weighted-average

As of July 4, 2026, there was $ 10.6 million of unrecognized compensation cost related to non-vested RSUs, which is expected to be recognized as a charge to earnings over a weighted-average period of 1.6 years.

As of October 3, 2026, there was $ 8.9 million of unrecognized compensation cost related to non-vested RSUs, which is expected to be recognized as a charge to earnings over a weighted-average period of 1.3 years.

Stock appreciation rights:

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treasury yield curve in effect as of the grant date (for stock-settled SARs) or reporting date (for cash-settled SARs) for the expected term of the SARs.

The following weighted-average assumptions were used in calculating the fair value of stock-settled SARs granted during the six month periods ended July 4, 2026, and June 28, 2025, using the Black-Scholes valuation model:

Six Months Ended

2026 June 28,

The following weighted-average assumptions were used in calculating the fair value of stock-settled SARs granted during the nine month periods ended October 3, 2026, and September 27, 2025, using the Black-Scholes valuation model:

Nine Months Ended

2026 September 27,

Expected term of stock-settled SARs (in years)

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Below is a summary of stock-settled SARs as of and for the six months ended July 4, 2026:

Below is a summary of stock-settled SARs as of and for the nine months ended October 3, 2026:

Stock-settled

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Forfeited or expired ( 40 ) 223.61

Outstanding at July 4, 2026 301 262.92 6.6 $ 44.9

Exercisable at July 4, 2026 194 216.79 5.3 37.9

Outstanding at October 3, 2026 287 265.53 6.4 $ 30.2

Exercisable at October 3, 2026 182 218.40 5.1 27.4

* Weighted-average

The weighted-average grant date fair value of stock-settled SARs granted during the six month periods ended July 4, 2026, and June 28, 2025, was $ 71.23 and $ 68.11 , respectively.

The intrinsic value of stock-settled SARs exercised was $ 3.4 million and $ 5.0 million during the respective three and six month periods ended July 4, 2026, and $ 0.2 million and $ 2.2 million during the respective three and six month periods ended June 28, 2025.

The fair value of stock-settled SARs vested was $ 3.1 million and $ 2.8 million during the respective six month periods ended July 4, 2026, and June 28, 2025.

As of July 4, 2026, there was $ 5.8 million of unrecognized compensation cost related to non-vested stock-settled SARs, which is expected to be recognized as a charge to earnings over a weighted-average period of 1.9 years.

The following weighted-average assumptions were used in calculating the fair value of cash-settled SARs granted during the six month periods ended July 4, 2026, and June 28, 2025, using the Black-Scholes valuation model:

Six Months Ended

2026 June 28,

The weighted-average grant date fair value of stock-settled SARs granted during the nine month periods ended October 3, 2026, and September 27, 2025, was $ 71.23 and $ 68.11 , respectively.

The intrinsic value of stock-settled SARs exercised was $ 1.4 million and $ 6.4 million during the respective three and nine month periods ended October 3, 2026, and $ 0.1 million and $ 2.3 million during the respective three and nine month periods ended September 27, 2025.

The fair value of stock-settled SARs vested was $ 3.1 million and $ 2.8 million during the respective nine month periods ended October 3, 2026, and September 27, 2025.

As of October 3, 2026, there was $ 4.9 million of unrecognized compensation cost related to non-vested stock-settled SARs, which is expected to be recognized as a charge to earnings over a weighted-average period of 1.7 years.

The following weighted-average assumptions were used in calculating the fair value of cash-settled SARs granted during the nine month periods ended October 3, 2026, and September 27, 2025, using the Black-Scholes valuation model:

Nine Months Ended

2026 September 27,

Expected term of cash-settled SARs (in years)

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Risk-free interest rate 4.96 % 3.66 %

The intrinsic value of cash-settled SARs exercised was $ 0.2 million and $ 0.5 million for the three and six month periods ended July 4, 2026, and zero for both the three and six month periods ended June 28, 2025.

The fair value of cash-settled SARs vested was $ 0.2 million for the six month periods ended July 4, 2026, and $ 0.1 million for the six month periods ended June 28, 2025.

Changes to the company’s non-vested cash-settled SARs during the six months ended July 4, 2026, are as follows:

The intrinsic value of cash-settled SARs exercised was zero and $ 0.5 million for the three and nine month periods ended October 3, 2026, and zero for both the three and nine month periods ended September 27, 2025.

The fair value of cash-settled SARs vested was $ 0.1 million for both the nine month periods ended October 3, 2026, and September 27, 2025.

Changes to the company’s non-vested cash-settled SARs during the nine months ended October 3, 2026, are as follows:

(in thousands)

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Vested ( 1 ) 99.79

Non-vested cash-settled SARs at July 4, 2026 2 105.13

Non-vested cash-settled SARs at October 3, 2026 2 73.99

* Weighted-average

As of July 4, 2026, there was $ 0.3 million of unrecognized compensation cost related to non-vested cash-settled SARs, which is expected to be recognized as a charge to earnings over a weighted-average period of 1.9 years.

As of October 3, 2026, there was $ 0.2 million of unrecognized compensation cost related to non-vested cash-settled SARs, which is expected to be recognized as a charge to earnings over a weighted-average period of 1.7 years.

SNAP-ON INCORPORATED

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Restricted stock awards – non-employee directors:

The company awarded 4,680 shares and 4,437 shares of restricted stock to non-employee directors for the respective six month periods ended July 4, 2026, and June 28, 2025.

The company awarded 4,680 shares and 4,437 shares of restricted stock to non-employee directors for the respective nine month periods ended October 3, 2026, and September 27, 2025.

The fair value of the restricted stock awards is expensed over a one-year vesting period based on the fair value on the date of grant.

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The company records compensation expense when Snap-on’s period-end stock price is greater than the plan purchase price.

There were 18,997 shares and 24,680 shares issued under this plan for the respective six month periods ended July 4, 2026, and June 28, 2025.

As of July 4, 2026, 486,122 shares were reserved for issuance under this plan and Snap-on held participant contributions of approximately $ 0.6 million.

There were 18,997 shares and 24,680 shares issued under this plan for the respective nine month periods ended October 3, 2026, and September 27, 2025.

As of October 3, 2026, 486,122 shares were reserved for issuance under this plan and Snap-on held participant contributions of approximately $ 2.0 million.

Participants are able to withdraw from the plan at any time prior to the ending date and receive back all contributions made during the plan year.

Compensation expense for plan participants was zero and $ 0.4 million for the respective three and six month periods ended July 4, 2026, and $ 0.1 million and $ 0.4 million for the respective three and six month periods ended June 28, 2025.

Compensation expense for plan participants was zero and $ 0.4 million for the respective three and nine month periods ended October 3, 2026, and $ 0.1 million and $ 0.5 million for the respective three and nine month periods ended September 27, 2025.

Franchisee stock purchase plan:

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The company records mark-to-market expense when Snap-on’s period-end stock price is greater than the plan purchase price.

There were 36,805 shares and 43,518 shares issued under this plan for the respective six month periods ended July 4, 2026, and June 28, 2025.

As of July 4, 2026, 55,726 shares were reserved for issuance under this plan and Snap-on held participant contributions of approximately $ 1.2 million.

There were 36,805 shares and 43,518 shares issued under this plan for the respective nine month periods ended October 3, 2026, and September 27, 2025.

As of October 3, 2026, 55,726 shares were reserved for issuance under this plan and Snap-on held participant contributions of approximately $ 4.8 million.

Participants are able to withdraw from the plan at any time prior to the ending date and generally receive back all contributions made during the plan year.

The company recognized mark-to-market expense of zero and $ 0.7 million for the respective three and six month periods ended July 4, 2026, and zero and $ 0.2 million for the respective three and six month periods ended June 28, 2025.

The company recognized mark-to-market expense of zero and $ 0.7 million for the respective three and nine month periods ended October 3, 2026, and $ 0.3 million and $ 0.5 million for the respective three and nine month periods ended September 27, 2025.

Earnings Per Share

The shares used in the computation of the company’s basic and diluted earnings per common share are as follows:

Three Months Ended Six Months Ended

2026 June 28,

Three Months Ended Nine Months Ended

2026 September 27,

2025 October 3,

2026 September 27,

Weighted-average common shares outstanding 51,644,437 52,074,491 51,754,809 52,215,268

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The dilutive effect of the potential exercise of outstanding stock options and stock-settled SARs to purchase common shares is calculated using the treasury stock method.

As of July 4, 2026, there were no awards outstanding that were anti-dilutive.

As of June 28, 2025, there were 257,592 awards outstanding that were anti-dilutive.

As of October 3, 2026, there were no awards outstanding that were anti-dilutive.

As of September 27, 2025, there were 253,390 awards outstanding that were anti-dilutive.

Performance-based equity awards are included in the diluted earnings per share calculation based on the attainment of the applicable performance metrics to date.

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Snap-on calculates its accrual requirements based on historic warranty loss experience that is periodically adjusted for recent actual experience, including the timing of claims during the warranty period and actual costs incurred.

Snap-on’s product warranty accrual activity for the three and six month periods ended July 4, 2026, and June 28, 2025, is as follows:

Three Months Ended Six Months Ended

(Amounts in millions) July 4,

2026 June 28,

Snap-on’s product warranty accrual activity for the three and nine month periods ended October 3, 2026, and September 27, 2025, is as follows:

Three Months Ended Nine Months Ended

(Amounts in millions) October 3,

2026 September 27,

2025 October 3,

2026 September 27,

Warranty reserve:

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In the ordinary course of business, Snap-on is subject to legal disputes that are being litigated and/or settled.

The accompanying Condensed Consolidated Statements of Earnings for each of the three and nine month periods ended September 27, 2025, include a benefit in “Operating expenses” of $ 22.0 million for the settlement of a legal matter (the “legal settlement”).

Although it is not possible to predict the outcome of legal matters, management believes that the results of all legal matters will not have a material impact on Snap-on’s consolidated financial position, results of operations or cash flows.

Lessee accounting:

Supplemental balance sheet information related to leases as of July 4, 2026, and January 3, 2026, is as follows:

(Amounts in millions) July 4,

Supplemental balance sheet information related to leases as of October 3, 2026, and January 3, 2026, is as follows:

(Amounts in millions) October 3,

2026 January 3, 2026

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Sales-type leases are included in both “Finance receivables – net” and “Long-term finance receivables – net” and also in both “Contract receivables – net” and “Long-term contract receivables – net” on the accompanying Condensed Consolidated Balance Sheets.

See Note 4 for additional information on finance and contract receivables.

See Note 4, Receivables, for additional information on finance and contract receivables.

Other Income (Expense) – Net

“Other income (expense) – net” on the accompanying Condensed Consolidated Statements of Earnings consists of the following:

Three Months Ended Six Months Ended

(Amounts in millions) July 4,

2026 June 28,

Three Months Ended Nine Months Ended

(Amounts in millions) October 3,

2026 September 27,

2025 October 3,

2026 September 27,

Interest income $ 13.9 $ 15.0 $ 41.9 $ 43.0

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Total other income (expense) – net $ 15.4 $ 14.3 $ 47.3 $ 43.0

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Accumulated Other Comprehensive Income (Loss)

Below is a summary of net changes in Accumulated OCI by component and net of tax for the three months ended July 4, 2026:

Below is a summary of net changes in Accumulated OCI by component and net of tax for the three months ended October 3, 2026:

(Amounts in millions) Foreign

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Postretirement

Balance as of April 4, 2026 $ ( 162.2 ) $ 1.9 $ ( 215.6 ) $ ( 375.9 )

Balance as of July 4, 2026 $ ( 171.8 ) $ 1.5 $ ( 212.3 ) $ ( 382.6 )

Other comprehensive loss before reclassifications ( 0.5 ) — — ( 0.5 )

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Net other comprehensive income (loss) ( 0.5 ) ( 0.4 ) 3.3 2.4

Balance as of July 4, 2026 $ ( 171.8 ) $ 1.5 $ ( 212.3 ) $ ( 382.6 )

Below is a summary of net changes in Accumulated OCI by component and net of tax for the six months ended July 4, 2026:

Balance as of October 3, 2026 $ ( 172.3 ) $ 1.1 $ ( 209.0 ) $ ( 380.2 )

Below is a summary of net changes in Accumulated OCI by component and net of tax for the nine months ended October 3, 2026:

(Amounts in millions) Foreign

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Net other comprehensive income (loss) ( 34.0 ) ( 1.2 ) 9.8 ( 25.4 )

Balance as of July 4, 2026 $ ( 171.8 ) $ 1.5 $ ( 212.3 ) $ ( 382.6 )

Below is a summary of net changes in Accumulated OCI by component and net of tax for the three months ended June 28, 2025:

Balance as of October 3, 2026 $ ( 172.3 ) $ 1.1 $ ( 209.0 ) $ ( 380.2 )

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Below is a summary of net changes in Accumulated OCI by component and net of tax for the three months ended September 27, 2025:

(Amounts in millions) Foreign

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Postretirement

Balance as of March 29, 2025 $ ( 248.6 ) $ 3.6 $ ( 254.5 ) $ ( 499.5 )

Balance as of June 28, 2025 $ ( 155.2 ) $ 3.2 $ ( 250.5 ) $ ( 402.5 )

Other comprehensive income before reclassifications 5.2 — — 5.2

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Net other comprehensive income (loss) 5.2 ( 0.4 ) 4.0 8.8

Balance as of June 28, 2025 $ ( 155.2 ) $ 3.2 $ ( 250.5 ) $ ( 402.5 )

Below is a summary of net changes in Accumulated OCI by component and net of tax for the six months ended June 28, 2025:

Balance as of September 27, 2025 $ ( 150.0 ) $ 2.8 $ ( 246.5 ) $ ( 393.7 )

Below is a summary of net changes in Accumulated OCI by component and net of tax for the nine months ended September 27, 2025:

(Amounts in millions) Foreign

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Net other comprehensive income (loss) 170.6 ( 1.2 ) 11.9 181.3

Balance as of June 28, 2025 $ ( 155.2 ) $ 3.2 $ ( 250.5 ) $ ( 402.5 )

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The reclassifications out of Accumulated OCI for the three and six month periods ended July 4, 2026, and June 28, 2025, are as follows:

Balance as of September 27, 2025 $ ( 150.0 ) $ 2.8 $ ( 246.5 ) $ ( 393.7 )

The reclassifications out of Accumulated OCI for the three and nine month periods ended October 3, 2026, and September 27, 2025, are as follows:

Amount Reclassified from Accumulated OCI

Three Months Ended Six Months Ended

(Amounts in millions) July 4,

2026 June 28,

Three Months Ended Nine Months Ended

(Amounts in millions) October 3,

2026 September 27,

2025 October 3,

2026 September 27,

2025 Statement of Earnings

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Net of tax 0.4 0.4 1.2 1.2

Amortization of net unrecognized losses

$ ( 4.4 ) $ ( 5.4 ) $ ( 8.7 ) $ ( 10.6 ) See footnote below*

Amortization of net unrecognized losses and prior service costs*

$ ( 4.3 ) $ ( 5.3 ) $ ( 13.0 ) $ ( 15.9 ) Other income (expense) - net

Income tax benefit 1.0 1.3 3.2 4.0 Income tax expense

2 unchanged sentences

$ ( 2.9 ) $ ( 3.6 ) $ ( 8.6 ) $ ( 10.7 )

* These Accumulated OCI components are included in the computation of net periodic pension and postretirement health care costs;

see Note 10 and Note 11 for additional information.

* See Note 10, Pension Plans, and Note 11, Post Retirement Health Care Plans, for additional information.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

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 chief operating decision maker (“CODM”), to make operating and investment determinations and to assess performance.

20 unchanged sentences

Financial Data by Segment:

Three Months Ended July 4, 2026

Three Months Ended October 3, 2026

Commercial Snap-on Repair Systems

34 unchanged sentences

Commercial & Industrial Group - shared service allocations;

technology, travel and marketing expenses.

technology, travel and marketing expenses, and a $ 5.1 million gain on the sale of a building.

Snap-on Tools Group - franchisee support costs, shared service allocations and technology expenses.

5 unchanged sentences

Financial Data by Segment (continued):

Six Months Ended July 4, 2026

Nine Months Ended October 3, 2026

Commercial Snap-on Repair Systems

34 unchanged sentences

Commercial & Industrial Group - shared service allocations;

technology, travel and marketing expenses.

technology, travel and marketing expenses, and a $ 5.1 million gain on the sale of a building.

Snap-on Tools Group - franchisee support costs, shared service allocations and technology expenses.

5 unchanged sentences

Financial Data by Segment (continued):

Three Months Ended June 28, 2025

Three Months Ended September 27, 2025

Commercial Snap-on Repair Systems

37 unchanged sentences

Repair Systems & Information Group - technology, travel, professional-fee and marketing expenses;

shared service allocations.

shared service allocations and a $ 22.0 million benefit for the legal settlement.

Financial Services - customer support and technology expenses.

2 unchanged sentences

Financial Data by Segment (continued):

Six Months Ended June 28, 2025

Nine Months Ended September 27, 2025

Commercial Snap-on Repair Systems

39 unchanged sentences

Repair Systems & Information Group - technology, travel, professional-fee and marketing expenses;

shared service allocations.

shared service allocations and a $ 22.0 million benefit for the legal settlement.

Financial Services - customer support and technology expenses.

2 unchanged sentences

Financial Data by Segment (continued):

(Amounts in millions) July 4,

(Amounts in millions) October 3,

2026 January 3, 2026

11 unchanged sentences

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 1. Financial Statements