Snap-On Tools Q2 Earnings Beat Consensus, Driven by Growth in US Sales

Snap-On Inc. reported Q2 2025 results, exceeding revenue and earnings consensus estimates. Net sales reached $1.179 billion, a flat YoY increase, and gross margin contracted by 15 bps to 50.5%. Financial services revenue rose to $101.7 million (+1.2% YoY), and operating cash flow totaled $237.2 million. The company expects continued growth in 2025 and anticipates a full-year 2025 effective income tax rate between 22% and 23%.

Title: Snap-On Inc. Reports Strong Q2 2025 Results, Exceeds Revenue and Earnings Estimates

Snap-On Inc. (NYSE: SNA) announced its second-quarter 2025 results, revealing a strong performance that exceeded market expectations. The company reported net sales of $1,179.4 million, a flat year-over-year (YoY) increase, despite an organic decline of 0.7% offset by favorable foreign currency translation. Gross margin contracted by 15 basis points to 50.5% [1].

Operating earnings before financial services for the quarter were $259.1 million, or 22.0% of net sales, down from $280.3 million, or 23.8% of net sales, in 2024. This decrease was partly due to a $11.2 million benefit from the legal payments received in the previous year. Financial services revenue rose to $101.7 million, a 1.2% YoY increase, with financial services operating earnings of $68.2 million. Consolidated operating earnings for the quarter totaled $327.3 million, or 25.5% of revenues, down from $350.5 million, or 27.4% of revenues, in 2024 [1].

Net earnings for the quarter were $250.3 million, or $4.72 per diluted share, down from $271.2 million, or $5.07 per diluted share, in the same period last year. The effective income tax rate was 22.5% in 2025 and 22.6% in 2024. Operating cash flow totaled $237.2 million [1].

Nick Pinchuk, Snap-on chairman and chief executive officer, expressed optimism about the company's performance. He highlighted the return of sales growth in the U.S. Tools Group, resilient gross margins, and solid operating earnings performance. The company's strategy to pivot to quick payback items and advance with OEM dealerships and independent shop owners is showing traction [1].

Looking ahead, Snap-On expects to make ongoing progress in 2025, leveraging its capabilities in the automotive repair arena and expanding its professional customer base. The company projects capital expenditures of approximately $100 million in 2025, with $42.6 million already incurred in the first six months. The full-year 2025 effective income tax rate is anticipated to be between 22% and 23% [1].

A discussion of these results will be held on July 17, 2025, at 9:00 a.m. Central Time. The webcast will be available at [Snap-On's Investor Events page](https://www.snapon.com/EN/Investors/Investor-Events) [1].

References:
[1] https://www.marketscreener.com/news/snap-on-announces-second-quarter-2025-results-ce7c5cd9dd88f425