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- **Record Q3 Earnings**: EPS of $5.02, highest ever, driven by $0.31 legal settlement benefit.
- **Resilient Growth**: 3% organic sales growth, with RS&amp;I up 8.9% and Tools Group showing sequential momentum.
- **Strategic Wins**: Critical industries and precision torque tools outperform, with new products like TAC-2 and 14.4V drill gaining market share.
- **Franchisee Confidence**: SFC 2025 orders up mid-single digits, reflecting franchisees' optimism despite macro uncertainty.
- **Financial Strength**: Gross margin 50.9%, stable cash flow, and $1.53 billion cash position.

**【CEO Summary Section】**
- **Q3 2025 Performance**: Sales of $1.19 billion, up 3.8% YoY (3% organic growth). EPS of $5.02, highest ever for a third quarter, driven by $0.31 benefit from a legal settlement.
- **Market Momentum**: Encouraging growth in automotive repair and industrial sectors, despite global headwinds. Sequential growth in Tools Group and RS&amp;I.
- **Strategic Wins**: Critical industries (aviation, heavy-duty) and precision torque tools show resilience. New products like TAC-2 torque tool and 14.4V cordless drill gain traction.
- **Franchisee Engagement**: SFC 2025 saw 9,000 attendees, mid-single-digit order growth, and record product expo engagement.

**【CFO Financial Commentary】**
- **Financial Highlights**: GAAP net income $265.4 million, Non-GAAP EPS $4.71 (excluding legal benefit). Gross margin 50.9%, stable despite currency headwinds.
- **Segment Performance**: 
  - **C&amp;I**: $367.7 million sales, 0.8% organic decline due to Asia Pacific weakness, offset by critical industries growth. Operating margin 15.6%.
  - **Tools Group**: $506 million sales, 1% organic growth. Operating margin 21.7%, up 10 basis points.
  - **RS&amp;I**: $464.8 million sales, 8.9% organic growth (double-digit gains in OEM dealerships). Operating margin 30.4% (25.6% excluding legal benefit).
- **Balance Sheet**: Cash $1.53 billion, strong liquidity. Q3 cash flow $277.9 million, supporting dividend and share buybacks.
- **Outlook**: Expect $6 million pretax pension cost in Q4. 2025 tax rate 22-23%.

Snap-on (SNA)-16 Oct 25-2025 Q3 Earnings call transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

SNA

SNA fundamentals

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