Good morning, and welcome to the Snap-on Incorporated 2024 3rd quarter results conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to Sara Verbsky, Vice President, Investor Relations. Please go ahead. Thank you, Gary, and good morning, everyone. We appreciate you joining us today as we review Snap-on's 3rd quarter results, which are detailed in our press release issued earlier this morning. We have on the call Nick Pinchuk, Snap-on's Chief Executive Officer, and Aldo Pagliari, Snap-on's Chief Financial Officer. Nick will kick off our call this morning with his perspective on our performance. Aldo will then provide a more detailed review of our financial results. After Nick provides some closing thoughts, we'll take your questions. As usual, we provided slides to supplement our discussion. These slides can be accessed under the Downloads tab in the webcast viewer, as well as on our website, snapon.com, under the Investors section. These slides will be archived on our website, along with a transcript of today's call. Any statements made during this call relative to management's expectations, estimates, or beliefs, or that otherwise discuss management's or the company's outlook, plans, or projections are forward-looking statements, and actual results may differ materially from those made in such statements. Additional information and the factors that could cause our results to differ materially from those in the forward-looking statements are contained in our SEC filings. Finally, this presentation includes non-GAAP measures of financial performance, which are not meant to be considered in isolation or as a substitute for their GAAP counterparts. Additional information regarding these measures is included in our earnings release issued today, which can be found on our website. With that said, I'd now like to turn the call over to Nick Pinchuk. Nick? Thanks, Sara. Morning, everyone. As usual, I'll start with the highlights of our 3rd quarter. I'll provide my perspectives on the results, on our markets, and on our path ahead. After that, Aldo will give you a detailed review of the financials. My perspective, I am encouraged, and we believe our 3rd quarter was encouraging. Another period of broad profitability growth and significant forward progress, product and process success, and clear traction on our Tools Group pivot to quick paybacks. Of course, the quarter again had its challenges, ongoing macro pressures, creating obstacles of uncertainty, just like we've encountered before. But in the end, we adjusted, withstood the turbulence, took advantage of the opportunities, and drove another strong earnings performance. And all of that is written clearly across the results. Here they are. 3rd quarter sales of $1.147 billion were slightly down from the $1.159 billion recorded last year. On an organic basis, excluding $200,000 in unfavorable foreign currency translation and $7.2 million from acquisitions, our organic sales were lowered by 1.7%, but the OpCo operating income was up, and the OI margin was 22%, up 80 basis points, setting a new benchmark for our 3rd quarters. For Financial Services, the OI grew to $71.7 million. That's up $2.3 million from the $69.4 million of 2023. A number that, when combined with our OpCo result, raised our consolidated OI margin to 26%, up 90 basis points from last year's 25.1%. EPS, it was $4.70, a nice gain from last year's $4.51. So those are the overall results, marked by operating capability, structural balance, and consistent resilience, prevailing against significant headwinds. Now let's take a view of the markets. During the 3rd quarter, automotive repair remained robust. It continued to expand in complexity. New models entered the market, unveiling a rollout of new drivetrains, motor configurations, and high-tech electrical systems that control a neural network of sensors woven together that enable driver-assistant vehicle autonomy, all of it housed in modern chassis, fashioned out of space-age materials. And this cavalcade of sophisticated advancements combines with an aging car park, you know, the average is just 12.6 years, to make fixing vehicles even more challenging. If you're from Snap-on, this is music to your ears, and the hits just keep on coming, creating opportunities for years to come. Let's talk about organizations. The OEM, the dealerships, the independent garages, the segment that primarily focuses on infrastructure, type investments. Recover, you know, things like renovating bays and upgrading repair equipment, meeting the challenges of new vehicle models and expanding shop capacities to match the rise in repair work, driven by the ongoing increase in vehicle complexity. New lifts to support the extra weight of battery systems, sophisticated undercar equipment to calibrate the driver assist systems that enable vehicle automation, and more powerful software suites for managing parts rooms, service bays, and customer interfaces, enhanced vehicle communication devices to interact with the more complex designs, and more powerful repair information databases to read, to diagnose, and to fix the vehicles of the now and of the future. Our Repair Information Group, RI, thrives in this world of complexity... serving repair shop owners and managers, delivering solutions that make the full repair path much easier, paving the way forward with innovative dealership management systems, proprietary, one-of-a-kind, Intelligent Diagnostics platforms, and a full array of capable shop equipment. Now, the opportunities for the garages is strong, but uncertain interest rates, rumors of tax changes, and worries over the elections are all weighing on investment decisions, creating a mixed landscape across the market. But the overall outlook still remains quite positive, and we believe that Snap-on and RS&I are poised to participate fully in the abundant opportunities. Now, let's shift to the technician market. These are the folks who decipher the data, touch the screen, diagnose the problems, twirl the wrenches, and wield their extraordinary skills to execute the repair. It's where our van network plies its trade. Now, in that regard, the 3rd quarter is always a great time for me because it's when we hold our annual Snap-on Franchisee Conference, or SFC. It's a gathering of men and women who drive the vans and call on hundreds of thousands of techs every week. It's an unmatched connection to the world of vehicle repair. You know, again, this year, I had extended conversations with dozens and dozens of our franchisees, and each encounter, each encounter resonated with enthusiasm. We say Snap-on prevails in turbulence and proceeds with confidence, and the franchisees know it's true. Now, with that said, the micro environment is still weighing on our technician, on technician customers, with considerable uncertainty driven by the election and its perceived impact, the fears of ongoing inflation, inflation, by border pressure, and by the, the specter of prolonged wars. The shops are full, tech wages are up, the hours are expanding, and the demand for, for techs continues. They have cash, but they're still confidence poor. The bad news they get every day for breakfast is weighing on them. Right now, they're hesitant on the future, and as such, they're reluctant on big-ticket items with longer paybacks. So to accommodate, the Tools Group continues to pivot, focusing on shorter payback items to match the technicians' current preferences, and the 3rd quarter results confirm that it's working. So we believe the automotive repair market is robust. Current uncertainty notwithstanding, it's a great place to operate. Now, let's turn to the critical industries, where the penalty for failure is high. This is where our Commercial and Industrial Group or our C&I makes its living. It's challenging. Rugged environments like oil and gas platforms, mining sites, and battlefields, but it also includes sensitive and sophisticated atmospheres needed to manufacture computer chips, to build airplanes, and to launch rockets. The customers in this segment are organizations big and small, and they're more influenced by the data than the text, interest rates, GDP, and industry demands, and as such, these segments are pretty positive, and we see it in the results, growth in aviation, in defense, in general industries, and sectors that need our precision torque devices to execute and document accuracy. And the areas enabled by our custom kit packages that meet the specific needs of the task, that improve quality, productivity, and safety. In other words, solutions that are right up our alley. This is also the segment where our largest international presence is, and consequently, it's the segment with the headwinds of geopolitical turbulence. In that regard, Europe continues to vary region by region. The South remains positive, but several countries, particularly in the North, are dealing with difficulty, in some cases, technical recessions, and in Asia, it's also mixed. China's still recovering from the pandemic and the effects of the extended lockdowns. At the same time, Korea and Japan are resilient, so there are geographic challenges in the critical industries, but overall, this market is positive. The potential is considerable, and we believe we are well-positioned to capitalize on these possibilities, well, those are the markets. Now, let's. Those are the markets. In summary, the automotive repair is mixed in the now, but broad potential for the future, and the critical industries are still robust and rich with opportunities. Now, let's talk about the operating groups. In C&I, sales of $365.7 million compared to $366.4 million registered last year. Sales excluding $7.3 million of acquisition-related volume. You know, excluding the $7.2 million of acquisition-related volume, the organic sales were down by 2.1%. From an earnings perspective, however, C&I OI, $61 million, improved by $2.9 million or 5% over last year, and the OI margin was 16.7%, up 80 basis points, equaling the record high established in the last quarter. The major contributors were the major contributor was our industrial division, continuing its upward trajectory and strong profitability, wielding the capacity provided by its new kitting center in Kenosha and meeting the rising demand for customized solutions along the way. In addition to our investments in the kitting center, our acquisition of Mountz last year is rolling into its twelfth month, and it's been a valuable contributor in meeting the needs of our customers for small precision torque. Torque continues to rise in significance with critical industry customers. And to meet this need, we packaged our existing medium and heavy-duty torque products with Mountz's lighter offerings, giving us a wide spectrum of clamping forces that are essential to the critical industry, from oil and gas, to aviation, to defense. We're capitalizing on that opportunity, and the quarter showed it. Our specialty torque business rose significantly, both in volume and in profitability. We also continued adding to our portfolio of professional cordless tools, engineered products, aligned with the work performed and the expectations of techs doing repairs. You know, for the serious people of work, new products can add great value, and our quarter was marked by that effect. For working on large equipment and over-the-road trucks, we unveiled a CT9175 3/4-inch 18-volt impact, not for the faint of heart. This unit delivers 1,550 foot-pounds of bolt breakaway torque. It's ideal for the most challenging jobs. The rugged, lightweight housing shakes off harsh environments. The ergonomic design reduces stress and fatigue. Pretty important when you're wielding 1,550 foot-pounds. And the ninety-one seventy-five monster has a great feature set to boot, that like LED spotlights, multiple power settings, and a variable speed trigger to just apply the right torque to the job. It's a great tool. Just what you'd expect from Snap-on. Powerful in application, easy to use, and very efficient. It's a tool that techs increasingly want in their arsenal when they're fighting the toughest jobs. The ninety-one seventy-five, it's a great productivity enhancer, and the technicians have noticed. One last thought about the results. C&I kept investing in the quarter, maintaining and expanding our advantage in product, brands, and in people. Operating expenses were one hundred and forty basis points of sales higher than last year. But with the benefits of Rapid Continuous Improvement, or RCI, the value of new products, gross margins rose by 220 basis points, and the OI margin, despite the spending, was up 80 basis points. Higher spending and higher profits without additional scale. Boom, shakalaka! That's C&I. Innovative products, custom solutions, precision instruments, all combined to reach customers in critical industries and extend the Snap-on brand out of the garage with momentum and profitability. Now for the Tools Group. Sales in the 3rd quarter are $500.5 million, including an organic decrease of 3.1%, with a U.S. decrease that was not much different. The OI margin in the period was 21.6%, down 40 basis points from the last year due to the lower volume. With that said, gross margins remained strong, improving 100 basis points, driven by new product, RCI, and manufacturing efficiencies. That was quite a feat, actually. During the period, our team maintained its focus on product development, designing solutions that make work easier and provide customers with quick paybacks. That pivot is taking hold, closing the deficit, both overall and the U.S., to less than half it was in the 2nd quarter. That trend was reinforced in the period by sales being $18.5 million higher than the 2nd quarter. With summer vacations and SFC breaks, we haven't seen the Tools Group up sequentially in a 3rd quarter for some time. We believe it's a sign of considerable momentum. The Tools Group's coming back. Beyond the numbers, we held our annual SFC in August, this year in Orlando, with attendance reaching 9,000 franchisees, guests, and Snap-on associates. This tool show spanned over three football fields, showcasing the latest in product innovation, more than 4,500 SKUs strong. The weekend also was packed with training sessions, purposely designed to grow each fan's business and expand the franchisees' already substantial product knowledge. Among those seminars was an in-depth review of our intelligent diagnostic portfolio, with instructors connected directly to the vehicles, communicating with the cars in real time and clearly demonstrating our industry-leading advantage. It attracted a lot of attention. We celebrated Saturday night by transporting the entire crew in what could be described as an armada of buses to SeaWorld for a night of roller coasters, aquatic shows, and a lot of fun. You know, it was another memorable event, but principally, it serves as a testament to the unique bond that our franchisees hold with the Snap-on team. I believe anyone attending would affirm that the franchisees left reassured on the power of our operation, enthusiastic about the way forward with our enterprise, and convinced that Snap-on really does prevail in difficulty and proceed with confidence. The product booths at this year's event were pretty busy, I'd say, especially near the Cartway to Heaven. It was an eye-catching and colorful wall of mobile tool carts. The model that stole the show was our brand-new KRFC2460 flip top roll cart, a unit that offers Snap-on tool storage in a quick payback form. Just what techs want in today's world. That's why it was so popular. The twenty-four sixty can hold a significant breadth of sockets, wrenches, and power tools in a variety of drawers that range from two-inch to three-inch to five-inch configurations. The ultra-deep top compartment is designed with five AC outlets and two USB ports to ensure that electrical devices are charged and at the ready for any use at any time. The launch was a significant success, and it provides even more testimony that the Tools Group traction in pivoting to shorter payback items is working. Also on the shop floor were products highlighting Snap-on's customer connection. You know, we stand next to mechanics, observing work, experiencing the complexity of vehicle repair, and we use those insights gained and design innovations that make work easier. One such custom solution available at the SFC was our new F8400 half-inch drive axle spindle nut socket. That's a mouthful, huh? And it's manufactured right here in the USA, at our Elkmont, Alabama plant. You know, since 2022, GM 3500 heavy-duty pickups have used a unique fastener that's buried deep into the axle, inside the axle hub. You know, it's a very difficult and time-consuming operation to extract it with standard tooling. So our new specially designed socket reaches in, links precisely with the embedded fastener, and it makes the removal and/or installation safe, quick, and effortless. You know, each vehicle is unique, and a range of different repairs are needed as they age. This is the mother lode for a tool maker, and Snap-on Customer Connection positions our teams to have just the device to match the task. It's a great advantage that was on display at the SFC, and it was on display in our 3rd quarter results. The Tools Group, pivoting to quick paybacks, launching differentiating new products, and summoning the resilience against the headwinds. Now for RS&I. Sales of $422.7 million in the 3rd quarter represented an organic decline of 1.9%. Lower sales on undercar equipment and reduced activity with OEM dealerships were partially offset by higher sales in diagnostics and information products to independent shops. In effect, declines in hardware balanced by gains in software. OI for RS&I was $107.3 million, up 2.3% compared to last year, despite the lower sales. The OI margin of 25.4%, one of the group's highest for some time, was up 110 basis points from 2023. Bravo! All of it was authored by big product and RCI-driven gains in gross margins, partially offset by spending in operating expenses. Gross margins up, operating expenses balancing some of it, but it was all an investment to maintain and extend our advantages, and so we did. During the quarter, RS&I launched its latest addition to our intelligent diagnostic lineup, the APOLLO+. This is a new ergonomically designed handheld that offers a two-second boot up, the fastest in the industry, and a large ten-inch screen, touchscreen for improved visibility and navigation. Most importantly, the platform is powered by our proprietary intelligent diagnostic software, with almost three billion data records and over four hundred billion, you hear me, diagnostic events, all organized to help technicians diagnose and fix vehicles much faster. It was introduced in mid-August, toward the end of the quarter, and it represents the tech's most economical way to wield the power of Intelligent Diagnostics, and it already has the customer's attention. Our on-the-street feedback says the new sophisticated platform with a quick payback is a real hit, and we believe it has a great future. We're encouraged by the strength of our handheld diagnostics and the other unique solutions we provide, and that confidence is reinforced by outside experts. Our SOLUS handheld was eligible for the 2024 awards, and it was cited by Motor Magazine as one of the 2024 top 20 tools, and it was also recognized by Power Tools and Equipment News, or PTEN, for one of its as one of the 2024 People's Choice Awards. That's a distinction based on the endorsements from real technicians, actual users from all across the nation. RS&I also received PTEN recognitions for its collision repair package, its on Brake Lathe, its on-truck Brake Lathe, its heavy-duty diagnostic software, and its M1, Mitchell 1 shop management system. Collectively, this year, across all our operations, Snap-on won 20 such awards. Product is Snap-on, is a Snap-on advantage, and everybody knows it. We're confident in the strength of RS&I, and we'll keep driving to expand its position with repair shop owners and managers, making work easier, the bays more productive, and providing the garages with the means to match the ever-growing challenges of modern vehicle repair. Those are the 3rd quarter results. Tools Group, demonstrating improvement sequentially, pivoting effectively to meet customer preferences. C&I and RS&I, innovative new products and operating efficiencies, managing the headwinds, producing benchmark OI margins. For the overall corporation, sales organically down 1.7%, but OpCo OI up 2.9%. OpCo OI margin of 22%, up 80 basis points, and EPS $4.70, up 4.2%, rising over every comparison, all achieved against the wind. It was another encouraging quarter. Now I'll turn the call over to Aldo. Aldo? Thanks, Nick. Our consolidated operating results are summarized on slide six. Net sales of $1.147 billion in the quarter, compared to $1.159 billion last year, reflecting a 1.7% organic sales decline and $300,000 of unfavorable foreign currency translation, partially offset by $7.2 million of acquisition-related sales. Despite the ongoing uncertainties of the current environment, overall sales activity in the quarter can be characterized as stable. And while our franchise van channel revenues continue to be tempered by technician confidence, the Tools Group generated higher sales sequentially versus last quarter. Generally, the 3rd quarter reflects lower sales dollar activity as compared to the 2nd quarter. Consolidated gross margin improved 130 basis points to 51.2% from 49.9% last year, reflecting increased sales and higher gross margin businesses, benefits from the company's RCI initiatives, and lower material and other costs. Operating expenses as a percentage of net sales rose 50 basis points to 29.2% from 28.7% in 2023, primarily due to the lower sales volumes. Operating earnings before Financial Services of $252.4 million in the quarter, compared to $245.2 million in 2023. As a percentage of net sales, operating margin before Financial Services of 22% represented an improvement of 80 basis points from the 21.2% reported last year. Financial services revenues of $100.4 million in the 3rd quarter of 2024, compared to $94.9 million last year, while operating earnings of $71.7 million compared to $69.4 million in 2023. Consolidated operating earnings of $324.1 million, compared to $314.6 million last year. As a percentage of revenues, the operating earnings margin increased 90 basis points to 26% from 25.1% in 2023. Our 3rd quarter effective income tax rate of 22.9% compared to 22.6% last year. Net earnings of $251.1 million compared to $243.1 million in 2023, and net earnings per diluted share of $4.70 in the quarter, compared to $4.51 per diluted share last year, an increase of 4.2%. Now, let's turn to our segment results for the quarter. Starting with C&I on Slide 7, sales of $365.7 million compared to $366.4 million last year, reflecting a 2.1% organic sales decline, partially offset by $7.2 million of acquisition-related sales. The organic decrease is primarily due to double-digit reduction with respect to intersegment sales of power tools and a mid-single-digit decline in the segment's European-based hand tool businesses. These were partially offset by a gain in sales to customers in critical industries, including a high single-digit increase in specialty torque. With respect to critical industries, in addition to higher torque product sales, defense and aviation-related activity was strong, but it was somewhat offset by declines in the natural resources sector. Gross margin improved 220 basis points to 41.2% in the 3rd quarter from 39% in 2023. This was largely due to the increased sales volume and higher gross margin critical industry sectors, lower material and other costs, savings from RCI initiatives, and 50 basis points of benefit from acquisitions. These improvements were partially offset by 30 basis points of unfavorable foreign currency effects. Operating expenses as a percentage of sales rose 140 basis points to 24.5% in the quarter from 23.1% in 2023, primarily due to investments in personnel and other costs and a 50 basis point impact from acquisitions. Operating earnings for the C&I segment of $61 million compared to $58.1 million last year. The operating margin improved 80 basis points to 16.7% from 15.9% in 2023. Turning now to Slide eight. Sales in the Snap-on Tools Group of $500.5 million compared to $515.4 million a year ago, reflecting a 3.1% organic sales decline and $900,000 of favorable foreign currency translation. The organic decrease reflects a mid-single-digit decline in our U.S. business, partially offset by a low single-digit gain in international operations. That being said, it is meaningful to highlight that sales in the historically lower 3rd quarter period are higher than the $482 million recorded in the 2nd quarter of this year, representing a sequential increase of 3.8%. We believe this, as well as the more modest year-over-year sales decline in the U.S. van network in the 3rd quarter than in previous quarters, favorably demonstrates the resilience of this business. Gross margin improved 100 basis points to 47.3% in the 3rd quarter from 46.3% last year, primarily due to lower material and other costs and benefits from RCI initiatives. Operating expenses as a percentage of sales rose 140 basis points to 25.7% in the quarter from 24.3% in 2023, largely due to the lower sales volume. Operating earnings for the Snap-on Tools Group of $108.3 million compared to $113.4 million last year, the operating margin of 21.6% compared to 22% in 2023. Turning to the RS&I Group, shown on slide 9. Sales of $422.7 million compared to $431.8 million in 2023, reflecting a 1.9% organic sales decline and $900,000 of unfavorable foreign currency translation. The organic decrease includes a mid-single-digit decline in the sales of undercar equipment and a low double single-digit reduction in activity with OEM dealerships, where we often see variability in essential tool programs from period to period. These decreases were partially offset by a low single-digit gain in sales of diagnostic and information products to independent repair shop owners and managers. Gross margin improved 190 basis points to 47.4% from 45.5% last year, primarily reflecting increased sales of higher gross margin products. Operating expenses as a percentage of sales rose 80 basis points to 22% from 21.2% in 2023, largely due to lower sales volumes and increased personnel and other costs. Operating earnings for the RS&I Group of $107.3 million compared to $104.9 million last year. The operating margin improved 110 basis points to 25.4% from the 24.3% reported last year. Now, turning to slide 10. Revenue from Financial Services increased $5.5 million, or 5.8% to $100.4 million from $94.9 million last year, primarily reflecting the growth of the loan portfolio. Financial services operating earnings of $71.7 million, compared to $69.4 million in 2023. Financial services expenses were up $3.2 million from 2023 levels, including $2.4 million of higher provisions for credit losses. Sequentially, the provisions for credit losses were lower by $1.6 million. In the 3rd quarters of both 2024 and 2023, the average yield on finance receivables was 17.7%. In the 3rd quarters of 2024 and 2023, the average yields on contract receivables were 9.1% and 8.8%, respectively. Total loan originations of $288 million in the 3rd quarter represented a decrease of $17.2 million or 5.6% from 2023 levels, reflecting a 6.7% decline in extended credit originations and a 1.3% decrease in originations of contract receivables. The decrease in extended credit originations mostly reflects lower sales of big-ticket items. Geographically, extended credit originations were consistent with the sales activity in the Tools Group, with a decline in the U.S. only partially offset by growth in originations internationally. Moving to slide 11. Our quarter end balance sheet includes approximately $2.5 billion of gross financing receivables, with $2.2 billion from our U.S. operation. For extended credit or finance receivables, the U.S. sixty-day-plus delinquency rate of 1.9% is up forty basis points from the 3rd quarter of 2023. Trailing 12 months net losses for the overall extended credit portfolio of $62.3 million represented 3.11% of outstandings at quarter end. While delinquencies and net losses are trending upward, we believe that these portfolio performance metrics remain relatively balanced considering the current environment. Now, turning to slide 12. Cash provided by operating activities of $274.2 million in the quarter represented 106% of net earnings as compared to $285.4 million last year. The decrease in cash flow as compared to the 3rd quarter of 2023 primarily reflects increases in working capital, which were partially offset by higher net earnings. Net cash used by investing activities of $40.5 million mostly reflected net additions to finance receivables of $20.6 million and capital expenditures of $20.4 million. Net cash used by financing activities of $156.2 million included cash dividends of $97.9 million and the repurchase of 215,000 shares of common stock for $59.9 million under our existing share repurchase programs. As of quarter end, we had remaining availability to repurchase up to an additional $471.5 million of common stock under our existing authorizations, including under the $500 million authorization recently approved by the board of directors in August of this year. Turning to slide 13. Trade and other accounts receivable increased $5.1 million from 2023 year-end. Day Sales Outstanding of 61 days, compared to 60 days at year-end 2023. Inventories decreased $10.1 million from 2023 year-end. On a trailing twelve-month basis, inventory turns of 2.3 remained unchanged from year-end. Our quarter-end cash position of $1.313 billion compared to $1.115 billion at year-end 2023. In addition to cash and expected cash flow from operations, we have more than $900 million available under our credit facilities. As of quarter end, there were no amounts outstanding under the credit facility, and there were no commercial paper borrowings outstanding. That concludes my remarks on our 3rd quarter performance. I'll now briefly review a few outlook items for 2024. For the full year, we expect that capital expenditures will be approximately $100 million, and we currently anticipate that our full year 2024 effective income tax rate will be in the range of 22%-23%. Finally, with respect to corporate costs, we would expect expenses in the upcoming fourth quarter to be more in line with those incurred in the 3rd quarter of this year, as the fourth quarter of twenty twenty-three included some benefit for the recovery of costs associated with a legal matter which will not repeat. I'll now turn the call back to Nick for his closing thoughts. Nick? Thanks, Aldo. That's our quarter. Resilience against the turbulence. We believe the period demonstrated that with great clarity. Sales attenuated, but great products, solving critical tasks, material savings and RCI drove strong and substantial gains in gross margins. Strong enough that we're able to keep investing in our product brand and our people, maintaining and building them for the opportunities to come and still increase OI margins significantly, and all of that was authored by the ongoing characteristics of our end of the Snap-on enterprise. Businesses that are strategically positioned for advantage, for establishing and maintaining ongoing connections to the customers, processes embedded in Snap-on value creation that really do deliver progress every day, and a very capable team that's committed to our enterprise, greatly experienced and battle-tested, and is well able to consistently marshal advantage to drive for driving positive outcomes. You see that all across the corporation. C&I sales down low single digits, profits up, OI margin 16.7%, up 80 basis points. Gross margins up 220 basis points, gains from yielding customization in the critical industry. The Tools Group, meeting the challenges of the day, executing the pivots of quick payback items, closing the sales gap, and displaying momentum. Sales down low single digits. OI margin is 21.6%, down 40 basis points, but gross margins up 100 basis points. RS&I, yielding its advantage with software. Sales down low single digits, but profits up, and OI margins of 25.4%, up 110 basis points, and gross margins up 190 basis points. It all came together as a corporation. Sales attenuated, lower by 1.7% organically, but OI rising from last year. OI margins reaching 22%, up 80 basis points, and gross margins up triple-digit basis points all across the corporation. And an EPS of $4.70, up over every comparison. It was another encouraging quarter, and we believe that, propelled by our decisive advantage in our product, in our brand, and our people, all maintained and strengthened. Even in the turbulence, Snap-on will continue its momentum, so clearly demonstrated in the quarter, and extend our trend of positive performance well on through the days and the years to come. Now, before I turn the call over to the operator, I wanna speak directly to our franchisees and associates. As always, I know many of you are listening. Our quarter demonstrates that Snap-on does indeed prevail in turbulence, and once again, you are the creators of that result, hard won. For your achievements in authoring our success, you have my congratulations. For the skill, energy, and experience you bring to bear every day, on behalf of our team, you have my admiration, and for your unshakable confidence in and dedication to the future of our enterprise, you have my thanks. Now, I'll turn the call over to the operator. Operator? We will now begin the Question-and-Answer session. To ask a question, you may press star, then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. Our first question is from Christopher Glynn with Oppenheimer. Please go ahead. Thanks. Good morning, Nick, Aldo, Sara. Good morning, Chris. Good morning. Wanted to dive into the kind of seasonal strength at SOT. Does that feel like kind of a reset baseline for normal seasonal kind of patterns from here, where you usually have a fourth quarter lift? Or- No, I don't know. Yeah, maybe that gets into what the sell-in, sell-through was in the 3rd quarter, too, and if that needs to be tested on the sell-through. Yeah, the sell-through- In the current quarter. The sell-through, as you know, hasn't been. The sales off the van for some time have been a little bit more than our sales to the van. In this particular quarter, it was slightly reversed in that situation. You know, the sales to the van were a little bit better. But the 3rd quarter is kind of a hard one to predict. I always call it squirrely in that situation, so if it wasn't for the 3rd quarter, I'd, you know, I'd think this is much more definitive. But it's clear that the Tools Group is doing better, certainly did better in the 3rd quarter. And we have not seen a 3rd quarter over the 2nd quarter in a dog's age, except for the one in the COVID, where we came out in a V-shaped recovery in the 3rd quarter. But you can look back for a long time, and you don't see that, and this, this is the total group, and it's the, you know, it's the U.S. in general, and so we view it as some momentum. The question is, you know, I suppose, will they be able to continue that momentum? And we think they can. We like their products, and we like the fact that doing this has come out of their profitability, up 100 basis points. You know, they got a little bit of volume impact, but the hundred basis points of gross margin wielded by great new products and the manufacturing efficiencies in some ways that come out of the new expansions that are more productive than the old and across the major plants in the United States. So we think things are moving positively, but, you know, we don't give guidance, but I like our chances going forward for the tools. Sounds great. And then just switching on RS&I, it's been very steady run rates, 3rd quarter, a bit of a step down. Historically, not much routine seasonality, though 3Q last year also kind of deviated a little lower versus kind of the way the business had been trending. So curious if you can offer any insights around that. Maybe, you know, does it feel like the equipment side is entering an interim pause after some, you know, steady recapitalizing customers? Well, I'd say this. Look, I think the thing is, I've stated that the-- I've said in my very simple, hardware down, software up, you know? So the hardware piece is the equipment piece, and that was, there was some attenuation of that. Some of that can be seasonal. I don't know, I wouldn't hang my hat on that, but there is a little bit of headwind in the 3rd quarter, vacations that happen in the garages and so on and stuff like that. But, you know, I think there is some uncertainty in the garages that may weigh on that, and we'll see how that plays out going forward. Look, I think the other piece of it is the OEM. The OEM lumpy business, which kind of hit a flat spot in this quarter, but we don't think that's gonna be continuing every quarter. It's just that it's lumpy, and we happen to catch a lump, a downward lump, a depression in this quarter. That. But the real good thing is, if you look at the software businesses, you look at, you know, the diagnostics business, the Mitchell business, those businesses, the diagnostics and information, which is Mitchell and diagnostics itself, the repair shop owners and managers are up, and those things are profitable. And then you have the sales, you know, sales of parts catalogs, electronic parts catalogs, another software piece, and it up. And if you look at the software in the Tools Group associated with diagnostics, yeah, you know, we're increasing the software following hardware launches, but increasing the software looks pretty strong. And if you look at the software in the diagnostics, just in the tools business, that's a pretty good piece of business that's up year over year, and that helped drive some of the profitability in the Tools Group. So I feel pretty good about RS&I. I'm not so worried about it. I think. And by the way, if you could trade off the software businesses with high margins for a little bit of turbulence in the hardware business, wouldn't you do it? I would. Thank you, Nick. The next question is from Gary Prestopino with Barrington Research. Please go ahead. Hey, good morning, all. Good morning. Hey, Nick, in your narrative, you did try and give us a peek here as to what this pivot in the Tools Group, how it impacted the quarter. And, you know, on a quarterly basis, sequentially, you were up $18 million. Could you maybe just help us here? Was the majority of that sequential increase due to the pivot in sales? You know, a lot of it was. Hand tools were the strongest category in this quarter, and it was a bigger why you can see the pivot is when you look at it all. I don't like parsing those numbers because it'd be a little bit squirrely from quarter to quarter. But really, hand tools is represented a greater mix of Tools Group sales to the franchisees in this quarter than all the way back to the pandemic, a nd so that is helping drive this. That is the real testimony to the pivot, because that is what we wanted to have happen. Because this is what customers are ready to buy, and that helps a lot of that situation, plus it helps the margins. Is it safe to say that a lot of this was due to new products coming into the market that you introduced? I think, yeah, and then there are also promotions, you know, overlay. Look, we had 4,500. Here's a little thing. 4,500 products, I think SKUs, displayed in our tool show at the SFC, a nd over 500 were new in some way. Now, I'm not saying they were all breakthrough products, you know? But there were 500 of the 4,500, you know, franchisees could say, "I'm offering our customers something they couldn't quite have before." And so that qualifies as something new, and it gives you something to sell, and that helped push some of this. And a lot of that was in that area. Although, you know. Promotions can also make hand tools look good if you strike the right chord. You know, you give away. For example, buy a set of hand tools, you get a dinner with Aldo Pagliari, for example. This will sell a lot of things. Yeah, I'd buy a whole Snap-on toolbox of tools just to do that. I'll remember that. Then the last question is, it seems like you've kind of talked about your torque products in C&I over the last couple of quarters. Now, has that is something changing in the market that is moving more towards specialty torque? I know you develop products, and obviously, you've made some acquisitions in that area, but could you just help us out on what kind of secular tailwinds there are that's driving torque? I can answer that in asking you a question. Can you say the word Boeing? Yes. You see what I mean? I think, I think this is, this is, you know, it's a little bit lighthearted, but this is kind of an example. I think people are becoming more and more aware that the mechanisms throughout critical industries are more and more complex, and therefore, precision has to, precision has to be greater than may have been applied in the past. So one, you need more precise tools, and torque wrenches are an element of that, or a deliverer of that. And the more accurate they are, the wider range they are, the better you're able to do that in your operations. That's number one. And then the second one, Gary, is everybody wants to say, "If something goes wrong, I wanna be able to tell people that I did the right, I did the right product. You know, I did the right thing. “You know, I performed the task.” A lot of our products connect with the central system in a factory, recording and documenting that the torque, that the fasteners are applied correctly, and that's helping drive it. The combination of the idea of being accurate in the moment and being able to do it with accuracy and ease on a line, and secondly, to document, is helping torque go upwards. That business grew both in profits and sales in the quarter. We like it. As you know, we've been investing in doing it. We've been making quite a few investments, I mean, acquisitions. In expanding that business, we like that as a business going forward, and it's essential in critical industries in a lot of different places. Okay. Thank you. Sure. The next question is from David MacGregor with Longbow Research. Please go ahead. Yes, sir. Good morning, everyone. David MacGregor. Hey, good morning. I wonder if we could just a couple of just questions for the model. SFC order growth, I mean, you'd indicated last year in the 3rd quarter, you saw mid-single-digit growth. Can you just give us some sense of what that order growth or decline might have looked like this year? And just also with respect to the- Go ahead. Sorry. So it was flat year-over-year, or it was up mid-single digit? It was flat year-over-year. It was flat, okay. So about the same as, you know, so in other words, we thought last year was a pretty good one. Yeah. The problem coming out of the SFC, people slammed into the wall of uncertainty that they saw, say, sometime in, like, now, you know, and they started to back away from their orders. Remember, the SFC ain't sales. It's orders. And so- Right. Of course, getting a lot of orders are better than poking an eye with a sharp stick, you know? But so we felt pretty good. Now, this year, we don't think there's any surprises on the horizon, and people still order about the same amount. So- Nick, when you think about the fulfillment on those orders from SFC this year and sort of the cadence or the timing of those orders, will there be anything different in terms of the pattern of as they fall across 3 Q and 4 Q than last year? Yeah, the little difference is this, is that we didn't push it out quite as far, and so it's a little shorter period. And we've planned some reinforcing promotions in between, just so, you know, that belts and suspenders on this kind of thing. So we'll see how that plays out. That's the... You know, in terms of tools talk, that's what we're doing. But in general- Right. The difference is, David, it's all. Okay, we got the same amount of orders as last year. If people don't see the same, you know, alarming uncertainty arising in front of them, theoretically, it should go better if they. But on the other hand, you never know until you know in that situation. So I just want to clarify, you got about the same number of orders as you did last year, but you shipped a little more in 3Q versus 4Q this year than you would have last year. Is that what you're saying? No, I'm not saying that. I'm, yes, I am saying that. But in other words, when I say the same, I mean about the same amount of orders adjusted for the time that we sold these things. So you're saying, okay, maybe last year we had orders out a couple of weeks in January. This year, we didn't have that. So when I say the same, I'm kind of rating it out over the shorter period, and that's the same. Okay. And then question for Aldo, on the Snap-on Tools gross profits up 100 basis points. You called out in your slide deck price, cost, or raw materials at RCI. You didn't mention the category mix with the stronger hand tools versus, say, diagnostics. Is that just an oversight, or is there something that we should read into the way you've you- No, I don't think there's anything to read into it. I think that the product line, the efficiency across the board is better. Broadly speaking, the cost of steel is down, particularly in some of the cold rolled sheet steel that we use in the Algona factory. But that, that's one of the key contributors, and they just are a little bit more efficient with some of the new factory arrangements. Some of that investment has resulted in slightly better efficiency. So they're just a little bit better at delivering the demand that was in front of them, and the product mix is as Nick mentioned. Yes, hand tools gives you a little bit of favorability, but they were, you know, it was across the board. Okay. It sounds like maybe that category mix is not quite as big a contributor this quarter as it has been in previous quarters. No. Is that a fair assessment? I wouldn't necessarily say that. I don't know where you get that idea. I mean, the point is, is that there's three, three pieces of this, as Aldo just said. It's, it's the, the category mix, you know, the product mix. There is, there was, as I said, there's efficiencies in the factory that are in there, you know, RCI in the factory, and there's some material costs. So there are three things pushing it. You're talking about the 100 basis point improvement, right? Yeah, there, there are three things. Right. What I was talking about in terms of hand tools, nice profitability is an indication of the effect of the pivot, so that helped our sales. Next question for me, just on fourth quarter, the Snap-on Tools segment again. You've got an easier compare on a year-over-year basis. You talked about the 3rd quarter, truck restock going on. I just, how are you thinking about the growth puts and takes for 4Q in Snap-on Tools? Well, look, that's a tough call. Look, we don't give guidance. There are a lot of variables going forward, but I like our chances. I'll say, it looks, if you're talking about the Snap-on Tools Group, the Tools Group seems to have momentum. So if you were me, and you were sitting here and saying: Look, I'm confronted with uncertainty, people want to go to lower payback items. I've seen our ability to cater to that, to meet that, to match that requirement. I've seen the factories come on stream. I've seen us launch new products that are compelling and strong. So I like where we're going on this. I believe we're going forward with momentum. I can't predict the slope of the curve. Right. Right. Okay, last question for me. I wonder if you could just update us on franchisee attrition trends, and can you just talk about what the typical experience is with growth performance when that route comes back to- About the same. It's been about the same for some time. You know, it moves tenths of a point, you know, from quarter to quarter. And the fill rate varies depending on, well, can you find people? You know, how are you. We don't like to lower our standards, and if people leave in a certain area, do we have people in that area we can easily find? And that's what drives the variation from quarter to quarter. I think that's good. One of the good things in the quarter was we saw the number of assistants as a percent of franchisees grow some. So I like that structural point of view. It grew, you know, maybe 100, you know, a number of basis points, so upwards. The percentage seems to be moving upward in this era, so I view that as kind of a sub rosa of favorable event, that when we get over this uncertainty, that's gonna accrue to our benefit. Right. And the repurchase of inventory from exiting franchisees, did that impact, the growth number this quarter? There was some of that. There was some of that, but I wouldn't have called it a significant change year over year or quarter to quarter. There's some of it, but you know, we don't really, we haven't seen it to be something that I would report to the world, you know, and say, "Oh, that's a significant thing. You ought to consider it." It hasn't changed that much. It can change from time to time, but not in this quarter, it wasn't a biggie. Okay. Thanks, Nick. Appreciate it. The next question is from Luke Junk with Baird. Please go ahead. Good morning, Nick. Thanks for taking the question. Hey, Aldo, good to catch up with you, too. First one for me is on the Tools Group. You know, 3Q up versus 2Q, great outcome. Obviously, most years it's the opposite, as you noted. I wanna focus on the execution side. You know, clearly, the focus on quicker payback items is the same, but just the enabling activities, you know, what do you think were the bigger contributors? Is it the capacity expansions helping incrementally, Milwaukee, especially? Can you tie it back to getting the mix of promotions right? Is there something we should be looking at, the tool carts? Is it all the above, Nick? Anything that you'd spike out? It's probably some of all of that, you know, but look, I think the thing is, is that we. It's a combination of product development, pivoting to producing some of the more popular products in the midst of a factory expansion. No easy exercise for a plant manager. And those two things kind of came together with, as Aldo said, you know, a range of things. We had RCI up and down the corporate, both from a design point of view. So we designed new products. In some cases, it allowed us to take advantage of material cost reductions. And so a lot of that all came together in this situation, driving the gross margin profitability one hundred basis points. If you're talking about making the pivot in the sales, you're talking about pretty much getting closer to those quicker payback items and making them work, and the factory being able to deliver better because we expanded the capacity. Remember, we entered this whole thing up to our eyeballs in orders, and we couldn't deliver, so we expanded the capacity, and that's all sort of normalizing out. And the factories are able to get more in sync with the new products coming out. We're able to deliver better, and that's working. Got it. And then, second, if you could just double-click on what you're seeing within diagnostics, specifically, you know, we can see the number obviously in RS&I, but I'm wondering about Tools Group as well. RS&I flipped from, you know, down mid-single digit last quarter to now up low single digit. You know, APOLLO+ is out there right now as a newer product. Is that what we're seeing in the RS&I number incrementally? Does, you know, Tools Group benefit from that as well, Nick? Tools Group does benefit. You know, in other words, one of the good things in the quarter is year-over-year diagnostics were relatively stronger, mainly on the launch of this APOLLO+. I'm not saying they were incandescent, but they were pretty good in this quarter, and it was, you know, kind of artificially pushed with the APOLLO+, but the APOLLO+ seemed to launch pretty well. You know, it's early days because it was just introduced at the SFC. People got to see the guys on the floor plugging into cars, showing how, you know, our databases can be wielded, and it's better. It gives them great advantage. So they went to the field enthusiastic about that. So the sale was up substantially year over year, and the activations are up nicely in the quarter, you know. So at least the launch looked pretty good. You gotta see how it plays out and how much legs it has. But what we like about it is, it's the most cost-effective way to get Intelligent Diagnostics, and we think that tagline has some appeal, you know, has considerable appeal in the marketplace. So that works pretty well. The other thing, though, that I think can get lost is in a number of different ways, inside the Tools Group, which bleeds into both groups, in RS&I and C&I. I mean, in Tools Group, is the rise of software. Subscriptions are up substantially. You know, the titles are down, but in general, software growth is up nicely. And I don't have to tell you that that's nice profitability across the corporation. So that's another factor going on in Tools Group. Got it. Appreciate the color, Nick. Thanks. Thanks. The next question is from Bret Jordan with Jefferies. Please go ahead. Hey, good morning, guys. Morning. Hey, in the Tools Group, I mean, you talk about improving momentum. Is that mix in the sense that the low value or the quick payback product is gaining share, or are you seeing sort of a sentiment change at the shop level? It still seems like traffic is pretty sluggish from talking to parts distributors, and the collision industry is still down. Is it mix, or is the mechanic sentiment improving? Mechanic sentiment is not improving. The garages, though, I don't know who you're talking to, but the garages seem to be filled. The purchase of capital type equipment in the garages, like collision, is down, and actually, you know, it's kind of off the bubble a little bit, and that's seen in our equipment group. But the sentiment of the technician... Remember, we're dealing with the techs in terms of the Tools Group.... You're not seeing that change very much. What you're seeing, though, is the Tools Group pivoting its emphasis to try to present to people attractive and buy now ideas that they don't have to finance for three years. They can just deal with in fifteen weeks, and so that's what we always said would work, and it has been working. So that's what you see the comeback. For us, you know, I don't know if you caught the whole conversation, but for us, one of the real indicators of momentum, at least improvement and the traction that you're seeing in that pivot, is the idea that the 3rd quarter is up over the 2nd quarter. We ain't seen that, and so that has to say there's some momentum in this situation, but it doesn't have to do with the attitudes getting better. Yeah, the guys who sell parts to the garages say it's pretty sluggish. I guess, although on the corporate expense modeling, I mean, could you help us a little bit with twenty-five? You know, just given the variation in that, is it running Q3 to Q4 sort of flat? Is that a rate we should continue into next year? I'd say a little bit of hope here in my voice is that one of the reasons that we're lower this year is lower performance-based compensation expense. So as we reset our plan objectives for 2025, usually you start the year assuming you're going to hit target. So that means if that were the case, I'd more model 27-ish per quarter or something in that range. That's just how I would think about that, Brett. But this year, we're not growing as fast as we had expected coming into the year, and therefore, that's one of the key reasons why there's less performance-based compensation differences. Okay, and then a quick question. I guess election outcome, is one better for you than another? If we're going to tariff imported everything, does that make the tools business less competitive or- Oh, look- How do you think about that? Who the hell knows? Who knows? You know what I mean? These guys. Look, okay, you hear so many different things. We're not going to tax tips. We're not going to tax overtime. We're gonna control prices. We're gonna ding the supermarket. We're gonna tax unrealized capital gains. We're gonna tariff the world. You know, welcome to the Mad Hatter's Tea Party. Nobody knows what actually is going to happen, so you can't even make a pronouncement. Each of these could be, you know, we want to raise corporate tax. Each of these could be attenuating or not. It really depends on the details. I don't think you can discern anything from what these guys have been saying. Of course, if they tariff everything in the world, that's probably, you know, it'll take some adjustment for that. It'll take some adjustment, for sure. But, you know, maybe it helps people who sell in the markets where they produce. Sometimes that can happen over time. But boy, I tell you what, that's a torturous set of assumptions you have to make to come to any conclusion about which person would be best or would help us or hurt us. Okay, great. Thank you. The next question is from Carolina Jolly with Gabelli. Please go ahead. Hi, thank you for taking my question. So it sounds like within RS&I Software and Diagnostics, the higher margin business is doing well. But, can you remind me what's kind of happening in terms of the hardware in that business and- Say that again, please. I lost the last. You can remind me what? You remind you of what? What, what's kind of happening in the hardware part of the business, the area that might be a little more sluggish? Oh, you mean equipment. Well, look, I don't know. Equipment was going gangbusters for a long time. That's under our equipment. It's like aligners and collision equipment and lifts and those kinds of things. And some of those product categories are up. Lifts happen to be up a little bit. But in general, these are capital-like expansions, you know, capital-like expansions in a garage. You know, they're fairly big-ticket items, and they're sold through direct and through distributors to the actual repair shop owner and manager. And what we're seeing here is a little back off in attitude. Some of it can be associated with the macro environment. Some of it could be saying, "Hey, I don't know. Do I want to install something now and finance it at this level when the Fed is going to keep dropping interest rates by fifty point increments? So maybe I'll wait a little while." So our reports are a little bit like that, that people are saying, "I need to put new stuff in because the complexity of the new vehicles need changes to computers to manage it. Just, I want to wait a little bit." Now, on top of that, on top of that, you would say that CDK's disruption, and some of our people do say this, CDK's disruption in the quarter turned dealerships. I think there were 40% of the dealerships turned dealership attention away from saying, adding a lift or a liner to just trying to keep their head above water while they didn't have a computer system. So some of that probably was in the quarter. It's hard to really document that, and I don't know how much it was, but that was certainly a, that wasn't a favorable event for us that happened in the quarter. I'm trying to hang the reduction on that, but that piles on top of the uncertainty. So that's what's happening, and we would think, though, that, you know, we kind of think this is shorter term than, say, the technicians' worries, you know, a little bit, little bit more solvable. It probably gets solvable by maybe some, somewhat by the election and maybe somewhat by interest rates being more definitive, and the technicians, you're more talking about broad bad news for breakfast, things like, okay, two wars, you know, the border's lousy. Everything seems to be crashing down on her, saying, "We don't know what's going to happen in fifteen weeks, after fifteen weeks." A little bit different. Thank you. Sure. This concludes our Question-and-Answer session. I would like to turn the conference back over to Sara Verbsky for any closing remarks. Thank you all for joining us today. A replay of this call will be available shortly on snapon.com. As always, we appreciate your interest in Snap-on. Good day. The conference is now concluded. 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