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Q3-2025 Quarterly Review © 2025 Snap-on Incorporated Quarterly Financial Review Third Quarter 2025
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Q3-2025 Quarterly Review © 2025 Snap-on Incorporated 3 ▪ These slides should be read in conjunction with comments from the October 16, 2025 conference call. The financial statement information included herein is unaudited. ▪ Statements made during the October 16, 2025 conference call and/or information included in this presentation may contain statements, including earnings projections, that are forward- looking in nature and, accordingly, are subject to risks and uncertainties regarding Snap-on’s expected results; actual results may differ materially from those described or contemplated in these forward-looking statements. Factors that may cause actual results to differ materially from those contained in the forward-looking statements, including those found in Snap-on’s reports filed with the Securities and Exchange Commission, and the information under “Safe Harbor” and “Risk Factors” headings in its most recent Annual Report on Form 10-K, which are incorporated herein by reference. Snap-on disclaims any responsibility to update any forward- looking statement provided during the October 16, 2025 conference call and/or included in this presentation, except as required by law. ▪ This presentation includes certain 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 non-GAAP measures is included in Snap-on’s October 16, 2025 press release and Form 8-K, which can be found on the company’s website in the investors section at www.snapon.com. Cautionary Statement
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Q3-2025 Quarterly Review © 2025 Snap-on Incorporated Nick Pinchuk Chairman and Chief Executive Officer
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Q3-2025 Quarterly Review © 2025 Snap-on Incorporated Aldo Pagliari Senior Vice President and Chief Financial Officer
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Q3-2025 Quarterly Review © 2025 Snap-on Incorporated 6 Consolidated Results Q3 2025 Q3 2024 ($ in millions, except per share data - unaudited) $ % $ % Change Net sales ➢ Organic sales ➢ Currency translation $ 1,190.8 34.8 9.0 $ 1,147.0 3.8 % 3.0 % 0.8 % Gross profit Operating expenses $ 605.9 327.4 50.9 % 27.5 % $ 587.8 335.4 51.2 % 29.2 % Operating earnings before financial services $ 278.5 23.4 % $ 252.4 22.0 % 10.3 % Financial services revenue Financial services operating earnings $ 101.1 68.9 $ 100.4 71.7 0.7 % (3.9)% Operating earnings $ 347.4 26.9 % $ 324.1 26.0 % 7.2 % Diluted EPS – as reported $ 5.02 $ 4.70 6.8 % ▪ Net sales of $1,190.8 million in the third quarter of 2025 represented an increase of $43.8 million from 2024 levels, reflecting a $34.8 million, or 3.0%, organic gain and $9.0 million of favorable foreign currency translation ▪ Gross margin decreased 30 basis points (“bps”) to 50.9% from 51.2% last year primarily reflecting 20 bps of unfavorable foreign currency effects; the impact of tariffs was largely offset by the higher sales volumes and benefits from the company’s Rapid Continuous Improvement (“RCI”) initiatives ▪ Operating expenses as a percentage of net sales improved 170 bps to 27.5% from 29.2% last year primarily reflecting a 190 bps benefit from the settlement of a legal matter (the “legal settlement”) ▪ As a percentage of net sales, operating earnings before financial services were 23.4% compared to 22.0% last year
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Q3-2025 Quarterly Review © 2025 Snap-on Incorporated 7 Commercial & Industrial ▪ Organic sales decrease of $2.8 million, or 0.8%, includes a mid single-digit reduction in the segment’s Asia Pacific business, partially offset by low single-digit gains with customers in the critical industry arena and in the specialty torque operation ▪ Gross margin decreased 30 bps from last year due to 30 bps of unfavorable foreign currency effects; higher material and other costs were offset by increased sales volumes in the higher-gross-margin critical industry sectors and savings from the segment’s RCI initiatives ▪ Operating expenses as a percentage of net sales rose 80 bps as compared to 2024 primarily reflecting the impact of lower sales in the Asia Pacific business, as well as increased personnel and other costs ▪ Operating earnings of $57.5 million compared to $61.0 million in 2024; the operating margin of 15.6% compared to 16.7% in 2024 ($ in millions - unaudited) Q3 2025 Q3 2024 Change Segment sales ➢ Organic sales ➢ Currency translation $ 367.7 (2.8) 4.8 $ 365.7 0.5 % (0.8)% 1.3 % Gross profit % of sales $ 150.5 40.9 % $ 150.8 41.2 % Operating expenses % of sales $ 93.0 25.3 % $ 89.8 24.5 % Operating earnings % of sales $ 57.5 15.6 % $ 61.0 16.7 % (110) bps
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Q3-2025 Quarterly Review © 2025 Snap-on Incorporated 8 Snap-on Tools ▪ Organic sales gain of $4.9 million, or 1.0%, was due to a low single-digit rise in the segment’s international operations and slightly higher sales in the U.S. business ▪ Gross margin decreased 50 bps from last year primarily due to a year-over-year shift in product mix ▪ Operating expenses as a percentage of net sales improved 60 bps from 2024 primarily reflecting the higher sales volumes ▪ Operating earnings of $109.9 million compared to $108.3 million in 2024; the operating margin of 21.7% compared to 21.6% last year ($ in millions - unaudited) Q3 2025 Q3 2024 Change Segment sales ➢ Organic sales ➢ Currency translation $ 506.0 4.9 0.6 $ 500.5 1.1 % 1.0 % 0.1 % Gross profit % of sales $ 236.8 46.8 % $ 236.5 47.3 % Operating expenses % of sales $ 126.9 25.1 % $ 128.2 25.7 % Operating earnings % of sales $ 109.9 21.7 % $ 108.3 21.6 % 10 bps
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Q3-2025 Quarterly Review © 2025 Snap-on Incorporated 9 Repair Systems & Information ▪ Organic sales gain of $38.1 million, or 8.9%, includes a double-digit increase in activity with OEM dealerships and a high single-digit gain in sales of diagnostic and repair information products to independent repair shop owners and managers, partially offset by a low single-digit decline in sales of undercar equipment ▪ Gross margin decreased 40 bps from last year primarily reflecting increased sales of lower-gross-margin products, higher material and other costs, and 20 bps of unfavorable foreign currency effects, partially offset by savings from the segment’s RCI initiatives ▪ Operating expenses included a $22.0 million benefit from the legal settlement; segment operating expenses as a percentage of net sales improved 540 bps from last year primarily due to a 480 bps benefit from the legal settlement, as well as from the higher sales volumes ▪ Operating earnings of $141.2, including a $22.0 million benefit from the legal settlement, compared to $107.3 million in 2024; the operating margin of 30.4% compared to 25.4% last year ($ in millions - unaudited) Q3 2025 Q3 2024 Change Segment sales ➢ Organic sales ➢ Currency translation $ 464.8 38.1 4.0 $ 422.7 10.0 % 8.9 % 1.1 % Gross profit % of sales $ 218.6 47.0 % $ 200.5 47.4 % Operating expenses % of sales $ 77.4 16.6 % $ 93.2 22.0 % Operating earnings % of sales $ 141.2 30.4 % $ 107.3 25.4 % 500 bps
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Q3-2025 Quarterly Review © 2025 Snap-on Incorporated 10 Financial Services ▪ Originations decreased $13.9 million or 4.8% ▪ Average yield on finance receivables was 17.7% in both periods ▪ Average yield on contract receivables was 9.1% in both periods ($ in millions - unaudited) Q3 2025 Q3 2024 Change Segment revenue $ 101.1 $ 100.4 0.7 % Operating earnings $ 68.9 $ 71.7 (3.9)% Originations $ 274.1 $ 288.0 (4.8)%
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Q3-2025 Quarterly Review © 2025 Snap-on Incorporated 11 Financial Services Portfolio Data ▪ Gross finance portfolio of $2,534.4 million as of Q3 2025 ▪ Compares to $2,540.8 million as of Q2 2025 ▪ YTD portfolio growth of $8.2 million ▪ TTM – Trailing twelve months United States International ($ in millions - unaudited) Extended Credit Total Extended Credit Total Gross finance portfolio $ 1,733.7 $ 2,174.5 $ 257.3 $ 359.9 Portfolio net losses (TTM) $ 66.5 $ 68.4 $ 4.9 $ 5.7 60+ Delinquency: As of 09/30/25 As of 06/30/25 As of 03/31/25 As of 12/31/24 As of 09/30/24 2.0 % 1.8 % 2.0 % 2.0 % 1.9 % 1.7 % 1.5 % 1.6 % 1.6 % 1.5 % 1.0 % 1.0 % 1.1 % 1.0 % 0.9 % 0.9 % 0.9 % 1.0 % 0.9 % 0.8 %
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Q3-2025 Quarterly Review © 2025 Snap-on Incorporated 12 Cash Flows ▪ Changes in working investment – Net changes in trade and other accounts receivable, inventories and accounts payable ▪ Free cash flow – Net cash provided by operating activities less net change in finance receivables and capital expenditures ▪ Free cash flow from operations – Net cash provided by operating activities, exclusive of financial services, less capital expenditures ▪ Free cash flow from financial services – Net cash provided by financial services operating activities, less net change in finance receivables and capital expenditures ($ in millions - unaudited) 3rd Quarter September YTD 2025 2024 2025 2024 Net cash provided by operating activities ➢ Net earnings ➢ Depreciation and amortization ➢ Changes in deferred income taxes ➢ Changes in working investment ➢ Changes in accrued and other liabilities ➢ Changes in all other operating activities $ 277.9 271.8 24.8 (0.8) (113.5) 53.4 42.2 $ 274.2 257.5 24.6 (2.8) (25.1) (17.4) 37.4 $ 813.6 775.3 73.2 (0.7) (141.4) 4.6 102.6 $ 924.0 804.7 73.7 (7.2) 14.1 (45.8) 84.5 Net increase in finance receivables $ (1.3) $ (20.6) $ (35.9) $ (102.0) Capital expenditures $ (19.9) $ (20.4) $ (62.5) $ (65.4) Free cash flow $ 256.7 $ 233.2 $ 715.2 $ 756.6 Free cash flow from Operations $ 210.9 $ 206.6 $ 581.0 $ 702.8 Free cash flow from Financial Services $ 45.8 $ 26.6 $ 134.2 $ 53.8 Increase in cash $ 75.8 $ 80.6 $ 173.6 $ 311.8
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Q3-2025 Quarterly Review © 2025 Snap-on Incorporated 13 Balance Sheet ($ in millions - unaudited) September 27, 2025 December 28, 2024 Trade & Other Accounts Receivable – net Days Sales Outstanding $ 925.7 71 $ 815.6 62 Finance Receivables – net Contract Receivables – net $ 1,916.6 $ 549.5 $ 1,922.3 $ 538.3 Inventories – net Inventory turns – TTM $ 1,024.5 2.3 $ 943.4 2.4 Cash Total debt Net debt Net debt to capital ratio $ 1,534.1 $ 1,207.5 $ (326.6) (5.9)% $ 1,360.5 $ 1,199.2 $ (161.3) (3.1)%
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Q3-2025 Quarterly Review © 2025 Snap-on Incorporated