Slides
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Quarterly Financial Review Third Quarter 2026 Q3-2026 Quarterly Review © 2026 Snap-on Incorporated
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These slides should be read in conjunction with comments from the October 22, 2026 conference call. The financial statement information included herein is unaudited. Statements made during the October 22, 2026 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 include those found in Snap-on’s reports filed with the Securities and Exchange Commission, including 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 22, 2026 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 22, 2026 press release and Form 8-K, which can be found on the company’s website in the investors section at www.snapon.com. Q3-2026 Quarterly Review © 2026 Snap-on Incorporated3 Cautionary Statement
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Nick Pinchuk Chairman and Chief Executive Officer Q3-2026 Quarterly Review © 2026 Snap-on Incorporated4
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Aldo Pagliari Senior Vice President and Chief Financial Officer Q3-2026 Quarterly Review © 2026 Snap-on Incorporated5
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6 Net sales of $1,183.7 million in the third quarter of 2026 represented a decrease of $7.1 million, or 0.6%, from 2025 levels, reflecting a $33.1 million, or 2.8%, organic decline, partially offset by $25.6 million of acquisition-related sales and $0.4 million of favorable foreign currency translation Gross margin improved 10 basis points (“bps”) to 51.0% from 50.9% last year primarily reflecting benefits from the company’s Rapid Continuous Improvement (“RCI”) initiatives, partially offset by higher material costs Operating expenses as a percentage of net sales rose 250 bps from last year primarily due to a 190 bps non-recurring benefit from the settlement of a legal matter (the “legal settlement”) in 2025, as well as from increased brand building and other costs As a percentage of net sales, operating earnings before financial services were 21.0% compared to 23.4% last year, which included a 190 bps benefit from the legal settlement Q3-2026 Quarterly Review © 2026 Snap-on Incorporated 6 Consolidated Results Q3 2026 Q3 2025 ($ in millions, except per share data - unaudited) $ % $ % Change Net sales Organic sales Acquisitions Currency translation $ 1,183.7 (33.1) 25.6 0.4 $ 1,190.8 (0.6)% (2.8)% 2.2 % — Gross profit Operating expenses $ 603.6 355.5 51.0 % 30.0 % $ 605.9 327.4 50.9 % 27.5 % Operating earnings before financial services $ 248.1 21.0 % $ 278.5 23.4 % (10.9)% Financial services revenue Financial services operating earnings $ 98.6 68.3 $ 101.1 68.9 (2.5)% (0.9)% Operating earnings $ 316.4 24.7 % $ 347.4 26.9 % (8.9)% Diluted EPS – as reported $ 4.64 $ 5.02 (7.6)%
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7 Organic sales increase of $27.0 million, or 7.4%, primarily reflects a mid single-digit rise in activity with customers in critical industries, double-digit gains in the specialty torque business, and a high single-digit increase in the segment’s Asia Pacific operation Gross margin improved 60 bps from last year primarily due to increased sales and savings from the segment’s RCI initiatives Operating expenses as a percentage of net sales improved 230 bps as compared to 2025 primarily reflecting the higher sales volumes and a 130 bps benefit associated with the sale of a building, partially offset by a 40 bps impact from acquisitions Operating earnings of $74.7 million compared to $57.5 million in 2025; the operating margin of 18.5% compared to 15.6% last year Q3-2026 Quarterly Review © 2026 Snap-on Incorporated 7 Commercial & Industrial ($ in millions - unaudited) Q3 2026 Q3 2025 Change Segment sales Organic sales Acquisition Currency translation $ 404.3 27.0 10.0 (0.4) $ 367.7 10.0 % 7.4 % 2.7 % (0.1)% Gross profit % of sales $ 167.7 41.5 % $ 150.5 40.9 % Operating expenses % of sales $ 93.0 23.0 % $ 93.0 25.3 % Operating earnings % of sales $ 74.7 18.5 % $ 57.5 15.6 % 290 bps
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8 Organic sales decline of $35.7 million, or 7.0%, was due to a high single-digit decline in the U.S. and a low single-digit reduction in the segment’s international operations Gross margin decreased 80 bps from last year primarily reflecting the lower sales volumes; higher material costs were offset by 60 bps of favorable foreign currency effects Operating expenses as a percentage of net sales rose 290 bps as compared to 2025 primarily due to the lower sales, as well as increased brand building and other costs Operating earnings of $84.8 million compared to $109.9 million in 2025; the operating margin of 18.0% compared to 21.7% last year Q3-2026 Quarterly Review © 2026 Snap-on Incorporated 8 Snap-on Tools ($ in millions - unaudited) Q3 2026 Q3 2025 Change Segment sales Organic sales Currency translation $ 471.5 (35.7) 1.2 $ 506.0 (6.8)% (7.0)% 0.2 % Gross profit % of sales $ 217.1 46.0 % $ 236.8 46.8 % Operating expenses % of sales $ 132.3 28.0 % $ 126.9 25.1 % Operating earnings % of sales $ 84.8 18.0 % $ 109.9 21.7 % (370) bps
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9 Organic sales decrease of $25.7 million, or 5.5%, primarily due to a double-digit decline in activity with OEM dealerships Gross margin improved 110 bps from last year primarily reflecting favorable business mix Operating expenses as a percentage of net sales increased 600 bps from 2025 primarily due to a $22.0 million, or 480 bps, non-recurring benefit from the legal settlement in 2025, as well as from the lower sales volumes Operating earnings of $116.1 million compared to $141.2 million in 2025, which included a $22.0 million benefit from the legal settlement Operating margin of 25.5% compared to 30.4% last year, which included a 480 bps benefit from the legal settlement Q3-2026 Quarterly Review © 2026 Snap-on Incorporated 9 Repair Systems & Information ($ in millions - unaudited) Q3 2026 Q3 2025 Change Segment sales Organic sales Acquisition $ 454.7 (25.7) 15.6 $ 464.8 (2.2)% (5.5)% 3.3 % Gross profit % of sales $ 218.8 48.1 % $ 218.6 47.0 % Operating expenses % of sales $ 102.7 22.6 % $ 77.4 16.6 % Operating earnings % of sales $ 116.1 25.5 % $ 141.2 30.4 % (490) bps
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10 Originations decreased $3.5 million or 1.3% Average yield on finance receivables was 17.7% in both 2026 and 2025 Average yield on contract receivables was 9.1% in both 2026 and 2025 Q3-2026 Quarterly Review © 2026 Snap-on Incorporated 10 Financial Services ($ in millions - unaudited) Q3 2026 Q3 2025 Change Segment revenue $ 98.6 $ 101.1 (2.5)% Operating earnings $ 68.3 $ 68.9 (0.9)% Originations $ 270.6 $ 274.1 (1.3)%
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11 Gross finance portfolio of $2,463.8 million as of Q3 2026 Compares to $2,473.1 million as of Q2 2026 Compares to $2,509.5 million as of Q4 2025 TTM – Trailing twelve months Q3-2026 Quarterly Review © 2026 Snap-on Incorporated 11 Financial Services Portfolio Data United States International ($ in millions - unaudited) Extended Credit Total Extended Credit Total Gross finance portfolio $ 1,674.4 $ 2,103.1 $ 257.2 $ 360.7 Portfolio net losses (TTM) $ 64.6 $ 67.2 $ 5.5 $ 6.2 60+ Delinquency: As of 09/30/26 As of 06/30/26 As of 03/31/26 As of 12/31/25 As of 09/30/25 2.1 % 1.7 % 1.9 % 2.1 % 2.0 % 1.7 % 1.4 % 1.5 % 1.7 % 1.7 % 1.1 % 1.1 % 1.0 % 1.0 % 1.0 % 1.1 % 1.1 % 1.1 % 0.9 % 0.9 %
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12 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 Q3-2026 Quarterly Review © 2026 Snap-on Incorporated 12 Cash Flows ($ in millions - unaudited) 3rd Quarter September YTD 2026 2025 2026 2025 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 $ 247.7 249.6 25.7 7.1 (24.2) (32.3) 21.8 $ 277.9 271.8 24.8 (0.8) (113.5) 53.4 42.2 $ 887.9 769.3 75.6 13.9 (70.3) 0.6 98.8 $ 813.6 775.3 73.2 (0.7) (141.4) 4.6 102.6 Net increase in finance receivables $ (0.3) $ (1.3) $ (21.2) $ (35.9) Capital expenditures $ (24.7) $ (19.9) $ (69.0) $ (62.5) Free cash flow $ 222.7 $ 256.7 $ 797.7 $ 715.2 Free cash flow from Operations $ 171.0 $ 210.9 $ 643.4 $ 581.0 Free cash flow from Financial Services $ 51.7 $ 45.8 $ 154.3 $ 134.2 Increase in cash $ 25.3 $ 75.8 $ 45.5 $ 173.6
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13Q3-2026 Quarterly Review © 2026 Snap-on Incorporated 13 Balance Sheet ($ in millions - unaudited) October 3, 2026 January 3, 2026 Trade & Other Accounts Receivable – net Days Sales Outstanding $ 922.1 68 $ 881.4 67 Finance Receivables – net Contract Receivables – net $ 1,857.9 $ 535.3 $ 1,889.0 $ 553.1 Inventories – net Inventory turns – TTM $ 1,079.6 2.3 $ 1,025.2 2.4 Cash Total debt Net debt Net debt to capital ratio $ 1,670.0 $ 1,205.1 $ (464.9) (8.3)% $ 1,624.5 $ 1,202.6 $ (421.9) (7.7)%