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KENOSHA, Wis. - Snap-on Incorporated (NYSE:SNA) reported better-than-expected second quarter results on Thursday, with earnings per share of $4.72 exceeding analyst estimates of $4.63 and revenue of $1.18 billion surpassing the consensus estimate of $1.16 billion.
The tool manufacturer’s performance was highlighted by a 1.9% increase in sales in its Tools Group segment compared to the same period last year. The company maintained a strong gross margin of 50.5% despite challenging market conditions, though operating earnings before financial services margin declined to 22.0% from 23.8% in the prior year.
Revenue for the quarter remained unchanged from 2024 levels, reflecting an organic sales decline of 0.7% offset by favorable foreign currency translation of $8.6 million. The company’s Tools Group segment saw sales rise to $491.0 million from $482.0 million last year, driven primarily by higher sales in the U.S. market.
"We’re encouraged by our second quarter results, from the return of sales growth in the U.S. Tools Group to the resilient gross margins and solid operating earnings performance of the overall enterprise, all achieved against the persistent headwinds of general uncertainty and trade turbulence," said Nick Pinchuk, Snap-on chairman and chief executive officer.
The company’s Commercial & Industrial Group experienced a 7.6% organic sales decline, while the Repair Systems & Information Group posted a 2.3% organic sales increase, reflecting higher activity with OEM dealerships and increased sales of diagnostic and repair information products.
Snap-on maintained its positive outlook for 2025, projecting capital expenditures of approximately $100 million for the year, with $42.6 million already incurred in the first half. The company expects its full-year effective income tax rate to be between 22% and 23%.
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