Snap-on Incorporated (NYSE:SNA) delivered stronger-than-expected results for the second quarter, with earnings and revenue both surpassing Wall Street forecasts. The company posted earnings per share of $4.72, above the projected $4.63, while revenue reached $1.18 billion, slightly ahead of the $1.16 billion consensus.
A key driver behind the outperformance was Snap-on’s Tools Group, which saw a 1.9% year-over-year sales increase, reflecting robust demand in the U.S. Despite ongoing economic challenges, the company maintained a healthy gross margin of 50.5%, although its operating margin before financial services declined to 22.0%, down from 23.8% in the prior year.
Quarterly revenue overall remained steady with the same period in 2024, as a 0.7% drop in organic sales was offset by a favorable $8.6 million impact from currency exchange. Tools Group revenue rose to $491.0 million, compared to $482.0 million a year ago, mainly due to strength 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.
Performance across other business units was mixed. The Commercial & Industrial Group experienced a 7.6% drop in organic sales, while the Repair Systems & Information Group reported a 2.3% gain, supported by increased engagement with OEM dealerships and stronger demand for diagnostic and repair software.
Looking ahead, Snap-on reaffirmed its optimistic view for the remainder of 2025. The company expects to spend around $100 million in capital expenditures this year, with $42.6 million already deployed during the first six months. Management also anticipates a full-year effective tax rate in the range of 22% to 23%.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.