Snap-on, Inc.

Q2 performance beat expectations on resilience; strong profitability - Net sales: $1,235.1M, +4.7% YoY (incl. +3% organic, $11.5M from Hi-Force & Diesel Laptops acquisitions, +$8.7M FX). - Gross margin: 51.4%, +90 bps YoY (management attributed improvement to volume mix and RCI/Routine Continuous Improvement savings). - Operating margin: 21.8% for OpCo vs 22% last year (slightly down), but still strong in a turbulent macro environment. - EPS: $4.96, +5.1% YoY (+$0.24), with C&I operating margin reaching an all-time high (see below).

Segment performance: C&I “rocket ship” up big; RS&I solid but pressured; Tools up modestly - C&I (Commercial & Industrial): Sales $395.8M, +13.8% YoY (+11% organic). Operating income $66.5M (+41.8% YoY) and operating margin 16.8% (+330 bps, new record). - Drivers: stronger demand for precision/custom kits, specialty torque, and power tools; military shipments remained attenuated. - Gross margin: 42.6%, +260 bps YoY. - Tools Group: Sales $508.8M, +3% organic. Operating margin 22.6% (-120 bps YoY) due to mix (Tools group acts as distributor for other divisions’ products; margins thinner when corporate-margin items rise). - Management emphasized continued success with “quicker payback” and fast-access tools for modern vehicle complexity. - RS&I (Repair Systems & Information): Sales $480.3M, +2.5% YoY (organic low-single-digit increase, but OEM dealerships weaker). Operating margin 24% (down vs 25.6% last year) due to higher investment in proprietary database/LLM work and mix toward lower-margin equipment.

Financial services / receivables: originations down modestly, credit still contained - Financial services operating earnings: $67.5M vs $68.2M last year. - Loan originations: $281M, -4.1% YoY (with extended-credit originations -2.4% YoY). - Credit quality: U.S. 60-day plus delinquency 1.7% (down 10 bps YoY, down 20 bps sequentially). Trailing 12-month net losses $71.9M = 3.7% of outstandings, down sequentially.