Overview

• U.S. tools maker's Q2 sales rose 4.7%, beating analyst expectations

• Diluted EPS for Q2 beat analyst expectations

• Company cites growth in U.S. Tools Group and recent acquisitions as drivers

Outlook

• Snap-on expects 2026 capital expenditures to approximate $100 mln

• Company anticipates full-year 2026 effective income tax rate will approximate 22%

• Snap-on expects to make ongoing progress leveraging growth opportunities in automotive repair and critical industries

Result Drivers

• ORGANIC SALES GROWTH - Company said organic sales rose 3.0% in Q2, with gains in all Commercial & Industrial Group operations and higher sales in U.S. Tools Group and international operations

• ACQUISITIONS - Recent acquisitions contributed $11.5 mln to Q2 sales, expanding offerings in torque tools and diagnostics for commercial vehicles

• GROSS MARGIN IMPROVEMENT - Gross margin rose to 51.4% from 50.5% a year ago, which the company said reflects ongoing momentum in sales and earnings

Company press release: ID:nBw4LpSjha

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Sales	Beat	$1.24 bln	$1.22 bln (8 Analysts)
Q2 EPS	Beat	$4.96	$4.95 (9 Analysts)
Q2 Net Income		$266.20 mln
Q2 Pretax Profit	Miss	$339.20 mln	$346.57 mln (6 Analysts)
Q2 Adjusted Operating Earnings		$268.90 mln
Q2 Gross Profit		$635.20 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 5 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy."

• Wall Street's median 12-month price target for Snap-On Inc is $415.00, about 2.2% above its July 22 closing price of $406.17

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 18 three months ago

Reuters Recommended Reads

• July 21 - 3M boosts annual profit forecast driven by resilient industrial unit

• July 21 - Genuine Parts cuts full-year profit forecast on inflation, weaker consumer spending

• July 22 - Graco Q2 sales rise less than expected

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