Snap-on Sales Rise as Industrial Business Accelerates
Gross margin widened to 51.4%, gaining 90 basis points from a year earlier.
Snap-on (SNA), the tool and equipment maker, reported a 4.7% increase in second-quarter net sales to $1.235 billion as its Commercial & Industrial business accelerated.
Organic sales rose 3.0%, easing from 3.4% in the first quarter but holding above the 1.4% pace in the fourth quarter of 2024. The result extended a recovery from the 0.7% decline recorded a year earlier.
Diluted earnings increased 5.1% from a year earlier to $4.96 a share and rose from $4.69 in the first quarter. Operating margin before financial services recovered 100 basis points sequentially to 21.8%, though it remained below 22.0% a year earlier.
Commercial & Industrial supplied the strongest growth. Organic sales climbed 11.0%, accelerating from 7.1% in the first quarter and reversing a 7.6% decline a year earlier. The segment’s operating margin expanded to 16.8%, up 330 basis points year over year.
Snap-on Tools posted 3.0% organic growth, down from 3.4% in the prior quarter but ahead of 1.6% a year earlier. Its margin improved sequentially to 22.6%, while operating earnings declined to $115.1 million as the margin remained 120 basis points below the year-earlier level.
Repair Systems & Information grew organic sales 0.7% as gains in undercar equipment and products for independent repair shops were partly offset by weaker activity at original-equipment-manufacturer dealerships. Its operating margin fell 160 basis points to 24.0%, while financial-services revenue declined to $99.7 million and originations dropped 4.1%.
Acquisitions contributed $11.5 million of sales after Snap-on completed the purchases of Hi-Force Hydraulic Tools and Diesel Laptops during the quarter, adding a new source of growth alongside the industrial segment’s rebound.