Snap-on Organic Sales Turn Negative After Diesel-Price Shock

The Tip Desk · October 27, 2026 · 2 min read

Net sales were $1,183.7 million and diluted earnings $4.64 a share as franchisees cut inventories despite stable technician demand.

Snap-on Incorporated (SNA) reported net sales of $1,183.7 million in the third quarter of 2026, a 0.6% decline from 2025 that reversed the 4.7% year-over-year increase in the second quarter. Organic sales fell 2.8%, after a 3.0% organic gain in the prior quarter.

The tools maker said the results were marked by an unprecedented rise in diesel prices that prompted franchisees in its mobile van channel to reduce inventories even as demand from technician customers remained very stable. Chairman and chief executive Nick Pinchuk said that move substantially impacted the Tools Group and overcame a record-setting performance in Commercial & Industrial, led by critical industries and precision torque.

Net earnings were $243.0 million, or $4.64 a share, compared with $265.4 million, or $5.02 a share, a year earlier. Operating earnings before financial services were $248.1 million, or 21.0% of net sales. The year-ago comparison included a $22.0 million legal-settlement benefit. Gross profit was $603.6 million. The company said gross margins held strong despite the diesel-price turbulence.

Commercial & Industrial Group sales were $404.3 million, reflecting a 7.4% organic gain after an 11.0% organic gain in the second quarter, plus $10.0 million of acquisition-related sales. Operating earnings in the segment were $74.7 million, and the operating margin was 18.5%. The company said the organic increase included higher sales in each of the segment’s operations.

Snap-on Tools Group sales were $471.5 million, a 7.0% organic decline, with lower sales both in the U.S. and in international operations. Operating earnings were $84.8 million, and the operating margin was 18.0%.

Repair Systems & Information Group sales were $454.7 million, a 5.5% organic decline that the company said was primarily due to reduced activity with OEM dealerships, partially offset by $15.6 million of acquisition-related sales. Operating earnings were $116.1 million, and the operating margin was 25.5% after a 480-basis point legal-settlement benefit in the year-ago period.

Financial services revenue was $98.6 million and operating earnings $68.3 million. Originations were $270.6 million. Corporate expenses were $27.5 million.

Pinchuk said the Tools Group is well-positioned with quick-payback products as the diesel-price wave passes, that proprietary databases are increasingly effective in independent vehicle repair shops, and that the company has momentum across critical industries. The company said it believes these strengths will combine to reestablish and extend its positive trajectory.

Snap-on projects 2026 capital expenditures of about $100 million, of which $69.0 million was incurred in the first nine months. It currently anticipates a full-year 2026 effective income tax rate of about 22%.