Snap-on (SNA) Q2 2026 earnings summary

Executive summary

• Net sales for Q2 2026 reached $1,235.1 million, up 4.7% year-over-year, driven by 3% organic growth, acquisitions, and favorable currency translation.

• Gross margin improved to 51.4%, up 90 basis points from last year, reflecting higher sales volumes and operational efficiencies.

• Diluted EPS rose to $4.96, a 5.1% increase compared to the prior year.

• Recent acquisitions of Hi-Force and Diesel Laptops expanded capabilities in diagnostics and hydraulic tools, contributing $11.5 million in sales.

• The company maintained momentum across core and international markets despite macroeconomic and geopolitical uncertainty.

Financial highlights

• Consolidated operating earnings were $336.4 million (25.2% of revenues), up from $327.3 million last year.

• Operating margin before financial services was 21.8%, slightly down from 22% last year.

• Financial services revenue was $99.7 million, with operating earnings of $67.5 million; revenue declined 2.0% year-over-year.

• Net earnings attributable to shareholders were $260.6 million, up from $250.3 million.

• Free cash flow for Q2 was $230.0 million, up from $191.1 million in Q2 2025.

Outlook and guidance

• Management expects continued progress leveraging strengths in automotive repair and adjacent markets, with capital expenditures for 2026 projected at $100 million.

• Full-year 2026 effective income tax rate is anticipated to be around 22%.

• Corporate expenses are expected to be about $28 million per quarter for the remainder of 2026.

• Forward-looking statements highlight risks and uncertainties that could impact actual results.