Snap-on Incorporated (SNA) Earnings Call Transcripts

Snap-on Incorporated's Latest Earnings Call - Q2 FY2026

In the second quarter of fiscal year 2026, Snap-on Incorporated reported revenues of $1.235 billion, reflecting a 4.7% increase year-over-year, driven by organic growth of 3% and contributions from acquisitions. Earnings per share (EPS) rose to $4.96, up 5.1% from the previous year. Management highlighted strong performance in the Commercial & Industrial (C&I) segment, with organic sales growth of 11%, and maintained an optimistic outlook despite ongoing macroeconomic challenges, including inflation and geopolitical tensions.

Reported metrics

Guidance from management

Management expects capital expenditures for the year to be approximately $100 million and anticipates an effective income tax rate of around 22%. They indicated that expenses will approximate $28 million for each of the remaining two quarters of 2026.

What management said

Well, I think our product lines are getting stronger. I think -- we like -- the product lines are getting stronger. And I think we are having more direct customization in Europe and other places, same in Asia. So that's working pretty well. In Asia, we're selling more of what we call premium tools, which are Snap-on tools, which are pretty good, and we have some of the intelligent boxes moving around there.

For government work, you could say that. And so -- and in that situation, the OE with the investments in people and our technology and so on starts to remain pretty well. To put it in perspective, RS&I was down 160 basis points, but 50 of it was in gross margin, 110 was in OE, so if you want to talk about going forward improvement, I think you concentrate on the 50 basis points in gross margin, not so much the OE. .

What analysts pressed on

Analysts expressed concerns regarding the softness in the OEM dealer segment and the impact of capital expenditure hesitancy on future growth. There were also questions about the sustainability of gross margins amid rising costs and the need for potential pricing adjustments.

Main topics on the call

• Strong C&I Segment Performance — The C&I segment achieved sales of $395.8 million, a notable 13.8% increase, with an organic gain of 11%. Management stated, "C&I on a trend, demonstrating that opportunities and rolling the Snap-on brand out of the garag...
• Gross Margin Improvement — The consolidated gross margin improved to 51.4%, up 90 basis points from the prior year, attributed to increased volume and RCI initiatives. Aldo Pagliari noted, "The improvement primarily reflected the benefit of increa...
• Challenges in OEM Dealer Segment — Management indicated ongoing weakness in the OEM dealer segment, citing hesitancy for capital expenditures among dealers. Nicholas Pinchuk remarked, "The OEMs have stopped launching programs that have reduced...and there...
• Acquisition Contributions — The recent acquisitions of Hi-Force and Diesel Laptops contributed $11.5 million to sales, enhancing Snap-on's product offerings. Management expressed confidence in the potential of Diesel Laptops, stating, "It gives us ...

Read the full Snap-on Incorporated transcript (Q2 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 56 Snap-on Incorporated earnings call transcripts on record, spanning February 6, 2020 to July 23, 2026. Based on this history, Snap-on Incorporated reports quarterly. The most recent call on file is dated July 23, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

SNA

Exchange

NYSE

Country

US

Sector

Industrials

Industry

Machinery

Calls on record

56

First call

February 6, 2020

Most recent

July 23, 2026

Reporting cadence

quarterly