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Mar 29, 2025
Snap-on Q1 2025 Earnings Report
Snap-on reported a decline in revenue and earnings amid economic uncertainty.
Key Takeaways
Snap-on delivered lower revenue and net income in Q1 2025 due to decreased demand in key segments and unfavorable foreign currency impacts. However, operating margins remained strong in some business units.
Revenue fell to $1.14 billion, driven by declines in the Tools and Commercial & Industrial segments.
Net income decreased to $240.5 million, down from $263.5 million in Q1 2024.
Operating margin held strong in Repair Systems & Information Group, reaching 25.7%.
Financial Services grew modestly, with earnings of $70.3 million on $102.1 million in revenue.
Revenue by Segment
Forward Guidance
Snap-on expects continued resilience in its operations despite macroeconomic challenges, aiming to grow in adjacent markets and expand capabilities in critical industries.
Positive Outlook
- Confident in strategy of localized production and broad U.S. manufacturing base.
- Investing in product innovation, brand, and workforce.
- Strong performance in Repair Systems & Info and Commercial & Industrial segments.
- Gross margin improvement indicates operational efficiency.
- Financial services continue to provide stable income.
Challenges Ahead
- Economic uncertainty impacting customer demand, particularly in the Tools Group.
- Lower military sales in Commercial & Industrial segment.
- Foreign currency headwinds negatively affected revenue.
- Decreased originations in financial services.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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