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Entrepreneur
15-07-2025
- Automotive
- Entrepreneur
These Are the Top 10 Automotive Franchises in 2025
Whether you're interested in tool distribution, car washes or quick-lube service, these 10 automotive franchises are the top performers of 2025, based on the Franchise 500 Rankings. The automotive industry continues to evolve, driven by innovation, convenience and consumer demand for faster, more efficient service. In 2025, the top-performing automotive franchises aren't just changing oil or replacing tires — they're streamlining operations, leveraging mobile platforms and building strong brand loyalty. Whether it's tool trucks that double as mobile showrooms or quick-lube stations that let customers stay in their cars, these franchises offer scalable, proven models for entrepreneurs looking to shift into high gear. This year's top 10 standouts combine brand recognition, unit growth and franchisee support, making them strong contenders for anyone eyeing a business in the automotive space. From legacy brands with decades of history to up-and-comers shaking up the car-care scene, here are the automotive franchises driving results in 2025 based on the Franchise 500 ranking. Related: Considering franchise ownership? Get started now to find your personalized list of franchises that match your lifestyle, interests and budget. 1. Snap-On Tools Founded: 1920 1920 Franchising since: 1991 1991 Overall rank: 16 16 Number of units: 4,674 4,674 Change in units: -2% over 3 years -2% over 3 years Initial investment: $217,505 - $481,554 $217,505 - $481,554 Leadership: Nick Pinchuk, chairman, president & CEO Nick Pinchuk, chairman, president & CEO Parent company: Snap-On, Inc. Snap-on Tools, the #16 franchise on the 2025 Franchise 500, is a mobile tool franchise that serves automotive professionals directly at their place of work. Founded in 1920 and franchising since 1991, the company equips franchisees with fully stocked vans to sell high-quality tools, equipment and diagnostics to mechanics and technicians. Known for durability and brand loyalty, Snap-on offers in-house financing, extensive training and strong franchisor support. Its model focuses on relationship-based sales and exclusive customer routes, making it a popular choice in the automotive sector. Related: After 14 Years as an RN, She Opened the Business She Always Wanted to See — And Reached $1.3 Million 2. Valvoline Instant Oil Change Founded: 1986 1986 Franchising since: 1988 1988 Overall rank: 24 24 Number of units: 1,807 1,807 Change in units: +26.1% over 3 years +26.1% over 3 years Initial investment: $193,375 - $3,485,550 $193,375 - $3,485,550 Leadership: Lori Flees, president & CEO Lori Flees, president & CEO Parent company: Valvoline Inc. Valvoline Instant Oil Change offers a streamlined business model built around speed, convenience and brand trust. Launched in 1986 and franchising since 1988, it allows franchisees to deliver quick oil changes and preventative maintenance without customers ever leaving their cars. Backed by one of the most recognizable names in motor oil, franchisees benefit from national advertising, strong training programs and a scalable operational model. It's a turnkey opportunity in the fast-paced world of automotive service. Related: This Franchise Gives Veterans a $40,000 Head Start to Build Generational Wealth — No Fee Required 3. Tommy's Express Car Wash Founded: 1969 1969 Franchising since: 2016 2016 Overall rank: 37 37 Number of units: 265 265 Change in units: +128.4% over 3 years +128.4% over 3 years Initial investment: $4,916,776 - $9,267,763 $4,916,776 - $9,267,763 Leadership: Ryan Essenburg, president & CIO Ryan Essenburg, president & CIO Parent company: Tommy's Express LLC Tommy's Express Car Wash is a high-tech, high-throughput tunnel car wash franchise known for its sleek design and efficient operations. Originating in 1969 and franchising since 2016, the brand offers a turnkey model that includes site selection, construction support and training through its dedicated Tommy University. Each location is equipped with advanced technology like license plate recognition and app-based memberships. With a focus on speed, consistency and customer experience, it's built for volume and scalability. Related: After Decades of Hard Work, This Couple Is Living the Entrepreneurial Dream. Here's How They Achieved Generational Wealth 4. Matco Tools Founded: 1979 1979 Franchising since: 1993 1993 Overall rank: 46 46 Number of units: 1,903 1,903 Change in units: +0.4% over 3 years +0.4% over 3 years Initial investment: $107,476 - $340,059 $107,476 - $340,059 Leadership: Mike Dwyer, president Mike Dwyer, president Parent company: Vontier Matco Tools is a mobile tool franchise that delivers high-quality tools and equipment directly to automotive professionals. Founded in 1946 and franchising since 1993, Matco equips franchisees with a customized truck that serves as a mobile store, operating within an exclusive territory of about 325 customers. The brand offers in-house financing, comprehensive training and ongoing support. With no royalty fees and a focus on relationship-driven sales, Matco appeals to hands-on entrepreneurs seeking independence and consistent demand in the automotive industry. Related: How I Turned a Failing Business Into a $1 Million Powerhouse in Just 6 Months 5. Midas Founded: 1954 1954 Franchising since: 1956 1956 Overall rank: 57 57 Number of units: 1,971 1,971 Change in units: -1% over 3 years -1% over 3 years Initial investment: $341,650 - $916,890 $341,650 - $916,890 Leadership: Leonard Valentino Jr., president & COO Leonard Valentino Jr., president & COO Parent company: TBC Corp. Midas is one of the most recognized names in automotive repair, offering services ranging from oil changes and brake repair to tires and exhaust work. Founded in 1956 and franchising since 1959, Midas combines decades of brand trust with modern systems and support. Franchisees benefit from national advertising, strong training programs and a wide menu of services that drive repeat business. Its flexible shop model allows owners to serve both everyday drivers and fleet customers alike. Related: After 14 Years as an RN, She Opened the Business She Always Wanted to See — And Reached $1.3 Million 6. Mac Tools Founded: 1938 1938 Franchising since: 2011 2011 Overall rank: 64 64 Number of units: 1,183 1,183 Change in units: +6.8% over 3 years +6.8% over 3 years Initial investment: $121,320 - $344,275 $121,320 - $344,275 Leadership: Phil Cox, president/general manager Phil Cox, president/general manager Parent company: Stanley Black and Decker Mac Tools is a mobile tool distribution franchise known for delivering professional-grade tools directly to mechanics and technicians. Established in 1938 and franchising since 2011, the brand is part of the Stanley Black & Decker family and supports over 1,000 franchisees across North America. Franchise owners operate fully stocked trucks within protected territories and receive extensive training, business support and marketing resources. Designed for driven, hands-on entrepreneurs, Mac Tools offers a low-overhead, relationship-based business model. Related: She Quit Her Corporate Job to Sell a Refreshing Summer Staple — Then Made $38,000 the First Week and $1 Million Year 1 7. Cornwell Quality Tools Founded: 1919 1919 Franchising since: 1997 1997 Overall rank: 72 72 Number of units: 802 802 Change in units: +6.1% over 3 years +6.1% over 3 years Initial investment: $69,525 - $298,825 $69,525 - $298,825 Leadership: Bob Studenic, president, CEO and director Bob Studenic, president, CEO and director Parent company: N/A Cornwell Quality Tools, founded in 1919, is the oldest mobile tool franchise in the United States. Known for delivering professional-grade tools directly to automotive technicians, the brand empowers franchisees — called tool dealers — to operate fully stocked trucks within exclusive territories. There are no upfront franchise fees or royalty payments, making it a lower-cost entry point compared to competitors. With comprehensive training, in-house financing options and strong support systems, Cornwell offers a hands-on business built on trust, quality and customer relationships. Related: 70 Small Business Ideas to Start in 2025 8. Jiffy Lube Founded: 1979 1979 Franchising since: 1979 1979 Overall rank: 84 84 Number of units: 2,229 2,229 Change in units: +3.3% over 3 years +3.3% over 3 years Initial investment: $232,000 - $442,650 $232,000 - $442,650 Leadership: Luke Byerly, president Luke Byerly, president Parent company: Shell USA Jiffy Lube is one of the most recognizable names in quick oil changes and automotive maintenance. Founded in 1971, the brand has grown to over 2,000 locations across North America, offering services like oil changes, tire rotations, brake work and fluid exchanges. Backed by the strength of its parent company, Shell, Jiffy Lube provides franchisees with comprehensive training, marketing support and a well-established customer base. It's a trusted, high-volume model built for entrepreneurs seeking steady, recurring business. Related: How to Turn Big Business Moments Into Lasting Brand Momentum 9. Take 5 Oil Change Founded: 1984 1984 Franchising since: 2016 2016 Overall rank: 101 101 Number of units: 1,077 1,077 Change in units: +69.3% over 3 years +69.3% over 3 years Initial investment: $232,794 - $2,033,733 $232,794 - $2,033,733 Leadership: Mo Khalid, EVP & group president of maintenance Mo Khalid, EVP & group president of maintenance Parent company: Driven Brands Inc. Take 5 Oil Change is a fast-growing automotive franchise known for its stay-in-your-car oil change model emphasizing speed, convenience and customer service. Founded in 1984 and franchising since 2016, Take 5 has expanded rapidly across the U.S. with a simple, scalable system. Franchisees benefit from strong corporate support, national marketing and a streamlined service offering that minimizes complexity. The brand's modern approach to car care appeals to busy drivers and provides consistent, high-volume revenue opportunities for owners. 10. Big O Tires Founded: 1962 1962 Franchising since: 1982 1982 Overall rank: 102 102 Number of units: 463 463 Change in units: +0% over 3 years +0% over 3 years Initial investment: $511,500 - $1,882,500 $511,500 - $1,882,500 Leadership: Gary Skidmore, senior vice president & chief operating officer Gary Skidmore, senior vice president & chief operating officer Parent company: TBC Corp. Big O Tires is a well-established tire and automotive service franchise that's been serving drivers since 1962. Known for more than just tires, the brand offers services like oil changes, brake repairs, alignments and battery replacements. Franchising since the early 1980s, Big O operates under the TBC Corporation umbrella and supports franchisees with training, marketing and operational tools. With strong brand recognition and a full-service model, it's a solid option for entrepreneurs seeking a high-volume, customer-focused business. Related: 'Send a Man Next Time': How an Entrepreneur and Her Daughters Built a $2.5 Million Franchise in a Male-Dominated Field Ready to break through your revenue ceiling? Join us at Level Up, a conference for ambitious business leaders to unlock new growth opportunities.
Yahoo
10-05-2025
- Business
- Yahoo
SNA Q1 Earnings Call: Revenue Miss and Margin Pressure Amid Technician Uncertainty
Professional tools and equipment manufacturer Snap-on (NYSE:SNA) missed Wall Street's revenue expectations in Q1 CY2025, with sales falling 3% year on year to $1.24 billion. Its non-GAAP profit of $4.51 per share was 6.3% below analysts' consensus estimates. Is now the time to buy SNA? Find out in our full research report (it's free). Revenue: $1.24 billion vs analyst estimates of $1.3 billion (3% year-on-year decline, 4.1% miss) Adjusted EPS: $4.51 vs analyst expectations of $4.82 (6.3% miss) Adjusted EBITDA: $337.4 million vs analyst estimates of $365.8 million (27.1% margin, 7.8% miss) Operating Margin: 25.2%, down from 26.5% in the same quarter last year Free Cash Flow Margin: 21.5%, similar to the same quarter last year Organic Revenue fell 6.8% year on year, in line with the same quarter last year Market Capitalization: $16.51 billion Snap-on's first quarter results reflected ongoing challenges in its core markets, as management cited declining technician confidence and broad economic uncertainty as key factors affecting demand. CEO Nick Pinchuk explained that while recent pivots to lower-priced and quicker payback items helped cushion the impact, overall sentiment and spending in repair shops remained subdued. Pinchuk added, 'What we learned in the period... is we were pivoting to what you would call standard short quicker payback items. But what we found if we tailored things at the bottom end of the bigger ticket items, we could make hay with those as well.' Looking ahead, management's guidance is shaped by continued caution around macroeconomic headwinds, particularly the effects of tariffs and political changes on technician confidence. Pinchuk noted that external uncertainties, rather than Snap-on-specific issues, are exerting the greatest influence, stating, 'The effects of the last quarter on the general populace, popped off by the tariffs, were so pervasive that they outran our progress.' The company remains focused on refining its product mix and supporting franchisees through targeted promotions and resource allocation. Snap-on's leadership identified consumer uncertainty and macroeconomic turbulence as major drivers of the quarter's underperformance, while also emphasizing areas of operational resilience and potential improvement. Technician Sentiment Weakness: Management highlighted a marked decline in technician confidence, attributing weaker demand to 'precipitous' drops in consumer sentiment and uncertainty created by political changes and tariffs. This affected sales of both high-ticket and standard tools. Shift to Entry-Level Products: The company found some success in shifting its focus to lower-priced, quick payback items, such as entry-level diagnostic tools and tool carts. These adjustments provided some support, but broader market weakness limited their effectiveness. RS&I Software Momentum: The Repair Systems & Information (RS&I) segment demonstrated resilience, with software sales outperforming the group's overall growth. Management credited advancements in natural language processing and AI as helping streamline database development and improve the value proposition for customers. Inventory and Manufacturing Flexibility: Snap-on completed an expansion of its Albona facility, allowing it to adjust production toward items with higher demand, like lockers and carts, and reducing backlogs in larger tool storage products. This flexibility is described as an advantage in navigating tariffs and supply chain challenges. International Markets Steadier: Management noted that international operations were less affected by the uncertainty impacting North America. Technicians abroad showed greater confidence, and non-U.S. markets experienced steadier performance, partially insulating Snap-on from broader headwinds. Management projects that future performance will be shaped by continued macroeconomic uncertainty, technician sentiment, and the company's ability to adapt its product offerings and support franchisees. Continued Product Mix Adjustments: Snap-on plans to increase development and promotion of lower-priced and quick payback products, aiming to sustain demand in a cautious market environment. Franchisee Support and Stability: The company will focus on helping franchisees manage through challenging conditions, providing targeted resources and maintaining cash flow discipline to limit business disruptions. Potential Tariff and Policy Impacts: Snap-on recognizes that ongoing changes in tariffs and political policies, especially in the U.S., present risks to technician confidence and demand. Management believes its manufacturing flexibility positions it to respond quickly, but acknowledges these external factors may constrain growth. Scott Stember (Roth MKM): Asked if Snap-on might further pivot to lower-priced items given declining technician confidence. Management said past pivots worked but were 'overrun' by broader uncertainty, and future adjustments will focus on entry-level big-ticket items. David MacGregor (Longbow Research): Inquired about promotional discipline and response to weaker demand. CEO Pinchuk stressed that while promotions increased, Snap-on 'is not out there begging for volume,' and margins remain a priority. Gary Prestopino (Barrington Research): Questioned whether declining technician hours reflected a shift from mission-critical to elective repairs. Management suggested the decline is likely due to reticence among lower-credit customers and broader economic apprehension. Sherif El-Sabbahy (Bank of America): Sought clarity on demand trends within the Tools Group and whether the shift to lower payback items was intensifying. Management confirmed increased focus on these items but said widespread uncertainty outpaced progress. Patrick Buckley (Jefferies): Asked about international versus U.S. sentiment. Management responded that international markets remain more stable, with U.S. confidence uniquely impacted by recent political and economic events. In the coming quarters, the StockStory team will monitor (1) whether Snap-on's continued focus on lower-priced and quick payback products can stabilize or grow sales volumes, (2) the degree to which technician sentiment recovers in response to evolving macroeconomic and policy conditions, and (3) management's ability to maintain operating margins despite volume pressure. Additional attention will be given to international performance and the company's agility in responding to tariff-related disruptions. Snap-on currently trades at a forward P/E ratio of 15.7×. At this valuation, is it a buy or sell post earnings? The answer lies in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
18-04-2025
- Business
- Yahoo
Snap-on Announces First Quarter 2025 Results
Sales of $1,141.1 million and diluted EPS of $4.51 for the first quarter of 2025; Mixed sales results amidst heightened economic uncertainty; Gross margin of 50.7% improves 20 basis points over last year's level KENOSHA, Wis., April 17, 2025--(BUSINESS WIRE)--Snap-on Incorporated (NYSE: SNA), a leading global innovator, manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions for professional users performing critical tasks, today announced operating results for the first quarter of 2025. Net sales of $1,141.1 million in the first quarter of 2025 represented a decrease of $41.2 million, or 3.5%, from 2024 levels, reflecting a $27.3 million, or 2.3%, organic decline and $13.9 million of unfavorable foreign currency translation. Operating earnings before financial services for the quarter of $243.1 million, or 21.3% of net sales, compared to $270.9 million, or 22.9% of net sales, last year, which included a benefit of $11.3 million, or 90 basis points, for payments received associated with a legal matter (the "legal payments"). Financial services revenue in the quarter of $102.1 million compared to $99.6 million in 2024; financial services operating earnings of $70.3 million compared to $68.3 million last year. Consolidated operating earnings for the quarter of $313.4 million, or 25.2% of revenues (net sales plus financial services revenue), compared to $339.2 million, or 26.5% of revenues, in 2024, which included a benefit of $11.3 million, or 90 basis points, for the legal payments. The first quarter effective income tax rate was 22.2% in both 2025 and 2024. Net earnings in the quarter of $240.5 million, or $4.51 per diluted share, compared to net earnings of $263.5 million, or $4.91 per diluted share, a year ago. In 2024, net earnings included an $8.8 million, or $0.16 per diluted share, after-tax benefit from the legal payments. See "Non-GAAP Measures" below for a definition of, and further explanation about, organic sales. "Snap-on's first quarter was marked by the heightened macroeconomic uncertainty of the day that led to mixed results across our operations," said Nick Pinchuk, Snap-on chairman and chief executive officer. "As such, the grassroots economy, particularly the technician customers of the Tools Group, accelerated their reluctance to purchase financed products. At the same time, we are encouraged by the performance of our businesses serving repair shop owners and managers, by our extension in critical industries outside the military, and by the effectiveness of our Snap-on Value Creation Processes that authored record first quarter operating margins for both our Commercial & Industrial Group and Repair Systems & Information Group, and combined to drive higher overall gross margin. These are times of expanding turbulence. We are, however, confident, holding great belief in the criticality of our markets across essential repair, the considerable capabilities of our battle-tested team, and the power of our continuing investments in product, brand, and people. As we move forward, we believe strongly in our long-established strategy to largely produce in the countries and regions where we sell and in our broad manufacturing capacity in the U.S., fortified by extensive facilities, enabled by deep process know how, and fueled by experienced associates…all structural advantages that position us well to navigate today's world. As always, I want to extend my thanks to our franchisees and associates worldwide for their significant contributions every day, for their deep dedication in times of difficulty, and for their unshakable confidence in our future." Segment Results Commercial & Industrial Group segment sales of $343.9 million in the quarter compared to $359.9 million last year, reflecting a $10.4 million, or 2.9%, organic decline and $5.6 million of unfavorable foreign currency translation. The organic decrease includes a reduction in activity with customers in critical industries, where lower sales to the military more than offset gains in other critical industry sectors, and a decline in the European-based hand tools business. Operating earnings of $53.2 million in the period compared to $55.4 million in 2024. The operating margin (operating earnings as a percentage of segment sales) of 15.5% compared to 15.4% last year. Snap-on Tools Group segment sales of $462.9 million in the quarter compared to $500.1 million last year, reflecting a $33.6 million, or 6.8%, organic sales decrease and $3.6 million of unfavorable foreign currency translation. The organic decline is due to lower activity in the U.S., partially offset by higher sales in the segment's international operations. Operating earnings of $92.4 million in the period compared to $117.3 million in 2024. The operating margin of 20.0% compared to 23.5% a year ago. Repair Systems & Information Group segment sales of $475.9 million in the quarter compared to $463.8 million last year, reflecting a $17.0 million, or 3.7%, organic sales increase, partially offset by $4.9 million of unfavorable foreign currency translation. The organic gain includes higher activity with OEM dealerships and increased sales of diagnostic and repair information products to independent repair shop owners and managers, partially offset by lower volumes of undercar equipment. Operating earnings of $122.1 million in the period compared to $112.9 million in 2024. The operating margin improved 140 basis points to 25.7% from 24.3% last year. Financial Services operating earnings of $70.3 million on revenue of $102.1 million in the quarter compared to operating earnings of $68.3 million on revenue of $99.6 million a year ago. Originations of $268.7 million in the first quarter represented a decrease of $33.0 million, or 10.9%, from 2024 levels. Corporate expenses in the first quarter of $24.6 million compared to $14.7 million last year, which included a benefit from the legal payments. Outlook We believe that our markets and our operations possess and have demonstrated continuing and considerable resilience against the uncertainties of the current environment. In 2025, Snap-on expects to make ongoing progress along its decisive runways for coherent growth, leveraging capabilities already proven in the automotive repair arena, developing and expanding its professional customer base, not only in automotive repair, but in adjacent markets, additional geographies and other areas, including extending in critical industries, where the cost and penalties for failure can be high. In pursuit of these initiatives, we project that capital expenditures in 2025 will approximate $100 million, of which $22.9 million was incurred in the first three months of the year. Snap-on currently anticipates that its full-year 2025 effective income tax rate will be in the range of 22% to 23%. Conference Call and Webcast on April 17, 2025, at 9:00 a.m. Central Time A discussion of this release will be webcast on Thursday, April 17, 2025, at 9:00 a.m. Central Time, and a replay will be available for at least 10 days following the call. To access the webcast, visit and click on the link to the call. The slide presentation accompanying the call can be accessed under the Downloads tab in the webcast viewer, as well as on the Snap-on website at Non-GAAP Measures References in this release to "organic sales" refer to sales from continuing operations calculated in accordance with generally accepted accounting principles in the United States ("GAAP"), adjusted to exclude acquisition-related sales and the impact of foreign currency translation. Management evaluates the company's sales performance based on organic sales growth, which primarily reflects growth from the company's existing businesses as a result of increased output, expanded customer base, geographic expansion, new product development and pricing changes, and excludes sales contributions from acquired operations the company did not own as of the comparable prior-year reporting period. Organic sales also exclude the effects of foreign currency translation as foreign currency translation is subject to volatility that can obscure underlying business trends. Management believes that the non-GAAP financial measure of organic sales is meaningful to investors as it provides them with useful information to aid in identifying underlying growth trends in the company's businesses and facilitates comparisons of its sales performance with prior periods. About Snap-on Snap-on Incorporated is a leading global innovator, manufacturer, and marketer of tools, equipment, diagnostics, repair information and systems solutions for professional users performing critical tasks including those working in vehicle repair, aerospace, the military, natural resources, and manufacturing. From its founding in 1920, Snap-on has been recognized as the mark of the serious and the outward sign of the pride and dignity working men and women take in their professions. Products and services are sold through the company's network of widely recognized franchisee vans, as well as through direct and distributor channels, under a variety of notable brands. The company also provides financing programs to facilitate the sales of its products and to support its franchise business. Snap-on, an S&P 500 company, generated sales of $4.7 billion in 2024, and is headquartered in Kenosha, Wisconsin. Forward-looking Statements Statements in this news release that are not historical facts, including statements that (i) are in the future tense; (ii) include the words "expects," "anticipates," "intends," "approximates," or similar words that reference Snap-on or its management; (iii) are specifically identified as forward-looking; or (iv) describe Snap-on's or management's future outlook, plans, estimates, objectives or goals, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Snap-on cautions the reader that this news release may contain statements, including earnings projections, that are forward-looking in nature and were developed by management in good faith and, accordingly, are subject to risks and uncertainties regarding Snap-on's expected results that could cause (and in some cases have caused) actual results to differ materially from those described or contemplated in any forward-looking statement. Factors that may cause the company's actual results to differ materially from those contained in the forward-looking statements include those found in the company's reports filed with the Securities and Exchange Commission, including the information under the "Safe Harbor" and "Risk Factors" headings in its Annual Report on Form 10-K for the fiscal year ended December 28, 2024, which are incorporated herein by reference. Snap-on disclaims any responsibility to update any forward-looking statement provided in this news release, except as required by law. SNAP-ON INCORPORATED Condensed Consolidated Statements of Earnings (Amounts in millions, except per share data) (Unaudited) Three Months Ended March 29, March 30, 2025 2024 Net sales $ 1,141.1 $ 1,182.3 Cost of goods sold (562.6 ) (585.6 ) Gross profit 578.5 596.7 Operating expenses (335.4 ) (325.8 ) Operating earnings before financial services 243.1 270.9 Financial services revenue 102.1 99.6 Financial services expenses (31.8 ) (31.3 ) Operating earnings from financial services 70.3 68.3 Operating earnings 313.4 339.2 Interest expense (12.4 ) (12.5 ) Other income (expense) – net 14.4 18.1 Earnings before income taxes 315.4 344.8 Income tax expense (68.7 ) (75.2 ) Net earnings 246.7 269.6 Net earnings attributable to noncontrolling interests (6.2 ) (6.1 ) Net earnings attributable to Snap-on Incorporated $ 240.5 $ 263.5 Net earnings per share attributable to Snap-on Incorporated: Basic $ 4.59 $ 4.99 Diluted 4.51 4.91 Weighted-average shares outstanding: Basic 52.4 52.8 Effect of dilutive securities 0.9 0.9 Diluted 53.3 53.7 SNAP-ON INCORPORATED Supplemental Segment Information (Amounts in millions) (Unaudited) Three Months Ended March 29, March 30, 2025 2024 Net sales: Commercial & Industrial Group $ 343.9 $ 359.9 Snap-on Tools Group 462.9 500.1 Repair Systems & Information Group 475.9 463.8 Segment net sales 1,282.7 1,323.8 Intersegment eliminations (141.6 ) (141.5 ) Total net sales 1,141.1 1,182.3 Financial Services revenue 102.1 99.6 Total revenues $ 1,243.2 $ 1,281.9 Operating earnings: Commercial & Industrial Group $ 53.2 $ 55.4 Snap-on Tools Group 92.4 117.3 Repair Systems & Information Group 122.1 112.9 Financial Services 70.3 68.3 Segment operating earnings 338.0 353.9 Corporate (24.6 ) (14.7 ) Operating earnings 313.4 339.2 Interest expense (12.4 ) (12.5 ) Other income (expense) – net 14.4 18.1 Earnings before income taxes $ 315.4 $ 344.8 SNAP-ON INCORPORATED Condensed Consolidated Balance Sheets (Amounts in millions) (Unaudited) March 29, December 28, 2025 2024 Assets Cash and cash equivalents $ 1,434.9 $ 1,360.5 Trade and other accounts receivable – net 852.7 815.6 Finance receivables – net 620.4 610.3 Contract receivables – net 116.4 120.0 Inventories – net 961.2 943.4 Prepaid expenses and other current assets 155.8 139.6 Total current assets 4,141.4 3,989.4 Property and equipment – net 547.7 542.6 Operating lease right-of-use assets 91.7 89.4 Deferred income tax assets 78.3 78.0 Long-term finance receivables – net 1,296.3 1,312.0 Long-term contract receivables – net 420.1 418.3 Goodwill 1,077.7 1,056.8 Other intangible assets – net 271.4 267.6 Pension assets 127.2 125.4 Other long-term assets 17.2 17.3 Total assets $ 8,069.0 $ 7,896.8 Liabilities and Equity Notes payable $ 18.2 $ 13.7 Accounts payable 281.3 265.9 Accrued benefits 72.9 67.2 Accrued compensation 63.8 86.1 Franchisee deposits 71.1 70.9 Other accrued liabilities 492.6 457.7 Total current liabilities 999.9 961.5 Long-term debt 1,185.7 1,185.5 Deferred income tax liabilities 79.5 73.5 Retiree health care benefits 18.9 19.4 Pension liabilities 77.7 78.4 Operating lease liabilities 70.0 68.6 Other long-term liabilities 93.2 92.9 Total liabilities 2,524.9 2,479.8 Equity Shareholders' equity attributable to Snap-on Incorporated Common stock 67.5 67.5 Additional paid-in capital 543.5 557.7 Retained earnings 7,712.4 7,584.3 Accumulated other comprehensive loss (499.5 ) (575.0 ) Treasury stock at cost (2,303.1 ) (2,240.4 ) Total shareholders' equity attributable to Snap-on Incorporated 5,520.8 5,394.1 Noncontrolling interests 23.3 22.9 Total equity 5,544.1 5,417.0 Total liabilities and equity $ 8,069.0 $ 7,896.8 SNAP-ON INCORPORATED Condensed Consolidated Statements of Cash Flows (Amounts in millions) (Unaudited) Three Months Ended March 29, March 30, 2025 2024 Operating activities: Net earnings $ 246.7 $ 269.6 Adjustments to reconcile net earnings to net cash provided (used) by operating activities: Depreciation 18.3 18.2 Amortization of other intangible assets 5.7 6.3 Provision for losses on finance receivables 18.2 18.2 Provision for losses on non-finance receivables 5.8 4.9 Stock-based compensation expense 4.5 9.8 Deferred income tax provision 3.7 1.6 Gain on sales of assets — (0.2 ) Changes in operating assets and liabilities, net of effects of acquisitions: Trade and other accounts receivable (33.4 ) (47.9 ) Contract receivables 2.9 (4.0 ) Inventories (3.0 ) 22.1 Prepaid expenses and other assets (9.4 ) (3.5 ) Accounts payable 18.5 23.3 Accrued and other liabilities 20.0 30.3 Net cash provided by operating activities 298.5 348.7 Investing activities: Additions to finance receivables (218.9 ) (248.0 ) Collections of finance receivables 210.7 207.8 Capital expenditures (22.9 ) (21.8 ) Disposals of property and equipment 0.1 1.1 Other (1.0 ) (2.3 ) Net cash used by investing activities (32.0 ) (63.2 ) Financing activities: Net increase (decrease) in other short-term borrowings 4.5 (0.4 ) Cash dividends paid (112.2 ) (98.2 ) Purchases of treasury stock (87.2 ) (70.2 ) Proceeds from stock purchase plans and stock option exercises 18.3 28.3 Other (17.0 ) (23.7 ) Net cash used by financing activities (193.6 ) (164.2 ) Effect of exchange rate changes on cash and cash equivalents 1.5 (1.8 ) Increase in cash and cash equivalents 74.4 119.5 Cash and cash equivalents at beginning of year 1,360.5 1,001.5 Cash and cash equivalents at end of period $ 1,434.9 $ 1,121.0 Supplemental cash flow disclosures: Cash paid for interest $ (13.6 ) $ (13.7 ) Net cash paid for income taxes (19.8 ) (14.7 ) Non-GAAP Supplemental Data The following non-GAAP supplemental data is presented for informational purposes to provide readers with insight into the information used by management for assessing the operating performance of Snap-on Incorporated's ("Snap-on") non-financial services ("Operations") and Financial Services businesses. The supplemental Operations data reflects the results of operations and financial position of Snap-on's tools, diagnostics, equipment products, software, and other non-financial services operations with Financial Services presented on the equity method. The supplemental Financial Services data reflects the results of operations and financial position of Snap-on's U.S. and international financial services operations. The financing needs of Financial Services are met through intersegment borrowings and cash generated from Operations; Financial Services is charged interest expense on intersegment borrowings at market rates. Income taxes are charged to Financial Services on the basis of the specific tax attributes generated by the U.S. and international financial services businesses. Transactions between the Operations and Financial Services businesses are eliminated to arrive at the Condensed Consolidated Financial Statements. SNAP-ON INCORPORATED Non-GAAP Supplemental Consolidating Data - Supplemental Condensed Statements of Earnings (Amounts in millions) (Unaudited) Operations* Financial Services Three Months Ended Three Months Ended March 29, March 30, March 29, March 30, 2025 2024 2025 2024 Net sales $ 1,141.1 $ 1,182.3 $ — $ — Cost of goods sold (562.6 ) (585.6 ) — — Gross profit 578.5 596.7 — — Operating expenses (335.4 ) (325.8 ) — — Operating earnings before financial services 243.1 270.9 — — Financial services revenue — — 102.1 99.6 Financial services expenses — — (31.8 ) (31.3 ) Operating earnings from financial services — — 70.3 68.3 Operating earnings 243.1 270.9 70.3 68.3 Interest expense (12.4 ) (12.5 ) — — Intersegment interest income (expense) – net 17.0 16.7 (17.0 ) (16.7 ) Other income (expense) – net 14.4 18.0 — 0.1 Earnings before income taxes and equity earnings 262.1 293.1 53.3 51.7 Income tax expense (55.4 ) (62.3 ) (13.3 ) (12.9 ) Earnings before equity earnings 206.7 230.8 40.0 38.8 Financial services – net earnings attributable to Snap-on 40.0 38.8 — — Net earnings 246.7 269.6 40.0 38.8 Net earnings attributable to noncontrolling interests (6.2 ) (6.1 ) — — Net earnings attributable to Snap-on $ 240.5 $ 263.5 $ 40.0 $ 38.8 * Snap-on with Financial Services presented on the equity method. SNAP-ON INCORPORATED Non-GAAP Supplemental Consolidating Data - Supplemental Condensed Balance Sheets (Amounts in millions) (Unaudited) Operations* Financial Services March 29, December 28, March 29, December 28, 2025 2024 2025 2024 Assets Cash and cash equivalents $ 1,434.7 $ 1,360.4 $ 0.2 $ 0.1 Intersegment receivables 16.4 15.1 — — Trade and other accounts receivable – net 851.4 815.0 1.3 0.6 Finance receivables – net — — 620.4 610.3 Contract receivables – net 4.9 4.8 111.5 115.2 Inventories – net 961.2 943.4 — — Prepaid expenses and other current assets 158.9 143.8 10.6 9.4 Total current assets 3,427.5 3,282.5 744.0 735.6 Property and equipment – net 545.4 540.2 2.3 2.4 Operating lease right-of-use assets 86.2 83.8 5.5 5.6 Investment in Financial Services 400.4 403.5 — — Deferred income tax assets 51.9 51.8 26.4 26.2 Intersegment long-term notes receivable 816.3 831.8 — — Long-term finance receivables – net — — 1,296.3 1,312.0 Long-term contract receivables – net 8.5 8.4 411.6 409.9 Goodwill 1,077.7 1,056.8 — — Other intangible assets – net 271.4 267.6 — — Pension assets 127.2 125.4 — — Other long-term assets 35.5 35.6 0.2 0.2 Total assets $ 6,848.0 $ 6,687.4 $ 2,486.3 $ 2,491.9 Liabilities and Equity Notes payable $ 18.2 $ 13.7 $ — $ — Accounts payable 279.8 265.4 1.5 0.5 Intersegment payables — — 16.4 15.1 Accrued benefits 72.8 67.2 0.1 — Accrued compensation 61.9 83.5 1.9 2.6 Franchisee deposits 71.1 70.9 — — Other accrued liabilities 467.8 443.6 38.5 27.7 Total current liabilities 971.6 944.3 58.4 45.9 Long-term debt and intersegment long-term debt — — 2,002.0 2,017.3 Deferred income tax liabilities 79.5 73.5 — — Retiree health care benefits 18.9 19.4 — — Pension liabilities 77.7 78.4 — — Operating lease liabilities 64.4 63.0 5.6 5.6 Other long-term liabilities 91.8 91.8 19.9 19.6 Total liabilities 1,303.9 1,270.4 2,085.9 2,088.4 Total shareholders' equity attributable to Snap-on 5,520.8 5,394.1 400.4 403.5 Noncontrolling interests 23.3 22.9 — — Total equity 5,544.1 5,417.0 400.4 403.5 Total liabilities and equity $ 6,848.0 $ 6,687.4 $ 2,486.3 $ 2,491.9 * Snap-on with Financial Services presented on the equity method. View source version on Contacts For additional information, please visit or contact: Investors:Sara Verbsky262/656-4869 Media:Samuel Bottum262/656-5793 Sign in to access your portfolio
Yahoo
18-04-2025
- Business
- Yahoo
Snap-on Stock Sinks as Toolmaker Attributes Soft Q1 Results to 'Uncertainty'
Shares of Snap-on (SNA) dropped sharply Thursday as its CEO attributed the toolmaker's weaker-than-expected results for the first quarter to "heightened macroeconomic uncertainty." The Kenosha, Wis.-based company reported quarterly earnings per share (EPS) of $4.51 on sales that fell 3.5% year-over-year to $1.14 billion, while analysts polled by Visible Alpha were expecting $4.78 and $1.20 billion, respectively. The firm's Tools Group segment posted sales of $462.9 million, down nearly 7%. "Snap-on's first quarter was marked by the heightened macroeconomic uncertainty of the day that led to mixed results across our operations," CEO Nick Pinchuk said. "As such, the grassroots economy, particularly the technician customers of the Tools Group, accelerated their reluctance to purchase financed products." Snap-on stock sank over 8% in recent trading and was among the biggest decliners in the S&P 500. Despite today's declines, shares are up about 8% over the past 12 months. Read the original article on Investopedia Sign in to access your portfolio
