Snap-on Q3 sales and EPS miss expectations on diesel price impact
SNA•Snap-on reported third-quarter sales of $1.18 billion, down 0.6% year over year, and diluted EPS of $4.64, below analyst expectations of $1.25 billion and $4.93. The company said rising diesel prices led franchisees to reduce inventories, hurting Tools Group sales.
1. Quarterly results
Snap-on's third-quarter sales were $1.18 billion, below the $1.25 billion analyst consensus, while diluted EPS of $4.64 missed expectations of $4.93. Net income was $249.6 million and pretax profit was $319.3 million.
2. Diesel price impact
The company said an accelerated rise in diesel prices led franchisees to reduce inventories, hurting Tools Group sales. Snap-on said gross margins remained strong despite the sales decline, while its Commercial & Industrial Group benefited from growth in critical industries and precision torque products.
3. Company outlook
Snap-on expects to expand its professional customer base in automotive repair and adjacent markets. It projects 2026 capital expenditures of about $100 million and anticipates a full-year 2026 effective income tax rate of about 22%.
