Snap-on Incorporated reported its financial results for the first quarter of 2025, revealing a net sales figure of $1,141.1 million, a decrease of 3.5% compared to $1,182.3 million in the same period last year. The decline was attributed to a $27.3 million organic sales drop, alongside a $13.9 million negative impact from foreign currency translation. Gross profit for the quarter was $578.5 million, down from $596.7 million, while operating earnings before financial services fell to $243.1 million from $270.9 million in the prior year. Net earnings attributable to Snap-on were $240.5 million, or $4.51 per diluted share, compared to $263.5 million, or $4.91 per diluted share, in the first quarter of 2024.
The company experienced a notable increase in operating expenses, which rose to $335.4 million from $325.8 million, influenced by a lack of non-recurring legal payments that had benefited the previous year's figures. Operating earnings, which include financial services revenue, totaled $313.4 million, down from $339.2 million in the prior year. Financial services revenue increased slightly to $102.1 million from $99.6 million, with operating earnings from this segment rising to $70.3 million compared to $68.3 million in 2024.
In terms of operational metrics, Snap-on's total assets increased to $8,069.0 million as of March 29, 2025, up from $7,896.8 million at the end of 2024. The company reported a working capital of $3,141.5 million, reflecting an increase of $113.6 million from the previous year-end. Cash and cash equivalents also rose to $1,434.9 million, bolstered by cash generated from operations and collections of finance receivables. The company’s finance receivables stood at $620.4 million, up from $610.3 million, indicating a stable demand for its financing services.
Looking ahead, Snap-on anticipates continued resilience in its markets and operations, projecting capital expenditures of approximately $100 million for 2025. The company aims to leverage its capabilities in automotive repair while expanding into adjacent markets and geographies. Snap-on expects its effective income tax rate for the full year to be in the range of 22% to 23%. The company remains focused on enhancing its operational efficiencies through its Rapid Continuous Improvement initiatives, which are designed to reduce costs and improve productivity across its various business segments.
About Snap-on Inc
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