Snap-on Incorporated Q1 FY2026 earnings call

• Market: Vehicle repair environment robust with aging car park and high household spending on vehicle repairs. Critical industries show strength. - CNI: Strong momentum in domestic markets, led by critical industry, aviation, heavy duty and natural resources had high single - digit growth. - Tools group: Maintained pivot, launched new products like glow plug socket and socket configuration for NanoAccess, tool storage had momentum. - RS&I group: Invested in proprietary database, released new Pro Series Polartec AC recyclers to help shop owners navigate complexity.

CNI group: Sales were $381.6 million, an increase of $37.1 million or 10.8%, including $11.9 million in favorable foreign currency and 7.1% organic gain. Operating income was $54.9 million, up 3.2%, operating margin 14.4%. Tools group: Sales were $496 million, up 3.4% organically. Operating income was $105 million, up 13.6%, operating margin 21.6%, gross margin 47.7% up 140 basis points. RS&I group: Sales were $435.3 million, up 2% including $9.1 million in favorable currency effects. Operating earnings were $119.5 million, down 2.1%, operating margin 24.6% including 60 basis points of unfavorable currency.

• Corporate costs: Currently believe expenses will approximate $28 million each quarter. - Capital expenditures: Anticipate full - year 2026 capital expenditures will approximate $100 million. - Effective income tax rate: Currently anticipate full - year 2026 effective income tax rate will be in a range of 22% to 23%.

• Uncertainty in geopolitical events, unfavorable currency, impacts of inflation, and fluctuation in government policies risk increasing uncertainty and affecting business.

Q: Brett Jordan with Jefferies asked about CNI's heavy duty and green shoots.

A: Nick said heavy duty is due to understanding work better for effective solutions, green shoots associated with tool storage growth and positive franchisee conversations.

Q: Scott Stember with Ross asked about tools subcategories, sell - in vs sell - off, and tariffs.

A: Nick said hand tools and power tools up, diagnostics tepid; sell - off in same ballpark as 3.4% growth; tariffs are blizzard - like with uncertain refunds.

Q: Luke Young with Baird asked about tax rebates impact and CNI military exposure.

A: Nick said hard to say on tax rebates impact; CNI military exposure improved with expectation of further improvement.

Q: Christopher Glenn with Oppenheimer asked about C&I and tool storage.

A: Nick said C&I gaining share due to better products and capacity, tool storage up with new products.

Q: Gary Prestopino with Barrington Research asked about tool storage growth, franchisee optimism, CNI data center demand, and FX impact EPS.

A: Nick said tool storage up with new products; franchisee optimism due to both product match and ease of sale; CNI seeing increased demand for data center toolkits; Aldo said FX had two cents of good news on operating income.