Financial Analysis

Acquisitions On November 20, 2023, Snap-on acquired certain assets of SAVTEQ, Inc. (SAVTEQ) for a cash purchase price of $3.0 million. SAVTEQ, based in Lexington, Kentucky, provides precise non-contact measuring capabilities. In fiscal 2023, the company completed the purchase accounting valuations for the acquired net assets of SAVTEQ. The $1.7 million excess of the purchase price over the fair value of the net assets acquired was recorded in Goodwill on the accompanying Consolidated Balance Sheets. On November 1, 2023, Snap-on acquired Mountz, Inc. (Mountz) for a cash purchase price of $39.6 million. Mountz, based in San Jose, California, is a leading developer, manufacturer and marketer of high-precision torque tools, including measurement, calibration and documentation products. The company completed the purchase accounting valuations for the acquired net assets of Mountz in the first quarter of 2024. The $19.8 million excess of the purchase price over the fair value of the net assets acquired was recorded in Goodwill on the accompanying Consolidated Balance Sheets. For segment reporting purposes, the results of operations and assets of SAVTEQ have been included in the Repair Systems & Information Group and those of Mountz have been included in the Commercial & Industrial Group since the respective acquisition dates. Pro forma financial information has not been presented for these acquisitions as the net effects, individually and collectively, were neither signific …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

Commitments and Contingencies Snap-on provides product warranties for specific product lines and accrues for estimated future warranty cost in the period in which the sale is recorded. Snap-on calculates its accrual requirements based on historic warranty loss experience that is periodically adjusted for recent actual experience, including the timing of claims during the warranty period and actual costs incurred. Snap-ons product warranty accrual activity for 2025, 2024 and 2023 is as follows: (Amounts in millions) 2025 2024 2023 Warranty accrual: Beginning of year $ 15.2 $ 14.7 $ 14.3 Additions 13.8 15.0 14.7 Usage (14.5) (14.5) (14.3) End of year $ 14.5 $ 15.2 $ 14.7 Approximately 2,300 employees, or 18% of Snap-ons worldwide workforce, are represented by unions and/or covered under collective bargaining agreements. The number of covered union employees whose contracts expire over the next five years approximates 600 employees in 2026, 800 employees in 2027, 150 employees in 2028, and 50 employees in 2029; there are no contracts currently scheduled to expire in 2030. In recent years, Snap-on has not experienced any significant work slowdowns, stoppages or other labor disruptions. In the ordinary course of business, Snap-on is subject to legal disputes that are being litigated and/or settled. The accompanying Consolidated Statements of Earnings for the year ended January 3, 2026, include a benefit in Operating expenses of $22.0 million for the settlement of a legal matter (t …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Short-term and Long-term Debt Short-term and long-term debt as of 2025 and 2024 year end consisted of the following: (Amounts in millions) 2025 2024 3.25% unsecured notes due 2027 $ 300.0 $ 300.0 4.10% unsecured notes due 2048 400.0 400.0 3.10% unsecured notes due 2050 500.0 500.0 Other debt* 2.6 (0.8) Total debt 1,202.6 1,199.2 Less: notes payable (16.2) (13.7) Total long-term debt $ 1,186.4 $ 1,185.5 * Includes unamortized debt issuance costs and issuance discounts. Snap-ons long-term debt and notes payable maturities in the next five years include a $300.0 million note that matures on March 1, 2027. Average notes payable outstanding were $18.0 million and $14.9 million in 2025 and 2024, respectively. The 2025 weighted-average interest rate on such borrowings of 13.4% compared with 10.4% in 2024. At 2025 year end, the weighted-average interest rate on outstanding notes payable of 15.6% compared with 9.5% in 2024. Snap-on has a $900 million multicurrency revolving credit facility that terminates on September 12, 2028 (the Credit Facility). The Credit Facility contains an accordion feature that, subject to certain customary conditions, may allow the maximum commitment to be increased by up to $450 million with the approval of the lenders providing additional commitments. No amounts were borrowed or outstanding under the Credit Facility during the years ended and as of January 3, 2026, or December 28, 2024. Borrowings under the Credit Facility bear interest at varying rates ba …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table shows the consolidated revenues by revenue source: (Amounts in millions) 2025 2024 2023 Revenue from contracts with customers $ 4,709.3 $ 4,677.6 $ 4,703.2 Other revenues 33.9 29.8 27.0 Total net sales 4,743.2 4,707.4 4,730.2 Financial services revenue 412.9 401.0 378.1 Total revenues $ 5,156.1 $ 5,108.4 $ 5,108.3 The following tables represent external net sales disaggregated by geography, based on the customers billing addresses: 2025 Commercial & Snap-on Repair Systems Industrial Tools & Information Financial Snap-on (Amounts in millions) Group Group Group Services Eliminations Incorporated Net sales: North America* $ 617.5 $ 1,693.3 $ 1,218.5 $ $ $ 3,529.3 Europe 318.9 167.2 262.7 748.8 All other 249.3 104.4 111.4 465.1 External net sales 1,185.7 1,964.9 1,592.6 4,743.2 Intersegment net sales 271.8 284.5 (556.3) Total net sales 1,457.5 1,964.9 1,877.1 (556.3) 4,743.2 Financial services revenue 412.9 412.9 Total revenue $ 1,457.5 $ 1,964.9 $ 1,877.1 $ 412.9 $ (556.3) $ 5,156.1 2024 Commercial & Snap-on Repair Systems Industrial Tools & Information Financial Snap-on (Amounts in millions) Group Group Group Services Eliminations Incorporated Net sales: North America* $ 621.9 $ 1,725.6 $ 1,171.9 $ $ $ 3,519.4 Europe 310.8 158.3 253.2 722.3 All other 254.9 105.3 105.5 465.7 External net sales 1,187.6 1,989.2 1,530.6 4,707.4 Intersegment net sales 289.2 267.3 (556.5) Total net sales 1,476.8 1,989.2 1,797.9 (556.5) 4,707.4 Financial services re …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Stock-based Compensation and Other Stock Plans The 2011 Incentive Stock and Awards Plan (the 2011 Plan) provides for the grant of stock options, performance share units (PSUs), stock appreciation rights (SARs) and restricted stock awards (which may be designated as restricted stock units or RSUs). As of 2025 year end, the 2011 Plan had 1,730,084 shares available for future grants. The company uses treasury stock to deliver shares under the 2011 Plan. Net stock-based compensation expense was $28.9 million in 2025, $28.6 million in 2024 and $44.7 million in 2023. Cash received from stock purchase plans and stock option exercises was $73.9 million in 2025, $92.3 million in 2024 and $113.6 million in 2023. The tax benefit realized from both the exercise and vesting of share-based payment arrangements was $16.7 million in 2025, $20.2 million in 2024 and $16.9 million in 2023. Stock options: Stock options are granted with an exercise price equal to the market value of a share of Snap-ons common stock on the date of grant and have a contractual term of 10 years. Stock option grants vest ratably on the first, second and third anniversaries of the date of grant. The fair value of each stock option award is estimated on the date of grant using the Black-Scholes valuation model. The company uses historical data regarding stock option exercise and forfeiture behaviors for different participating groups to estimate the period of time that stock options granted are expected to be outstandi …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill by segment for 2025 and 2024 are as follows: (Amounts in millions) Commercial & Industrial Group Snap-on Tools Group Repair Systems & Information Group Total Balance as of 2023 year end $ 346.6 $ 12.4 $ 738.4 $ 1,097.4 Currency translation (17.8) (9.6) (27.4) Acquisition adjustments (13.2) (13.2) Balance as of 2024 year end $ 315.6 $ 12.4 $ 728.8 $ 1,056.8 Currency translation 33.8 18.9 52.7 Balance as of 2025 year end $ 349.4 $ 12.4 $ 747.7 $ 1,109.5 Goodwill of $1,056.8 million as of 2024 year end included $19.8 million, from the acquisition of Mountz. In the first quarter of 2024, the purchase accounting valuations for the acquired net assets of Mountz were completed, resulting in a reduction of goodwill of $13.2 million from year end 2023. See Note 3 for additional information on acquisitions. Additional disclosures related to other intangible assets as of 2025 and 2024 year end are as follows: 2025 2024 (Amounts in millions) Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Amortized other intangible assets: Customer relationships $ 79.8 $ (34.7) $ 45.1 $ 84.2 $ (35.1) $ 49.1 Developed technology 26.5 (26.0) 0.5 26.6 (23.1) 3.5 Internally developed software 200.8 (146.5) 54.3 179.6 (135.6) 44.0 Patents 54.0 (23.4) 30.6 49.8 (21.4) 28.4 Trademarks 4.1 (2.8) 1.3 3.8 (2.5) 1.3 Other 0.9 (0.5) 0.4 6.1 (2.9 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes The source of earnings before income taxes consisted of the following: (Amounts in millions) 2025 2024 2023 United States $ 1,122.8 $ 1,188.2 $ 1,143.7 Foreign 213.1 184.9 184.3 Total $ 1,335.9 $ 1,373.1 $ 1,328.0 The provision (benefit) for income taxes consisted of the following: (Amounts in millions) 2025 2024 2023 Current: Federal $ 196.5 $ 220.8 $ 215.4 Foreign 49.4 50.4 55.2 State 45.2 41.2 41.5 Total current 291.1 312.4 312.1 Deferred: Federal 0.5 (8.6) (14.5) Foreign 3.6 0.1 (3.9) State (1.6) 0.3 (0.3) Total deferred 2.5 (8.2) (18.7) Total income tax provision $ 293.6 $ 304.2 $ 293.4 The following is a reconciliation of the statutory federal income tax rate to Snap-ons effective tax rate: 2025 2024 2023 Earnings before income tax expense $ 1,335.9 $ 1,373.1 $ 1,328.0 Statutory federal income tax rate $ 280.5 21.0 % $ 288.4 21.0 % $ 278.9 21.0 % State income taxes, net of federal benefit* 35.6 2.7 33.3 2.4 29.7 2.2 Foreign tax effects 8.7 0.6 9.8 0.7 10.8 0.8 Effects of cross-border tax laws (12.6) (0.9) (11.1) (0.8) (11.9) (0.9) Tax credits (7.8) (0.6) (2.9) (0.2) (4.3) (0.3) Nontaxable or nondeductible items (10.8) (0.8) (13.3) (0.9) (9.8) (0.7) Effective tax rate $ 293.6 22.0 % $ 304.2 22.2 % $ 293.4 22.1 % * State taxes in California, Illinois, Michigan, New Jersey, New York, Pennsylvania and Wisconsin comprised greater than 50% of the tax effect in this category. Snap-ons effective income tax rate on earnings attributable to Snap-on Incorporated was 2 …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases Lessee accounting: Snap-on determines if an arrangement is a lease at inception. Snap-on has operating and finance leases for manufacturing plants, distribution centers, software development facilities, financial services offices, data centers, company store vans and certain equipment. Snap-ons leases have lease terms of one year to 24 years and some include options to extend and/or terminate the lease. The exercise of lease renewal options is at the companys sole discretion. Certain leases also include options to purchase the leased property. When deemed reasonably certain of exercise, the renewal and purchase options are included in the determination of the lease term and lease payment obligation, respectively. The depreciable life of assets and leasehold improvements are limited to the expected term, unless there is a transfer of title or purchase option reasonably certain of exercise. The companys lease agreements do not contain any material variable lease payments, material residual value guarantees or any material restrictive covenants. Right-of-use (ROU) assets represent Snap-ons right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date of the lease based on the present value of lease payments over the lease term. When readily determinable, Snap-on uses the implicit rate in determining the present …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

New accounting standards: In 2025, Snap-on adopted ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires disaggregated information about a reporting entitys effective tax rate reconciliation as well as information on income taxes paid. The ASU was applied on a retrospective basis. The adoption of this ASU resulted in enhanced disclosures, including comparative effective income tax rate and income taxes paid information for all years presented, but otherwise had no impact on the companys Consolidated Financial Statements. See Note 8 for additional information on income taxes. In 2025, Snap-on also adopted ASU No. 2025-05, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets , which allows entities to elect a practical expedient that assumes that the current conditions as of the balance sheet date do not change for the remaining life of the asset for current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606. The guidance was adopted on a prospective basis. The adoption of this ASU did not have a material impact on Snap-ons Consolidated Financial Statements. See Note 4 for additional information on receivables. In September 2025, the FASB issued ASU No. 2025-06, Intangibles-Goodwill and Other-Internal Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software , which removes …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Pension Plans Snap-on has several non-contributory defined benefit pension plans covering most U.S. employees and certain employees in foreign countries. Snap-on also has foreign contributory defined benefit pension plans covering certain foreign employees. Retirement benefits are generally provided based on employees years of service and average earnings or stated amounts for years of service. Normal retirement age is 65, with provisions for earlier retirement. The status of Snap-ons pension plans as of 2025 and 2024 year end is as follows: (Amounts in millions) 2025 2024 Change in projected benefit obligation: Benefit obligation at beginning of year $ 1,270.2 $ 1,291.9 Service cost 19.7 19.9 Interest cost 66.8 65.4 Plan participant contributions 0.3 0.3 Plan settlements (0.5) Benefits paid (93.9) (84.1) Actuarial (gain) loss 8.1 (12.2) Foreign currency impact 16.7 (11.0) Benefit obligation at end of year 1,287.4 1,270.2 Change in plan assets: Fair value of plan assets at beginning of year 1,308.1 1,333.9 Return on plan assets 134.2 58.8 Employer contributions 7.7 8.3 Plan participant contributions 0.3 0.3 Plan settlements (0.5) Benefits paid (93.9) (84.1) Foreign currency impact 13.3 (9.1) Fair value of plan assets at end of year 1,369.2 1,308.1 Funded status at end of year $ 81.8 $ 37.9 The increase in the defined benefit pension plans benefit obligations in 2025 was primarily due to a decrease in the discount rate in 2025 as compared to 2024. Amounts recognized in the Con …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Revenue Recognition Snap-on recognizes revenue from the sale of tools, diagnostics, equipment, and related services based on when control of the product passes to the customer or the service is provided and is recognized at an amount that reflects the consideration expected to be received in exchange for such goods or services. Revenue disaggregation The following table shows the consolidated revenues by revenue source: (Amounts in millions) 2025 2024 2023 Revenue from contracts with customers $ 4,709.3 $ 4,677.6 $ 4,703.2 Other revenues 33.9 29.8 27.0 Total net sales 4,743.2 4,707.4 4,730.2 Financial services revenue 412.9 401.0 378.1 Total revenues $ 5,156.1 $ 5,108.4 $ 5,108.3 Snap-on evaluates the performance of the Commercial & Industrial Group, the Snap-on Tools Group and the Repair Systems & Information Group operating segments based on segment net sales and segment operating earnings. The segment net sales of the Snap-on Tools Group reflect external net sales, while the segment net sales of the Commercial & Industrial Group and the Repair Systems & Information Group include both external and intersegment net sales. Snap-on accounts for intersegment net sales and transfers based primarily on standard costs with reasonable mark-ups established between the segments. Intersegment amounts are eliminated to arrive at Snap-ons consolidated financial results. The Financial Services operating segment is evaluated based on financial services revenue and segment …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segments Snap-ons operating segments, which represent Snap-ons reportable segments, are based on the organizational structure used by the Chief Executive Officer, its chief operating decision maker (CODM), to make operating and investment determinations and to assess performance. Snap-ons reportable operating segments are: (i) the Commercial & Industrial Group; (ii) the Snap-on Tools Group; (iii) the Repair Systems & Information Group; and (iv) Financial Services. The Commercial & Industrial Group consists of business operations serving a broad range of industrial and commercial customers worldwide, including customers in the aerospace, natural resources, government and military, power generation, transportation and technical education market segments (collectively, critical industries), primarily through direct and distributor channels. The Snap-on Tools Group consists of business operations primarily serving vehicle service and repair technicians through the companys multinational mobile tool distribution channel. The Repair Systems & Information Group consists of business operations serving other professional vehicle repair customers worldwide, primarily owners and managers of independent repair shops and OEM dealerships, through direct and distributor channels. Financial Services consists of the business operations of Snap-ons finance subsidiaries. The CODM evaluates the performance of the Commercial & Industrial Group, the Snap-on Tools Group and the …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Summary of Accounting Policies Principles of consolidation and presentation: The Consolidated Financial Statements include the accounts of Snap-on Incorporated and its wholly-owned and majority-owned subsidiaries (collectively, Snap-on or the company). The Consolidated Financial Statements do not include the accounts of the companys independent franchisees. Snap-ons Consolidated Financial Statements are prepared in conformity with generally accepted accounting principles in the United States of America (GAAP). Intercompany accounts and transactions have been eliminated. Fiscal year accounting period: Snap-ons fiscal year ends on the Saturday that is on or nearest to December 31. The 2025 fiscal year ended on January 3, 2026 (2025), the 2024 fiscal year ended on December 28, 2024 (2024), and the 2023 fiscal year ended on December 30, 2023 (2023). The 2025 fiscal year contained 53 weeks of operating results with the additional week occurring in the fourth quarter. The impact of the additional week of operations was not material to Snap-ons 2025 total revenues or net earnings. The 2024 and 2023 fiscal years each contained 52 weeks of operating results. Use of estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and ex …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Capital Stock Snap-on has undertaken repurchases of Snap-on common stock from time to time to offset dilution created by shares issued for employee and franchisee stock purchase plans, stock awards and other corporate purposes, as well as when the company believes market conditions are favorable. Snap-on repurchased 987,000 shares, 952,000 shares and 1,126,000 shares in 2025, 2024 and 2023, respectively. As of 2025 year end, Snap-on has remaining availability to repurchase up to an additional $260.0 million in common stock pursuant to Board authorizations. The purchase of Snap-on common stock is at the companys discretion, subject to prevailing financial and market conditions. Cash dividends paid in 2025, 2024 and 2023 totaled $462.2 million, $406.4 million and $355.6 million, respectively. Cash dividends per share in 2025, 2024 and 2023 were $8.86, $7.72 and $6.72, respectively. On February 12, 2026, the companys Board declared a quarterly dividend of $2.44 per share, payable o n March 10, 2026, to shareholders of record on February 24, 2026. …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Acquisitions On June 8, 2026, Snap-on acquired Diesel Laptops, LLC (Diesel Laptops) for a preliminary cash purchase price of $99.7 million (or $99.1 million, net of cash acquired). The preliminary purchase price is subject to change based on the finalization of a working capital adjustment that is expected to be completed in the third quarter of 2026. Diesel Laptops, based in Irmo, South Carolina, specializes in diagnostics, repair information, and digital solutions for commercial trucks and off-highway vehicles serving heavy-duty repair shops, fleets, and other equipment customers such as those in mining, agriculture, and infrastructure. In the second quarter of 2026, the company recorded, on a preliminary basis, the $97.0 million excess of the purchase price over the fair value of the net assets acquired in Goodwill on the accompanying Condensed Consolidated Balance Sheets. The company does not expect that the goodwill will be tax deductible. The company anticipates completing the purchase accounting for the acquired net assets of Diesel Laptops in the second half of 2026. For segment reporting purposes, the results of operations and assets of Diesel Laptops have been included in the Repair Systems & Information Group since the acquisition date. On April 30, 2026, Snap-on acquired Hi-Force Group Holdings Ltd. (Hi-Force) for a preliminary cash purchase price of $58.0 million (or $54.9 million, net of cash acquired). The preliminary purchase price is subject to change bas …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

Commitments and Contingencies Snap-on provides product warranties for specific product lines and accrues for estimated future warranty cost in the period in which the sale is recorded. Snap-on calculates its accrual requirements based on historic warranty loss experience that is periodically adjusted for recent actual experience, including the timing of claims during the warranty period and actual costs incurred. Snap-ons product warranty accrual activity for the three and six month periods ended July 4, 2026, and June 28, 2025, is as follows: Three Months Ended Six Months Ended (Amounts in millions) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025 Warranty reserve: Beginning of period $ 14.4 $ 15.4 $ 14.5 $ 15.2 Additions 3.4 3.7 7.3 7.2 Usage (3.6) (3.7) (7.6) (7.0) End of period $ 14.2 $ 15.4 $ 14.2 $ 15.4 In the ordinary course of business, Snap-on is subject to legal disputes that are being litigated and/or settled. Although it is not possible to predict the outcome of legal matters, management believes that the results of all legal matters will not have a material impact on Snap-ons consolidated financial position, results of operations or cash flows. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Short-term and Long-term Debt Short-term and long-term debt as of July 4, 2026, and January 3, 2026, consisted of the following: (Amounts in millions) July 4, 2026 January 3, 2026 3.25% unsecured notes due 2027 $ 300.0 $ 300.0 4.10% unsecured notes due 2048 400.0 400.0 3.10% unsecured notes due 2050 500.0 500.0 Other debt* 4.0 2.6 Total debt 1,204.0 1,202.6 Less: Current maturities of long-term debt* (299.8) Notes payable (17.2) (16.2) Notes payable and current maturities of long-term debt (317.0) (16.2) Total long-term debt $ 887.0 $ 1,186.4 * Includes unamortized debt issuance costs and issuance discounts. S nap-on has a $900 million multicurrency revolving credit facility that terminates on September 12, 2028 (the Credit Facility). The Credit Facility contains an accordion feature that, subject to certain customary conditions, may allow the maximum commitment to be increased by up to $450 million with the approval of the lenders providing additional commitments. No amounts were borrowed or outstanding under the Credit Facility during the six months ended and as of July 4, 2026. Borrowings under the Credit Facility bear interest at varying rates based on either: (i) Snap-ons then-current, long-term debt ratings; or (ii) Snap-ons then-current ratio of consolidated debt net of certain cash adjustments (Consolidated Net Debt) to earnings before interest, taxes, depreciation, amortization and certain other adjustments for the preceding four fiscal quarters then ended (the Conso …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table shows the consolidated revenues by revenue source: Three Months Ended Six Months Ended (Amounts in millions) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025 Revenue from contracts with customers $ 1,225.8 $ 1,170.9 $ 2,423.8 $ 2,304.2 Other revenues 9.3 8.5 18.5 16.3 Total net sales 1,235.1 1,179.4 2,442.3 2,320.5 Financial services revenue 99.7 101.7 200.8 203.8 Total revenues $ 1,334.8 $ 1,281.1 $ 2,643.1 $ 2,524.3 The following tables represent external net sales disaggregated by geography, based on the customers billing addresses: For the Three Months Ended July 4, 2026 Commercial Snap-on Repair Systems & Industrial Tools & Information Financial Snap-on (Amounts in millions) Group Group Group Services Eliminations Incorporated Net sales: North America* $ 167.7 $ 437.8 $ 297.9 $ $ $ 903.4 Europe 87.8 40.2 72.7 200.7 All other 70.0 30.8 30.2 131.0 External net sales 325.5 508.8 400.8 1,235.1 Intersegment net sales 70.3 79.5 (149.8) Total net sales 395.8 508.8 480.3 (149.8) 1,235.1 Financial services revenue 99.7 99.7 Total revenue $ 395.8 $ 508.8 $ 480.3 $ 99.7 $ (149.8) $ 1,334.8 For the Six Months Ended July 4, 2026 Commercial Snap-on Repair Systems & Industrial Tools & Information Financial Snap-on (Amounts in millions) Group Group Group Services Eliminations Incorporated Net sales: North America* $ 322.2 $ 846.0 $ 605.1 $ $ $ 1,773.3 Europe 178.5 87.2 150.2 415.9 All other 133.6 61.6 57.9 253.1 External net sales 634.3 994.8 813 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Stock-based Compensation and Other Stock Plans The 2011 Incentive Stock and Awards Plan (the 2011 Plan) provides for the grant of stock options, performance share units (PSUs), stock appreciation rights (SARs) and restricted stock awards (which may be designated as restricted stock units or RSUs). As of July 4, 2026, the 2011 Plan had 1,391,868 shares available for future grants. The company uses treasury stock to deliver shares under the 2011 Plan. Net stock-based compensation expense was $9.4 million and $16.2 million for the respective three and six month periods ended July 4, 2026, and $8.5 million and $13.0 million for the respective three and six month periods ended June 28, 2025. Cash received from stock purchase plans and stock option exercises totaled $36.5 million and $67.1 million during the three and six month periods ended July 4, 2026, and $26.9 million and $45.2 million during the respective three and six month periods ended June 28, 2025. The tax benefit realized from both the exercise and vesting of share-based payment arrangements was $4.3 million and $13.2 million for the respective three and six month periods ended July 4, 2026, and $2.2 million and $10.5 million for the respective three and six month periods ended June 28, 2025. Stock options: Stock options are granted with an exercise price equal to the market value of a share of Snap-ons common stock on the date of grant and have a contractual term of 10 years. Stock option grants vest ratably on the fi …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill by segment for the six months ended July 4, 2026, are as follows: (Amounts in millions) Commercial & Industrial Group Snap-on Tools Group Repair Systems & Information Group Total Balance as of January 3, 2026 $ 349.4 $ 12.4 $ 747.7 $ 1,109.5 Currency translation (9.4) (5.4) (14.8) Acquisitions 39.8 97.0 136.8 Balance as of July 4, 2026 $ 379.8 $ 12.4 $ 839.3 $ 1,231.5 Goodwill of $1,231.5 million as of July 4, 2026, included $97.0 million from the acquisition of Diesel Laptops, on a preliminary basis, $37.7 million from the acquisition of Hi-Force, on a preliminary basis, and $2.1 million from the acquisition of Car-O-Liner Australia. The goodwill from the Diesel Laptops acquisition is reported in the Repair Systems & Information Group segment and the goodwill from the Hi-Force and Car-O-Liner Australia acquisitions is reported in the Commercial & Industrial Group segment. See Note 3 for additional information on acquisitions. Additional disclosures related to other intangible assets are as follows: July 4, 2026 January 3, 2026 (Amounts in millions) Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Amortized other intangible assets: Customer relationships $ 78.6 $ (36.8) $ 41.8 $ 79.8 $ (34.7) $ 45.1 Developed technology 26.4 (26.4) 26.5 (26.0) 0.5 Internally developed software 208.1 (152.0) 56.1 20 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes Snap-ons effective income tax rate on earnings attributable to Snap-on was 21.9% and 22.3% in the first six months of fiscal 2026 and 2025, respectively. Snap-on and its subsidiaries file income tax returns in the United States and in various state, local and foreign jurisdictions. It is reasonably possible that certain unrecognized tax benefits may either be settled with taxing authorities or the statutes of limitations for such items may lapse within the next 12 months, causing Snap-ons gross unrecognized tax benefits to decrease. Over the next 12 months, Snap-on anticipates taking certain tax positions on various tax returns for which the related tax benefit does not meet the recognition threshold. Accordingly, Snap-ons gross unrecognized tax benefits may increase over the next 12 months for uncertain tax positions expected to be taken in future tax filings. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases Lessee accounting: Supplemental balance sheet information related to leases as of July 4, 2026, and January 3, 2026, is as follows: (Amounts in millions) July 4, 2026 January 3, 2026 Finance leases: Property and equipment gross $ 2.6 $ 2.4 Accumulated depreciation (1.2) (1.0) Property and equipment net $ 1.4 $ 1.4 Other accrued liabilities $ 0.5 $ 0.4 Other long-term liabilities 0.9 1.0 Total finance lease liabilities $ 1.4 $ 1.4 Operating leases: Operating lease right-of-use assets $ 98.7 $ 83.7 Other accrued liabilities $ 29.3 $ 27.5 Operating lease liabilities 75.3 61.8 Total operating lease liabilities $ 104.6 $ 89.3 Lessor accounting: Snap-ons Financial Services business offers lease financing to support the sales of tools, diagnostics, and equipment products, as well as vehicle leases for franchisees. Sales-type leases are included in both Finance receivables net and Long-term finance receivables net and also in both Contract receivables net and Long-term contract receivables net on the accompanying Condensed Consolidated Balance Sheets. See Note 4 for additional information on finance and contract receivables. …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

In the first quarter of 2026, Snap-on adopted, on a prospective basis, ASU No. 2025-06, Intangibles-Goodwill and Other-Internal Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software , which removes all references to software development project stages so that the guidance is neutral to different software development methods. Under the ASU, software capitalization begins when management has authorized and committed to funding the software project and when it is probable that the project will be completed and the software will be used to perform the function intended. The adoption of this ASU did not have a significant impact on Snap-ons Condensed Consolidated Financial Statements. In November 2024, the FASB issued ASU No. 2024-03, Income Statement Reporting Comprehensive Income Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses , which requires disaggregated expense information in the notes to the financial statements related to purchases of inventory, employee compensation, depreciation, intangible asset amortization and selling expenses for each statement of earnings line item that contains those expenses. ASU No. 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. The guidance is to be applied on a prospective basis with the option to apply the standard ret …

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Pension Plans Snap-ons pension net periodic benefit cost included the following components: Three Months Ended Six Months Ended (Amounts in millions) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025 Service cost $ 4.8 $ 4.7 $ 10.0 $ 9.8 Interest cost 16.5 16.5 33.2 33.1 Expected return on plan assets (23.7) (22.8) (47.5) (45.8) Amortization of unrecognized loss 4.7 5.7 9.2 11.2 Net periodic benefit cost $ 2.3 $ 4.1 $ 4.9 $ 8.3 The components of pension net periodic benefit cost, other than the service cost component, are included in Other income (expense) net on the accompanying Condensed Consolidated Statements of Earnings. See Note 16 for additional information on other income (expense) net. Snap-on intends to make contributions of $4.5 million to its foreign pension plans and $3.7 million to its domestic pension plans in 2026, as required by law. Depending on market and other conditions, Snap-on may make discretionary cash contributions to its pension plans in 2026. …

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Revenue Recognition Snap-on recognizes revenue from the sale of tools, diagnostics, equipment, and related services based on when control of the product passes to the customer or the service is provided and is recognized at an amount that reflects the consideration expected to be received in exchange for such goods or services. Revenue Disaggregation: The following table shows the consolidated revenues by revenue source: Three Months Ended Six Months Ended (Amounts in millions) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025 Revenue from contracts with customers $ 1,225.8 $ 1,170.9 $ 2,423.8 $ 2,304.2 Other revenues 9.3 8.5 18.5 16.3 Total net sales 1,235.1 1,179.4 2,442.3 2,320.5 Financial services revenue 99.7 101.7 200.8 203.8 Total revenues $ 1,334.8 $ 1,281.1 $ 2,643.1 $ 2,524.3 Snap-on evaluates the performance of the Commercial & Industrial Group, the Snap-on Tools Group and the Repair Systems & Information Group operating segments based on segment net sales and segment operating earnings. The segment net sales of the Snap-on Tools Group reflect external net sales, while the segment net sales of the Commercial & Industrial Group and the Repair Systems & Information Group include both external and intersegment net sales. Snap-on accounts for intersegment net sales and transfers based primarily on standard costs with reasonable mark-ups established between the segments. Intersegment amounts are eliminated to arrive at Snap-ons consolidated financial …

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Segments Snap-ons operating segments, which represent Snap-ons reportable segments, are based on the organizational structure used by the Chief Executive Officer, its chief operating decision maker (CODM), to make operating and investment determinations and to assess performance. Snap-ons reportable operating segments are: (i) the Commercial & Industrial Group; (ii) the Snap-on Tools Group; (iii) the Repair Systems & Information Group; and (iv) Financial Services. The Commercial & Industrial Group consists of business operations serving a broad range of industrial and commercial customers worldwide, including customers in the aerospace, natural resources, government and military, power generation, transportation and technical education market segments (collectively, critical industries), primarily through direct and distributor channels. The Snap-on Tools Group consists of business operations primarily serving vehicle service and repair technicians through the companys multinational mobile tool distribution channel. The Repair Systems & Information Group consists of business operations serving other professional vehicle repair customers worldwide, primarily owners and managers of independent repair shops and OEM dealerships, through direct and distributor channels. Financial Services consists of the business operations of Snap-ons finance subsidiaries. The CODM evaluates the performance of the Commercial & Industrial Group, the Snap-on Tools Group and the …

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Summary of Accounting Policies Principles of consolidation and presentation: The Condensed Consolidated Financial Statements include the accounts of Snap-on Incorporated and its wholly-owned and majority-owned subsidiaries (collectively, Snap-on or the company). Snap-ons Condensed Consolidated Financial Statements are prepared in conformity with generally accepted accounting principles in the United States of America (GAAP). These financial statements should be read in conjunction with, and have been prepared in conformity with, the accounting principles reflected in the consolidated financial statements and related notes included in Snap-ons 2025 Annual Report on Form 10-K for the fiscal year ended January 3, 2026 (2025 year end). The companys 2026 fiscal second quarter ended on July 4, 2026, and its 2025 fiscal second quarter ended on June 28, 2025. The companys 2026 and 2025 fiscal second quarters each contained 13 weeks of operating results. The companys 2026 fiscal year, which ends on January 2, 2027, will contain 52 weeks of operating results. The companys 2025 fiscal year contained 53 weeks of operating results, with the additional week occurring in the fourth quarter. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for the fair presentation of the Condensed Consolidated Financial Statements for the three and six month periods ended July 4, 2026, and June 28, 2025, have been made. Interim results of operations are no …

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