Q4 2025 Snap-on Inc Earnings Call

February 5, 2026

Operator: Good morning and welcome to the Snap-on Incorporated Q4 and full year 2025 results conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch-tone phone. To withdraw your question, please press star then two. Please note, this event is being recorded. I would now like to turn the conference over to Sara Verbsky, Vice President of Investor Relations. Please go ahead.

Operator: To ask a question, you may press star then one on a touch-tone phone. To withdraw your question, please press star then two. Please note, this event is being recorded. I would now like to turn the conference over to Sara Verbsky, Vice President of Investor Relations. Please go ahead.

Speaker #1: question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Sara Verbsky, Vice President of Investor ahead.

Speaker #2: you, Drew, and good morning review Snap-on's 4th Quarter and Full Year results, which are detailed in our everyone. press release issued earlier this morning.

Sara Verbsky: Thank you, Drew, and good morning, everyone. We appreciate you joining us today as we review Snap-on's fourth quarter and full year results, which are detailed in our press release issued earlier this morning. We have on the call Nick Pinchuk, Snap-on's Chief Executive Officer, and Aldo Pagliari, Snap-on's Chief Financial Officer. Nick will kick off our call this morning with his perspective on our performance. Aldo will then provide a more detailed review of our financial results. After Nick provides some closing thoughts, we'll take your questions. As usual, we've provided slides to supplement our discussion. These slides can be accessed under the Downloads tab in the webcast viewer, as well as on our website, snap-on.com, under the Investor section. The slides will be archived on our website along with a transcript of today's call.

Q4 2025 Snap-on Inc Earnings Call

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Q4 2025 Snap-on Inc Earnings Call

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Thursday, February 5th, 2026 at 3:00 PM

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Speaker #2: We have on the call Nick We appreciate you joining us today as we Pinchuk, Snap-on's Chief Executive Officer, and Aldo Pagliari,

Speaker #2: Officer. Nick will kick off our call this morning with his perspective on our performance. Aldo will then provide a more detailed review of our financial results.

Sara Verbsky: Aldo will then provide a more detailed review of our financial results. After Nick provides some closing thoughts, we'll take your questions. As usual, we've provided slides to supplement our discussion. These slides can be accessed under the Downloads tab in the webcast viewer, as well as on our website, snap-on.com, under the Investor section. The slides will be archived on our website along with a transcript of today's call.

Speaker #2: your questions. As usual, we've provided slides to supplement our discussion. These slides can be accessed Snap-on's Chief Financial under the Downloads tab in the webcast viewer, as well as on our website, Relations, please go snap-on.com, under the Investor section.

Speaker #2: The slides will be archived on our website along with a transcript of today's call. Any statements made management's expectations, estimates, or beliefs, or that otherwise discuss during this call relative to management's or the company's outlook, plans, or projections are forward-looking statements, and actual results may differ materially from those made in such statements.

Sara Verbsky: Any statements made during this call relative to management's expectations, estimates, or beliefs, or that otherwise discuss management's or the company's outlook, plans, or projections are forward-looking statements, and actual results may differ materially from those made in such statements. Additional information and the factors that could cause our results to differ materially from those in the forward-looking statements are contained in our SEC filings. Finally, this presentation includes non-GAAP measures of financial performance, which are not meant to be considered in isolation or as a substitute for their GAAP counterparts. Additional information regarding these measures is included in our earnings release issued today, which can be found on our website. With that said, I'd now like to turn the call over to Nick Pinchuk. Nick?

Speaker #2: Additional information and the factors that could cause our results to differ materially from those in the forward-looking statements are contained in our SEC filings.

Sara Verbsky: Finally, this presentation includes non-GAAP measures of financial performance, which are not meant to be considered in isolation or as a substitute for their GAAP counterparts. Additional information regarding these measures is included in our earnings release issued today, which can be found on our website. With that said, I'd now like to turn the call over to Nick Pinchuk. Nick?

Speaker #2: Finally, this presentation includes non-GAAP measures of financial performance, which are or as a substitute for their GAAP regarding these measures is included in counterparts.

Speaker #2: our earnings release issued today, which can be found on our website. With that said, I'd now like to turn the call over

Speaker #2: Nick? Thanks, Sara.

[Company Representative] (Snap-on Incorporated): Thanks, Sara.

Nick Pinchuk: Thanks, Sara. Good morning, everybody. Well, I'll start by saying these are some times. Seems like every day brings a new twist of considerable significance. Fluctuating tariffs with big swings on presidential, domestic, and international events that dominate the news. Prolonged government shutdowns. We just avoided another one, but the hits just keep on coming.

Speaker #4: Good morning, to Nick Pinchuk. start by saying these times are something. Seems like every day brings a new twist

Nick Pinchuk: Good morning, everybody. Well, I'll start by saying these are some times. Seems like every day brings a new twist of considerable significance. Fluctuating tariffs with big swings on presidential, domestic, and international events that dominate the news. Prolonged government shutdowns. We just avoided another one, but the hits just keep on coming. But as we speak about the period, I believe you'll see that in the middle of it all, Snap-on shines through with strength. I'm going to tell you about that as we review the quarter. It's a story of resilient markets, sales progress, profitability, and continuing investments that further fortify our advantages in product and brand and in people. So as I cover the highlights of the last three months, I'll give you my perspective on the performance, on the markets, and on the progress we've made.

Speaker #4: And domestic and international events that dominate the news—prolonged government shutdowns; we just avoided another one—the hits just keep on coming. But as we speak about the period, I believe you'll see that, in the middle of it all, Snap-on shines through with strength.

Nick Pinchuk: But as we speak about the period, I believe you'll see that in the middle of it all, Snap-on shines through with strength. I'm going to tell you about that as we review the quarter. It's a story of resilient markets, sales progress, profitability, and continuing investments that further fortify our advantages in product and brand and in people. So as I cover the highlights of the last three months, I'll give you my perspective on the performance, on the markets, and on the progress we've made.

Speaker #4: I'm going to tell you about that as we review the quarter. It's a story of resilient markets, sales Additional information progress, profitability, and continuing investments that further fortify our advantages in product and brand and in people.

Speaker #4: So as I cover the highlights of the last three months, I'll give you my perspective on the performance, on the markets, and on the progress we've made.

Speaker #4: Then Aldo, we'll move into a more detailed review of the financials. Our 4th Quarter was emphatically served as testimony that our balanced approach—growth and improvement—is effective enough.

Nick Pinchuk: Then Aldo will move into a more detailed review of the financials. Our fourth quarter was encouraging. We believe it emphatically serves as testimony that our balanced approach, growth, and improvement is effective enough. Our advantages are powerful enough, and our team is experienced, capable, and committed enough to perform even in the most challenging of environments. So here are the numbers. In the fourth quarter, sales were $1,231.9 million, up 2.8% from last year as reported, including a 1.4% organic increase and $15.6 million of favorable foreign currency. Positive growth against the wind. And our operating income, OI, for the quarter was of $265.2 million, was equal to last year's. And the OI margin for the period was 21.5%, 60 basis points short of last year. The impacts of unfavorable currency combined with additional investments in brand building and product development.

Speaker #4: Our advantages are powerful enough, and our team is experienced, capable, and committed enough to perform even in the most challenging of environments. So here are the numbers.

Nick Pinchuk: In the fourth quarter, sales were $1,231.9 million, up 2.8% from last year as reported, including a 1.4% organic increase and $15.6 million of favorable foreign currency. Positive growth against the wind. And our operating income, OI, for the quarter was of $265.2 million, was equal to last year's. And the OI margin for the period was 21.5%, 60 basis points short of last year. The impacts of unfavorable currency combined with additional investments in brand building and product development.

Speaker #4: In the 4th Quarter, sales were $1,231.9 million, up 2.8% from last year, as $1.4% organic reported, including increase and 15.6 million of growth against the wind.

Speaker #4: And our op-co, operating favorable foreign currency. Positive income, OI, for the quarter was $265.2 million, which was equal to last year's. And the OI margin for the period was 21.5%, 60 basis points short of unfavorable currency, combined with additional development for financial investments in brand building and product services. OI of $7.7 million, or 11.5%—$74.4 million was up from last year.

Nick Pinchuk: For financial services, OI of $74.4 million was up $7.7 million or 11.5% from last year, due in large part to the 53rd week in the 2025 fiscal calendar being uniquely beneficial to the credit company. When combined with OPCO, the overall earnings for the corporation of $339.6 million was up 2.3% versus 2024, and the total margin was 25.3%. Our overall quarterly EPS, it reached $4.94, up $0.12 from the $4.82 recorded last year. The quarter shows the same resilience demonstrated over the years as we've paid dividends every quarter since 1939 without a single interruption or reduction. In fact, in November, it was with clear belief in our future that we raised our dividend by 14%, the 16th straight year of increase. It was another strong and tangible testament to Snap-on's consistency right through a variety of environments. Well, those are the numbers.

Speaker #4: Doing a large part to the 53rd week in the 2025 fiscal calendar, being uniquely beneficial to the credit company. And when combined with op-co, the overall earnings for the corporation of $339.6 million was up 2.3% versus 24 and total margin was 25.3%.

Speaker #4: Our overall quarterly EPS, it reached $4.94, up 12 cents from the $4.82 recorded last year. The quarter shows the same resilience, demonstrated over the years as we've paid dividends.

Nick Pinchuk: The quarter shows the same resilience demonstrated over the years as we've paid dividends every quarter since 1939 without a single interruption or reduction. In fact, in November, it was with clear belief in our future that we raised our dividend by 14%, the 16th straight year of increase. It was another strong and tangible testament to Snap-on's consistency right through a variety of environments. Well, those are the numbers.

Speaker #4: Every quarter since 1939, without a single interruption or reduction. In fact, in November, it was with clear belief in our future that we raised our dividend by 14%, the 16th straight year of increase.

Speaker #4: It was another Snap-on's consistency, right through a variety of strong and tangible estimate to environments. Well, those are the numbers. Now to the markets.

Nick Pinchuk: Now to the markets. We believe the automotive repair remains very favorable, and that's validated by the average age of the car parc, now at 12.8 years, and it's continuing to rise by the growing complexity of new platforms driving more difficult and time-consuming repairs, and by the ongoing climb in household spending on vehicle repair. It's up again. And the vehicles and fixers all over are cashing in on the surge. Tech wages are up again, extending a fairly positive trend. Hours worked in the bays are also on the rise. We believe technicians are financially stronger than ever, and their prospects just keep getting better. It's unmistakable. There's a growing demand for capable vehicle repair. Shop owners tell us all the time, "They need more tech." And we believe this need will continue for several years.

Speaker #4: We believe the automotive repair remains very favorable, and that's validated by the average age of the car part. Now at 12.8 years and its continuing to rise, by the platforms driving more difficult and growing complexity of new time-consuming repairs, and by the ongoing climb in household spending on vehicle repair.

Speaker #4: It's up again. And the vehicles and fixers, all over, are cashing in on the surge. Tech again. Extending a fairly positive trend. Hours worked in the bays are also on the rise.

Nick Pinchuk: Tech wages are up again, extending a fairly positive trend. Hours worked in the bays are also on the rise. We believe technicians are financially stronger than ever, and their prospects just keep getting better. It's unmistakable. There's a growing demand for capable vehicle repair. Shop owners tell us all the time, "They need more tech." And we believe this need will continue for several years.

Speaker #4: are financially stronger than ever. We believe technicians and their prospects just keep getting better. It's unmistakable. There's a growing demand for capable vehicle repair.

Speaker #4: Shop owners, tell us all the time, they need more tech. And we believe the need to continue for—and we believe continue for several years.

Speaker #4: In this need will fact, here's a good piece, I think. A recent article in The Economist ditched test books and leave and learn how to use a job.

Nick Pinchuk: In fact, here's a good piece, I think. A recent article in The Economist, "Ditch textbooks and learn how to use a wrench to AI-proof your job." That piece emphasized the considerable need for more technicians and the solid security provided by the profession, and it cites vehicle repair as one of the most AI-proof of jobs. The work is pretty challenging, both physically and mentally. Each repair is different, with variations and conditions that never seem to be the same. And as such, a mechanic needs a mastery of a massive repertoire of procedures, must summon the logic to troubleshoot puzzling failures, and must be able to navigate intricate mechanical setups with precision. It's a job that's getting more complex every day. The techs need help in keeping up, and Snap-on's very well positioned to do just that.

Speaker #4: The considerable need for more — that piece emphasized technicians and the solid security provided by the profession. And it cites vehicle repair as one of the most AI-proof of jobs.

Speaker #4: Work is pretty challenging, both physically and wrench to AI-proof your mentally. Each repair is different with variations and conditions that never seem to be the same.

Nick Pinchuk: And as such, a mechanic needs a mastery of a massive repertoire of procedures, must summon the logic to troubleshoot puzzling failures, and must be able to navigate intricate mechanical setups with precision. It's a job that's getting more complex every day. The techs need help in keeping up, and Snap-on's very well positioned to do just that.

Speaker #4: And as such, a mechanic needs a mastery of a massive repertoire of procedures, must summon the logic to troubleshoot puzzling failures, and must be able to navigate intricate mechanical setups.

Speaker #4: With precision. It's a job that's getting more complex every year. The techs need help in keeping up, and Snap-on's well-positioned—very well-positioned—to do just that.

Speaker #4: Now, in a a related but day. managers are also adapting, continuing to different segment, shop owners and invest in the advanced equipment and specialty tools required to attend the latest vehicles.

Nick Pinchuk: Now, in a related but different segment, shop owners and managers are also adapting, continuing to invest in the advanced equipment and specialty tools required to attend the latest vehicles. This is where Repair Systems and Information, or the RS&I group, resides. It's a target-rich environment. It's a target-rich environment for our capable undercar and collision equipment, and it's a great and growing opportunity for our expanding array of software and data products. It's an arena where Snap-on's well positioned with our extensive line of proprietary and comprehensive databases, billions of data points, now leveraged with large language models, language machine learning programs that search the exhaustive and complex information, matching the problem signature with just the right repair procedure in a split second, greatly expediting the vehicle fix, increasing shop productivity, and getting the vehicle back on the road faster than ever.

Speaker #4: This is where repair assistance information or the RS&I group resides. It's a target-rich environment. It's a target-rich environment for our capable undercar, and collision equipment, and it's a great and growing opportunity for our expanding array of software and data products.

Speaker #4: It's an arena where Snap-on's well-positioned with our extensive line of proprietary and comprehensive databases. Billions of data points now leveraged with large language models—language machine learning programs—that and complex information.

Nick Pinchuk: It's an arena where Snap-on's well positioned with our extensive line of proprietary and comprehensive databases, billions of data points, now leveraged with large language models, language machine learning programs that search the exhaustive and complex information, matching the problem signature with just the right repair procedure in a split second, greatly expediting the vehicle fix, increasing shop productivity, and getting the vehicle back on the road faster than ever.

Speaker #4: search the exhausted problem signature with just the right repair procedure in a split-second, greatly expediting the vehicle fix, increasing shop productivity, and getting the vehicle back on the road faster than ever.

Speaker #4: Again, this quarter, I had the opportunity to meet with franchisees from coast to coast. They're a great the new—about the now. And very enthusiastic about their futures.

Nick Pinchuk: Again, this quarter, I had the opportunity to meet with franchisees from coast to coast. They're a great barometer. They were all positive about the now and very enthusiastic about their futures. Sure, they still encounter the ongoing hesitation of techs toward long-term payback purchases. But at the same time, they're energized by the success of the tools group execution, pivoting to faster payback items, rolling out a continuous stream of innovative offerings that are making difficult and critical repair work faster and much easier. Now, in the current environment, tool storage remains the most impacted category, but we do see demand for smaller boxes, and our large range of accessories are starting to roar. In fact, Q4 showed kind of some significant improvement in originations. They were almost flat in the quarter. It's a clear game that bodes well for a future.

Speaker #4: Sure, they still encounter the ongoing hesitation of techs toward long-term payback purchases. But at by the success of the tools group the same time, they're energized execution.

Speaker #4: Pivoting to faster payback items, rolling out a continuous stream of innovative offerings that are making difficult and critical repair barometer. work faster and much They were all positive about easier.

Speaker #4: Now, in the current environment, tool storage remains the most impacted category. But we do see demand for smaller boxes and our large range of accessories are starting to roar.

Nick Pinchuk: Now, in the current environment, tool storage remains the most impacted category, but we do see demand for smaller boxes, and our large range of accessories are starting to roar. In fact, Q4 showed kind of some significant improvement in originations. They were almost flat in the quarter. It's a clear game that bodes well for a future.

Speaker #4: In fact, the fourth quarter showed kind of some significant improvement in originations. They were almost flat in the quarter. It's a clear gain that bolts appears that our pivot is working.

Nick Pinchuk: It appears that our pivot is working. So despite the challenges, automotive repair remains robust, and we believe we're well positioned to capitalize. Now, let's turn to critical industries where the commercial and industrial, or C&I, group operates with a focus on taking Snap-on out of the garage to places where work is very critical, justifying a Snap-on level product. Complex tasks performed in harsh and grueling environments, from oil fields to subsea floors to clean rooms for chip manufacturing and to tightly controlled bays for rocket manufacturing. This arena relies on our extensive catalog of products that provide precision, durability, reliability, and repeatability, all characteristics required to get the job done where the tasks are essential and critical. We believe we have a decisive advantage in these critical areas, and we keep investing to make it even stronger, and the fourth quarter was no exception.

Speaker #4: So despite the well for a future. It robust, and we believe we're well-positioned to capitalize. Now let's turn to critical industries where our commercial and industrial or C&I group operates with a focus on taking Snap-on out of the garage to places where Justifying a Snap-on-level work is very critical.

Speaker #4: product. Complex tasks performed in harsh and grueling environments, from oil fields to subsea floors to clean rooms for chip manufacturing and to tightly controlled bays for rocket manufacturing.

Nick Pinchuk: Complex tasks performed in harsh and grueling environments, from oil fields to subsea floors to clean rooms for chip manufacturing and to tightly controlled bays for rocket manufacturing. This arena relies on our extensive catalog of products that provide precision, durability, reliability, and repeatability, all characteristics required to get the job done where the tasks are essential and critical. We believe we have a decisive advantage in these critical areas, and we keep investing to make it even stronger, and the fourth quarter was no exception.

Speaker #4: This arena relies on our extensive catalog of products that provide precision, durability, reliability, and job done where the tasks are repeatability, all characteristics required to get the essential and critical.

Speaker #4: We believe we have a decisive advantage in this critical investing to make it even stronger. And the fourth quarter was no exception. This is also in the market where the largest global footprint for us.

Nick Pinchuk: This is also in the market with the largest global footprint for us. And that creates challenges in navigating the international headwinds like government protocols, varying economies, and currency fluctuation. During the quarter, Europe saw the continuing impact of the Ukraine war, and Asia was marked by the general loss of confidence in the Chinese economy. And the impact of the evolving US tariff regime changes all the time. More than any group, C&I encounters these obstacles from country to country, and it does cause some adversities across the group. But we're confident we have the strengths to overcome the variation and keep progressing, making the most of the abundant opportunities in this critical sector. So that's an overview of our markets. Resistance against turbulence filled with opportunities.

Speaker #4: And that creates challenges in navigating protocols, varying economies, and the international headwinds like government currency fluctuation. And during the quarter, Europe saw the continuing impact of the Ukraine war.

Speaker #4: And Asia was marked by the general loss of confidence in the Chinese economy. And the impact of the and the impact of the evolving US tariff regime.

Speaker #4: Changes all the C&I encounters these obstacles from country to country and it does cause some adversities across the group. But we're confident we have the strengths to overcome the variation and keep progressing, making the most of the abundant opportunities in this critical sector.

Nick Pinchuk: More than any group, C&I encounters these obstacles from country to country, and it does cause some adversities across the group. But we're confident we have the strengths to overcome the variation and keep progressing, making the most of the abundant opportunities in this critical sector. So that's an overview of our markets. Resistance against turbulence filled with opportunities.

Speaker #4: So that's an overview of our markets. Resistance against turbulence filled with well—I should say opportunities. resilience and resistance against the And we're turbulence and it's filled with opportunities.

Nick Pinchuk: And we're well. I should say resilience and resistance against the turbulence, and it's filled with opportunities. We're well positioned to leverage the possibilities, progressing down our runways for growth, efforts that are fortified by our Snap-on value creation processes, safety, quality, customer connection, innovation, and rapid continuous improvement, or RCI, the core activities that underpin our performance, enabling it to hold fast despite the difficult headwinds of these days. Now for the operating groups. Let's start with C&I. Q4 sales of $398.1 million for the group were up $18.9 million or 5%, with an organic gain of $2.8 million and $7.9 million of favorable foreign currency translation. Our power tool division led the way with that growth, with double-digit gains, moving forward on the market enthusiasm for our new innovative power solutions that make work much easier.

Speaker #4: And we're well positioned to leverage the possibilities, progressing down our runways for growth. Efforts that are fortified by our Snap-on Value Creation Processes—safety, quality, customer connection, innovation, and rapid continuous improvement, or RCI.

Speaker #4: The core activities that underpin our performance enabling it to hold fast despite the difficult headwinds of these days. Now for the operating group's—let's start with sales of 398.1 million for the group were up 18.9 million or 5% with our organic gain of 2.8 million and 7.9 million of favorable foreign currency translation.

Nick Pinchuk: Let's start with C&I. Q4 sales of $398.1 million for the group were up $18.9 million or 5%, with an organic gain of $2.8 million and $7.9 million of favorable foreign currency translation. Our power tool division led the way with that growth, with double-digit gains, moving forward on the market enthusiasm for our new innovative power solutions that make work much easier.

Speaker #4: Our power tool division led the way with that growth, with double-digit gains, moving forward on the market enthusiasm for our new innovative power solutions that make work much easier.

Speaker #4: And especially the torque business was also up, driven by the ever-growing need for precision instruments. And in the critical industries, come back. Our industrial operations overcame the impacts of the prolonged U.S. government shutdown.

Nick Pinchuk: Especially the torque business was also up, driven by the ever-growing need for precision instruments. In the critical industries, comeback. Our industrial operations overcame the impact of the prolonged US government shutdown. It kind of cut off things for a while. Things were kind of slow for a while. They overcame that wielding its increasingly powerful custom kitting operations like never before to come roaring down the stretch, registering a positive volume and catching up. I mean, you should have seen this team, seen them working on catching up. It was a wowza. OI for C&I was $60.6 million, included and included a benefit of $4.5 million related to the refinement of our footprint. It compared with the $63.5 million registered last year.

Speaker #4: It kind of cut off things for a while. Things were kind of slow for a while. They overcame that wielding its increasingly powerful custom-kitting operations like never before to come roaring down the stretch, registering a positive volume and catching up.

Nick Pinchuk: They overcame that wielding its increasingly powerful custom kitting operations like never before to come roaring down the stretch, registering a positive volume and catching up. I mean, you should have seen this team, seen them working on catching up. It was a wowza. OI for C&I was $60.6 million, included and included a benefit of $4.5 million related to the refinement of our footprint. It compared with the $63.5 million registered last year.

Speaker #4: I mean, you should have seen this team seeing them working on catching up. It was a wowzer. A why for C&I was 60.6 million, included a benefit of 4.5 million related to the refinement of our footprint.

Speaker #4: And compared with the $63.5 million registered last year, the OI margin was 15.2% versus 16.7% in 2024, primarily due to material cost increase and stronger sales in some of the group's lower-margin businesses.

Nick Pinchuk: The OI margin was 15.2% versus the 16.7% in 2024, primarily due to material cost increase and stronger sales in some of the group's lower margin businesses. As I said, the sales growth was fueled by new innovative power tools engineered by our team in Murphy, North Carolina, and Kenosha, Wisconsin. In the back half of the quarter, for example, we launched our new NanoAxcess cordless lineup. I mean, this baby is groundbreaking. Developed from insights, gained from customer connections right in the shops at the point of work. The Nano is a compact power tool. And when I say compact, I mean small enough to fit right in the palm of your hand, and it can be carried everywhere in a small pocket to be always on hand when the need arises.

Speaker #4: group was—the sales growth As I said, the sales was fueled by new innovative power tools. Engineered by our team and Murphy North Carolina and Kenosha, Wisconsin.

Speaker #4: back half of the quarter, for In the example, in the back half of the quarter, we launched our new NanoAxis is cordless lineup. I mean, this baby groundbreaking.

Nick Pinchuk: Developed from insights, gained from customer connections right in the shops at the point of work. The Nano is a compact power tool. And when I say compact, I mean small enough to fit right in the palm of your hand, and it can be carried everywhere in a small pocket to be always on hand when the need arises.

Speaker #4: Developed from insights gained from customer connections right in the shops at the point of work, the Nano is a compact power tool. And when I say compact, I mean small enough to fit right in the palm of your hand and it can be carried everywhere in a small pocket to be always on hand when the It's a big advantage as tech's or venture out into the yard.

Nick Pinchuk: It's a big advantage as techs change positions across the shop or venture out into the yard. The unit also has an internal ampere-hour battery that drives over 600 fasteners, 600 fasteners on a single charge. You see, from our customer connections, we know that most inspections and general repairs are low-torque applications like removing panels, clamps, and fasteners under the dash and in crowded engine compartments. For these common tasks, the Nano has the power for rapid removal, the control to avoid stripping the fastener, and has the right size to fit where no other power tool can go. It's a real time saver and a fast payback item, and it's right on target for the environment. The initial release featured two models, one straight and one 90-degree pistol driver. Both units set new records for new power tool rollouts. Pretty strong.

Speaker #4: The unit internal ampere-hour battery has an internal—also has an that drives over 600 fasteners. 600 fasteners on a single charge. You see, from our customer connections, we know that most inspections are general repairs are low torque applications like removing panels, clamps, and fasteners under the dash and in crowded engine compartments.

Speaker #4: For these common tasks, the Nano has the power for rapid renewal, the control to avoid stripping the fastener, and has the right size to fit where no other power tool can go.

Nick Pinchuk: For these common tasks, the Nano has the power for rapid removal, the control to avoid stripping the fastener, and has the right size to fit where no other power tool can go. It's a real time saver and a fast payback item, and it's right on target for the environment. The initial release featured two models, one straight and one 90-degree pistol driver. Both units set new records for new power tool rollouts. Pretty strong.

Speaker #4: It's a real-time saver and a fast payback item. And it's right on target for the environment. The initial release featured two models: one straight and one 90-degree pistol driver.

Speaker #4: Both units set new records for new power tool rollouts. Pretty strong. Also in the quarter, our city of industry factory in California launched our new control tech plus torque wrench.

Nick Pinchuk: Also in the quarter, our City of Industry Factory in California launched our new ControlTech+ torque wrench. It's a unit that has the high precision needed for critical industries and performs with great reliability in the harsh conditions that are often encountered outside the garage. It's robust, all-steel construction. It's durable, perfect for heavy-duty use. And the design includes a large LED display that's visible in bright sunlight or in dark work areas, anywhere an industrial tech plies their trade. And that unit is intrinsically safe, meaning it's certified to work in flammable areas. It's an important feature for critical applications. And the internal rechargeable battery ensures the device is always powered up and ready for work. Our new ControlTech+, accurate, durable, easier to use, and safe, taking Snap-on out of the garage and helping deliver the C&I quarter.

Speaker #4: It's a unit that has high precision needed for critical industries and performs a great liability in the harsh conditions that are often encountered outside the garage.

Speaker #4: robust to all steel construction. It's durable. Perfect for heavy-duty use and the design includes a It's large LED, a large LED display that's visible in bright sunlight or in dark work areas.

Nick Pinchuk: And the design includes a large LED display that's visible in bright sunlight or in dark work areas, anywhere an industrial tech plies their trade. And that unit is intrinsically safe, meaning it's certified to work in flammable areas. It's an important feature for critical applications. And the internal rechargeable battery ensures the device is always powered up and ready for work. Our new ControlTech+, accurate, durable, easier to use, and safe, taking Snap-on out of the garage and helping deliver the C&I quarter.

Speaker #4: Anywhere in industrial tech plies their trade. And that unit is entrenched in the unit is intrinsically work in flammable areas. It's an important feature for critical applications.

Speaker #4: safe, meaning it's certified to And the internal rechargeable battery ensures the device is always powered up and ready for work. Our new control tech plus accurate, durable, easier to use, and safe, helping deliver the C&I quarter.

Speaker #4: taking Snap-on out of the garage and Well, that's comeback, wielding our critical custom kit capacity, mighty might power tools, and precision torque. Rising all rising to new levels.

Nick Pinchuk: Well, that's C&I, sales up, a powerful comeback wielding our critical custom kit capacity, mighty-might power tools, and precision torque, all rising to new levels. Now onto the tools group. Quarterly sales were $505 million, down from the $506.6 million of last year. But the OI was $107.3 million, up from the $106.9 million last year. And the OI margin was 21.2%, rising 10 basis points. The fluctuating tariffs, the prolonged shutdowns, and the constant parade of Big Bang actions and ideas coming out of Washington have stoked technician uncertainty and reinforced reluctance toward longer payback items. But the tools group's ongoing pivot has authored a series of shorter payback items that are bringing high value and strengthened margins for the shop.

Speaker #4: Now onto the tools group. Quarterly sales of 505 million, quarterly sales were of 505 million were down from the word 505 million down from the 506.6 million of last year.

Speaker #4: the OI was 107.3 million up from the 106.9 million last year. And the OI margin was 21.2%, rising But 10 basis points. The fluctuating tariffs, the prolonged shutdowns, and the constant parade of big bang accidents and ideas coming out of Washington have stoked technician uncertainty and reinforced reluctance toward longer payback items.

Nick Pinchuk: And the OI margin was 21.2%, rising 10 basis points. The fluctuating tariffs, the prolonged shutdowns, and the constant parade of Big Bang actions and ideas coming out of Washington have stoked technician uncertainty and reinforced reluctance toward longer payback items. But the tools group's ongoing pivot has authored a series of shorter payback items that are bringing high value and strengthened margins for the shop.

Speaker #4: But the tools group, but the tools group's ongoing pivot has authored a series of shorter payback items that are bringing high value and strength in margins to the shop.

Speaker #4: And that positive is evidenced by the group's gross margins of 46.1%, a gain of 150 basis points over last year, despite the flat volume.

Nick Pinchuk: That positive is evidenced by the group's gross margins of 46.1%, a gain of 150 basis points over last year despite the flat volume. Boom, shaggalaca. This is an eye-popper. At the same time, even in the turbulence, we remain committed toward investing. Even in the turbulence, we remain committed toward investing in the van network, maintaining our advantage in product, branding, and people. In the quarter, spending on operating expenses rose 140 basis points, helping to ensure that the group will be at full strength when the uncertainty thaws. The Snap-on core, the core of our business here, is our powerful product line. Now over 85,000 strong across the corporation, over 40,000 just in the tools group. The period saw a number of great new examples in the tools group.

Speaker #4: Boom, shakalaka. This is an eye-popper. And at the same time, even in the turbulence, we remain committed toward investing. Even in the turbulence, we remain committed toward investing in the van network, maintaining our advantage in product and brand and in people.

Speaker #4: So the quarter in the tools group, so in the quarter, spending on operating expenses rose 140 basis points. Helping to ensure that the group will be at full strength when the uncertainty thaws.

Nick Pinchuk: In the quarter, spending on operating expenses rose 140 basis points, helping to ensure that the group will be at full strength when the uncertainty thaws. The Snap-on core, the core of our business here, is our powerful product line. Now over 85,000 strong across the corporation, over 40,000 just in the tools group. The period saw a number of great new examples in the tools group.

Speaker #4: Snap-on Core, But the the core of our business here is our powerful product line. Now over 85,000 strong across corporation, over 40,000 just in the tools group.

Speaker #4: And the period saw a number of great new examples in the tools group. During the quarter, our Milwaukee, Wisconsin facility released the new line of impact flex sockets.

Nick Pinchuk: During the quarter, our Milwaukee, Wisconsin facility released the new line of Impact Flex sockets. Customer connection identified a range of tasks. We're removing components to access the fix, was burning a lot of tech time. Armed with that insight, our engineers have designed the new 307RIPLMS, a seven-piece impact socket set featuring extra-long, reduced-diameter shafts and low-profile hex heads. Now, its design enables easy access to deeply recessed fasteners, and it provides a clearance around blocking obstructions, all without removing additional parts. It's an ideal tool for speeding up routine tasks like brake caliper removals, catalytic converter replacements, and extracting exhaust manifold bolts. Our new long-shaft impact socket set is a winner. It increases productivity, creates quick paybacks, and the technicians have noticed, making this design another hit product, $1 million hit product.

Speaker #4: Customer connection identified a range of tasks where removing components where removing components to access the fix was burning a lot of tech time. Armed with that insight, our engineers have designed the new 307 RIP LMS, a seven-piece impact socket set featuring extra long and low-profile hex heads.

Nick Pinchuk: Now, its design enables easy access to deeply recessed fasteners, and it provides a clearance around blocking obstructions, all without removing additional parts. It's an ideal tool for speeding up routine tasks like brake caliper removals, catalytic converter replacements, and extracting exhaust manifold bolts. Our new long-shaft impact socket set is a winner. It increases productivity, creates quick paybacks, and the technicians have noticed, making this design another hit product, $1 million hit product.

Speaker #4: And it's design enables easy access to deeply recessed fasteners and it provides the clearance around blocking obstructions. All without removing additional parts. It's an ideal tool for speeding up routine removals, catalytic converter replacements, and extracting exhaust manifold bolts.

Speaker #4: socket set is a Our new long shaft impact winner. It increases productivity, creates quick paybacks, and the technicians have noticed. another hit broad. $1 million hit product.

Speaker #4: Also rolling out of the Algona Iowa plant, a new two-storage configuration. The KTL 1021, a 54-inch single bank master series roll plate, cab. But with the unique features that all seven drawers span the full width of the box.

Nick Pinchuk: Also rolling out of the Algona, Iowa plant, a new tool storage configuration, the KTL1021, a 54-inch single bank Master Series roll cab, but with the unique features that all seven drawers span the full width of the box. Those drawers are equipped with heavy-duty dual ball-bearing slides. The unit has the space and the strength to handle additional storage within a compact footprint, 9,300sq in to be exact. Now, space and strength define a storage utility. The new unit has plenty of space for our foam organizing trays, T-LOC, and a load capacity of nearly three and a half tons. Big. It's an offering with powerful capabilities at a mid-range price point, and it's just the storage product for this environment. As you might expect, it was a great success. Some of what you see in the orderings come from this.

Speaker #4: And those drawers are equipped with heavy-duty dual bare ball bearing slides. The unit has the additional storage without within a compact footprint. 9,300 square inches to be exact.

Speaker #4: Now space and strength define a storage utility. And the new unit has plenty of space for our full organizing trays that techs love and a load capacity of nearly three and a half tons.

Nick Pinchuk: The new unit has plenty of space for our foam organizing trays, T-LOC, and a load capacity of nearly three and a half tons. Big. It's an offering with powerful capabilities at a mid-range price point, and it's just the storage product for this environment. As you might expect, it was a great success. Some of what you see in the orderings come from this.

Speaker #4: Big. It's an offering with powerful capabilities at a mid-range price point. And it's just the storage product for this environment. And as you might expect, it was a great success.

Speaker #4: Success. Some of what you see in the originations comes from this. Well, that's the Tools Group—matching technician preferences, leveraging customers, investing in our strengths.

Nick Pinchuk: Well, that's the tools group. Matching technician preferences, leveraging customer connections, investing in our strengths, all in the turbulence. Now for RS&I. Sales in the quarter were $467.8 million, up $11.2 million compared to 2022, and including on our organic sales gain of $4.8 million. The group's fifth consecutive quarter of growth against the turbulence. Higher volume with vehicle OEMs and dealerships, and gains within information databases to independent garages led the way, more than offsetting lower sales and big-ticket diagnostic units. RS&I operating earnings for the quarter were $117.7 million, and the operating margin was a strong 25.2%, but it was down 140 basis points from the 26.6% recorded last year. That reduction represents very robust investment in software development and brand building. Similar to the tools group, RS&I gross margins were strong, 46.9%, about equal to last year despite cost increases.

Speaker #4: All in the turbulence. Now for connection. RS&I. Sales in the quarter were 467.8 million, up 11.2 million compared to 2022. And including on our annex sales gain of 4.8 million.

Speaker #4: The group's fifth consecutive quarter of growth against the turbulence. Higher volume with vehicle OEMs and dealerships and gains within information databases to independent garages led the way.

Speaker #4: More than ticket diagnostic units. RS&I offsetting lower sales and big were 117.7 million. And the operating margin was a strong 25.2%. But it was down 140 basis points from the 26.6% recorded last year.

Nick Pinchuk: RS&I operating earnings for the quarter were $117.7 million, and the operating margin was a strong 25.2%, but it was down 140 basis points from the 26.6% recorded last year. That reduction represents very robust investment in software development and brand building. Similar to the tools group, RS&I gross margins were strong, 46.9%, about equal to last year despite cost increases.

Speaker #4: Represents very robust investment in software development and brand building. Similar to Tools Group, RS&I gross margins were strong—46.9%, about equal to last year—despite cost increases.

Speaker #4: And just like tools, the group invested to build its advantage in both hardware and software, helping to drive the points over last year, thus the numbers.

Nick Pinchuk: And just like tools, the group invested to build its advantage in both hardware and software, helping to drive the operating expenses 130 basis points over last year, thus the numbers. But we believe the spending will be well worth it. And we'll make our advantages even stronger going forward. You see, growing vehicle complexity paired with an aging car part makes understanding the different vehicle setups very difficult, especially with the variations of creature comforts and safety equipment found in modern vehicles. And this is where RS&I itself, converting billions of data points within microseconds and delivering it into the hands of the tech, enabling them to diagnose the problem and execute the fix quickly. And it's already happened.

Speaker #4: But that reduction—we believe the spending will be well worth it. And we'll make our advantages even stronger going forward. You see, growing vehicle complexity paired with an aging car park makes understanding the operating expenses, 130 basis points, comforts and safety equipment found in modern vehicles.

Nick Pinchuk: You see, growing vehicle complexity paired with an aging car part makes understanding the different vehicle setups very difficult, especially with the variations of creature comforts and safety equipment found in modern vehicles. And this is where RS&I itself, converting billions of data points within microseconds and delivering it into the hands of the tech, enabling them to diagnose the problem and execute the fix quickly. And it's already happened.

Speaker #4: And this is where RS&I fell. within microseconds and Converting billions of data points delivering it into the hands of the techs. Enabling them to diagnose the problem and execute the fix already happened.

Speaker #4: In the quarter, the group released the all-new 2600, diagnostic platform, offering MT, the Snap-on MT a quick payback unit positioned as a powerful entry-level device for the diagnostic area for the automotive diagnostic arena.

Nick Pinchuk: In the quarter, the group released the all-new Snap-on MT2600 diagnostic platform, offering a quick payback unit positioned as a powerful entry-level device for the diagnostic arena, for the automotive diagnostic arena. The new unit's capable of communicating with 50 different OEMs from around the globe on models dating back to 1983. In other words, it handles a wide range of vehicles. It is fast with live data graphs, functional tests, and the capability to reset service and check engine lines. Plug into this vehicle's diagnostic port and press go. It's ready to go. No time wasted loading software. It automatically identifies the vehicle VIN-specific information. Just because it's the same make and model doesn't mean the vehicle's the same in the repair world. Models are not the same in the repair world.

Speaker #4: The new unit's capable of communicating with 50 different OEMs from around the globe on models dating back to 1983. In other words, it handles a wide range of vehicles.

Nick Pinchuk: In other words, it handles a wide range of vehicles. It is fast with live data graphs, functional tests, and the capability to reset service and check engine lines. Plug into this vehicle's diagnostic port and press go. It's ready to go. No time wasted loading software. It automatically identifies the vehicle VIN-specific information. Just because it's the same make and model doesn't mean the vehicle's the same in the repair world. Models are not the same in the repair world.

Speaker #4: And it is fast, with live data graphs, functional reset service, and check engine lights. Plug into this vehicle's diagnostic port and press go.

Speaker #4: It's ready to go. No time wasted loading software. It automatically identifies the vehicle's VIN-specific information just because the same just because it's the same make and model.

Speaker #4: Doesn't mean the vehicle's the same in the repair world. Models are not the same in the repair world. One could have been one could have been ordered assist and the other with air ride suspension.

Nick Pinchuk: One could have been ordered with options like parking assist and the other with air ride suspension. There's no need to look it up. Now, the MT2600 knows the unique differences instantly without any additional input. It's a real time saver. It's a productivity advancer. It's a pay raiser for entry-level techs. The Snap-on MT2600, a powerful feature set and a price aligned to match current technician preferences. It was a hit with franchisees and with the customers alike. That's RS&I. TransUmane robust, aging car park, vehicle technology continuing to advance, making repairs complex, abundant opportunities for growth. Snap-on has the position and the product lineup to take advantage, and we're investing to extend that lead. That's our fourth quarter performance in the midst of turbulence.

Speaker #4: But there's no need to look it up. With options like parking Now, the MT 2600 knows the unique differences instantly, without any additional input.

Speaker #4: And it's a real-time saver. It's a productivity advancer. And it's a For entry-level techs. The feature set and a price Snap-on M2600, a powerful aligned to match current technician preferences.

Speaker #4: And it was pay raiser. a hit with franchisees RS&I. Trends remain robust. Aging car park. Vehicle Making repairs complex. Abundant the position and the product lineup to take advantage and we're investing to extend that lead.

Nick Pinchuk: It was a hit with franchisees and with the customers alike. That's RS&I. TransUmane robust, aging car park, vehicle technology continuing to advance, making repairs complex, abundant opportunities for growth. Snap-on has the position and the product lineup to take advantage, and we're investing to extend that lead. That's our fourth quarter performance in the midst of turbulence.

Speaker #4: Quarter. Performance in the midst of turbulence. CNI sales up. Critical industries impeded by the shutdown, but roaring back to record a positive. Substantial gains—that’s our fourth torque products.

Nick Pinchuk: C&I sales up, critical industries impeded by the shutdown, but roaring back to record a positive, substantial gains with new power tools and precision torque products. The tools group, about flat, attenuated by tech uncertainty, but growing gross margins, up 150 basis points without a volume boost. Continuing investments in product, in brand, and its people. RS&I, fifth straight quarter of growth gains with OEMs and independent shops, strengthening its proprietary database and its software, and the overall business. Sales up 2.8% as reported, 1.4% organically, and an EPS of $4.94 up again over last year. Progress and investment in a difficult market. It was an encouraging quarter. Now I'll turn the call over to Aldo. Aldo?

Speaker #4: The tools group, about flat. Attenuated by tech uncertainty, but growing gross margins, up 150 basis points without a volume boost. Continuing investments in products and with new power tools and precision people.

Nick Pinchuk: Continuing investments in product, in brand, and its people. RS&I, fifth straight quarter of growth gains with OEMs and independent shops, strengthening its proprietary database and its software, and the overall business. Sales up 2.8% as reported, 1.4% organically, and an EPS of $4.94 up again over last year. Progress and investment in a difficult market. It was an encouraging quarter. Now I'll turn the call over to Aldo. Aldo?

Speaker #4: RS&I, fixed-rate quarter of growth, gains with OEMs and independent shops, strengthening its proprietary database and its software. business, sales up 2.8% And the overall as reported, 1.4% organically, and an EPS of $4.94 year.

Speaker #4: up again over last Progress in investment in a difficult market. It was an encouraging quarter. Now turning the call over to Aldo. Aldo, thanks, Nick.

Sara Verbsky: Thanks, Nick. Our consolidated operating results for the fourth quarter are summarized on slide six. Net sales of $1,231.9 million in the quarter represented an increase of 2.8% to 2024 levels, reflecting a 1.4% organic sales gain and $15.6 million of favorable foreign currency translation. Sales in our commercial and industrial sector, or the C&I group, increased year over year, led by strong performances with critical industry customers and robust sales by our power tools operation. In our automotive repair market, sales gains with repair shop owners and managers were somewhat tempered by slightly lower activity through our franchise van channel. Consolidated gross margin of 49.2% compared to 49.7% in the fourth quarter last year. The decline of 50 basis points primarily reflects higher material and other costs, as well as higher sales and lower gross margin businesses within the C&I group.

Aldo Pagliari: Thanks, Nick. Our consolidated operating results for the fourth quarter are summarized on slide six. Net sales of $1,231.9 million in the quarter represented an increase of 2.8% to 2024 levels, reflecting a 1.4% organic sales gain and $15.6 million of favorable foreign currency translation. Sales in our commercial and industrial sector, or the C&I group, increased year over year, led by strong performances with critical industry customers and robust sales by our power tools operation.

Speaker #4: Our consolidated operating results for the fourth quarter are summarized on slide six. Net sales of $1,231.9 million in the quarter represented an increase of levels, reflecting a 1.4% 2.8% in 2024 organic sales gain and 15.6 sector or the CNI group increased year over year, led by strong performances with critical industry customers million of favorable foreign currency and robust sales by our power repair market, sales gains with repair shop owners and managers were somewhat tools operation.

Aldo Pagliari: In our automotive repair market, sales gains with repair shop owners and managers were somewhat tempered by slightly lower activity through our franchise van channel. Consolidated gross margin of 49.2% compared to 49.7% in the fourth quarter last year. The decline of 50 basis points primarily reflects higher material and other costs, as well as higher sales and lower gross margin businesses within the C&I group.

Speaker #4: Tempered by slightly lower results in our automotive activity through our franchise van channel. Consolidated gross margin of 49.2% compared to 49.7% in the fourth quarter last year.

Speaker #4: The decline of 50 basis points primarily reflects higher material and other gross margin businesses within the costs, as well as higher sales and lower CNI group.

Speaker #4: These headwinds were partially offset by benefits from the company's RCI initiatives and while Snap-on is relatively advantaged in the current tariff environment, generally are cost can be affected by trade manufacturing products in the markets where they're sold policies.

Sara Verbsky: These headwinds were partially offset by benefits from the company's RCI initiatives. While Snap-on is relatively advantaged in the current tariff environment, generally manufacturing products in the markets where they're sold, our costs can be affected by trade policies. Operating expenses as a percentage of net sales of 27.7% compared to 27.6% in 2024. Operating earnings before financial services of $265.2 million in the quarter were unchanged from last year. As a percentage of net sales, operating margin before financial services of 21.5% compared to the 22.1% reported in 2024. As you may know, Snap-on operates on a fiscal calendar, which results in an additional week being added to our fiscal year every five to six years. Accordingly, the 2025 fiscal year contained 53 weeks of operating results, with the extra week relative to the prior year occurring in Q4.

Aldo Pagliari: These headwinds were partially offset by benefits from the company's RCI initiatives. While Snap-on is relatively advantaged in the current tariff environment, generally manufacturing products in the markets where they're sold, our costs can be affected by trade policies. Operating expenses as a percentage of net sales of 27.7% compared to 27.6% in 2024.

Speaker #4: Operating expenses as a percentage of net sales were 27.7%, compared to 2024. Operating earnings before financial services of $265.2 million in the quarter, at 27.6%, were unchanged from last year.

Aldo Pagliari: Operating earnings before financial services of $265.2 million in the quarter were unchanged from last year. As a percentage of net sales, operating margin before financial services of 21.5% compared to the 22.1% reported in 2024. As you may know, Snap-on operates on a fiscal calendar, which results in an additional week being added to our fiscal year every five to six years. Accordingly, the 2025 fiscal year contained 53 weeks of operating results, with the extra week relative to the prior year occurring in Q4.

Speaker #4: As a percentage of net sales, operating margin before financial services of 21.5% compared to the 22.1% reported in 2024. As you may know, Snap-on operates on a fiscal calendar which results in an fiscal year every five to six years.

Speaker #4: Accordingly, the 2025 fiscal year contained 53 weeks of operating results, with the extra week relative to the prior additional week being added to our year occurring in the fourth quarter.

Speaker #4: While the material to Snap-on's consolidated fourth quarter total revenues and net earnings, our financial services segment did earn an additional full week of interest income from its financing portfolio.

Sara Verbsky: While the impact of this additional week was not material to Snap-on's consolidated fourth quarter total revenues or net earnings, our financial services segment did earn an additional full week of interest income from its financing portfolio. At the consolidated level, the net earnings benefit from the additional week of financial services interest income was largely offset by a corresponding additional week of fixed expenses, primarily personnel-related costs. With that said, financial services revenue of $108.0 million in the fourth quarter, including $7.4 million of revenue resulting from the extra week of interest income, compared to $100.5 million last year, while operating earnings of $74.4 million compared to $66.7 million in 2024. Consolidated operating earnings of $339.6 million compared to $331.9 million last year. As a percentage of revenues, the operating earnings margin of 25.3% compared to 25.5% in 2024.

Aldo Pagliari: While the impact of this additional week was not material to Snap-on's consolidated fourth quarter total revenues or net earnings, our financial services segment did earn an additional full week of interest income from its financing portfolio. At the consolidated level, the net earnings benefit from the additional week of financial services interest income was largely offset by a corresponding additional week of fixed expenses, primarily personnel-related costs.

Speaker #4: At the consolidated income was largely offset week of financial services interest expenses, primarily personnel-related costs. With that said, financial services revenue million in the fourth quarter, including $7.4 million of revenue resulting from the extra week of interest income, level, the net earnings benefit from the additional compared to $100.5 million last year.

Aldo Pagliari: With that said, financial services revenue of $108.0 million in the fourth quarter, including $7.4 million of revenue resulting from the extra week of interest income, compared to $100.5 million last year, while operating earnings of $74.4 million compared to $66.7 million in 2024. Consolidated operating earnings of $339.6 million compared to $331.9 million last year. As a percentage of revenues, the operating earnings margin of 25.3% compared to 25.5% in 2024.

Speaker #4: While operating $66.7 million earnings of $74.4 million compared to 2024. Consolidated operating earnings of $339.6 million compared to $331.9 million last year. As a percentage of revenues, the operating earnings margin of of $108.0 25.3% compared to 25.5% in 2024.

Speaker #4: Our fourth quarter in 22.3% in 2025 and 22.5% in $260.7 million or $4.94 per diluted share 2024. Net earnings of compared to $258.1 million or $4.82 quarter.

Sara Verbsky: Our fourth quarter effective income tax rate was 22.3% in 2025 and 22.5% in 2024. Net earnings of $260.7 million or $4.94 per diluted share compared to $258.1 million or $4.82 per diluted share in 2024. Now, let's turn to our segment results for the quarter. Starting with the C&I group on slide seven, sales of $398.1 million rose $18.9 million compared to 2024 levels, reflecting a 2.8% organic sales increase and $7.9 million of favorable foreign currency translation. The organic gain includes a mid-single digit increase in activity with customers in critical industries, a double-digit rise in power tools, and a mid-single digit improvement in specialty torque. These gains were partially offset by lower sales to the United States markets by the Asia Pacific business.

Aldo Pagliari: Our fourth quarter effective income tax rate was 22.3% in 2025 and 22.5% in 2024. Net earnings of $260.7 million or $4.94 per diluted share compared to $258.1 million or $4.82 per diluted share in 2024. Now, let's turn to our segment results for the quarter. Starting with the C&I group on slide seven, sales of $398.1 million rose $18.9 million compared to 2024 levels, reflecting a 2.8% organic sales increase and $7.9 million of favorable foreign currency translation.

Speaker #4: Starting with the CNI group on 2024, slide seven. Now, let's turn to our segment results for the quarter. Sales of $398.1 million rose $18.9 million, compared to a 2.8% organic sales increase and $7.9 million of favorable foreign currency translation.

Aldo Pagliari: The organic gain includes a mid-single digit increase in activity with customers in critical industries, a double-digit rise in power tools, and a mid-single digit improvement in specialty torque. These gains were partially offset by lower sales to the United States markets by the Asia Pacific business.

Speaker #4: The organic gain includes a mid-single-digit industries, a double-digit rise in power tools, and a mid-single-digit improvement in specialty torque. These gains were partially offset by 2024 levels, reflecting a lower sales to the United States markets by the Asia-Pacific business.

Speaker #4: Overall, the organic sales gained largely reflects successful new product launches from our continued improving demand from our critical power tools operation and industry customers, including those in the United States and international aviation, heavy duty, and technical education.

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