Oct 22, 2026 earnings call — Diesel shock, strong C&I, steady margins
Sales were $1 billion 1 hundred and 83 point 7 million; organic sales down 2.8%, gross margin 51%.
Revenue $1.2B (est $1.2B) · EPS $4.64 (est $4.93)
Key quotes
"The impact of diesel prices despite what is fundamentally a stable technician market."
"Sales to customers in critical industries rose mid single digits in the period, including robust activity with the U. S. Military, and continued higher sales in general industry end markets."
"Snap on's capability to absorb substantial turbulence and despite the difficulties keep margins strong."
Analyst Q&A 7
third quarter results and market view
Q (Nicholas T. Pinchuk): Company presented its third quarter results and discussed markets and strategy.
A: Management said sales were roughly flat with mixed results across groups. They highlighted a strong gross margin of 51% and noted diesel fuel increases affected franchisee inventory and Tools Group sales. They also said Commercial & Industrial (C&I) delivered record results and RS&I showed resilience despite lower OEM program volume.
sales off the truck and diesel impact
Q (Scott Stember · ROTH): He asked if sales off the truck were flat in the quarter and whether October showed order reversals as diesel prices flattened.
A: Management would not comment on October but said sales off the truck were positive, up slightly. They explained diesel prices flattened and franchisees have mentally adjusted but future inventory timing is unclear.
"First of all, we do not give guidance, so I will not comment on October." — Nicholas T. Pinchuk (CEO)
franchisee health and dealer demand
Q (Bret Jordan · Jefferies): He asked about franchisee health and whether dealers see softening at the garage level and service volume.
A: Management said franchisees did not appear weak from recent meetings; diesel price was the main concern mentioned. They noted independent shops remain resilient while dealerships are more affected by new car sales and pricing pressure.
"And the first thing out of their mouth was diesel prices." — Nicholas T. Pinchuk (CEO)
inventory levels and production response
Q (John Babcock · Barclays): He asked whether franchisees are satisfied with current inventory levels and if production has been adjusted for the pullback.
A: Management said they already absorbed the pullback and do not expect further large reductions in the near term. They noted franchisees prefer inventory for flexibility and strike capability, so current levels are workable but not ideal.
"I do not think that is gonna happen in the near term." — Nicholas T. Pinchuk (CEO)
SFC event orders and cancellations
Q (David MacGregor · Longbow): He asked about SFC show observations, weaker orders, cancellations, and franchisee attrition or credit effects.
A: Management said SFC orders were already down and turnout was weaker than hoped, so results came in lower than expected. They said cancellation rates were not higher and franchisee retirements are mostly age driven, not clearly rising due to current turbulence.
"So we came out of that somewhat lower than we might have expected." — Nicholas T. Pinchuk (CEO)
Tools margins and RS&I program outlook
Q (Quinn Fredrickson · Baird): He asked how much Tools margin decline was volume versus investments and whether spending would be cut; and asked about RS&I OEM program visibility.
A: Management said margins were affected by mix and volume, noting power tools sales share margins with C&I which reduces Tools Group margin. They said spending on training and brand will continue and OEM program timing remains hard to predict, so visibility is limited.
"There was a volume component in gross margin, and a volume component in the in the in the OE." — Nicholas T. Pinchuk (CEO)
scale of diesel shock and recovery time
Q (Gary Prestopino · Barrington): He asked if management had seen an exogenous shock like this on the franchise channel and how long recovery took.
A: Management said they never saw something so concentrated; diesel rose about 40% in the quarter which drove franchisees to build a cushion. They explained the reaction was driven by psychology and desire for protection rather than immediate cash need.
"I think this kind of psyche surrounding the diesel got to them, and they said, gee." — Nicholas T. Pinchuk (CEO)