Snap-on reported modest top-line growth and stronger profitability in its 2025 third quarter, aided by resilient margins and a one-time legal settlement benefit.

The Kenosha, WI-based automotive and industrial tool manufacturer said Q3 sales of $1.19 billion increased 3.8% year-over-year, with organic sales up 3.0% and a $9 million favorable currency impact. Gross margin held at 50.9%.

Q3 operating profit rose to $278.5 million, up from $252 million a year ago, representing 23.4% of sales. That figure included a $22 million benefit from a legal settlement.

Q3 net profit grew to $265.4 million, compared to $251 million a year earlier.

By segment in Q3:

• Commercial & Industrial Group sales were $368 million, up slightly from a year ago, though organic sales declined 0.8% amid weaker Asia-Pacific demand. Operating margin slipped to 15.6% from 16.7%.
• Snap-on Tools Group sales increased 1.1% to $506 million, with 1.0% organic growth driven by international operations and modest U.S. gains. Operating margin edged up to 21.7%.
• Repair Systems & Information Group led the company’s growth, with sales rising 10.0% to $465 million, including 8.9% organic growth from stronger OEM dealership and independent shop demand, as well as software expansion. Operating margin surged to 30.4% from 25.4%, aided by the legal settlement benefit.

Financial Services revenue was $101.1 million, up slightly from $100.4 million a year earlier, with operating earnings of $68.9 million versus $71.7 million in 2024.

Chairman and CEO Nick Pinchuk said the results “demonstrate our continuing momentum in meeting and overcoming the considerable uncertainty and trade turbulence of these days,” citing resilient gross margins, strong profitability and diversified opportunities in and beyond automotive repair.

Snap-on reaffirmed confidence in its “runways for growth,” including expansion in adjacent markets and critical industries, and expects 2025 capital expenditures to total about $100 million. The company projects a full-year effective tax rate of 22%-23%.