Scott Stember

Nick confirmed a good quarter serving data centers, expects it to expand, and highlighted the Mountz low-precision torque line selling into data centers in big proportion.

Pinchuk called tariffs a blizzard and numerical salad but does not expect significant changes going forward. Aldo confirmed Snap-on is filing for refunds through the portal to protect rights but not depending on any rebates. Tariffs not as significant to Snap-on as to many peers.

Sell-through roughly in line with the 3.4% organic growth rate. U.S. growth also tracked at 3.4%. Pinchuk noted sell-in and sell-through tend to even out over the year.

Pinchuk confirmed hand tools and power tools both up, diagnostics challenged with difficult prior-year comps from Triton launch. Most categories positive except diagnostics.

Pinchuk attributed flatness to turbulence (shutdown, tariff changes, 29 Canada trade pronouncements) rather than structural weakness. Highlighted green shoots: originations nearly flat, gross margins up 150bp, off-van sales exceeding to-van sales.

Pinchuk disclosed: tool storage still down year-over-year (but originations nearly flat), hand tools better, diagnostics down (lumpiness from Triton launch), power tools up. Off-van sales clearly bigger than to-van sales, characterized as a green shoot.

Pinchuk disclosed: diagnostics up big, tool storage another occluded quarter, hand tools not great, power tools weak until end-of-quarter new product launch had gangbusters month. Originations down 4.9%.

Pinchuk confirmed the settlement pertains to RS&I and is not related to the prior year's legal settlements. Declined to provide further details.

Military still down but improving. General industry weak as factory owners await resolution on Canada, Mexico, China tariffs, three of top four U.S. sourcing partners. Aviation and natural resources showing strength since they're less affected by reshoring concerns.

Pinchuk declined to quantify tariff headwind, citing daily changes making prediction impossible. Emphasized make-in-market positioning advantage and ability to move with alacrity against changes.

Pinchuk confirmed sell-in and sell-through roughly balanced with sell-through slightly lower as expected given building momentum. Hand tools was the category leader, not diagnostics, though Triton was described as stupendous.

Pinchuk provided specific figures: RS&I organic +3.7%, approximately 4%+ ex-intercompany, with software growing faster than overall segment and almost all divisions up on profitability.

Pinchuk confirmed pivot is working with new learning that lower end of big-ticket items (carts, Solus) can also succeed, but progress was overrun by unprecedented uncertainty.

Pinchuk attributed military weakness to typical administration-change procurement slowdowns rather than DOGE specifically. Noted that without military downturn, C&I would have been up.

Pinchuk gave approximate ranges rather than precise figures, RS&I external close to reported 1.6%, C&I external around half of 3.9% due to intercompany torque sales through Tools Group.

Pinchuk acknowledged not fully pivoted yet but highlighted sequential improvement trajectory from -7% to -1.4%, expressing confidence in the direction.

Pinchuk gave a colorful analogy that techs are confident in vehicle repair's future but uncertain about the macro environment. Expects calm in Washington could break the uncertainty.

Management declined to break out Mexico vs Brazil separately but noted strong performance driven by exported domestic strategies.