Good morning, and welcome to the Snap-on Incorporated Fourth Quarter 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 Sarah Verbsky, Vice President of Investor Relations. Please go ahead.

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, snapon.com, under the Investors section. The slides will be archived on our website along with the transcript of today's call. 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?

Thanks, Sarah. Good morning, everybody. I'll start by saying these times are some. It seems like every day brings a new twist of considerable fluctuating tariffs with big swings, unprecedented domestic and international events that dominate the news. Prolonged government shutdowns; we just avoided another one. The hits just keep 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, brand, and people. So as I cover the highlights of the last three months, I'll give you my perspective on our performance, on the markets, and on the progress we've made. Then Aldo will move into a more detailed review of the financials. Our fourth quarter was incurred. We believe it emphatically serves as testimony that our balanced approach to 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 $1,231,900,000, up 2.8% from last year as reported, including a 1.4% organic increase and $15,600,000 favorable foreign currency effect. Positive growth against the wind. Our OpCo operating income for the quarter was $265,200,000, which was equal to last year's. The OI margin for the period was 21.5%, 60 basis points short of last year. The impact of unfavorable currency combined with additional investments in brand building and product development. For financial services, OI of $34,400,000 was up $7,700,000 or 115% from last year. This was due in large part to the fifty-third week in the 2025 fiscal calendar being uniquely beneficial to credit. When combined with OpCo, the overall earnings for the corporation of $339,600,000 was up 2.3% versus 2024 and the total margin was 25.3%. Our overall quarterly EPS 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 have 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 sixteenth straight year of increase. It was strong and tangible evidence of Snap-on's consistency right through a variety of environments. Well, those are the numbers. Now to the market. We believe the automotive repair remains very favorable. This is validated by the average age of the car park 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 that 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. There's unmistakably a growing demand for capable vehicle repair. Shop owners tell us all the time they need more techs, and we believe the need will continue for several years. In fact, there was a recent article in The Economist suggesting ditching textbooks and learning how to use a wrench to AI-proof your job. That piece emphasized the significant need for more technicians and the solid security provided by this profession. Work is challenging, both physically and mentally. Each repair is different, with variations and conditions that never seem to be the same. As such, a mechanic needs a mastery of a massive repertoire of procedures, must summon the logic to troubleshoot puzzling failures, and navigate intricate mechanical setups with precision. It's a job that's getting more complex every day. The techs need help. Snap-on is well positioned to do just that. A related but different segment, shop owners, and managers are also adapting by continuing to invest in advanced, committed equipment and specialty tools required to service the latest vehicles. This is a target-rich environment where our capable undercar and collision equipment resides. It's a growing opportunity for our expanding array of software and data products. Snap-on is well positioned with our extensive line of proprietary and comprehensive databases—billions of data points—now leveraged with large language models and 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 vehicle fixes, increasing shop productivity, and getting vehicles back on the road faster than ever. Again, this quarter, I had the opportunity to meet with our franchisees from coast to coast. They're a great barometer for us. They were all positive about the now and very enthusiastic about their futures. They still encounter the ongoing hesitation of techs toward long-term payback for purchases, but at the same time, they're energized by the success of the tools group, executing the pivot towards faster payback items and rolling out a continuous stream of innovative offerings that make difficult and critical repair work faster and much easier. In the current environment, tool storage remains the most in demand category. We see demand for smaller boxes, and our large range of accessories are starting to roar. In fact, the fourth quarter showed significant improvement in originations, which were almost flat in the quarter. It's a clear sign that bodes well for our future. 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 our commercial and industrial (C and I) group operates with a focus on taking Snap-on out of the garage to places where work is very critical. This covers complex tasks performed in harsh environments—from oilfields to subsea floors, to clean rooms for chip manufacturing, and tightly controlled bays for rocket manufacturing. The arena relies on our extensive catalog of products that provide precision, durability, reliability, and repeatability—qualities essential to get the job done in such environments. Our investment in these critical areas has shown decisive advantages, and the fourth quarter was no exception. This is also in the market where we have our largest global footprint. Navigating the international challenges such as government protocols, varying economies, and currency fluctuations can be difficult. During the quarter, Europe faced the ongoing impact of the Ukraine war, while Asia was marked by a general loss of confidence in the Chinese economy, and the evolving US tariff regime keeps changing all the time. More than any other group, C and I encounters these obstacles from country to country, causing adversities. But we've built strengths to overcome variations and keep progressing, leveraging the abundant opportunities in this critical sector. That's an overview of our markets—resilience against turbulence filled with opportunities. We are well positioned to leverage the possibilities, progressing down our runways for growth, efforts fortified by our SNAPA evaluation processes, safety, quality, customer connection, innovation, and rapid continuous improvement (RCI). These core activities underpin our performance, enabling us to hold fast despite the difficult headwinds. Now for the operating groups. Let's start with C and I. Fourth quarter sales of $398,100,000 for the group were up $18,900,000, or 5%, with our organic gain of $2,800,000 and $7.9 million of favorable foreign currency translation. Our Power Tools division led the way with that growth driven by mid-single-digit increases in critical industries and double-digit increases in power tools sales. Specialty tools saw a mid-single-digit improvement as well. These gains were partially offset by lower sales to the US markets from the Asia Pacific business. Overall, the organic sales gain reflects the success of new product launches from our power tools operation and ongoing improving demand from critical industry customers, including those in military and defense applications. Despite delays associated with the government shutdown in October and November, sales in military defense applications rebounded, indicating that our custom kitting operations rose to meet the demand swiftly. Operating earnings for the C and I group were $60,600,000 compared to $63,500,000 in 2024, with an operating margin of 15.2% compared to 16.7%. This decline was primarily due to higher material costs and stronger sales in some of the group's lower-margin businesses. The operating expenses as a percentage of sales in the quarter stood at 23.4%, benefiting from the recent refinements in our go-to-market strategies. Well, that's C and I sales. Now on to the Tools group. Quarterly sales of $505,000,000 were down from $506,600,000 last year. However, operating income was $107,300,000, up from $106,900,000 last year, with an operating margin of 21.2%, which rose 10 basis points. We believe that the fluctuating tariffs, the prolonged shutdown, and the constant period characterized by significant actions and ideas coming out of Washington have created an environment of technician uncertainty, reinforcing reluctance toward longer payback items. The tools group's ongoing visits saw an introduction of a series of shorter payback items that are bringing high value and strengthening margins for the shop. This positive outcome is evidenced by our group's gross margins of 46.1%, gaining 150 basis points over last year despite flat volume. And at the same time, despite the turbulence, we remain committed to investing in the brand network, maintaining our advantage in product, branding, and people. In the quarter, spending on operating expenses rose by 140 basis points to ensure that the group would be at full strength when the uncertainty thaws. The core of our business is our powerful product line—which is over 85,000 strong across the corporation, with over 40,000 just within the tools group. The period also saw great new examples in the tools group. Our Milwaukee, Wisconsin facility released a new line of impact flex sockets. Customer connection identified that many tasks, like removing components to access fixes, were consuming a lot of technician time. In response, our engineers designed the new 307 RIPLMS, a seven-piece impact socket set featuring extra-long reduced diameter shafts and a low-profile hex head. Its design enables easy access to deeply recessed fasteners without removing additional parts, speeding up routine tasks like brake caliper removals and exhaust work. The long shaft impact socket set is already proving to be a winner in increasing productivity and providing quick paybacks. Out of our Algona, Iowa plant, we launched a new tool storage configuration, the KTL 1021, a 54-inch single bank master series roll cab that features heavy-duty dual-ball bearing slides. This offering has powerful capabilities at a mid-range price point and has proven to be successful. This success contributes to our improved originations and aligns with our strategy. That's the Tools group—matching tech preferences while leveraging customer connections, investing in our strengths despite turbulence. Now for RS and I. Sales in the quarter reached $467,800,000, up $11,200,000 compared to 2022, including our organic sales gain of $4,800,000, marking the group's fifth consecutive quarter of growth against turbulence. Higher volume with vehicle OEMs and dealerships and gains within information databases and independent garages led the way, more than offsetting lower sales of big ticket diagnostic units. In RSNI, operating earnings for the quarter reached $117,700,000, and the operating margin was strong at 25.2%. Though this was down 140 basis points from the 26.6% reported last year. The reduction reflects a substantial investment in software development and brand building. Similar to the Tools group, we believe that our investments are crucial and well worth it for driving stronger advantages going forward. Growing vehicle complexity combined with an aging car park makes understanding the different vehicle setups very challenging, especially with variations in creature comforts and safety equipment. This is where RSNI shines, converting billions of data points within microseconds directly into the hands of technicians, enabling them to quickly diagnose and execute fixes. The quarter saw the release of the all-new MT 2600 diagnostic platform, which offers a competitive entry-level device for the automotive diagnostic arena. The new unit communicates with 50 different OEMs from around the globe dating back to 1983, reflecting its rapid readiness to handle a wide range of vehicles. This productivity enhancement has made the MT 2600 a hit with franchisees and customers alike as it enables instantaneous access to diagnostic data without wasting time on loading software. Trends remain robust with an aging car park and continuing advancements in vehicle technology creating abundant opportunities for growth. Snap-on is well positioned with our product lineup to capitalize on this potential, and we continue to invest to extend that lead. That's our fourth-quarter performance amidst turbulence; C and I sales were up, critical industries rebounded, the tools group remained stable, and RSNI achieved its fifth straight quarter of growth—a testament to ongoing investment in our products, brands, and people. Overall, we reported sales growth of 2.8%, a 1.4% organic increase, and an EPS of $4.94, up from the previous year. An encouraging quarter indeed. Now I'll turn the call over to Aldo. Aldo?

Thanks, Nick. Our consolidated operating results for the fourth quarter are summarized on Slide six. Net sales of $1,231,900,000 in the quarter represented an increase of 2.8% year-over-year, reflecting a 1.4% organic sales gain and $15,600,000 of favorable foreign currency translation. Sales in our commercial and industrial sector or the C and 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 in our franchise van chain. Consolidated gross margin was 49.2% compared to 49% in the fourth quarter of last year. The decline of 50 basis points primarily reflected higher material costs, other costs, and higher sales in lower gross margin businesses within the C and I group. 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 still be affected by trade policies. Operating expenses as a percentage of net sales stood at 27.7%, compared to 27.6% in 2024. Operating earnings before financial services of $265,200,000 in the quarter were unchanged from last year. The 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 that adds a week to our fiscal year every five to six years. As such, the 2025 fiscal year contained fifty-three weeks of operating results, with the additional week relative to the prior year occurring in the fourth quarter. While this additional week did not materially impact Snap-on's consolidated fourth-quarter total revenues and net earnings, the financial services segment did earn an extra 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 week of fixed expenses, primarily personnel-related costs. Financial services revenue for the fourth quarter was $108,000,000, including $7,400,000 from the additional week of interest income, compared to $100,500,000 last year. Operating earnings of $74,400,000 compared to $66,700,000 in 2024, while consolidated operating earnings rose to $339,600,000 compared to $331,900,000 last year. The operating earnings margin was 25.3%, compared to 25.5% in 2024. Our fourth-quarter effective income tax rate was 22.3% in 2025, compared to 22.5% in 2024. Net earnings stood at $260,700,000 or $4.94 per diluted share compared to $258,100,000 or $4.82 per diluted share in 2024. Now let's turn to our segment results for the quarter. Starting with the C and I group on Slide seven, sales of $398,100,000 rose $18,900,000 compared to 2024 levels, reflecting a 2.8% organic sales increase and $7,900,000 of favorable foreign currency translation. The organic gain includes a mid-single-digit increase in activity with critical industry customers, a double-digit rise in power tools, and a mid-single-digit improvement in specialty tools. These gains were partially offset by lower sales to US markets and the Asia Pacific business. Overall, the organic sales gain largely reflects the success of new product launches from our power tools operation and continued improving demand from our critical industry customers, including those in military and defense applications. Sales towards military applications have faced challenges but rebounded towards the end of the quarter as demand began to increase. The gross margin stood at 38.6%, a decline from 41% in 2024, due primarily to higher material and other costs, increased sales in lower gross margin businesses, and 30 basis points of unfavorable foreign currency effects, partially offset by savings from RCI initiatives. During the fourth quarter, the C and I group refined its footprint and go-to-market strategies, resulting in a net benefit to operating expenses of $4,500,000. The operating expenses as a percentage of sales were 23.4% in the quarter, which includes the net benefit, compared to 24.3% last year. Operating earnings for the C and I group were $60,600,000 compared to $63,500,000 in 2024, and the operating margin was 15.2% compared to 16.7% last year. Now turning to Slide eight. Sales in the Snap-on Tools Group were $505,000,000 compared to $506,600,000 last year, reflecting a 0.7% organic sales decline largely offset by $1,800,000 of favorable foreign currency translation. The organic decrease reflects a low single-digit decline in the US, partially offset by a high single-digit gain in the segment's international operations. During the quarter, we believe our ongoing pivot to featuring the benefits of shorter payback items continued to mitigate issues with technician customers in the current environment. Gross margin improved by 150 basis points to 46.1% in the quarter, from 44.6% last year, mainly due to a year-over-year shift in product mix including higher sales of new products, and savings from the segment's RCI initiatives. Operating expenses as a percentage of sales were 24.9% compared to 23.5% in 2024, largely reflecting increased brand-building and other costs. Operating earnings for the Snap-on Tools Group were $107,300,000, compared to $106,900,000 in 2024, with an operating margin of 21.2%, improving by 10 basis points from last year. Turning to the RS and I group shown on Slide nine. Sales of $467,800,000 compared to $456,600,000 a year ago, reflecting a 1% organic sales increase along with $6,400,000 of favorable foreign currency translation. The organic improvement includes low single-digit gains in activity with OEM dealers and in sales of diagnostics and repair information products to independent repair shop owners and managers. While our undercar equipment sales remained flat with last year, the overall business showed improving activity in all product lines outside of collision repair, which continued to experience declines. Gross margin for the quarter stood at 46.9% compared to 47% last year. The savings from RCI nearly offset the effects of tariffs and higher material costs. Operating expenses as a percentage of sales were 21.7% compared to 20.4% in 2024, largely reflecting increased activity and higher expenses in several segments. Operating earnings amounted to $117,700,000 compared to $121,400,000 the previous year. The operating margin was 25.2%, compared to 26.6% in 2024. Financial services revenue for the quarter stood at $100,000,000, reflecting lower sales compared to last year, yet consistent with the prior periods, while financial services operating earnings of $74,400,000 compared to 66,700,000 in 2024 primarily due to the additional interest income from the extra week. Total loan originations of $285,100,000 in the fourth quarter were unchanged from the previous year, reflecting stability in tool storage products. Our year-end balance sheet indicates approximately $2,500,000,000 of gross financing receivables, with $2,200,000,000 from our US operation. The US sixty-day plus delinquency rate sits at 2.1%, marking an increase of 10 basis points from 2024's year-end figures. The trailing twelve-month net losses for the overall extended credit portfolio indicated balanced performance despite the current environment. Cash provided by operating activities in the quarter totaled $268,100,000, reflecting a decline from the prior year, primarily due to taxes paid. The cash flow from investing activities included proceeds from building sales and capital expenditures while cash used in financing activities recognized dividends paid and stock repurchase activities throughout the year. As of year-end, we maintained significant cash reserves alongside our credit facilities, enabling financial flexibility as we proceed into 2026.

Now I'll turn the call back to Nick for his closing thoughts. Thanks, Aldo. Bless the quarter. Sales growth, solid profitability, and expanded investments in fortifying our inherent advantages—all during this time of turbulence, tariffs, shutdowns, and conflict. Critical industry sales were up 5% as reported and 2.8% organically. A late comeback for critical industries, recovering from some of the shutdown impact, was significantly bolstered by great new product launches in power tools and specialty torque. The tools group demonstrated a volume down of 0.3% as reported and 0.7% organically, essentially flat, and an OI margin of 21.2%, up 10 basis points, with gross margins at 46.1%, increasing by 150 basis points in the face of higher material costs and inflation. RSNI also showed sales growth of 2.5% as reported and 1% organically. While the OI margin was down, it remained strong at 25.2%, with gross margins holding steady against pressures from rising costs and tariffs. We continue to see gains and opportunities in software and data. It all came together for a diluted EPS of $4.94, up from the $4.82 reported last year. As I said earlier, this call marked an encouraging quarter. Going forward, we believe we will benefit from our continuous investment in strengthening our advantages amidst uncertainty. We're optimistic about the resilience and importance of our markets as we work to build our advantages. Our product advantages—tools that effectively solve critical tasks—stand strong, with more than 85,000 options in our portfolio and new entries coming. Our brand advantage is significant, as Snap-on represents the pride and dignity that working men and women take in their professions. It's a respected and preferred brand among many. We also boast significant advantages in our people—skilled, committed, battle-tested, and tirelessly focused on success. We believe these strengths will set us apart, help us thrive through turbulence, and drive Snap-on to maintain its positive trajectory throughout this year and beyond. I want to take a moment to speak directly to our franchisees and associates. When I refer to our advantages, both now and in the future, I think of you. This quarter was encouraging, and your conviction and hard work have made it so. Congratulations on your success in delivering yet another positive performance. You have my gratitude for your intense energy, extraordinary capability, and unwavering commitment to our team and our shared future. With that, I will turn it back to the operator. Thank you for your time and participation.

Thank you. We will now begin the question and answer session. To ask a question, on your telephone keypad, if you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed, and you would like to withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. The first question comes from Scott Stember with ROTH Capital. Please go ahead. Good morning, and thanks for taking my questions.

Mister Scott Stember, how are you? Good. Thank you. Hopefully, the same for you. Question on the tools group. You know, we saw a little bit of a rebound in the previous couple of quarters, and now returning a little bit negative here. Just trying to get a sense, are you seeing any increased level of technician softness, or is this just having a greater availability of these quicker payback items and we're just seeing a little bit more of a mix towards the lower-ticket items?

That's a great question. Look, I think it's about flat. We're up a little bit the last time, you know? So you could look at that as a backtrack. But we don't see it that way. We see that the quarter was pretty turbulent. You might think that the shutdown doesn't affect the tools group, but you should have been there talking to the franchisees in Maryland and Virginia. They didn’t think it was a no-effect situation. And then the tariffs are getting pretty turbulent. Just think about Canada—there have been 29 different presidential or prime minister proclamations since the beginning of the year about changing tariffs with Canada. And the other tariffs are not consistent either, and every time you look at the news, you see changes. So that affected their general view, and we heard a little bit about that. I think, as I said in the call, sooner or later, people have to get used to this situation. You saw green shoots in originations—the originations were kind of flattish year-over-year and down a little bit. But better than it's been. It gives you some reason to believe, you know, that things are changing. Part of it is pivoting. Some of it may indicate some thawing in the market. We see that. Eye-popping, as I said in the call, is that in this time your gross margins are up 150 basis points. That's remarkable. So whatever the tools group is doing and executing, they are performing well within the conditions they've been handed.

Gotcha. And I think you alluded to tool storage; actually, I think you said it was kind of flattish in the quarter. Can you talk about actual hand tools? Diagnostics, just some of the other subsegments?

Sure. Look, I'm not going to give you exact numbers. I don't want to pin myself to that. But I think tool storage was still down some year-over-year in the tools group selling to the franchisees. Hand tools performed better. Diagnostics were down, but power tools were up.

Oh, okay. Sorry about that. And then just last question, sales onto the van versus off of the van?

You know, I hate talking about this, Scott, because no month is fully significant. We often say it has a lot of variations from month to month, but it evens out in the end. Generally, what we sell on the van equals what we sell off the van. This quarter, sales off the van were actually somewhat substantially larger than on-van sales. I think it's a nice data point, better than a poke in the eye with a sharp stick. But I’m not going to hang my hat on it. It is, if you want to classify green shoots, maybe this is a green shoot.

I just hope the rabbits don't eat the green shoot. You know? But that's just a positive thing.

Good morning. Thanks for taking the question. Maybe if you could just jump off on one of the things you just said, Nick, diagnostics. I think you said it was down in the Tools group in the quarter. Can we just maybe double click on that? I'm not sure if we should think there is some pull forward just from the launch strength that you saw in the middle part of this year, or is there just some inherent lumpiness? I want to kind of separate the two.

I think it's more inherent lumpiness driven by the characteristics of the launch. You know? Toward the end of the second and third quarter, we launched the Triton, a much larger and more powerful unit. This quarter, we launched the MT 2600, which is an entry-level device and significantly lower in price. A sale is still a sale for the franchisee, though he may have to work harder for the larger ticket item. So what you're seeing this quarter reflects that dynamic.

Helpful. I want to switch gears to C and I. Critical industries. Looking a quarter ago, we returned to modest growth; now tracking up mid-single digits in 25. But it sounds like it actually may have been higher in December given what you mentioned around the shutdown. Any reason to think that that momentum doesn't carry over into next year in critical industries?

We have great optimism for our power in critical industries. We believe our array of custom kits keeps growing, and we have a greater span of sale. Our custom kitting capacity is continuously increasing. October and November were slow periods, but we ended on a high note, particularly with military business rebounding. It’s proof that we should expect momentum to carry over from this quarter.

Understood. I'll leave it there. Thanks, Nick.

Hi. Good morning. I just wanted to touch on some of the brand-building expenses that you had called out, particularly in the Tools group. What exactly is embedded in those costs, and how do you expect them to trend going forward? Is that an ongoing cost?

I'm not going to give you the exact details of those costs since you will likely ask me how much is spent every quarter on each category. But to give you an overview, our focus has been on training in our business, advertising for the brand, building software that spreads across both Tools and RSNI business, and improving social media engagement. These factors are all part of strengthening the brand foundation.

Understood. Regarding the fifty-third week impact on financials, can you provide clarity on its size and overall effect?

Sure. The difference varies between the financial company and the operating company. For the financial company, it’s a bonanza, as Aldo mentioned—it generated $7,000,000 in extra profit. For the operating company, however, it came during a challenging holiday season. It generally ends up being a net negative, as fixed expenses generally prevail without any compensating sales. Overall, the significance of that week hasn't been material.

Yes. Good morning, everyone. Nick, I wanted to ask about the SFC. In the last quarter, you said there were great orders, but you're not seeing much of that reflected in sales. Can you help reconcile that with the essentially flat Snap-on Tools segment organic growth? What dynamics contributed to fourth quarter growth in the non-SFC fulfillment business?

Yes. Remember, the SFC reports orders, not sales. Cancellation may occur, and fulfillment in the second half can vary. For the fourth quarter, it's essential to note that the SFC orders would reflect mid-single digits but may not translate into sales growth throughout the segments. The actual performances stem from various promotional offers and franchise sales activities. The segment's performance volume reflects these varied factors, which makes predicting challenging.

Is there anything you can say about the regional kickoffs and how they are performing?

The regional kickoffs have concluded, so I won’t speak to the future, but our experiences were very positive. People were enthusiastic, and reports from across the country confirm robust participation.

Good morning. Within the Tools group in the US, could you elaborate on the competitive landscape? Are there notable shifts in pricing, mix, or marketing strategies?

I find that question interesting. We haven't seen significant pressure from competition in the industry. I sense we hold less pressure from tariffs than most. When I chat with franchisees, they hardly mention competitors; they choose Snap-on for its uniqueness. We're not directly competing for the same audiences, and I don't hear concerns about pricing strategies affecting our market position.

This concludes our question and answer session. I would like to turn the conference back over to Sarah Verbsky for any closing remarks.

Thank you all for joining us today. A replay of the call will be available shortly on snapon.com. As always, we appreciate your interest in Snap-on. Good day.

The conference has now concluded. Goodbye.