Graco Inc.

Graco Inc. Earnings Recaps

GGG Industrials 3 recaps
Q1 2026 Apr 23, 2026

Graco's Q1 sales grew modestly by 2%, driven primarily by acquisitions and currency benefits, despite a 6% decline in organic revenue; net earnings declined 5% as margins and volume pressures persisted.

Key takeaways
  • Total revenues reached $540 million, with acquisitions contributing 5% and foreign exchange 3%, offsetting organic decline.
  • Organic sales decreased 6%, with softer demand in construction and semiconductor markets; backlog increased by $26 million.
  • Gross margin contracted 60 basis points amid higher product costs from tariffs ($7 million) and volume declines.
  • Operating margins held steady at 24% in Contractor and Expansion segments but declined to 32% in Industrial due to volume and tariff impacts.
  • Adjusted EPS declined 6% to $0.66; cash flow remained strong at $120 million, with strategic investments, share repurchases, and dividends underway.
Full recap
Q3 2025 Oct 25, 2025

Graco Inc. reported a 5% increase in third-quarter sales to $543 million, while net earnings rose 13% to $138 million, driven by acquisitions but faced challenges with organic sales.

Key takeaways
  • Organic sales declined 2%, though acquisitions contributed a significant 6% to overall growth.
  • Gross margins remained flat despite higher product costs from tariffs and lower factory volumes.
  • Operating earnings as a percentage of sales held steady at 28%, consistent with the prior year.
  • Cash provided by operations increased by 12% year-to-date, supported by improved inventory management.
  • Contractor segment faced ongoing headwinds from a cautious North American construction market, impacting organic growth.
Full recap
Q2 2025 Jul 25, 2025

Graco Inc. reported a 3% increase in sales to $572 million for Q2, driven mainly by acquisitions, but faced a 3% organic decline due to ongoing market challenges and rising tariffs impacting profits.

Key takeaways
  • Adjusted net earnings decreased 3% to $127 million, with a gross margin decline of 200 basis points attributed to higher tariffs and unfavorable product mix.
  • Contractor segment sales saw a 5% decline, with notable weakness in North America’s DIY channel, reflecting broader housing affordability challenges.
  • Cash flow from operations increased significantly, up 19% year-to-date to $308 million, attributed to improved inventory management and reduced incentive payments.
  • Graco plans targeted price increases in September to mitigate ongoing tariff impacts and expects a stronger second half driven by new product launches and easier comparables.
Full recap