Inferra AI / Company / GGG
Graco Inc.
GGG · Industrials
Last earnings Jan 26, 2026
Key results
Net incomequarter
22 percent
Net earnings increased 22 percent for the fourth quarter.
SEC original ↗Graco Inc. — Earnings release (8-K exhibit)EX-99Jan 26, 2026
Adjusted net incomequarter
17 percent
Adjusted net earnings increased 17 percent, driven by higher sales, an improved gross margin rate and lower expenses.
SEC original ↗Graco Inc. — Earnings release (8-K exhibit)EX-99Jan 26, 2026
Acquired revenuequarter
4%
Acquired revenue contributed 4% to our quarterly growth, complemented by strong organic performance in both the Industrial and Contractor segments.
SEC original ↗Graco Inc. — Earnings release (8-K exhibit)EX-99Jan 26, 2026
Operating marginquarter
4 percent
The operating margin rate for the fourth quarter increased 4 percentage points, as the prior-year comparable period included litigation costs that did not repeat.
SEC original ↗Graco Inc. — Earnings release (8-K exhibit)EX-99Jan 26, 2026
Operating marginfull-year
2 percent
The operating margin rate for the year decreased 2 percentage points as price realization and nonrecurring litigation costs were unable to offset higher product costs from increased tariffs and the lower margin rates of acquired operations.
SEC original ↗Graco Inc. — Earnings release (8-K exhibit)EX-99Jan 26, 2026
Revenuequarter
6%
Components of net sales change by geographic region for the Industrial segment were as follows Three Months Twelve Months Volume and Price Acquisitions Currency Total Volume and Price Acquisitions Currency Total Americas 6% 0% 1% 7% 2% 0% 0% 2% EMEA 15% 8% 9% 32% 4% 3% 4% 11% Asia Pacific (8)% 6% (1)% (3)% (2)% 2% 0% 0% Consolidated 5% 4% 2% 11% 2% 1% 1% 4% Incremental sales from acquired operations and the timing of finishing system sales contributed to a double-digit increase in Industrial segment net sales for the fourth quarter.
SEC original ↗Graco Inc. — Earnings release (8-K exhibit)EX-99Jan 26, 2026
Revenuefull-year
4 percent
Industrial segment net sales increased 4 percent for the year, including 1 percentage point each from acquired operations and favorable changes in foreign currency translation rates.
SEC original ↗Graco Inc. — Earnings release (8-K exhibit)EX-99Jan 26, 2026
The operating margin rate for this segment increased approximately 1 percentage point for both the quarter and year as price realization and expense leverage more than offset Page 4 GRACO unfavorable product and channel mix from lower margin finishing system sales and higher product costs from increased tariffs.
SEC original ↗Graco Inc. — Earnings release (8-K exhibit)EX-99Jan 26, 2026
AI analysis
Q4 2025 · reported Jan 26, 2026
Based on: Earnings release + parent 8-K + 10-Q — transcript not held
Headline figures
| Metric | Q4 2025 | Prior qtr | Year ago |
|---|---|---|---|
| Net income | 22 percent | — | — |
| Adjusted net income | 17 percent | — | — |
| Acquired revenue | 4% | — | — |
| Operating margin | 4 percent | — | — |
| Revenue | 6% | — | — |
Guidance · company-stated
Direction: Initiated
“For 2026, we are initiating guidance of low single digit organic sales growth on a constant currency basis and mid single digit sales growth including acquisitions.”
Classified from the release's primary full-year outlook statement.
Margin
Capital allocation
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions and results: Nine Months Ended September 25, 2026 September 26, 2025 Expected life in years 6.7 6.6 Interest rate 3.9 % 4.4 % Volatility 24.9 % 26.2 % Dividend yield 1.3 % 1.3 % Weighted average fair value per share $ 27.16 $ 26.80 Under the Company s Employee Stock Purchase Plan, the Company issued 235,000 shares in 2026 and 257,000 shares in 2025.
Event summary
See Financial Results Adjusted for Comparability below for a reconciliation of adjusted non-GAAP financial measures to GAAP
Based on: Earnings release + parent 8-K + 10-Q — transcript not held
Guidance & outlook
Direction: Initiated
Revenue: “For 2026, we are initiating guidance of low single digit organic sales growth on a constant currency basis and mid single digit sales growth including acquisitions.”
Revenue — Initiated (“initiating”)
“For 2026, we are initiating guidance of low single digit organic sales growth on a constant currency basis and mid single digit sales growth including acquisitions.”
Classified from the release's primary full-year outlook statement.
Capital allocation
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions and results: Nine Months Ended September 25, 2026 September 26, 2025 Expected life in years 6.7 6.6 Interest rate 3.9 % 4.4 % Volatility 24.9 % 26.2 % Dividend yield 1.3 % 1.3 % Weighted average fair value per share $ 27.16 $ 26.80 Under the Company s Employee Stock Purchase Plan, the Company issued 235,000 shares in 2026 and 257,000 shares in 2025.
SEC original ↗Graco Inc. — 10-Q Quarterly report10-QOct 21, 2026
The benefit of the 15 percent discount from the lesser of the fair market value per common share on the first day and the last day of the plan year was added to the fair value of the employees purchase rights determined using the Black-Scholes option pricing model with the following assumptions and results: Nine Months Ended September 25, 2026 September 26, 2025 Expected life in years 1.0 1.0 Interest rate 3.5 % 4.1 % Volatility 20.6 % 19.6 % Dividend yield 1.2 % 1.3 % Weighted average fair value per share $ 25.69 $ 19.65 9 Table of Contents 5.
SEC original ↗Graco Inc. — 10-Q Quarterly report10-QOct 21, 2026
The fair value of variable rate borrowings approximates carrying value.
SEC original ↗Graco Inc. — 10-Q Quarterly report10-QOct 21, 2026
The Company uses significant other observable inputs to estimate fair value (level 2 of the fair value hierarchy) based on the present value of future cash flows and rates that would be available for issuance of debt with similar terms and remaining maturities.
SEC original ↗Graco Inc. — 10-Q Quarterly report10-QOct 21, 2026
The purchase price was funded with cash on hand and borrowings under the Company's revolving credit facility.
SEC original ↗Graco Inc. — 10-Q Quarterly report10-QOct 21, 2026
Significant uses of cash in the first nine months of 2026 included business acquisitions of $436 million, share repurchases of $463 million (partially offset by $45 million of net proceeds from shares issued), dividend payments of $145 million and plant and equipment additions of $48 million.
SEC original ↗Graco Inc. — 10-Q Quarterly report10-QOct 21, 2026
Strategy & priorities
Components of net sales change by geographic region for the Expansion Markets segment were as follows Three Months Twelve Months Volume and Price Acquisitions Currency Total Volume and Price Acquisitions Currency Total Americas (11)% 0% 0% (11)% (6)% 0% 0% (6)% EMEA (3)% 0% 1% (2)% 3% 0% 1% 4% Asia Pacific 4% 0% 0% 4% 20% 0% 0% 20% Consolidated (7)% 0% 1% (6)% 1% 0% 0% 1% Expansion Markets net sales decreased 6 percent for the fourth quarter and increased 1 percent for the year compared to the same periods last year.
SEC original ↗Graco Inc. — Earnings release (8-K exhibit)EX-99Jan 26, 2026
We added more than $100 million of acquired revenue and achieved full year organic growth in both our Industrial and Expansion Markets segments.
SEC original ↗Graco Inc. — Earnings release (8-K exhibit)EX-99Jan 26, 2026
Our engaged employees are focused on our key initiatives driving product innovation, pursuing strategic acquisitions, and advancing the One Graco operating model.
SEC original ↗Graco Inc. — Earnings release (8-K exhibit)EX-99Jan 26, 2026
Segment Information The Company classifies its business into three reportable segments: Contractor, Industrial and Expansion Markets.
SEC original ↗Graco Inc. — 10-Q Quarterly report10-QOct 21, 2026
Management classifies the Company s business into three reportable segments: Contractor, Industrial and Expansion Markets.
SEC original ↗Graco Inc. — 10-Q Quarterly report10-QOct 21, 2026
Risks & headwinds
Higher product costs included increased tariff costs of $4 million for the quarter and $14 million for the year.
SEC original ↗Graco Inc. — Earnings release (8-K exhibit)EX-99Jan 26, 2026
For the quarter, price realization more than offset higher product costs from increased tariffs.
SEC original ↗Graco Inc. — Earnings release (8-K exhibit)EX-99Jan 26, 2026
The operating margin rate for the year decreased 2 percentage points as price realization and nonrecurring litigation costs were unable to offset higher product costs from increased tariffs and the lower margin rates of acquired operations.
SEC original ↗Graco Inc. — Earnings release (8-K exhibit)EX-99Jan 26, 2026
The operating margin rate for this segment increased approximately 1 percentage point for both the quarter and year as price realization and expense leverage more than offset Page 4 GRACO unfavorable product and channel mix from lower margin finishing system sales and higher product costs from increased tariffs.
SEC original ↗Graco Inc. — Earnings release (8-K exhibit)EX-99Jan 26, 2026
Incremental expenses from acquired operations and higher sales and earnings based expenses in the current quarter were more than offset by $16 million of litigation and business reorganization costs in the fourth quarter last year that did not repeat.
SEC original ↗Graco Inc. — Earnings release (8-K exhibit)EX-99Jan 26, 2026
For the quarter, incremental expenses from acquired operations of $7 million and higher sales and earnings based expenses of $5 million were more than offset by $16 million of litigation and business reorganization costs in the fourth quarter last year that did not repeat.
SEC original ↗Graco Inc. — Earnings release (8-K exhibit)EX-99Jan 26, 2026
Competitors
Competitors & peers
Same GICS sector — classification peers, not declared competitors
Filings
30 documents- Q3 2026
- 10-QGGG
Oct 21, 2026
- Q2 2026
- 8-KGGG
Sep 14, 2026
- 8-KGGG
Sep 1, 2026
- 10-QGGG
Jul 22, 2026
- Q1 2026
- 8-KGGG
Jun 15, 2026
- 8-KGGG
May 21, 2026
- 8-KGGG
May 5, 2026
- 8-KGGG
Apr 27, 2026
- 10-QGGG
Apr 22, 2026
- Q4 2025
- 8-KGGG
Mar 2, 2026
- 10-KGGG
Feb 17, 2026
- 8-KGGG
Feb 13, 2026
- 8-KGGG
Jan 26, 2026
- Q3 2025
- 8-KGGG
Oct 30, 2025
- 10-QGGG
Oct 22, 2025
- Q2 2025
- 10-QGGG
Jul 23, 2025
- Q1 2025
- 8-KGGG
Apr 28, 2025
- 10-QGGG
Apr 23, 2025
- Q4 2024
- 10-KGGG
Feb 18, 2025
- 8-KGGG
Jan 27, 2025
- Q3 2024
- 8-KGGG
Nov 8, 2024
- 8-KGGG
Oct 25, 2024
- 10-QGGG
Oct 23, 2024
- Q2 2024
- 8-KGGG
Sep 26, 2024
- 8-KGGG
Sep 18, 2024
- 10-QGGG
Jul 24, 2024
- 8-KGGG
Jul 16, 2024
- Q1 2024
- 8-KGGG
Apr 26, 2024
- 10-QGGG
Apr 24, 2024
- Q4 2023
- 10-KGGG
Feb 20, 2024
Earnings releases
7 documentsPresentations
0 documentsNo presentations for Graco Inc. are held in this edition of the library.
Transcripts
0 documentsNo transcripts for Graco Inc. are held in this edition of the library.
Mentioned by
3 companiesOther tracked companies whose held documents mention Graco Inc. by name or ticker. A mention is counted once per document, from the document text the library holds.
“ EX-99.1 2 d100947dex991.htm EX-99.1 EX-99.1 Exhibit 99.1 Graco Inc. Closes Acquisition of Valco Melton Acquisition expands Graco’s capabilities and global reach in precision adhesive application… …advantage of the “”
“ and consistent performance are critical. “This acquisition is a strong strategic fit for Graco and a natural extension of our industrial portfolio,” said Mark… …advantage of the “safe harbor” provisions regarding forward-looking statements of the Pr”
“ion | Robotics & Actuators Heat Exchangers & Fans: Data Centers & Industrial Graco Value: Graco Value: • Providing a total solution for high-purity fluid handling… …DISCIPLINE, DECADES OF VALUE CREATION If you invested $1,000 in Graco stock in 1986 a”
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