Graco Inc. reported record sales for both the fourth quarter and the full year, driven by growth across its segments and contributions from acquisitions. Despite macroeconomic challenges and market softness, the company achieved broad-based gains, particularly in the Industrial and Contractor segments, and is initiating guidance for 2026 with optimism.
Net sales for the fourth quarter increased 8% to $593.2 million, with growth in Contractor and Industrial segments.
positiveFull-year net sales increased 6% to $2,236.6 million, with growth in all segments and regions.
positiveNet earnings increased 22% for the fourth quarter to $132.5 million.
positiveDiluted EPS increased 25% for the fourth quarter to $0.79.
positiveAcquired operations contributed 4 percentage points of growth to the quarter and 5 percentage points to the year.
positiveFull-year gross profit margin rate decreased 1 percentage point due to higher product costs (including $14 million in tariffs) and lower margin rates of acquired operations.
attentionExpansion Markets segment net sales decreased 6% for the fourth quarter, primarily due to lower sales in most product applications.
attentionFull-year net sales for the Expansion Markets segment increased only 1%, with growth in semiconductor and electric motor applications partially offset by decreases elsewhere.
attentionInventories increased by $55.2 million year-over-year, while accounts receivable increased by $31.2 million.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Industrial | $284293.0B | $255410.0B | +11.3% | 47.9% |
Contractor | $265459.0B | $246889.0B | +7.5% | 44.8% |
Expansion Markets | $43404.0B | $46373.0B | -6.4% | 7.3% |
| Total Revenue | $593156.0B | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Graco delivered record sales for both the quarter and the full year.
Acquired revenue contributed 4% to our quarterly growth, complemented by strong organic performance in both the Industrial and Contractor segments.
Contractor achieved organic growth in every region, supported by solid results in our home center and colorant product categories.
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