Graco Earnings Call Transcripts
Fiscal Year 2026
-
Q3 sales reached a record $586 million, with 4% organic growth and stronger orders. Adjusted EPS rose 5%; Q4 revenue is guided to $610 million–$640 million amid cautious assumptions for Industrial project timing.
-
Record Q2 sales and earnings were driven by growth across all segments, margin expansion, and disciplined capital allocation. Strong order trends and backlog support a positive outlook for the second half, with the Valco Melton acquisition expected to further enhance growth and profitability.
-
The meeting covered director elections, auditor ratification, and executive compensation, all of which passed with sufficient votes. Shareholders could submit questions, with answers to be posted online. Final voting results will be published in an 8-K filing.
-
First quarter sales rose 2% year-over-year, driven by acquisitions and currency, but organic sales declined 6%. Backlog and bookings growth, especially in industrial and semiconductor, support confidence in low single-digit organic growth for 2026.
Fiscal Year 2025
-
Fourth quarter sales grew 8% year-over-year, with strong contributions from acquisitions and organic growth. Margins improved, cash flow was robust, and the outlook for 2026 is for low single-digit organic growth, supported by recent order trends and disciplined capital allocation.
-
Third-quarter sales grew 5% year-over-year, driven by acquisitions, while organic sales declined 2%. Net earnings rose 13%, and cash flow was strong, aided by operational improvements and cost controls. Full-year guidance remains for low single-digit organic growth.
-
Second quarter sales grew 3% to $572 million, but organic revenue declined 3% and net earnings fell 4%. Tariffs and acquisitions pressured margins, while strong cash flow enabled $361 million in share repurchases. 2025 guidance remains for low single-digit organic growth.
-
First quarter sales grew 7% year-over-year, with strong industrial and expansion market performance offsetting a slight decline in contractor sales. Tariffs and trade policy uncertainty with China pose a 1-2% revenue headwind, but robust cash flow supports ongoing M&A and share repurchases.
-
Industry leaders expect 2025 to be shaped by regulatory clarity, infrastructure investment, and digital transformation. The company is focused on organic growth, niche market expansion, and leveraging M&A, while maintaining operational flexibility and employee engagement. Aging infrastructure and housing stock offer ongoing opportunities.
Fiscal Year 2024
-
Fourth quarter sales declined 3% year-over-year, with organic sales down 6% and net earnings decreasing 1%. The company expects low single-digit organic growth in 2025, supported by new products, M&A, and a reorganization expected to yield $16 million in annual savings.
-
Q3 saw a 4% sales decline and 8% drop in adjusted net earnings, with gross margin improvement offset by lower volumes and higher expenses. Asia Pacific, especially China, drove most of the revenue shortfall, but recent order rates have improved. The company is restructuring for growth and completed two acquisitions.
-
Second quarter sales and net earnings declined 1% year-over-year, but gross and operating margins improved due to strong pricing and cost controls. Contractor segment saw record sales and margin strength from new products, while industrial and process segments remained weak, prompting a guidance cut to a low single-digit revenue decline for 2024.