Graco (GGG) Q4 2025 earnings summary

Executive summary

• Achieved record quarterly and annual sales, with Q4 net sales up 8% year-over-year and full-year net sales up 6%, driven by acquisitions, currency, and organic growth across all segments and regions.

• Net earnings rose 22% in Q4 to $133 million, or $0.79 per diluted share, and adjusted non-GAAP EPS increased 20% to $0.77.

• Price realization and lower operating expenses supported improved profitability, with record cash flow and a net cash position of $600 million.

Financial highlights

• Q4 net sales: $593.2M (+8% YoY); full-year: $2,236.6M (+6% YoY).

• Q4 gross profit: $306.7M (51.7% of sales); full year: $1,173.2M (52.5% of sales); gross margin improved by 0.8 pts in Q4 but declined by 0.6 pts for the year due to higher product and tariff costs.

• Q4 net earnings: $132.5M (+22% YoY); full year: $521.8M (+7% YoY).

• Q4 diluted EPS: $0.79 (+25% YoY); full year: $3.08 (+9% YoY).

• Cash from operations for the year was $684M, up 10%, with inventory at its lowest since June 2021.

Outlook and guidance

• 2026 guidance calls for low single-digit organic sales growth (constant currency), mid-single-digit total sales growth including acquisitions, and a 1 percentage point benefit from favorable currency movements.

• Effective tax rate expected at 20%-21%, with projected capital expenditures of $90-$100 million, excluding $50 million for facility expansion.

• Recent order trends and market conditions support a cautious but confident outlook for 2026, with a strong acquisition pipeline.