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; adjusted non-GAAP EPS increased 20% to $0.77.

• Operating earnings rose 22% in Q4 and 10% for the year, with prior year litigation and reorganization costs not repeating.

• Price realization and lower operating expenses supported improved profitability.

• Record sales achieved for both the quarter and full year, with strong cash flow and a net cash position of $600 million.

Financial highlights

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

• Q4 gross profit: $306.7M (51.7% of sales); full year: $1,173.2M (52.5% of sales).

• 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).

• Adjusted Q4 operating earnings: $158.6M (+15% YoY); adjusted net earnings: $128.7M (+17% YoY).

Outlook and guidance

• 2026 guidance projects low single-digit organic sales growth (constant currency) and mid-single-digit total sales growth including acquisitions.

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

• 2027 will be a 53-week year, adding an extra week in Q4.

• Recent order trends and geographic conditions support a cautious but confident low single-digit growth outlook for 2026.

• 2026 net sales and net earnings expected to benefit by 1 percentage point from favorable currency movements.