Graco Inc. Reports Q4 Earnings Beat with Revenue Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Source: seekingalpha
- Earnings Beat: Graco's Q4 non-GAAP EPS of $0.77 exceeded expectations by $0.01, demonstrating the company's stable profitability and growth potential.
- Significant Revenue Growth: The fourth-quarter revenue reached $593.2 million, up 8.1% year-over-year, surpassing market expectations by $2.66 million, reflecting strong performance in the Contractor and Industrial segments.
- Annual Sales Increase: Net sales for the year grew by 6%, with growth across all segments and regions, indicating the company's robust competitive position in a diversified market.
- Dividend and Buyback Plan: Graco raised its dividend by 7.3% to $0.295 per share and authorized the repurchase of up to 15 million shares of common stock, showcasing confidence in future cash flows and commitment to shareholder returns.
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Analyst Views on GGG
Wall Street analysts forecast GGG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GGG is 93.50 USD with a low forecast of 89.00 USD and a high forecast of 98.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
1 Buy
3 Hold
0 Sell
Hold
Current: 86.830
Low
89.00
Averages
93.50
High
98.00
Current: 86.830
Low
89.00
Averages
93.50
High
98.00
About GGG
Graco Inc. is a multinational manufacturing company. The Company supplies technology and expertise for the management of fluids and coatings in both industrial and commercial applications. It designs, manufactures and markets systems and equipment to move, measure, control, dispense and spray fluid and powder materials. Its segments include Contractor, Industrial and Expansion Markets. The Contractor segment markets sprayers and equipment that apply paint to walls and other structures, texture to walls and ceilings, insulation to building walls and other items, highly viscous coatings to roofs, and markings on roads, parking lots, athletic fields and floors. The Industrial segment includes its industrial and powder divisions. The Industrial segment markets equipment and solutions for moving and applying paints, powder coatings, sealants, adhesives and other fluids. The Expansion Markets segment includes environmental, semiconductor, high-pressure valves and electric motors businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Graco Inc. Reports Record Q4 2025 Sales and Earnings Growth
- Significant Sales Growth: Graco achieved $593 million in sales for Q4 2025, an 8% increase year-over-year, with acquisitions contributing 4%, showcasing strong performance in both industrial and contractor segments, thereby enhancing market competitiveness.
- Improved Profitability: Net earnings rose 22% to $133 million, translating to $0.79 per diluted share, while gross margin increased by 80 basis points, indicating effective pricing strategies that offset rising product costs and bolstered financial health.
- Robust Cash Flow: Operating cash flow for 2025 reached $684 million, up 10%, with a net cash position of $600 million, enabling significant investments and shareholder returns, reflecting strong financial flexibility.
- Cautiously Optimistic Outlook: Management anticipates low single-digit organic growth for 2026, despite macroeconomic uncertainties, expressing confidence in the growth potential from acquisitions and emphasizing ongoing market opportunities.
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Graco Reports Q4 Earnings Exceeding Expectations
- Earnings Beat: Graco's adjusted diluted earnings for Q4 reached $0.77 per share, surpassing the analyst consensus of $0.76, indicating strong performance in sales and margins.
- Revenue Growth: The company reported Q4 revenue of $593.2 million, exceeding estimates of $590.5 million, reflecting robust demand in the contractor and industrial segments.
- Net Income Increase: Net income rose 22% year-over-year to $132.5 million, showcasing the company's success in cost control and sales efficiency, which further bolsters market confidence.
- Future Outlook: Graco anticipates low single-digit organic sales growth for 2026, with mid-single-digit growth including acquisitions, marking a sustained growth trajectory as it celebrates its 100th anniversary.
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