Graco Q2 adjusted profit miss analyst expectations, plans price increase

Overview

• Graco Q2 sales rise 3% but miss analyst expectations, per LSEG data

• Adjusted EPS for Q2 misses consensus due to higher product costs

• Co plans price increase to offset tariff-related costs

Outlook

• Graco maintains 2025 revenue outlook of low single-digit organic sales growth

• Company plans targeted price increase in September to offset tariff costs

• Graco confident in guidance due to steady order rates and new product launches

Result Drivers

• ACQUISITIONS - Incremental sales from acquired operations contributed 6 percentage points to sales growth

• CONTRACTOR SEGMENT DECLINE - Organic sales in the Contractor segment fell due to weak North American construction markets

• HIGHER COSTS - Gross margin declined 2 percentage points due to increased product costs, including tariffs

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy."

• Wall Street's median 12-month price target for Graco Inc is $90.00, about 3.1% above its July 22 closing price of $87.20

• The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 27 three months ago

Press Release: ID:nBw8Rf2NNa