Graco Q4 sales rise 8%, slightly beat estimates

Overview

• Fluid management firm's Q4 revenue rose 8%, slightly beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Adjusted net earnings for Q4 slightly missed analyst expectations

Outlook

• Graco expects low single-digit organic sales growth for 2026 on a constant-currency basis

• Company anticipates mid-single-digit sales growth in 2026 including acquisitions

• Graco optimistic about acquisition opportunities and strategic initiatives in 2026

Result Drivers

• SEGMENT GROWTH - Contractor and Industrial segments drove Q4 sales growth, with Contractor achieving organic growth in all regions and Industrial seeing strength in the Americas and EMEA

• ACQUISITIONS - Acquired operations contributed 4 percentage points to Q4 sales growth, aiding overall revenue increase

• PRICE REALIZATION - Price realization improved gross profit margin by 1 percentage point in Q4, offsetting higher product costs

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 6 "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 4% above its January 23 closing price of $86.55

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

Press Release: ID:nBw1z1dM9a

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