Graco Q4 Earnings Call Highlights

• Q4 results: Sales roseate 8% to $593 cardinal and reported nett net accrued 22% to $133 cardinal ($0.79), with adjusted EPS up 20% to $0.77 and gross borderline improving ~80 bps contempt tariffs that chopped gross borderline by ~70 bps successful the 4th ($4M) and $14M for the year.

• 2026 outlook: Management guides to debased single-digit integrated maturation (mid-single-digit including caller acquisitions) with pricing expected to lend astir 1%–1.5%, portion describing the outlook arsenic cautious but supported by caller bid trends.

• Cash travel & superior allocation: Operating currency travel was $684 cardinal (up 10%), the institution repurchased $423 cardinal of banal and paid $183 cardinal successful dividends, ended the twelvemonth with astir $600 cardinal nett cash, and plans $90–100 cardinal of capex positive astir $50 cardinal for installation expansion/HQ walk successful 2026.

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Graco (NYSE:GGG) executives highlighted grounds income and higher net successful the company’s fourth-quarter league call, pointing to contributions from acquisitions, humble integrated growth, and borderline betterment contempt tariff-related outgo pressure. Management besides provided an outlook for 2026 calling for debased single-digit integrated growth, supported by pricing actions and continued execution of its “One Graco” operating model.

Vice President, Controller and Chief Accounting Officer Chris Knutson said fourth-quarter income were $593 million, up 8% from the anterior year. The institution attributed the maturation to 4% from acquisitions, 2% from currency translation, and 2% from integrated sales.

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Reported nett net accrued 22% to $133 million, oregon $0.79 per diluted share. On an adjusted non-GAAP basis—excluding the interaction of excess taxation benefits from banal enactment exercises, a non-recurring taxation benefit, and prior-year concern reorganization charges—adjusted net were $0.77 per diluted share, up 20%.

Gross borderline improved by 80 ground points twelvemonth implicit year. Knutson said targeted interim pricing actions much than offset higher merchandise costs tied to little mill volumes, the little margins of acquired operations, and incremental tariffs. He noted tariffs accrued merchandise costs by $4 cardinal successful the quarter, reducing gross borderline by 70 ground points. For the afloat year, tariffs totaled $14 cardinal and reduced gross borderline by 60 ground points.

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Operating expenses declined $1 million, oregon 1%, chiefly due to the fact that the anterior twelvemonth included $7 cardinal successful concern reorganization costs and $9 cardinal successful litigation spending that did not recur. Those savings were partially offset by $7 cardinal of incremental expenses from acquired operations and higher incentive-based costs. Total institution adjusted operating net roseate $21 million, oregon 15%, and adjusted operating borderline was 27% versus 25% a twelvemonth earlier.