Revenue: As of FY2025 Q4, the actual value is USD 593.16 M, beating the estimate of USD 590.54 M.EPS: As of FY2025 Q4, the actual value is USD 0.79, beating the estimate of USD 0.7686.EBIT: As of FY2025 Q4, the actual value is USD 163.87 M.<h4>Overall Financial Performance</h4><ul><li>Net Sales:<ul><li>For the fourth quarter ended December 26, 2025, net sales for Graco Inc. were $593.2 million, an 8% increase from $548.7 million in the prior year period. Currency translation effects increased sales by 2 percentage points, and acquired operations contributed 4 percentage points of sales growth for the quarter .</li><li>For the full year ended December 26, 2025, net sales were $2,236.6 million, a 6% increase from $2,113.3 million in the prior year. Currency translation effects increased sales by 1 percentage point, and acquired operations contributed 5 percentage points of sales growth for the year .</li></ul></li><li>Operating Earnings (GAAP):<ul><li>Fourth quarter operating earnings increased by 22% to $158.6 million from $130.0 million in the prior year .</li><li>Full year operating earnings increased by 10% to $624.8 million from $570.1 million in the prior year .</li></ul></li><li>Net Earnings (GAAP):<ul><li>Fourth quarter net earnings increased by 22% to $132.5 million from $108.7 million in the prior year .</li><li>Full year net earnings increased by 7% to $521.8 million from $486.1 million in the prior year .</li></ul></li><li>Adjusted Operating Earnings (non-GAAP):<ul><li>Fourth quarter adjusted operating earnings were $158.6 million, a 15% increase from $137.7 million in the prior year .</li><li>Full year adjusted operating earnings were $610.7 million, a 6% increase from $577.8 million in the prior year .</li></ul></li><li>Adjusted Net Earnings (non-GAAP):<ul><li>Fourth quarter adjusted net earnings were $128.7 million, a 17% increase from $110.1 million in the prior year .</li><li>Full year adjusted net earnings were $498.8 million, a 5% increase from $477.1 million in the prior year .</li></ul></li><li>Gross Profit and Margin Rate:<ul><li>Gross profit for the fourth quarter was $306.695 million, up from $279.280 million in the prior year .</li><li>Gross profit for the full year was $1,173.183 million, up from $1,122.461 million in the prior year .</li><li>The gross profit margin rate increased approximately 1 percentage point for the fourth quarter due to price realization offsetting higher product costs .</li><li>The gross profit margin rate decreased 1 percentage point for the full year, as price realization did not fully offset higher product costs, including $14 million in increased tariff costs, and lower margin rates from acquired operations .</li></ul></li><li>Operating Expenses:<ul><li>Total operating expenses for both the fourth quarter and the full year decreased 1 percent from the comparable prior year periods .</li><li>Fourth quarter incremental expenses from acquired operations ($7 million) and higher sales/earnings-based expenses ($5 million) were more than offset by $16 million in non-recurring litigation and business reorganization costs in the prior year .</li><li>Full year incremental expenses from acquired operations ($36 million) were mostly offset by a $14 million non-cash gain from contingent consideration fair value reduction and $21 million in prior-year litigation and business reorganization costs .</li></ul></li><li>Other Non-Operating Income:<ul><li>Other non-operating income increased $2 million for the fourth quarter due to favorable market valuation changes on investments .</li><li>For the full year, other non-operating income decreased $3 million, impacted by $8 million in higher exchange losses and $8 million in decreased interest income, partially offset by a $5 million gain from a facility sale and $2 million from favorable investment valuation changes .</li></ul></li><li>Effective Income Tax Rate:<ul><li>The effective income tax rate was 19% for the fourth quarter and the full year .</li><li>The adjusted effective income tax rate was 21% for the fourth quarter and 20% for the full year, consistent with the prior year .</li></ul></li></ul><h4>Segment Results</h4><ul><li>Contractor Segment:<ul><li>Net Sales: $265.5 million in Q4 2025 (up 8% YoY) and $1,071.9 million for FY 2025 (up 8% YoY). Acquired operations contributed $12 million to Q4 sales and $100 million to full-year sales .</li><li>Operating Earnings: $65.016 million in Q4 2025 (up 34% YoY) and $270.308 million for FY 2025 (up 0% YoY) .</li><li>Operating Margin: 24% in Q4 2025 (up 4 percentage points YoY) and 25% for FY 2025 (down 2 percentage points YoY). The Q4 increase was due to non-repeating prior-year litigation costs and price realization offsetting higher product costs. The full-year decrease was due to higher product costs from tariffs and lower margin rates of acquired operations .</li></ul></li><li>Industrial Segment:<ul><li>Net Sales: $284.3 million in Q4 2025 (up 11% YoY) and $996.8 million for FY 2025 (up 4% YoY). Acquired operations and timing of finishing system sales contributed to the double-digit increase in Q4 .</li><li>Operating Earnings: $91.886 million in Q4 2025 (up 16% YoY) and $334.586 million for FY 2025 (up 7% YoY) .</li><li>Operating Margin: Increased approximately 1 percentage point for both the quarter and year due to price realization and expense leverage offsetting unfavorable product mix and higher product costs from tariffs .</li></ul></li><li>Expansion Markets Segment:<ul><li>Net Sales: $43.4 million in Q4 2025 (down 6% YoY) and $167.9 million for FY 2025 (up 1% YoY). Q4 sales included upfront license fees in electric motor products, partially offset by lower sales in other applications. Full-year growth was driven by semiconductor and electric motor product applications, offset by decreases in environmental and high-pressure valves .</li><li>Operating Earnings: $12.213 million in Q4 2025 (up 35% YoY) and $41.496 million for FY 2025 (up 32% YoY) .</li><li>Operating Margin: Increased 8 percentage points for the quarter and 6 percentage points for the year, primarily due to the favorable margin impact of upfront license fees .</li></ul></li></ul><h4>Cash Flow (Full Year)</h4><ul><li>Net Cash Provided by Operating Activities: $683.591 million for FY 2025, compared to $621.700 million for FY 2024 .</li><li>Net Cash Used in Investing Activities: - $172.796 million for FY 2025, compared to - $342.815 million for FY 2024. This includes property, plant, and equipment additions of - $45.669 million (FY 2025) and - $106.737 million (FY 2024), and acquisition of businesses (net of cash acquired) of - $135.262 million (FY 2025) and - $241.767 million (FY 2024) .</li><li>Net Cash Used in Financing Activities: - $576.055 million for FY 2025, compared to - $139.863 million for FY 2024. This includes common stock repurchased of - $423.108 million (FY 2025) compared to - $31.350 million (FY 2024) and cash dividends paid of - $183.352 million (FY 2025) compared to - $172.088 million (FY 2024) .</li><li>Net (Decrease) Increase in Cash and Cash Equivalents: - $51.253 million for FY 2025, compared to $137.385 million for FY 2024 .</li><li>Cash and Cash Equivalents at End of Year: $624.083 million for FY 2025, compared to $675.336 million for FY 2024 .</li></ul><h4>Outlook</h4>Graco Inc. anticipates low single-digit organic sales growth on a constant-currency basis for 2026 . Including acquisitions, the company expects mid-single-digit sales growth for 2026 . The company remains focused on product innovation, strategic acquisitions, and advancing its One Graco operating model, with a strong acquisition pipeline .

Graco | 8-K: FY2025 Q4 Revenue Beats Estimate at USD 593.16 M