--- title: "Graco | 8-K: FY2025 Q4 Revenue Beats Estimate at USD 593.16 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/273747335.md" datetime: "2026-01-26T21:15:04.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/273747335.md) - [en](https://longbridge.com/en/news/273747335.md) - [zh-HK](https://longbridge.com/zh-HK/news/273747335.md) --- # Graco | 8-K: FY2025 Q4 Revenue Beats Estimate at USD 593.16 M 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. #### Overall Financial Performance - **Net Sales**: - 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 . - 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 . - **Operating Earnings (GAAP)**: - Fourth quarter operating earnings increased by 22% to $158.6 million from $130.0 million in the prior year . - Full year operating earnings increased by 10% to $624.8 million from $570.1 million in the prior year . - **Net Earnings (GAAP)**: - Fourth quarter net earnings increased by 22% to $132.5 million from $108.7 million in the prior year . - Full year net earnings increased by 7% to $521.8 million from $486.1 million in the prior year . - **Adjusted Operating Earnings (non-GAAP)**: - Fourth quarter adjusted operating earnings were $158.6 million, a 15% increase from $137.7 million in the prior year . - Full year adjusted operating earnings were $610.7 million, a 6% increase from $577.8 million in the prior year . - **Adjusted Net Earnings (non-GAAP)**: - Fourth quarter adjusted net earnings were $128.7 million, a 17% increase from $110.1 million in the prior year . - Full year adjusted net earnings were $498.8 million, a 5% increase from $477.1 million in the prior year . - **Gross Profit and Margin Rate**: - Gross profit for the fourth quarter was $306.695 million, up from $279.280 million in the prior year . - Gross profit for the full year was $1,173.183 million, up from $1,122.461 million in the prior year . - The gross profit margin rate increased approximately 1 percentage point for the fourth quarter due to price realization offsetting higher product costs . - 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 . - **Operating Expenses**: - Total operating expenses for both the fourth quarter and the full year decreased 1 percent from the comparable prior year periods . - 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 . - 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 . - **Other Non-Operating Income**: - Other non-operating income increased $2 million for the fourth quarter due to favorable market valuation changes on investments . - 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 . - **Effective Income Tax Rate**: - The effective income tax rate was 19% for the fourth quarter and the full year . - The adjusted effective income tax rate was 21% for the fourth quarter and 20% for the full year, consistent with the prior year . #### Segment Results - **Contractor Segment**: - **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 . - **Operating Earnings**: $65.016 million in Q4 2025 (up 34% YoY) and $270.308 million for FY 2025 (up 0% YoY) . - **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 . - **Industrial Segment**: - **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 . - **Operating Earnings**: $91.886 million in Q4 2025 (up 16% YoY) and $334.586 million for FY 2025 (up 7% YoY) . - **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 . - **Expansion Markets Segment**: - **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 . - **Operating Earnings**: $12.213 million in Q4 2025 (up 35% YoY) and $41.496 million for FY 2025 (up 32% YoY) . - **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 . #### Cash Flow (Full Year) - **Net Cash Provided by Operating Activities**: $683.591 million for FY 2025, compared to $621.700 million for FY 2024 . - **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) . - **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) . - **Net (Decrease) Increase in Cash and Cash Equivalents**: - $51.253 million for FY 2025, compared to $137.385 million for FY 2024 . - **Cash and Cash Equivalents at End of Year**: $624.083 million for FY 2025, compared to $675.336 million for FY 2024 . #### Outlook 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 . ### Related Stocks - [GGG.US](https://longbridge.com/en/quote/GGG.US.md) ## Related News & Research - [From a Minneapolis Garage to a Global Manufacturer: Graco Marks 100 Years of Resilience | GGG Stock News](https://longbridge.com/en/news/283030688.md) - [Graco Director Sells Over 12,000 Shares](https://longbridge.com/en/news/274827552.md) - [Crescent Lake Project Reacquired and Director Change | ALRGF Stock News](https://longbridge.com/en/news/283192088.md) - [XTI Aerospace Reports Fourth Quarter and Full Year 2025 Results | UMAC Stock News](https://longbridge.com/en/news/282848031.md) - [Cashmere Valley Bank Announces Preliminary Results of Tender Offer | CSHX Stock News](https://longbridge.com/en/news/283202844.md)