Description

Graco Inc.: How the “One Graco” Initiative Is Rewiring the Business—Inside the Efficiency Play Driving Margin Upside!

Graco Inc. reported a 5% increase in third-quarter sales, totaling $543 million, compared to the same period last year. This growth was driven by a 6% contribution from acquisitions, while currency translation added 1%. However, organic sales saw a 2% decline. Reported net earnings rose by 13% to $138 million, equating to $0.82 per diluted share. This figure included a $14 million noncash gain tied to the reduction in fair value contingent consideration from a previous acquisition, which was treated as an unallocated corporate operating expense. When adjusted for tax benefits from stock option exercises and the contingent consideration gain, non-GAAP net earnings were $0.73 per diluted share, reflecting a 3% increase. Gross margins remained stable year-over-year, offsetting higher product costs tied to lower factory volume, unfavorable margin rates from acquired operations, and incremental tariffs.