Snapshot
Graco Inc reported $572M of revenue in Q2 2025, up 3.4% year over year, with diluted EPS of $0.76 and an operating margin of 27.5%.
- Revenue
- $572M
- YoY growth
- +3.4%
- Diluted EPS
- $0.76
- Operating margin
- 27.5%
$572M
Revenue
+3.4%
YoY growth
$0.76
Diluted EPS
27.5%
Operating margin
01 Key takeaways
What management said
- •Yesterday, Graco reported second quarter sales of $572 million, an increase of 3% from the second quarter of last year.
- •Reported net earnings decreased 4% to $128 million, or $0.76 per diluted share.
- •Excluding the impact of excess tax benefits from stock option exercises, adjusted non-GAAP net earnings were $127 million, or $0.75 per diluted share, a decrease of 3%.
- •The impact of acquisitions accounted for nearly 80 basis points of the decline, which will continue for the remainder of the year.
- •Excluding expenses of acquired operations, operating expenses declined $7 million, or 5%, on savings from the One Graco initiative, lower sales and earnings-based incentives, and timing of stock-based compensation expense.
- •Operating earnings decreased $4 million, or 2%, during the quarter due to decreased factory volume and the effect of tariffs.
- •Operating earnings as a percent of sales were 28% for the quarter, or one percentage point lower than the same period last year.
- •Contractor segment operating margin rate for the quarter was 26% compared to 31% for the same quarter last year, a decline of five percentage points.
- •The acquisition of COROB decreased the contractor operating margin rate by two percentage points, with the remaining decline due primarily to higher tariffs and lower factory volume.
- •The adjusted effective tax rate was 20%, which is consistent with our expected full-year tax rate of approximately 19.5%-20.5% on an as-adjusted basis.
- •Cash provided by operations totaled $308 million for the year, an increase of $50 million, or 19%.
- •Improved inventory management from consolidating operations under One Graco and lower sales and earnings-based incentive payments drove the increase.
SourcesCompany financials · earnings call
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