Snapshot
Graco Inc reported $543M of revenue in Q3 2025, up 4.7% year over year, with diluted EPS of $0.82 and an operating margin of 30.3%.
- Revenue
- $543M
- YoY growth
- +4.7%
- Diluted EPS
- $0.82
- Operating margin
- 30.3%
$543M
Revenue
+4.7%
YoY growth
$0.82
Diluted EPS
30.3%
Operating margin
01 Key takeaways
What management said
- •Yesterday, Graco reported third-quarter sales of $543 million, an increase of 5% from the same quarter last year.
- •Excluding acquisitions, which contributed 6% growth, and currency translation, which contributed another 1% growth, organic sales declined 2% in the quarter.
- •Reported net earnings increased 13% to $138 million or $0.82 per diluted share.
- •During the quarter, we recognized a $14 million non-cash gain from a reduction in the fair value of contingent consideration related to last year's acquisition of Corab.
- •Excluding the impact of excess tax benefits from stock option exercises and this contingent consideration fair value gain, adjusted non-GAAP net earnings was $0.73 per diluted share, an increase of 3%.
- •The gross margin rate was flat compared to the same quarter last year.
- •Tariffs affected product costs by $5 million in the quarter, resulting in a 100 basis point decline in the gross margin rate.
- •Operating earnings as a percent of sales was 28% for the quarter and consistent with the same period last year.
- •The adjusted effective tax rate was 20%, which is consistent with our expected full-year tax rate of 19.5%-20.5% on an as-adjusted basis.
- •Cash provided by operations totaled $487 million for the year, an increase of $51 million or 12%.
- •Improved inventory management from consolidating operations under One Graco and lower sales and earnings-based incentive payments drove the increase.
- •Cash provided by operations as a percentage of adjusted net earnings was 146% for the quarter and 132% for the year to date.
SourcesCompany financials · earnings call
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