Snapshot
Graco Inc reported $593M of revenue in Q4 2025, up 8.1% year over year, with diluted EPS of $0.79 and an operating margin of 26.7%.
- Revenue
- $593M
- YoY growth
- +8.1%
- Diluted EPS
- $0.79
- Operating margin
- 26.7%
$593M
Revenue
+8.1%
YoY growth
$0.79
Diluted EPS
26.7%
Operating margin
01 Key takeaways
What management said
- •Yesterday, Graco reported fourth quarter sales of $593 million, an increase of 8% from the same quarter last year.
- •Acquisitions contributed 4%, currency translation, 2%, and organic sales, another 2% to growth in the quarter.
- •Reported net earnings increased 22% to $133 million, or $0.79 per diluted share.
- •The gross margin rate increased 80 basis points compared to the same quarter last year.
- •The effects of our targeted interim pricing actions more than offset higher product costs, resulting from lower factory volumes, unfavorable effects of lower margin rates from acquired operations, and incremental tariffs.
- •Tariffs affected product costs by $4 million in the quarter, resulting in a 70 basis point decline in the gross margin rate.
- •For the full year, tariffs of $14 million had an unfavorable impact of 60 basis points on the gross margin rate.
- •Offsetting these costs were incremental expenses of acquired operations of $7 million and higher incentive-based costs.
- •Contractor segment operating margin rate for the quarter was 24% and was consistent for the same period last year, excluding business reorganization charges and litigation spending.
- •Expansion Markets segment operating margin, operating margin was 28%, compared to 20% for the same quarter last year.
- •Expansion Markets had upfront electric motor license fee revenue of $5 million in the quarter and $7 million for the full year.
- •These upfront license fees increased the operating margin rate for the quarter by 9 percentage points and 3 percentage points for the full year.
SourcesCompany financials · earnings call
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