Snapshot
Graco Inc reported $540M of revenue in Q1 2026, up 2.2% year over year, with diluted EPS of $0.70 and an operating margin of 25.5%.
- Revenue
- $540M
- YoY growth
- +2.2%
- Diluted EPS
- $0.70
- Operating margin
- 25.5%
$540M
Revenue
+2.2%
YoY growth
$0.70
Diluted EPS
25.5%
Operating margin
01 Key takeaways
What management said
- •Acquisitions contributed 5% growth and currency translation added 3% growth, partially offset by a 6% decline in organic sales.
- •Reported net earnings were $119 million, down 5% or 70 cents per diluted share.
- •Excluding excess tax benefits from stock option exercises, adjusted non-GAAP net earnings were 66 cents per diluted share, down 6%.
- •Gross margin decreased 60 basis points versus the first quarter last year.
- •The benefit from our pricing actions helped offset higher product costs from lower factory volume, lower margin rates from acquired operations, and incremental tariffs.
- •Excluding $5 million in incremental expenses from acquired operations and the effects of currency translation, expenses were flat.
- •In the quarter, the operating margin rate in both our contractor and expansion market segments was 24%, consistent with the same period last year.
- •Industrial segment operating margin was 32%, down from 34% in the prior year quarter.
- •Total company operating earnings decreased $6 million or 4% in the quarter.
- •Operating earnings as a percentage of sales were 26% compared to 27% in the same period last year.
- •The adjusted effective tax rate was 20%, in line with our expected full-year adjusted tax rate of 20%-21%.
- •Cash provided by operations as a percentage of adjusted net earnings was 107% for the quarter.
SourcesCompany financials · earnings call
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