olivLaw · US equity research
Graco Inc. GGG
Pumps & Pumping Equipment · SIC 3561 · Vertical: Pumps & Pumping Equipment (SIC 3561)
Graco Inc. (NYSE: GGG) designs, manufactures and markets equipment for moving, dispensing and spraying fluids and powders in industrial and construction settings. Net sales reached 2236.6 million USD in fiscal 2025, and the company entered 2026 guiding to low single-digit organic growth, making demand from construction and automotive end markets relevant.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Graco Inc. (GGG) stock was 69.78 USD (+0.90% on the day), with market capitalisation 11.2 bn USD, P/E 22.5 on diluted EPS of 3.11 USD over the last 12 months, dividend yield 1.69%, beta 0.74, 52-week range 66.07–94.82 USD. Latest reported quarter (Q3 2026): revenue of 586.4 m USD (+7.9% YoY), net income of 121.6 m USD (−11.7% YoY), diluted EPS 0.75 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 38.9
- weak (30–45)
- Bollinger (20, 2)
- 61.58 – 86.74
- in the lower half of the band · %B 0.33 · band width 33.9%
- SMA 50 / 200
- 76.19 / 80.73
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -2.72 / -2.24
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −11.5% | −1.1% | −10.4 pp | — |
| 3 months | −15.4% | −0.5% | −15.0 pp | — |
| 6 months | −13.2% | +4.4% | −17.6 pp | — |
| Year to date | −14.9% | +12.3% | −27.2 pp | — |
| 1 year | −14.6% | +13.5% | −28.1 pp | +24.1% |
| 3 years | −9.4% | +76.4% | −85.8 pp | +98.9% |
| 5 years | −10.4% | +63.7% | −74.1 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 25 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 548.7 m | 528.3 m | 571.8 m | 543.4 m | 593.2 m | 540.1 m | 590.6 m | 586.4 m |
| Cost of revenue | 269.4 m | 250.6 m | 272.3 m | 254.1 m | 286.5 m | 259.5 m | 273.6 m | 290.2 m |
| Gross profit | 279.3 m | 277.7 m | 299.5 m | 289.2 m | 306.7 m | 280.6 m | 316.9 m | 296.2 m |
| Research & development | 22.2 m | 19.4 m | 20.7 m | 20.3 m | 21.9 m | 20.0 m | 19.8 m | 20.6 m |
| Operating income | 130.0 m | 144.0 m | 157.5 m | 164.7 m | 158.6 m | 137.8 m | 175.1 m | 148.1 m |
| Depreciation & amortisation | 24.7 m | 24.7 m | 27.1 m ≈ | 23.9 m ≈ | 31.7 m | 28.6 m | 23.0 m ≈ | 26.0 m ≈ |
| Interest expense | 794.0 k | 713.0 k | 655.0 k | 711.0 k | 814.0 k | 836.0 k | 835.0 k | 793.0 k |
| Pre-tax income | 132.5 m | 151.5 m | 158.2 m | 168.5 m | 163.1 m | 140.1 m | 181.5 m | 152.4 m |
| Income tax | 23.8 m | 27.4 m | 30.6 m | 30.8 m | 30.6 m | 21.6 m | 36.5 m | 30.8 m |
| Net income | 108.7 m | 124.1 m | 127.6 m | 137.6 m | 132.5 m | 118.5 m | 144.9 m | 121.6 m |
| Diluted EPS | 0.63 ≈ | 0.72 | 0.76 | 0.82 | 0.79 ≈ | 0.70 | 0.87 | 0.75 |
| Operating cash flow | 185.2 m | 125.4 m | 182.7 m ≈ | 179.2 m ≈ | 196.3 m | 120.2 m | 177.7 m ≈ | 165.5 m ≈ |
| Capex | 13.9 m | 10.6 m | 19.6 m ≈ | 3.5 m ≈ | 12.0 m | 12.1 m | 16.4 m ≈ | 19.1 m ≈ |
| Dividends paid | 43.1 m | 46.6 m | 45.6 m ≈ | 45.6 m ≈ | 45.6 m | 48.8 m | 48.9 m ≈ | 47.7 m ≈ |
| Share repurchases | 0 | 238.1 m | 122.9 m ≈ | 0 ≈ | 62.2 m | 11.8 m | 319.4 m ≈ | 131.8 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 3 percentile of its own 40-quarter history (min 20.9, median 28.8, max 115.4; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.7 bn | 1.6 bn | 1.7 bn | 2.0 bn | 2.1 bn | 2.2 bn | 2.1 bn | 2.2 bn |
| Revenue YoY | +12.1% | −0.4% | +0.2% | +20.5% | +7.8% | +2.4% | −3.7% | +5.8% |
| Net income | 341.1 m | 343.9 m | 330.5 m | 439.9 m | 460.6 m | 506.5 m | 486.1 m | 521.8 m |
| Net income YoY | +35.1% | +0.8% | −3.9% | +33.1% | +4.7% | +10.0% | −4.0% | +7.4% |
| Diluted EPS | 1.97 | 2.00 | 1.92 | 2.52 | 2.66 | 2.94 | 2.82 | 3.08 |
| Diluted EPS YoY | +35.9% | +1.5% | −4.0% | +31.3% | +5.6% | +10.5% | −4.1% | +9.2% |
| net % | 20.6% | 20.9% | 20.0% | 22.1% | 21.5% | 23.1% | 23.0% | 23.3% |
| Free cash flow | 314.1 m | 290.8 m | 322.7 m | 323.3 m | 176.2 m | 466.2 m | 515.0 m | 637.9 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 26 Dec 2025
- Cash
- 624.1 m USD
- Financial debt
- 0 USD
- Net debt
- -624.1 m USD
- Equity
- 2.7 bn USD
- Total assets
- 3.3 bn USD
- Debt / equity
- 0.00x
- Current ratio
- 3.15x
- ROE
- 19.9%
- ROA
- 16.3%
- FCF margin
- 28.5%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 1.7 bn | 2.0 bn | 2.1 bn | 2.2 bn | 2.1 bn | 2.2 bn | SEC (XBRL)· 17 Feb 2026verified |
| Cost of revenue | 795.2 m | 953.7 m | 1.1 bn | 1.0 bn | 990.9 m | 1.1 bn | SEC (XBRL)· 17 Feb 2026verified |
| Gross profit | 854.9 m | 1.0 bn | 1.1 bn | 1.2 bn | 1.1 bn | 1.2 bn | SEC (XBRL)· 17 Feb 2026verified |
| Research & development | 72.2 m | 79.7 m | 80.0 m | 82.8 m | 87.2 m | 82.3 m | SEC (XBRL)· 17 Feb 2026verified |
| Operating income | 391.7 m | 531.3 m | 572.7 m | 646.8 m | 570.1 m | 624.8 m | SEC (XBRL)· 17 Feb 2026verified |
| Depreciation & amortisation | 55.3 m | 59.3 m | 66.0 m | 74.3 m | 86.7 m | 107.4 m | SEC (XBRL)· 17 Feb 2026verified |
| EBITDA | 447.0 m ≈ | 590.6 m ≈ | 638.7 m ≈ | 721.2 m ≈ | 656.8 m ≈ | 732.2 m ≈ | SEC (XBRL)· 17 Feb 2026derived |
| Interest expense | 11.3 m | 10.2 m | 9.9 m | 5.2 m | 2.8 m | 2.9 m | SEC (XBRL)· 17 Feb 2026verified |
| Pre-tax income | 374.7 m | 508.5 m | 565.7 m | 608.8 m | 589.3 m | 641.2 m | SEC (XBRL)· 17 Feb 2026verified |
| Income tax | 44.2 m | 68.6 m | 105.1 m | 102.3 m | 103.2 m | 119.4 m | SEC (XBRL)· 17 Feb 2026verified |
| Net income | 330.5 m | 439.9 m | 460.6 m | 506.5 m | 486.1 m | 521.8 m | SEC (XBRL)· 17 Feb 2026verified |
| Diluted EPS | 1.92 | 2.52 | 2.66 | 2.94 | 2.82 | 3.08 | SEC (XBRL)· 17 Feb 2026verified |
| Weighted average diluted shares | 172.0 m | 174.5 m | 172.9 m | 172.2 m | 172.4 m | 169.2 m | SEC (XBRL)· 17 Feb 2026verified |
| Dividend per share | 0.71 | 0.77 | 0.87 | 0.96 | 1.04 | 1.12 | SEC (XBRL)· 17 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 378.9 m | 624.3 m | 339.2 m | 538.0 m | 675.3 m | 624.1 m | SEC (XBRL)· 17 Feb 2026verified |
| Inventories | 285.7 m | 382.3 m | 476.8 m | 438.3 m | 404.7 m | 401.1 m | SEC (XBRL)· 17 Feb 2026verified |
| Current assets | 1.0 bn | 1.4 bn | 1.2 bn | 1.4 bn | 1.5 bn | 1.5 bn | SEC (XBRL)· 17 Feb 2026verified |
| Property, plant & equipment, net | 350.8 m | 451.1 m | 607.6 m | 741.7 m | 771.7 m | 755.1 m | SEC (XBRL)· 17 Feb 2026verified |
| Goodwill | 347.6 m | 356.3 m | 368.2 m | 370.2 m | 487.5 m | 585.3 m | SEC (XBRL)· 17 Feb 2026verified |
| Intangibles (excl. goodwill) | 160.7 m | 149.7 m | 137.5 m | 126.3 m | 233.3 m | 303.9 m | SEC (XBRL)· 17 Feb 2026verified |
| Total assets | 2.0 bn | 2.4 bn | 2.4 bn | 2.7 bn | 3.1 bn | 3.3 bn | SEC (XBRL)· 17 Feb 2026verified |
| Long-term debt | 150.0 m | 75.0 m | 75.0 m | 0 | — | 0 | SEC (XBRL)· 21 Oct 2026verified |
| Current liabilities | 321.4 m | 506.8 m | 399.9 m | 395.2 m | 405.8 m | 467.3 m | SEC (XBRL)· 17 Feb 2026verified |
| Equity | 1.3 bn | 1.7 bn | 1.9 bn | 2.2 bn | 2.6 bn | 2.7 bn | SEC (XBRL)· 17 Feb 2026verified |
| Shares outstanding at year end | 168.8 m | 170.4 m | 167.8 m | — | — | — | SEC (XBRL)· 26 Oct 2022verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 394.0 m | 456.9 m | 377.4 m | 651.0 m | 621.7 m | 683.6 m | SEC (XBRL)· 17 Feb 2026verified |
| Capex | 71.3 m | 133.6 m | 201.2 m | 184.8 m | 106.7 m | 45.7 m | SEC (XBRL)· 17 Feb 2026verified |
| Free cash flow | 322.7 m ≈ | 323.3 m ≈ | 176.2 m ≈ | 466.2 m ≈ | 515.0 m ≈ | 637.9 m ≈ | SEC (XBRL)· 17 Feb 2026derived |
| Investing cash flow | -99.0 m | -153.3 m | -226.8 m | -185.3 m | -342.8 m | -172.8 m | SEC (XBRL)· 17 Feb 2026verified |
| Financing cash flow | -139.5 m | -57.1 m | -434.4 m | -268.0 m | -139.9 m | -576.1 m | SEC (XBRL)· 17 Feb 2026verified |
| Dividends paid | 117.0 m | 127.1 m | 142.1 m | 158.3 m | 172.1 m | 183.4 m | SEC (XBRL)· 17 Feb 2026verified |
| Share repurchases | 102.1 m | 0 | 233.4 m | 102.3 m | 31.4 m | 423.1 m | SEC (XBRL)· 17 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
Score: 71 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 11.2 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation48
- Balance sheet100
- Quality100
- Growth23
- Returns95
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 14.72 – 122.45 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)46.49 – 70.45 (Mid 55.83)WACC 9.3% · starting FCFF 602.8 m USD · terminal value share of EV 73%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 11.4%
- Peers: EV/EBITDA68.54 – 95.49 (Mid 81.57)4 companies used · median multiple 17.9x · quartiles 15.0x – 21.0xFLS, GRC, ITT, XYL
- Peers: P/E81.89 – 122.45 (Mid 100.78)5 companies used · median multiple 32.4x · quartiles 26.3x – 39.4xFLS, GRC, IEX, ITT, XYL
- Dividend discount (DDM)14.72 – 19.79 (Mid 16.88)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 71/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 20.7% | 100 (vs peers) | 10% |
| Net margin · Quality | 22.4% | 100 (vs peers) | 6% |
| FCF conversion · Quality | 116.0% | 100 (on a fixed band) | 6% |
| Revenue CAGR 3Y · Growth | 1.4% | 12 (on a fixed band) | 8% |
| EPS CAGR 3Y · Growth | 5.0% | 33 (on a fixed band) | 8% |
| Net debt / EBITDA · Balance sheet | -0.0x | 100 (on a fixed band) | 10% |
| Interest coverage · Balance sheet | 189.0x | 100 (on a fixed band) | 6% |
| Current ratio · Balance sheet | 2.1x | 100 (on a fixed band) | 4% |
| P/E (TTM) · Valuation | 22.5x | 80 (vs peers) | 10% |
| EV/EBITDA · Valuation | 15.3x | 0 (on a fixed band) | 10% |
| FCF yield · Valuation | 5.4% | 67 (on a fixed band) | 8% |
| Shareholder yield (distributions) · Returns | 6.4% | 91 (on a fixed band) | 6% |
| Payout ratio (FCF) · Returns | 31.8% | 100 (on a fixed band) | 4% |
Score groups
- Balance sheet100/100 · 3/3 factors with a value
- Growth23/100 · 2/2 factors with a value
- Quality100/100 · 3/3 factors with a value
- Returns95/100 · 2/2 factors with a value
- Valuation48/100 · 3/3 factors with a value
Memo
GRACO INC. (GGG). Latest full fiscal year: 2025; data up to 2026-09-25.
Figures computed from the financial statements: revenue 2.2 bn USD in 2025; YoY growth 5.8%; net margin 22.4%; ROE 20.4%; net debt/EBITDA -0.0x.
The estimated value range is 57.51–82.97 USD per share (median of 4 methods, agreement: medium); assumptions are illustrative. Against the central value of 68.70 USD, the price of 69.78 USD leaves a potential of -1.6% (value / price − 1) and a margin of safety of -1.6% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 71/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- ROIC: 20.7%
- Net margin: 22.4%
- FCF conversion: 116.0%
- Net debt / EBITDA: -0.0x
- Interest coverage: 189.0x
- Current ratio: 2.1x
- P/E (TTM): 22.5x
- Shareholder yield (distributions): 6.4%
- Payout ratio (FCF): 31.8%
What contradicts it
- Revenue CAGR 3Y: 1.4%
- EV/EBITDA: 15.3x
Versus the vertical median
Pumps & Pumping Equipment (SIC 3561) · same industry (4-digit SIC) · compared with 6 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| XYLXylem Inc. | 23.2 bn | 22.3 | 10.1% | 11.9% | +5.5% | −28% / −4% |
| ITTItt Inc. | 18.0 bn | 39.4 | 11.5% | 8.9% | +8.5% | +9% / +86% |
| IEXIdex Corp | 17.2 bn | 32.4 | 13.3% | 14.6% | +5.8% | +34% / +16% |
| GGGGraco Inc. | 11.2 bn | 22.5 | 20.4% | 22.4% | +5.8% | −15% / −9% |
| FLSFlowserve Corp | 10.3 bn | 40.7 | 11.1% | — | unavailable | +14% / +112% |
| GRCThe Gorman-Rupp Company | 2.0 bn | 26.3 | 17.0% | 10.2% | +3.4% | +59% / +134% |
| APAmpco-Pittsburgh Corp | 142.8 m | — | -126.3% | -13.8% | +3.8% | +167% / +149% |
1- and 3-year price returns: for GGG from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 41.50 Total return -39% · Per year -39% | 73.48 Total return 7% · Per year 7% | 110.83 Total return 61% · Per year 61% |
| 3 years | 37.82 Total return -42% · Per year -17% | 75.59 Total return 14% · Per year 4% | 125.53 Total return 87% · Per year 23% |
| 5 years | 34.48 Total return -44% · Per year -11% | 77.76 Total return 21% · Per year 4% | 142.19 Total return 116% · Per year 17% |
- Exit P/E± 18.90
- Net margin± 13.23
- Annual revenue growth± 11.19
- Annual dilution± 1.11
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 17 Feb 2026; since then the company filed 10-Q (21 Oct 2026), 10-Q (22 Jul 2026), 10-Q (22 Apr 2026).
In brief
Graco Inc. (NYSE: GGG) designs, manufactures and markets equipment for moving, dispensing and spraying fluids and powders in industrial and construction settings. Net sales reached 2236.6 million USD in fiscal 2025, and the company entered 2026 guiding to low single-digit organic growth, making demand from construction and automotive end markets relevant.
SWOT
Strengths
- Graco holds a strong position in niches with difficult materials, supported by innovation, quality and a broad network of third-party distributors.
- The company maintains a high operating margin and strong manufacturing and engineering capabilities, with focused factories largely in the United States.
- Recent acquisitions expanded the product range and manufacturing capacity, and integration is supported by the company's core values.
Weaknesses
- Reliance on construction end markets, particularly residential, makes sales sensitive to economic cycles.
- The company has significant currency exposure, since many transactions are in foreign currencies and part of production is outside the United States.
- The Expansion Markets segment is small and depends on projects and licenses that can vary from year to year.
Opportunities
- If construction and the automotive industry recover, demand for spraying and finishing equipment could increase.
- Further acquisitions could extend geographic reach and technical capabilities, and management says its pipeline remains solid.
- Emerging markets and industrial automation could open new applications for existing products.
Threats
- Lower-cost competitors and copies could pressure prices and affect revenues and profits.
- Tariffs, geopolitical tensions and supply chain disruptions could raise costs and delay deliveries.
- A weaker economic cycle or higher interest rates could reduce customer investment and demand.
Risks
- Construction demandhigh
Demand for Contractor segment products depends on construction activity. A prolonged decline could affect sales and margins.
- Currency riskmedium
Changes in exchange rates can affect revenues, costs and the value of assets denominated in foreign currencies, and part of production and expenses are outside the United States.
- Supply chainmedium
Foreign sourcing, tariffs and logistics disruptions could raise costs or delay production. Some components come from single suppliers.
- Cybersecuritymedium
Cyberattacks could disrupt operations, compromise sensitive data and create uninsured costs, since the company does not currently maintain specific cyber insurance.
- Intellectual propertylow
Low-cost copies and possible patent litigation could raise costs and affect market share, and defending against claims can be expensive.
Investment thesis
What would need to be true (bull case)
- If construction and automotive activity recover, Graco could benefit from higher demand for its equipment, and its broad customer base could support sales.
- Recent acquisitions could add products and distribution channels, and management says its acquisition pipeline remains strong.
- Innovation and production quality could help maintain margins even during periods of higher costs.
What would break the thesis
- If the construction recovery is delayed, the Contractor segment could remain under pressure and organic growth could be limited.
- Tariffs and raw material costs could reduce margins, particularly if price realization does not keep pace.
- Competition from lower-cost rivals and copies could erode market share in some segments.
What to watch
- Delivery of the 2026 low single-digit organic growth guidance2026
- Contractor segment sales and the pace of construction recoveryQ1 2027
- Integration of the 2025 acquisitions and their contribution to marginnext 10-K
- Effect of tariffs on costs and gross margin2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 17 Feb 2026; since then the company filed 10-Q (21 Oct 2026), 10-Q (22 Jul 2026), 10-Q (22 Apr 2026).
The business
Graco Inc. is a multi-national industrial manufacturer, incorporated in Minnesota in 1926, that supplies technology and expertise for managing fluids and coatings. The company focuses on difficult-to-handle materials, such as high-viscosity, abrasive or corrosive fluids and multi-component mixes requiring precise ratio control. Products are sold mainly through independent third-party distributors worldwide, and most manufacturing is in the United States. In 2025 the company completed two acquisitions in the Contractor and Industrial segments, adding product lines and a broader partner network. Its long-term strategy combines new product launches, targeted acquisitions and expanded global distribution.
Segments
Contractor
The Contractor segment, about 48 percent of 2025 sales, offers paint and coating sprayers, texture sprayers, roof coating equipment and spray foam systems. Segment sales grew in 2025 with 100 million USD from acquisitions, but residential and non-residential construction demand stayed weak and the operating margin fell due to higher tariff costs.
Industrial
The Industrial segment, about 45 percent of 2025 sales, supplies liquid finishing equipment, pumps for chemicals and food, lubrication systems and powder finishing solutions. Sales rose 4 percent in 2025 and the operating margin edged up, supported by price realization and finishing projects in Europe.
Expansion Markets
The Expansion Markets segment, about 7 percent of sales, includes pumps for the semiconductor industry, high-pressure valves for oil and gas, environmental monitoring equipment and licensing of high-torque electric motors. The segment is small but volatile, and its results depend on projects and upfront license fees.
Market context
Graco's end markets include construction, automotive and vehicle assembly, industrial finishing, equipment maintenance and semiconductors. The company reports that in 2025 industrial and vehicle service activity in the Americas improved, while residential and non-residential construction stayed soft, and construction and semiconductors improved in China. Net sales grew 6 percent in 2025, and the Americas represent about 60 percent of sales.
For 2026 the company guided to low single-digit organic sales growth on a constant-currency basis and mid-single-digit growth including acquisitions. The outcome depends on a recovery in construction and the pace of acquisitions, and a weaker economic environment could limit growth.
Trends
- Slow construction recoveryheadwind
Demand for Contractor sprayers depends on residential and non-residential construction, which stayed weak in 2025. A recovery could support sales, but its timing remains uncertain.
- Acquisitions as a growth drivertailwind
Acquisitions contributed a significant part of sales growth, and management says its pipeline remains strong. If integration succeeds, they could widen the product range and distribution network.
- Tariff and cost pressureheadwind
Tariffs raised production costs and reduced gross margin. Price realization partly, but not fully, offset this impact.
- Automation and industrial finishingmixed
Demand for automated dosing and powder finishing equipment, including in automotive and e-mobility, supports the Industrial segment. Powder finishing system sales, however, follow uneven project timing.
Competitive position
Graco operates in a market with varied competitors depending on product, industry and region, and each segment generally has several rivals. Competitors include both U.S. and foreign companies, some larger in sales or financial resources, and some operating with different cost structures and lower prices. The company says it competes through product quality, reliability, innovation and service, but low-cost copies, mainly from Asia, are a growing pressure.
Competitive risk also includes counterfeiting and intellectual property infringement, which grow as low-cost copies expand into Europe and North America. If Graco cannot address these challenges effectively, revenues and profits could be affected.
- U.S. and foreign contractor-equipment makers
Makers of sprayers and coatings equipment, some larger than Graco, compete on similar products and construction distribution channels.
- Pump and industrial equipment manufacturers
Rivals in the Industrial segment offer pumps, dosing and finishing systems, and some operate with different production cost structures.
- Low-cost copy manufacturers
Competitors selling copies of Graco products, mainly from Asia, and expanding their presence in Europe and North America.
- Semiconductor and oil and gas equipment suppliers
Rivals in the Expansion Markets segment vary by application, and competition depends on technical specialization.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Why Graco (GGG) Was a Q2 Detractor for Gabelli Small Cap Growth FundYahoo Finance — News · 22 Sept 2026 · EN
The latest news item in our archive is from 22 Sept 2026; the newest SEC filing is from 21 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report21 Oct 2026
- Current report14 Sept 2026Departure or appointment of officers · Financial statements and exhibits
- Current report01 Sept 2026Regulation FD disclosure · Financial statements and exhibits
- Quarterly report22 Jul 2026
- Current report15 Jun 2026Departure or appointment of officers · Financial statements and exhibits
- Current report21 May 2026Regulation FD disclosure · Financial statements and exhibits
- Current report05 May 2026Regulation FD disclosure · Financial statements and exhibits
- Current report27 Apr 2026Shareholder vote
- Quarterly report22 Apr 2026
- Proxy statement11 Mar 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-26 · SEC / Graco Inc. · 17 Feb 2026
- [2] Form 8-K, results release (exhibit 99.1) · SEC / Graco Inc. · 26 Jan 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.