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Mar 28
Graco Q1 2025 Earnings Report
Graco posted solid growth across all segments and geographies in Q1 2025.
Key Takeaways
Graco delivered strong top-line growth in Q1 2025, with revenue up 7% and net income of $124.1M. Sales grew across all segments and regions, led by contributions from acquisitions and semiconductor-related demand.
Total revenue rose 7% year-over-year to $528.3 million.
Net income reached $124.1 million, up from $122.2 million a year earlier.
Contractor segment saw the largest revenue at $255 million but a drop in operating margin.
Expansion Markets segment posted the highest operating earnings growth at 49%.
Graco
Graco
Graco Revenue by Segment
Graco Revenue by Geographic Location
Revenue by Segment
Contractor Revenue
CapyFin.comIndustrial Revenue
CapyFin.comExpansion Markets Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
Graco maintained its full-year revenue guidance, expecting low-single digit organic growth despite tariff uncertainty.
Positive Outlook
- Maintains full-year revenue guidance of low-single digit growth.
- Acquired operations contributed significantly to Q1 sales.
- Semiconductor end-market remains a high-growth area.
- Expense control led to flat operating expenses year-over-year.
- Effective operational leverage in Industrial and Expansion segments.
Challenges Ahead
- Gross margin declined 2 percentage points due to higher product costs.
- Currency translation negatively impacted sales by $7 million.
- Contractor segment margin dropped 5 percentage points year-over-year.
- Increase in tax rate due to lower stock option tax benefits.
- Tariff uncertainties with China could reduce revenue by 1–2%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income