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Mar 28, 2025
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%.
Revenue by Segment
Revenue by Geographic Location
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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