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Jun 27, 2025
Graco Q2 2025 Earnings Report
Graco reported its second quarter results, with net sales increasing 3% and diluted EPS decreasing 1%.
Key Takeaways
Graco Inc. announced mixed results for the second quarter ended June 27, 2025. While net sales increased by 3% to $571.8 million, driven by acquired operations, net earnings decreased by 4% and diluted EPS saw a slight decline of 1%. The company experienced sales growth in EMEA and Asia Pacific, which was partially offset by a decrease in the Americas, particularly in the Contractor segment due to softness in North American construction markets.
Net sales increased by 3% to $571.8 million, primarily due to a 6 percentage point contribution from acquired operations.
Diluted net earnings per common share decreased by 1% to $0.76, and net earnings declined by 4% to $127.6 million.
Sales in the Americas decreased by 3%, while EMEA sales grew by 19% and Asia Pacific sales increased by 12%.
Gross profit margin rate declined by approximately 2 percentage points due to higher product costs, including increased tariffs, and lower margin rates from acquired operations.
Revenue by Segment
Forward Guidance
Graco is maintaining its 2025 revenue outlook of low single-digit sales growth on an organic constant-currency basis, despite rising component costs due to tariffs. The company plans to implement a targeted price increase in September to offset these costs.
Positive Outlook
- Upcoming new product launches are expected to contribute positively.
- Steady order rates observed throughout the quarter provide confidence.
- Targeted price increase in September aims to mitigate higher costs.
- Continued sales growth in the semiconductor product application within Expansion Markets.
- Improved activity in China for powder finishing equipment.
Challenges Ahead
- Rising component costs due to tariffs introduced this quarter.
- Softness in North American construction markets impacting the Contractor segment.
- Cautious channel and contractor investment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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