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Dec 27, 2024

Graco Q4 2024 Earnings Report

Graco's Q4 2024 results reflected decreased net sales and operating earnings due to slower demand and increased operating expenses.

Key Takeaways

Graco Inc. reported a 3% decrease in net sales for the fourth quarter, with declines in all regions. Operating earnings decreased by 23% due to lower sales volume and higher operating expenses. The company completed the Corob acquisition, contributing 3% to sales growth.

Net sales decreased by 3% compared to the previous year, with declines in all regions.

Gross profit margin rate declined by approximately 2 percentage points.

Operating expenses increased by $19 million, including litigation costs and business reorganization costs.

Completed Corob acquisition, contributing 3% of sales growth in the quarter.

Total Revenue
$549M
Previous year: $567M
-3.2%
EPS
$0.64
Previous year: $0.8
-20.0%
Gross Profit
$279M
Previous year: $300M
-6.9%
Cash and Equivalents
$675M
Previous year: $538M
+25.5%
Free Cash Flow
$170M
Previous year: $120M
+40.7%
Total Assets
$3.14B
Previous year: $2.72B
+15.3%

Graco

Graco

Graco Revenue by Segment

Forward Guidance

The company anticipates low single-digit sales growth on an organic, constant currency basis for the full year 2025.

Positive Outlook

  • Incoming orders were consistent through much of the year, including the fourth quarter.
  • Demand in China and for semiconductor products appear to have stabilized.
  • Expecting growth in China and semiconductor products in 2025.
  • Reorganization into global businesses completed, teams positioned to drive incremental profitable growth.
  • Acquisition pipeline is solid with actionable opportunities expected in the coming year.

Revenue & Expenses

Visualization of income flow from segment revenue to net income