Graco Reports Record Q4 Sales and Earnings

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Graco (NYSE:GGG) reported record fourth-quarter sales of $593 million, up 8% from the prior year, driven by contributions from acquisitions, modest organic growth, and margin improvement despite tariff-related cost pressure. The company also provided an outlook for 2026 calling for low single-digit organic growth, supported by pricing actions and continued execution of its 'One Graco' operating model.

Why it matters

Graco's strong financial performance in Q4 and its optimistic outlook for 2026 demonstrate the company's ability to navigate challenging market conditions and execute on its strategic priorities, including growth through acquisitions and operational improvements. The results also highlight the resilience of Graco's diversified business model and its ability to offset external headwinds like tariffs through pricing actions and cost management.

The details

Graco reported that fourth-quarter sales were up 8%, with 4% from acquisitions, 2% from currency translation, and 2% from organic sales. Gross margin improved by 80 basis points year over year, as targeted pricing actions more than offset higher product costs tied to lower factory volumes, the lower margins of acquired operations, and incremental tariffs. Operating expenses declined $1 million, or 1%, primarily due to lower business reorganization and litigation costs compared to the prior year. Total company adjusted operating earnings rose $21 million, or 15%, and adjusted operating margin was 27% versus 25% a year earlier.

• Graco reported its fourth-quarter and full-year 2025 results on January 27, 2026.

What they’re saying

What’s next

Management discussed upfront licensing fee revenue tied to Graco's electric motor technology, noting that 2026 guidance does not assume additional upfront fees but that royalties may follow over time.