Newell Brands is cutting prices by up to 15% at its Rubbermaid food storage brand and on several core items in baby-care portfolio Graco, a spokesperson told Reuters on Friday. ...

Graco Inc. (NYSE:GGG) is one of the 15 best Industrial Machinery and Supplies stocks to buy according to Hedge Funds. As of February 3 closing, Graco Inc. (NYSE:GGG) had received coverage from 6 analysts, with 1 Buy rating and 5 Hold calls. With no Sell rating, the stock has a median 1-year price target of $93.67, offering almost 6% upside potential. hello-i-m-nik-pMq-iEwBZik-unsplash On January 29, Goldman Sachs revised its estimated target price on Graco Inc. (NYSE:GGG) from $83 to $89, and reiterate ...

From a technical perspective, Graco Inc. (GGG) is looking like an interesting pick, as it just reached a key level of support. GGG's 50-day simple moving average crossed above its 200-day simple moving average, which is known as a "golden cross" in the trading world.Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day ...

Core Viewpoint - RBC Capital analyst Deane Dray raised the price target on Graco (GGG) to $100 from $97 while maintaining an Outperform rating on the shares, indicating positive sentiment towards the company's performance and future prospects [1] Company Performance - Graco reported in-line Q4 results and provided an as-expected low-single-digit organic revenue guidance for 2026, suggesting stability in revenue expectations [1] - The underlying earnings quality and free cash flow of Graco were described as solid, reflecting the company's financial health [1] Industry Insights - Broader short-cycle industrial demand remains choppy, indicating variability in market conditions [1] - Positive inflection was noted in the home center/Contractor segment after 1.5 years of declines, suggesting a potential recovery in this area [1]

Operating expenses declined $1 million, or 1%, primarily because the prior year included $7 million in business reorganization costs and $9 million in litigation spending that did not recur. Those savings were partly offset by $7 million of incremental expenses from acquired operations and higher incentive-based costs. Total company adjusted operating earnings rose $21 million, or 15%, and adjusted operating margin was 27% versus 25% a year earlier.Gross margin improved by 80 basis points year over year. Kn ...

Financial Data and Key Metrics Changes - Graco reported fourth quarter sales of $593 million, an increase of 8% from the same quarter last year, with acquisitions contributing 4%, currency translation 2%, and organic sales another 2% to growth [3] - Reported net earnings increased 22% to $133 million, or 79 cents per diluted share, while adjusted non-GAAP net earnings were 77 cents per diluted share, an increase of 20% [3] - The gross margin rate increased by 80 basis points compared to the same quarter last year, despite higher product costs due to tariffs and lower factory volumes [4] - Operating expenses decreased by $1 million, or 1%, primarily due to the absence of prior year business reorganization and litigation costs [4][5] Business Line Data and Key Metrics Changes - Contractor segment sales increased 8% in the fourth quarter, with acquisitions contributing 5%, currency translation 2%, and organic sales another 1% [13] - The industrial segment saw an 11% growth in sales, driven by strong organic performance and contributions from acquisitions [14] - Expansion markets declined 6% in the quarter but achieved high single-digit full-year sales growth in the semiconductor business [15] Market Data and Key Metrics Changes - Organic sales at constant currency were up 2%, with growth in both the industrial and contractor segments [11] - The industrial business had strong organic performance in the Americas and EMEA, while Asia-Pacific experienced declines, particularly in China [14] - The overall market for contractor equipment remained flat, with affordability concerns keeping activity subdued [13] Company Strategy and Development Direction - Graco aims to generate one-third of its long-term revenue growth through strategic acquisitions, with a strong acquisition pipeline [12] - The company is focused on product innovation and advancing the One Graco operating model, which has led to significant inventory reductions and cost efficiencies [60] - Graco is optimistic about growth opportunities in 2026, projecting low single-digit organic growth on a constant currency basis and mid-single-digit growth factoring in expected incremental sales from acquisitions [16] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the operating environment, noting steady order rates and potential for growth in the contractor segment [33] - The company highlighted the importance of new product launches and the impact of lower mortgage rates on the residential market as potential positive developments [125] - Management acknowledged the unpredictable nature of the global trade environment and its potential impact on operations [126] Other Important Information - Cash provided by operations totaled $684 million for the year, an increase of $62 million, or 10% [7] - Significant cash uses included share repurchases of 5.1 million shares totaling $423 million and dividends of $183 million [8] - The effective tax rate is expected to be 20%-21% for the upcoming year, excluding any one-time items [8] Q&A Session Summary Question: Clarification on upfront licensing fees associated with electric pumps - Management explained that the upfront licensing fees are likely to be lumpy and not factored into the full-year outlook for organic growth [22][25] Question: Geographic conditions for 2026 - Management characterized the geographic conditions as low single-digit growth, with steady order rates but cautious optimism for improvement [29][33] Question: Signs of pull-forward demand in the contractor side - Management indicated that there was no significant pull-forward demand, but noted a slight pickup in the home center channel [40][42] Question: Pricing assumptions in organic growth guidance - Management expects to realize about 1.5% on the pricing front this year, with price adjustments implemented in late 2025 [51][52] Question: Update on One Graco initiative - Management reported significant inventory reductions and cost efficiencies as a result of the One Graco initiative, with expectations for continued benefits in 2026 [58][60] Question: Backlog trends in the quarter - Management stated that backlogs are at a decent level and that they did a good job in manufacturing to meet customer demands [110][111]

Graco (NYSE:GGG) Q4 2025 Earnings call January 27, 2026 11:00 AM ET Company ParticipantsAndrew Buscaglia - Executive DirectorBryan Blair - Managing DirectorChris Knutson - VP, Controller, and Chief Accounting OfficerDavid Lowe - CFODeane Dray - Managing DirectorJeff Hammond - Managing DirectorMark Sheahan - President and CEOSaree Boroditsky - SVPConference Call ParticipantsBrad Hewitt - AnalystMatt Summerville - AnalystMike Halloran - Senior Research AnalystWalter Liptak - Industry AnalystOperatorGood morni ...

Financial Data and Key Metrics Changes - Graco reported fourth quarter sales of $593 million, an increase of 8% from the same quarter last year, with acquisitions contributing 4%, currency translation 2%, and organic sales another 2% to growth [3][10] - Reported net earnings increased 22% to $133 million, or 79 cents per diluted share, while adjusted non-GAAP net earnings were 77 cents per diluted share, an increase of 20% [3][4] - The gross margin rate increased by 80 basis points compared to the same quarter last year, despite tariffs impacting product costs by $4 million [4][6] - Operating expenses decreased by $1 million, or 1%, primarily due to the absence of prior year business reorganization and litigation costs [4] Business Line Data and Key Metrics Changes - Contractor segment sales increased 8% in the fourth quarter, with acquisitions contributing 5%, currency translation 2%, and organic sales 1% [13] - The industrial segment saw an 11% growth in the quarter, driven by strong organic performance and contributions from acquisitions [14] - Expansion markets declined 6% in the quarter but achieved high single-digit full-year sales growth in the semiconductor business [15] Market Data and Key Metrics Changes - Organic sales at constant currency were up 2% from growth in both the industrial and contractor segments, with improved performance in the home center channel [11] - The industrial business had strong organic performance in the Americas and EMEA, while declines were noted in Asia-Pacific, particularly China [14] - The overall market for contractor equipment remains flat, with affordability concerns keeping activity subdued [13] Company Strategy and Development Direction - Graco aims to generate one-third of its long-term revenue growth through strategic acquisitions, with a strong acquisition pipeline [12] - The company is focused on product innovation and advancing the One Graco operating model, which has led to significant inventory reductions and cost efficiencies [59][60] - Revenue guidance for 2026 is projected at low single-digit organic growth on a constant currency basis, with mid-single-digit growth expected from acquisitions [16] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the operating environment, noting steady order rates and a cautious outlook for 2026 [32] - Recent order trends support the company's growth outlook, with expectations for low single-digit growth in 2026 [33] - Management highlighted the potential positive impact of lower mortgage rates on the residential market and the introduction of new products [126][127] Other Important Information - Cash provided by operations totaled $684 million for the year, an increase of $62 million, or 10% [6] - Significant cash uses included share repurchases of 5.1 million shares totaling $423 million and dividends of $183 million [7] - The company finished the year in a net cash position of $600 million, providing flexibility for future investments [12] Q&A Session Summary Question: Clarification on upfront licensing fees associated with electric pumps - Management explained that the upfront licensing fees are expected to be lumpy and not factored into the full-year outlook for organic growth [22][25] Question: Geographic conditions and recent order trends for 2026 - Management characterized the geographic conditions as low single-digit growth, with steady order rates and cautious optimism for the future [30][32] Question: Signs of pull-forward demand in the contractor side - Management indicated that there was no pull-forward demand, but noted a slight pickup in the home center channel, which has been a headwind in previous quarters [41][42] Question: Update on the One Graco initiative and its impact - Management reported significant inventory reductions and cost efficiencies from the One Graco initiative, with expectations for continued benefits in 2026 [58][60] Question: Backlog trends and organic growth phasing for 2026 - Management stated that backlogs are at a decent level and expected seasonality to hold, with stronger growth anticipated in the second and third quarters [112][115]

FOURTH QUARTER EARNINGS CALL 2026.01.27 SAFE HARBOR Today's presentation includes forward-looking statements that reflect management's current expectations about the Company's future business and financial performance. These statements are subject to certain risks and uncertainties that could cause actual results to differ from anticipated results. Factors that could cause actual results to differ from anticipated results are identified in Item 1A of the Company's Form 10-K, and Item 1A of the most recent Q ...

Core Insights - Graco Inc.'s fourth-quarter 2025 adjusted earnings were 77 cents per share, matching the Zacks Consensus Estimate, with a year-over-year increase of 20% [1][10] - The company's net sales reached $593.2 million, exceeding the consensus estimate of $585 million, and reflecting an 8% year-over-year growth driven by acquisitions and sales growth across various regions [1][10] Sales Performance - Sales from the Americas increased by 5% year over year, while Europe, the Middle East, and Africa (EMEA) saw a 15% increase, and Asia Pacific sales rose by 11% year over year [2] - The Contractor segment generated net sales of $265.5 million, accounting for 44.8% of total sales, with an 8% year-over-year increase [4] - The Industrial segment reported net sales of $284.3 million, contributing 47.9% to total sales, marking an 11% year-over-year increase [5] - The Expansion Markets segment had net sales of $43.4 million, representing 7.3% of total sales, but experienced a 6% year-over-year decline [6] Margin and Income - Graco's cost of sales rose by 6.3% year over year to $286.5 million, while gross profit increased by 9.8% to $306.5 million, resulting in a gross margin of 51.7%, up 80 basis points year over year [7] - Operating income increased by 22% year over year to $158.6 million, with the operating margin rising by 300 basis points to 26.7% [8] Financial Position - At the end of the fourth quarter, Graco had cash and cash equivalents of $624.1 million, down from $675.3 million at the end of 2024 [9] - The company generated net cash of $683.6 million from operating activities in 2025, compared to $621.7 million in the previous year [9] - Graco paid out dividends totaling $183.4 million, a 6.6% increase from the previous year, and repurchased shares worth $423.1 million [11] Future Outlook - For 2026, the company anticipates organic sales growth in the low single digits on a constant-currency basis, with overall sales expected to grow in the mid-single digits, including acquisitions [12]