MINNEAPOLIS--(BUSINESS WIRE)--Graco Inc. (NYSE: GGG) announced today that it will release its Fourth Quarter 2025 earnings after the New York Stock Exchange closes on Monday, January 26, 2026. A full-text copy of the earnings announcement will be available on the company's website at investors.graco.com. Graco management will hold a conference call, including slides via webcast, with analysts and institutional investors to discuss the results at 11 a.m. EST / 10 a.m. CST on Tuesday, January 27,. ...

Core Viewpoint - Graco Inc. is an industrial company specializing in fluid handling equipment and consumables, essential for construction and various industrial markets, and is recognized as a dividend growth stock [1] Company Overview - Graco Inc. operates in the fluid handling equipment sector, providing products that are critical in construction and industrial applications [1] - The company is categorized as a dividend growth stock, indicating a focus on returning value to shareholders through consistent dividend payments [1] Investment Strategy - The investment approach emphasizes long-term dividend growth investing, leveraging the compounding benefits of reinvested dividends [1] - The focus is on identifying undervalued large-cap stocks with sustainable dividend growth and potential for capital appreciation, alongside interest in tech and small- or mid-cap stocks for their growth prospects [1] Analyst Performance - The analyst has achieved a ranking in the top 2.0% out of over 28,000 financial bloggers as of December 2023, indicating a strong track record in providing investment insights [1]

Core Viewpoint - Graco Inc. (NYSE: GGG) is currently experiencing a price of $82.16, reflecting a 1.08% increase in the current market session, but has seen a decrease of 0.50% over the past month and 7.37% over the past year, raising questions about its valuation despite current performance [1] Group 1: Company Performance - Graco's P/E ratio stands at 27.74, which is lower than the Machinery industry average P/E ratio of 38.34, suggesting that the stock may be undervalued or could perform worse than its peers [6] - The P/E ratio is a critical metric for long-term investors, as it compares the current share price to the company's earnings per share (EPS), indicating market expectations for future performance [5] Group 2: Investment Considerations - A lower P/E ratio can indicate potential undervaluation, but it may also reflect weak growth prospects or financial instability, necessitating a cautious approach when using this metric [9][10] - Investors should consider the P/E ratio alongside other financial ratios, industry trends, and qualitative factors to make well-informed investment decisions [10]

Core Points - Graco Inc. has authorized a new plan to repurchase up to 15 million shares of its outstanding common stock [1] - The company currently has approximately 165.1 million shares outstanding [1] - The share repurchase will occur over an indefinite period or until the Board terminates the authorization [1]

Group 1 - Graco Inc. announced the acquisition of Red Devil Equipment Company (Radia) for $69 million, targeting the paints and coatings market [2] - Radia generates over $30 million in annual revenue and manufactures equipment for mixing, shaking, and automated material handling [2] - The acquisition is expected to enhance Graco's Contractor business portfolio and strengthen its position in the color solutions space [2] Group 2 - In Q3 2025, Graco reported a 5% rise in sales, with recent acquisitions contributing 6% to that growth [2] - The company continues its expansion strategy, highlighted by the August purchase of Color Service [2] - Graco provides technology and expertise for managing fluids and coatings across industrial and commercial applications [3]

Core Insights - Graco Inc. has released its annual ESG report, highlighting strategic acquisitions, facility investments, and a focus on safety to drive growth and innovation [1][2]. Group 1: Strategic Initiatives - The company emphasizes a strengthened focus on global strategic alignment to achieve long-term sustainable growth [2]. - Graco has opened new facilities that represent modern manufacturing practices and aim to reduce environmental footprints [4]. - The appointment of a global environmental, health, and safety leader is intended to align global safety policies [4]. Group 2: Acquisitions and Innovations - Graco has acquired Corob S.p.A., a global leader in tinting, mixing, and dispensing systems, enhancing its product offerings [4]. - The company is committed to delivering products that help customers reduce material waste and improve efficiency, supporting cleaner technologies [2]. Group 3: Financial Performance - For the third quarter ended September 26, 2025, Graco reported net sales of $543.4 million, a 5% increase from $519.2 million in the same period the previous year [7]. - Operating earnings for the same quarter were $164.7 million, reflecting a 13% increase compared to $145.7 million in the prior year [7]. - Net earnings also saw a 13% increase, reaching $137.6 million, up from $122.2 million year-over-year [7].

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Core Viewpoint - Shares of Chinese toymaker Pop Mart experienced a significant decline, dropping 9% in a single day, marking the worst performance since April and continuing a prolonged downward trend that has diminished much of the company's summer gains [1] Company Summary - The recent drop in Pop Mart's shares reflects ongoing challenges faced by the company, contributing to a broader decline that has persisted for several months [1] - The decline in share price indicates potential investor concerns regarding the company's future performance and market position [1] Industry Summary - The performance of Pop Mart may signal broader trends within the toy industry, particularly in the Chinese market, where consumer sentiment and spending patterns could be affecting sales [1] - The sharp decline in shares could impact investor confidence in the toy sector, potentially leading to increased scrutiny of other companies within the industry [1]

Core Insights - Graco Inc.'s third-quarter 2025 adjusted earnings were 73 cents per share, missing the Zacks Consensus Estimate of 75 cents, but reflecting a 3% year-over-year increase [1][9] - The company's net sales reached $543.4 million, falling short of the consensus estimate of $562 million, yet showing a 5% year-over-year growth driven by acquisitions and sales growth across various regions [1][9] Sales Performance - Sales from the Americas increased by 2% year over year, while sales in Europe, the Middle East, and Africa rose by 12%, and sales from the Asia Pacific grew by 7% [2] - The Contractor segment generated net sales of $262.4 million, accounting for 48.3% of total sales, with an 8% year-over-year increase, although organic sales declined by 3% [3] - The Industrial segment reported net sales of $238.6 million, contributing 43.9% to total sales, with a 1% year-over-year increase, while organic sales fell by 2% [4] - The Expansion Markets segment achieved net sales of $42.4 million, representing 7.8% of total sales, with a 3% year-over-year increase and organic sales growth of 3% [5] Margin and Income Analysis - Graco's cost of sales increased by 4.5% year over year to $254.1 million, with gross profit rising by 4.7% to $289.2 million, maintaining a gross margin of 53.2% [6] - Operating income increased by 12.9% year over year to $164.7 million, with the operating margin expanding by 2.2 percentage points compared to the previous year [7] Financial Position - As of the end of the third quarter, Graco had cash and cash equivalents of $618.7 million, down from $675.3 million at the end of 2024 [8] - The company generated net cash of $487.3 million from operating activities in the first nine months of 2025, compared to $436.5 million in the same period last year [8] - Capital expenditures for property, plant, and equipment totaled $33.6 million, significantly lower than $92.8 million in the previous year [8] Shareholder Returns - Graco paid dividends totaling $137.8 million, reflecting a 6.8% increase from the previous year, and repurchased shares worth $361 million during the same period [10] Future Outlook - The company anticipates organic net sales growth in the low single digits on a constant-currency basis for 2025 [11]

Financial Data and Key Metrics Changes - Graco reported third-quarter sales of $543 million, a 5% increase from the same quarter last year, with organic sales declining by 2% [4][8] - Net earnings increased by 13% to $138 million, or $0.82 per diluted share, while adjusted non-GAAP net earnings rose by 3% to $0.73 per diluted share [4][5] - Gross margin rate remained flat year-over-year, but tariffs impacted product costs by $5 million, leading to a 100 basis point decline in gross margin rate [5][6] - Cash provided by operations totaled $487 million for the year, a 12% increase, with cash flow conversion exceeding 100% [6][74] Business Line Data and Key Metrics Changes - Contractor segment sales increased by 8%, driven by acquisitions, despite a 3% decline in organic sales due to affordability concerns in North America [8][9] - Industrial segment sales rose by 1%, supported by acquisitions and favorable exchange rates, but faced a 2% organic revenue decline [10] - Expansion market sales grew by 3%, primarily due to strong demand in semiconductor products, although challenges remain in the environmental business [11] Market Data and Key Metrics Changes - North American construction activity remains subdued, impacting the contractor segment, while the industrial segment showed growth in vehicle service and automotive OEM projects [8][10] - In Asia Pacific, mining demand remained strong, but lower investments in solar and EV sectors affected overall performance [10][11] - Backlog levels are stable, with no significant challenges expected for the remainder of the year, and current backlog is approximately $225 million [9][86] Company Strategy and Development Direction - Graco is focused on targeted price increases to offset tariff impacts, with expectations of full coverage by year-end [9][26] - The company continues to pursue acquisitions as part of its growth strategy, with recent successes including the acquisition of Color Service [59][60] - The "One Graco" initiative aims to improve operational efficiency and enhance market access for distributors, which is expected to drive organic growth [57][113] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the North American market, noting that while demand is not robust, there are still opportunities in specific segments [17][18] - The company anticipates low single-digit organic growth for the full year, with order rates showing stability [12][34] - Management highlighted the importance of volume growth for margin improvement, particularly in the contractor and industrial segments [89][90] Other Important Information - Tariffs have added significant costs, but pricing actions are expected to mitigate these impacts moving forward [9][38] - The company is consolidating operations to improve efficiency and reduce overhead costs [77][78] Q&A Session Summary Question: Can you discuss the performance of end markets and leading indicators? - Management noted that demand remains cautious in North America, with some positive trends in vehicle service and process pumps, while China has shown unexpected resilience [17][19][20] Question: What is the outlook for pricing and cost dynamics? - Management expects pricing actions to take effect in January, with the goal of offsetting tariff costs and improving margins [25][26][38] Question: How is the new organizational structure impacting operations? - The "One Graco" initiative is yielding margin improvements and better market access, although it is still early in the integration process [56][57] Question: What is the status of backlog and future growth expectations? - Current backlog is stable at approximately $225 million, and management is optimistic about future growth driven by improved market conditions [86][88] Question: How is the company addressing cash flow and operational efficiency? - Management emphasized the importance of cash flow and operational improvements through the consolidation of facilities and better inventory management [74][75][76]