Second Quarter 2023 Today's presentation includes forward-looking statements that reflect management's current expectations about the Company's future business and financial performance. 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 Quarterly Report on Form 10-Q and also the Company's Earnings Release dated July 26, 2023. DISTRIBUTION OF GLOBAL SALES $1,089M June 2023 Year to Date 46% 29% 25% CO ...

Graco, Inc. (NYSE:GGG) Q2 2023 Earnings Conference Call July 27, 2023 11:00 AM ET Company Participants Christopher Knutson - VP, Corporate Controller Mark Sheahan - President, CEO & Director David Lowe - CFO & Treasurer Conference Call Participants Deane Dray - RBC Capital Markets Michael Halloran - Robert W. Baird & Co. Saree Boroditsky - Jefferies Jeffrey Hammond - KeyBanc Capital Markets Matt Summerville - D.A. Davidson & Co. Lawrence De Maria - William Blair & Company Operator Good morning, and welcome ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2023 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to (State or other jurisdiction of incorporation or organization) 88 - 11th Avenue N.E. Minneapolis, Minnesota 55413 (Address of principal executive offices) (Zip Code) (61 ...

Graco Inc. (NYSE:GGG) Q1 2023 Results Conference Call April 27, 2023 11:00 AM ET Company Participants Kathy Schoenrock - Executive Vice President, Corporate Controller, and Information Systems Mark Sheahan - President and Chief Executive Officer David Lowe - Chief Financial Officer and Treasurer Conference Call Participants Deane Dray - RBC Capital Markets Michael Halloran - Baird Saree Boroditsky - Jefferies Matt Summerville - D.A. Davidson Company Walter Liptak - Seaport Research Operator Good morning, an ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (State or other jurisdiction of incorporation or organization) ☒ Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2023 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number: 001-09249 GRACO INC. 88 - 11th Avenue N.E. Minneapolis, Minnesota 55413 (Address ...

Sales Performance - In 2022, Graco's total sales were approximately $1.5 billion, with the Contractor segment representing about 47% of total sales, the Industrial segment at 30%, and the Process segment at 23%[29][34][42]. - Sales in the Americas accounted for approximately 60% of total sales, while EMEA represented about 21% and Asia Pacific approximately 19%[18]. - In 2022, sales in the Americas represented approximately 60% of the company's total sales, while EMEA accounted for about 21% and Asia Pacific for around 19%[18]. - The Contractor segment represented approximately 47% of total sales in 2022, offering a range of sprayers for both DIY homeowners and professional contractors[29]. - The Industrial segment accounted for approximately 30% of total sales in 2022, serving markets such as automotive, aerospace, and construction[34]. - The Process segment represented approximately 23% of total sales in 2022, focusing on pumps and valves for various industries including food and beverage and oil and natural gas[42]. Product Development and Innovation - Graco invested $80 million in product development in both 2022 and 2021, and $72 million in 2020, averaging around 4% of sales over the last three years[26]. - Total product development expenditures were $80 million in 2022, $80 million in 2021, and $72 million in 2020, averaging approximately 4% of sales over the last three years[26]. - The company invested in new product development to enhance existing product lines and enter new industries, aiming for incremental sales growth[26]. - The company continues to enhance product capabilities with a focus on automation, configurability, and data analytics[25]. - Graco's product development efforts emphasize automation, configurability, and integration with end-user systems, enhancing sustainability initiatives[25][26]. Manufacturing and Capacity - The company completed a construction project for a new facility in Dayton, Minnesota, and began expansion projects in Sioux Falls, South Dakota, St. Gallen, Switzerland, and Sibiu, Romania in 2022[24]. - Graco's manufacturing capacity is sufficient for current demand, with plans for additional expansions in 2023 and beyond[24]. - The company is in the planning and design phases of additional projects to expand capacity in manufacturing and distribution locations in 2023 and beyond[24]. - The company employs approximately 4,000 persons, with about 1,700 being hourly factory workers in the U.S.[54]. - The company employs approximately 4,000 persons as of December 30, 2022, with 1,400 employees based outside the U.S.[54]. Strategic Acquisitions and Market Expansion - The company continues to pursue strategic acquisitions to broaden its product offerings and enhance capabilities in end-user markets[14][16]. - The company has made targeted acquisitions in 2022, 2021, and 2020 to broaden its product offerings and enhance capabilities in end-user markets[14]. - The company aims to grow into new geographic markets by strategically adding commercial and technical resources and third-party distribution[13]. - The company has a strategy to convert contractors from manual application to spray technology, expanding its distribution network globally[32]. Challenges and Constraints - The company faced logistical and production constraints in 2022 due to limited component availability, reduced freight capacity, and labor shortages, which increased lead times across many product lines[49]. - The company faced logistical and production constraints due to limited component availability and shipping delays, impacting its ability to meet demand[49]. - Price inflation was particularly pronounced for motors, electronics, and commodity materials such as aluminum, stainless steel, and copper[49]. Market Focus - The Contractor segment includes sprayers for various applications, targeting both professional contractors and do-it-yourself homeowners[29][32]. - The Industrial segment focuses on equipment for moving and applying paints, coatings, and adhesives, with a significant portion of sales occurring outside North America[34]. - The Process segment markets pumps and valves for various industries, including food and beverage, oil and natural gas, and pharmaceuticals, representing approximately 23% of total sales[42]. Intellectual Property - The company owns numerous patents and trademarks, which are essential for its competitive positioning in the market[51].

Financial Data and Key Metrics Changes - The company reported record fourth quarter sales of $555 million, an increase of 3% from the previous year, despite the fourth quarter of last year including 14 weeks compared to 13 weeks in 2022 [3] - Operating expenses decreased by $10 million or 7%, with reductions from lower sales and earnings-based expenses [4] - Net earnings for the quarter were $126 million or $0.74 per diluted share, an increase of 7% [116] - The gross margin rate decreased by 2 percentage points in the quarter due to unfavorable foreign exchange effects [116] Business Line Data and Key Metrics Changes - The Process segment grew sales by 16% for the quarter, achieving both quarterly and annual records for revenue and operating earnings [9] - The Contractor segment experienced a mid-single-digit revenue decline in the fourth quarter, driven by less demand in the home center channel and limited pro paint product availability [120] - The Industrial segment saw sales increase by 17% in the quarter, achieving fourth quarter and annual records for both sales and operating earnings [95] Market Data and Key Metrics Changes - Currency translation rates negatively impacted sales by $23 million and net earnings by $12 million or $0.07 per diluted share [116] - The company anticipates that the full-year effect of currency translation will increase sales and earnings by 1 percentage point in 2023 [91] - The North American pro paint business remained strong, with revenue growth in the high-single-digits for the quarter [120] Company Strategy and Development Direction - The company plans to invest approximately $200 million in capital expenditures, with $130 million allocated for facility expansion projects [5] - Core strategies include launching new products, investing in manufacturing capabilities, expanding global channels, and pursuing strategic acquisitions [96] - The company is cautiously optimistic about driving another year of growth in both sales and net earnings, with a low-single-digit organic revenue growth outlook for 2023 [122] Management's Comments on Operating Environment and Future Outlook - Management noted that while some shortages of key items persist, supply chains have improved compared to earlier in the year [93] - The company is monitoring order trends and business tempo closely, remaining optimistic about growth despite potential volatility [122] - Management expressed confidence in the performance of the Industrial segment, particularly in semiconductor and powder equipment businesses, which have strong backlogs heading into 2023 [62][95] Other Important Information - The adjusted tax rate for the quarter was 19%, with an anticipated effective tax rate for 2023 between 19% and 20% [69] - The consolidated backlog was $355 million at the end of the quarter, approximately the same as the previous year [119] Q&A Session All Questions and Answers Question: Can you discuss the growth expectations by segment for this year? - Management indicated that growth in the industrial segment is expected to continue, particularly from sealant and adhesive businesses, which have better visibility on orders [16] Question: What are the expectations for pricing and volume in 2023? - The company expects pricing to contribute to low-single-digit growth, while volumes may be flat to down, reflecting a cautious outlook [159] Question: How is the company addressing component shortages? - Management acknowledged ongoing component shortages, particularly in electronics, but noted improvements in availability compared to previous periods [147] Question: What is the outlook for the Contractor segment? - The Contractor segment is experiencing challenges due to reduced demand in the home center channel and limited product availability, but the North American pro paint business remains strong [120][99]

Graco Inc. (NYSE:GGG) Q3 2022 Earnings Conference Call October 27, 2022 11:00 AM ET Company Participants Kathy Schoenrock - Executive Vice President, Corporate Controller and Information Systems Mark Sheahan - President and Chief Executive Officer David Lowe - Chief Financial Officer and Treasurer Conference Call Participants Deane Dray - RBC Capital Markets Michael Halloran - Robert W. Baird Saree Boroditsky - Jefferies Bryan Blair - Oppenheimer Matt Summerville - D.A. Davidson Company Jeffrey Hammond - Ke ...

/ / / / / / / / / / / / / / / / / / 3rd Quarter 2022 Earnings Conference Call October 27, 2022 Safe Harbor Factors that could cause actual results to differ from anticipated 2 ////////////////// 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. | --- | --- | |--- ...

Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2022 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number: 001-09249 GRACO INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) 8 ...