Graco Inc
F:GA8
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
G
|
Graco Inc
F:GA8
|
US |
Graco Inc
Graco makes equipment that moves, measures, mixes, and sprays fluids. Its products include pumps, spray systems, valves, meters, and related parts used for paint, coatings, lubricants, sealants, and adhesives. In simple terms, Graco sells the tools that help factories, contractors, and maintenance teams handle liquids and thick materials accurately and cleanly. Its main customers are industrial manufacturers, construction and painting contractors, and maintenance operations that need dependable fluid-handling equipment. Graco makes money by selling this equipment through distributors and direct channels, along with replacement parts, accessories, and service for installed systems. That gives the company a mix of upfront product sales and repeat business after the first sale. What makes Graco different is its role near the center of the fluid-handling chain. It is not a raw-material supplier or a finished-goods brand; it provides the specialized machinery that helps other businesses apply coatings, keep machines lubricated, and control adhesive or sealant flow. Because many customers rely on this equipment in daily operations, Graco benefits from both new equipment demand and ongoing maintenance and replacement needs.
Graco makes equipment that moves, measures, mixes, and sprays fluids. Its products include pumps, spray systems, valves, meters, and related parts used for paint, coatings, lubricants, sealants, and adhesives. In simple terms, Graco sells the tools that help factories, contractors, and maintenance teams handle liquids and thick materials accurately and cleanly.
Its main customers are industrial manufacturers, construction and painting contractors, and maintenance operations that need dependable fluid-handling equipment. Graco makes money by selling this equipment through distributors and direct channels, along with replacement parts, accessories, and service for installed systems. That gives the company a mix of upfront product sales and repeat business after the first sale.
What makes Graco different is its role near the center of the fluid-handling chain. It is not a raw-material supplier or a finished-goods brand; it provides the specialized machinery that helps other businesses apply coatings, keep machines lubricated, and control adhesive or sealant flow. Because many customers rely on this equipment in daily operations, Graco benefits from both new equipment demand and ongoing maintenance and replacement needs.
Sales: Graco reported first-quarter sales of $540 million, up 2% year over year, but organic sales fell 6% as acquisitions and currency more than offset weaker underlying demand.
Margins: Gross margin fell 60 basis points and operating margin slipped to 26% from 27%, with management pointing to lower volume, mix, acquired businesses and $7 million of tariff costs.
Demand: Bookings improved as the quarter went on, with Industrial and Semiconductor showing better order momentum, while Contractor remained soft, especially in construction-related channels.
Outlook: Management kept full-year 2026 guidance unchanged for low single-digit organic growth and mid-single-digit total growth, saying backlog and bookings support the target.
Tariffs: The company said it has largely covered tariff costs through pricing and expects the new tariff structure to have a similar absolute impact overall, while still assessing Section 232 changes.
Capital: Graco remained active on buybacks, dividends and acquisitions, and said its M&A pipeline is well populated, especially in Industrial.
