Graco Q4 Sales Up 8% With Margin Gains as 2026 Outlook Stays Cautious

Overview

• Fourth-quarter revenue reached $593 million and reported net earnings rose 22% to $133 million, with adjusted EPS up 20% to $0.77.
• Gross margin improved about 80 basis points year over year as pricing actions offset higher product costs tied to tariffs and lower factory volumes.
• Tariffs reduced gross margin by roughly 70 basis points in Q4 and totaled $14 million for the year, with a $4 million impact in the quarter.
• Sales growth in Q4 reflected about 4 percentage points from acquisitions, 2 points from currency, and 2 points organically.
• For 2026, management guides to low single-digit organic growth with pricing contributing roughly 1% to 1.5%, plans $90–100 million of capex plus about $50 million for facility and HQ projects, and continues its One Graco integration focus.