Graco Posts Record Q2 Sales, Adjusted EPS Beats by 17%; Initiates Q3 Guidance
GGG is trading near its 52-week low of $72.513 (1.9% above the low).
Summary
Graco reported record Q2 sales and an adjusted EPS beat of 17%, driven by broad-based segment growth and tariff refunds. The company initiated Q3 guidance and confirmed the Valco Melton acquisition is on track to close in Q3.
Key Events · Earnings and Guidance · GGG
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Record Q2 Sales and Earnings Beat
Net sales reached $590.6M, up 3% YoY. Adjusted diluted EPS of $0.91 beat expectations by 17%, driven by higher gross margin and $9M in tariff refunds.
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All Segments Grow Operating Earnings
Contractor operating earnings rose 21% to $91.2M, Industrial up 2% to $84.3M, and Expansion Markets up 7% to $9.5M. Contractor returned to organic growth in the Americas for the first time in two years.
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Q3 Sales Guidance Initiated
Management expects Q3 total company sales of $580M–$600M, excluding the Valco Melton acquisition, reflecting continued improvement in demand trends.
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Valco Melton Acquisition on Track
The $447M cash acquisition of Valco Melton, announced in May, is expected to close in Q3 2026 and will be funded with cash on hand.
Analysis · GGG · Technology
Graco delivered record quarterly sales of $590.6 million, up 3% year-over-year, with adjusted earnings per share of $0.91 beating consensus by 17%. All three segments grew operating earnings, and the Contractor segment returned to organic growth in the Americas for the first time in two years. The company also initiated third-quarter sales guidance of $580–$600 million, excluding the pending Valco Melton acquisition, which is expected to close in Q3 and be funded with cash on hand. The strong results and upbeat outlook, combined with aggressive share repurchases ($315 million in Q2 alone), signal management's confidence in sustained demand recovery.
At the time of this filing, GGG was trading at $73.88 on NYSE in the Technology sector, with a market capitalization of approximately $12.3B. The 52-week trading range was $72.51 to $95.69. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.