Graco Posts Record Q2 Sales, $0.91 Adjusted EPS, and Initiates Strong Q3 Guidance
GGG is trading near its 52-week low of $72.513 (1.9% above the low).
Summary
Graco delivered record Q2 sales of $590.6M, up 3% year-over-year, with adjusted EPS of $0.91 beating expectations by 17%. Operating earnings jumped 11% to $175.1M, driven by higher gross margins from tariff refunds and lower expenses. The company repurchased $315M in shares during the quarter, signaling confidence. Management initiated Q3 sales guidance of $580M-$600M, excluding the pending Valco Melton acquisition, and maintained full-year organic growth outlook. This follows a Q1 that saw a 5% earnings decline, making the rebound notable. The Contractor segment returned to organic growth in the Americas for the first time in two years, while data center infrastructure demand continues to provide tailwinds. With the stock trading near its 52-week low, these results could shift sentiment. The Valco Melton deal, expected to close in Q3, adds a strategic growth lever.
At the time of this announcement, GGG was trading at $73.88 on NYSE in the Manufacturing sector, with a market capitalization of approximately $12.3B. The 52-week trading range was $72.51 to $95.69. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: BusinessWire.