Graco Inc. (GGG) SEC Filings & Earnings Calls

Gross margin pressure from product costs and mix

“The gross profit margin rate decreased approximately 3 percentage points for the third quarter compared to the same period last year, primarily driven by higher product costs, the unfavorable effects of lower margin rates of acquired operations and unfavorable product and channel mix.” · word for word

Industrial segment margin decline

“The operating margin rate for this segment decreased 6 percentage points for the third quarter and 3 percentage points for the year to date, primarily due to unfavorable product and channel mix and the impact of acquired operations.” · word for word

Integration risk of Valco Melton into Graco's operations and Industrial segment

“Acquisition integration may not achieve expected synergies or growth targets.”

Organic sales decline in Industrial segment

“Sales growth for the quarter was partially offset by a 1 percentage point organic decline related to the timing of finishing system sales and other project activity in the Industrial segment.” · word for word

Tariff uncertainty

“The situation continues to evolve, and further legislative, regulatory, or judicial developments may affect the ultimate outcome and the availability or timing of any refunds.” · word for word

Integration risk; acquisition may not achieve expected synergies.

“Transaction subject to closing conditions; integration into Industrial division”

Tariff Cost Impact

“Price realization was able to mostly offset the impact of incremental tariffs of $7 million.” · word for word

Construction Market Weakness

“Contractor segment net sales increased 2 percent for the first quarter compared to the same period last year. Incremental sales from acquired operations and favorable changes in currency translation rates were partially offset by continued weakness in the worldwide construction markets.” · word for word

Semiconductor Demand Weakness

“Net sales for the first quarter in the Expansion Markets segment decreased 4 percent, primarily due to lower semiconductor application sales in the Americas.” · word for word

Tariff cost pressure on margins

“The gross profit margin rate for 2025 decreased approximately 1 percentage point compared to 2024 as price realization was unable to offset higher product costs, including $14 million of increased tariff costs” · word for word

Construction market softness

“Contractor segment net sales growth for the year included $100 million from acquired operations, which more than offset continued softness in worldwide residential and non-residential construction markets.” · word for word

Acquisition integration risk

“The operating margin rate for this segment in 2025 was 2 percentage points lower than 2024 as price realization and 2024 litigation costs that did not repeat were unable to offset higher product costs from increased tariffs and the lower margin rates of acquired operations.” · word for word

Tariff costs increased $4M in Q4 and $14M for the year, impacting product costs.

“Higher product costs included increased tariff costs of $4 million for the quarter and $14 million for the year.” · word for word