Graco reported fourth-quarter earnings per share of $0.77, in line with consensus estimates and up from $0.64 a year earlier, representing a 20% increase on an adjusted basis. Revenue for the period rose 8% year-over-year to $593.2 million, marking the highest quarterly net sales in the company’s history and contributing to a full-year total of $2.24 billion, a 6% increase over the prior year. Operating earnings for the quarter climbed 22% to $158.6 million, while net earnings increased by the same percentage to $132.5 million. These results reflect record margins and profit levels for both the quarter and full year.

Organic volume and price realization accounted for approximately 1 percentage point of the 8% quarterly sales gain, while acquisitions contributed 4 percentage points and favorable currency translation added 2 percentage points. Full-year operating margin benefited from a 1 percentage point improvement in gross profit rate driven by effective pricing actions, which more than offset a $4 million increase in tariff costs during the quarter. Acquired operations augmented annual revenue growth by 5 percentage points, and net sales in the Americas, EMEA and Asia Pacific regions all posted positive contributions at consistent currency rates.

In the Contractor segment, net sales of $265.5 million rose 8% on broad-based strength in home-center and colorant product categories, with organic growth in every region complemented by acquisitions. Industrial segment sales of $284.3 million increased 11%, led by project completions in powder finishing systems and double-digit gains in the Americas and EMEA. Expansion Markets net sales of $43.4 million declined 6% due to timing of license fees in electric motor applications, though semiconductor and motor categories maintained full-year growth. Across segments, operating margins expanded as expense leverage and price realization offset higher product costs and nonrecurring charges in the prior year.

Graco’s balance sheet remains robust, with a debt-to-equity ratio of 0.024 and a current ratio of 3.18, underscoring strong liquidity and low leverage. The company’s price-to-earnings ratio stands at 28.87, reflecting investor willingness to pay a premium for sustained margin expansion and consistent earnings growth. An earnings yield of approximately 3.46% highlights the attractive cash-flow profile, while free cash flow generation reached record levels in 2025, funding both strategic acquisitions and dividend increases without compromising capital structure.