Graco reported net sales of $593.2 million for the fourth quarter ended December 26, 2025, up 8 percent from $548.7 million a year earlier, and full-year sales of $2,236.6 million, a 6 percent increase over $2,113.3 million in 2024. Operating earnings rose 22 percent to $158.6 million for the quarter and 10 percent to $624.8 million for the year. Net earnings climbed 22 percent to $132.5 million in Q4 and 7 percent to $521.8 million on an annual basis. Diluted EPS increased 25 percent to $0.79 in Q4 and 9 percent to $3.08 for the full year. Adjusted non-GAAP EPS of $0.77 for the quarter represented a 20 percent gain year-over-year, while full-year adjusted EPS of $2.95 reflected a 6 percent rise.

The Contractor segment delivered net sales of $265.5 million in Q4 (up 8 percent) and $1,071.9 million for the year (up 8 percent), with operating margins expanding to 24 percent from 20 percent as prior litigation costs did not recur. The Industrial segment achieved $284.3 million in Q4 sales (up 11 percent) and $996.8 million for the year (up 4 percent), driving operating margin to 32 percent on strong price realization and expense leverage. Expansion Markets saw sales of $43.4 million in Q4 (down 6 percent) and $167.9 million for the year (up 1 percent) as growth in semiconductor and electric motor applications offset declines in other lines.

Gross profit margin expanded by approximately 1 percentage point in Q4 thanks to price realization, although it declined slightly on a full-year basis due to higher product costs and lower-margin acquired operations. Operating expenses fell 1 percent versus prior periods, aided by the absence of $16 million in litigation and reorganization charges that occurred in Q4 2024. Foreign currency translation added roughly 2 percentage points to quarterly sales (and 1 point for the year), while acquisitions contributed 4 points in Q4 and 5 points over the twelve months. Tariff costs increased product costs by $4 million in the quarter and $14 million for the year, partially offset by favorable expense leverage.

CEO Mark Sheahan highlighted that acquired revenue accounted for 4 percent of quarterly growth, complemented by robust organic gains in both core segments. Contractor growth was strongest in home center and colorant products, while Industrial benefited from project timing in powder finishing systems and broad geographic strength, particularly in the Americas and EMEA. Management reiterated its focus on disciplined pricing, cost control and targeted acquisitions to sustain double-digit operating leverage and mid-single-digit organic sales growth in 2026.