Graco Inc

Graco, incorporated in Minnesota in 1926, makes equipment that moves, measures, mixes, dispenses and sprays fluids and powders. It targets niche jobs involving hard-to-handle materials: thick, abrasive or corrosive liquids, and two-part materials that must be mixed in an exact ratio. Most products reach end users through independent distributors and selected retailers. In fiscal 2025, revenue was $2.24 billion and the operating margin, profit from operations as a share of sales, was 27.9%.

The Contractor segment, about 48% of 2025 sales, makes paint sprayers for do-it-yourself homeowners and professional painters. It also makes gear for wall texture, roof coatings, line striping on roads and parking lots, and spray-foam insulation. It mainly reaches users through paint distributors, with some sprayers in home centers. The Industrial segment, about 45%, supplies pumps, finishing and dispensing systems, powder-coating gear and automatic lubrication systems to factories in autos, aerospace, rail, food and other industries. Most of its business is outside North America. The smaller Expansion Markets segment accounts for the remaining 7.5%. It covers environmental, semiconductor, high-pressure valve and electric motor businesses.

By region, the Americas produced about 60% of 2025 sales, Europe, the Middle East and Africa about 24%, and Asia Pacific about 16%. Most products are made in the U.S., with plants in Europe, China and India.

• In Q3 FY2026 (ended Sep 25, 2026), revenue was $586.4M, up 7.9% from a year earlier, and net income was $121.6M (-11.7%).
• For fiscal 2025, revenue was $2.24B (+5.8% year over year; +6.3% a year from FY2020 to FY2025) with a 23.3% net margin.

• Over FY2021–FY2025: $790.2M in buybacks and $783.0M in dividends.
• At least 9 consecutive annual increases: every fiscal year in the SEC data (FY2016–FY2025) shows an increase; the true streak may be longer.
• Regular dividends per share grew +9.5% a year over 5 years (FY2020–FY2025).
• Dividends took 35.1% of earnings and 28.7% of free cash flow in the latest fiscal year.
• Shares outstanding changed -5.6% from Oct 13, 2021 to Oct 7, 2026.

Rank among 1514 US companies

Market value at each year end

Graco’s market value went from $4.63B at the end of 2016 to $10.77B on Oct 28, 2026, about 2.3 times as much; since the end of 2025 it is down 21%.

Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 1 open-market purchases ($100K) and 1 sales ($257K).

Large shareholders (13G filings)

ETFs with the most weight in GGG

1. Contractor sales lean on a few customers. The Contractor segment, about 48% of 2025 sales, depends on a few large customers for a significant share of its sales. If they cut purchases, segment sales and profits could fall.
2. Tied to construction, auto and factory cycles. Demand depends on industries that rise and fall in cycles, including construction, automotive, aerospace, electronics, semiconductors, and farm and construction equipment. A recession or high interest rates can lead customers to delay equipment purchases.
3. Copycats and the need for new products. Graco relies on products that stand apart in niche markets. New entrants may copy its products or infringe its intellectual property, and if it fails to launch products customers want, demand could weaken.
4. Tariffs and trade policy shifts. Graco sources some materials and components abroad and runs plants in China, Europe and India. Changing U.S. or foreign tariffs and trade rules could raise costs or hurt sales and cash flow.
5. Currency swings against a U.S. cost base. Most of Graco's manufacturing and costs are in the U.S., yet many sales are in other currencies. Exchange-rate moves can shrink reported sales and earnings and make its equipment pricier for foreign customers.
6. Acquisitions may disappoint and force write-downs. Graco grows partly through acquisitions, completing two in 2025. If acquired businesses miss expectations, returns could fall short and their assets could be written down, a charge that cuts reported earnings.

• Sep 14, 2026 Executive or board change
• Sep 1, 2026 Investor presentation or announcement
• Jun 15, 2026 Executive or board change
• May 21, 2026 Investor presentation or announcement
• May 5, 2026 Investor presentation or announcement
• Apr 27, 2026 Shareholder vote results
• Mar 2, 2026 Executive or board change
• Feb 13, 2026 Executive or board change
• Jan 26, 2026 Quarterly results released
• Oct 30, 2025 Executive or board change

Graco's regular dividend per share rose every year from fiscal 2016 to fiscal 2025, at least nine straight increases. It grew from $0.71 in fiscal 2020 to $1.12 in fiscal 2025, or 9.5% a year. The fiscal 2025 dividend took about 35% of earnings and 29% of free cash flow (cash left after capital spending). The yield was 1.79% as of October 28, 2026. Over fiscal 2021–2025, Graco spent $790 million repurchasing its own shares, about what it paid in dividends. Its share count fell 5.6% from October 2021 to October 2026.

The shares dropped 64.7% in the 2008 financial crisis and needed about 21 months from the bottom to regain their peak. They fell 30.6% in the 2020 COVID crash and recovered within five months. They fell 27.4% in the 2022 bear market and recovered in about 10 months. As of October 28, 2026, they were down 16.9% year to date. Single stocks carry more risk than diversified funds.