Slide 1: Third Quarter Earnings Call
THIRD QUARTER EARNINGS CALL 2025.10.23
Slide 2: Safe Harbor
SAFE HARBOR Today’s presentation includes forward-looking statements that reflect management’s current expectations about the Company’s future business and financial performance. These statements are subject to certain risks and uncertainties that could cause actual results to differ from anticipate
Slide 3: Financial Results
FINANCIAL RESULTS Statement of Earnings Third Quarter September Year to Date $ in millions except per share amounts 2025 2024 Change 2025 2024 Change Net Sales $ 543.4 $ 519.2 5% $ 1,643.4 $ 1,564.6 5% Gross Profit 289.2 276.1 5% 866.5 843.2 3% % of Net Sales 53.2% 53.2% 0.0 pts 52.7% 53.9% (1.2) pt
Slide 4: Net Sales
NET SALES Components of Net Sales Change Third Quarter 2025 Year to Date September 2025 Segment Region Net Sales by Currency Expansion Contractor Industrial Americas EMEA Asia Pacific Consolidated Markets Volume and Price (3)% (2)% 3% (1)% (5)% (3)% (2)% Euro Acquisitions 11 % 1% 0% 3% 11 % 10 % 6%
Slide 5: Operating Earnings
OPERATING EARNINGS Third Quarter Sept. Year to Date 2024 Operating Earnings, as reported ($M and % of sales) $ 146 28 % $ 440 28 % Currency translation 2 0 0 0 Product cost, volume (2) 1 (13) 0 Effect of acquired businesses 1 (2) 6 (2) Gain on reduction of fair value contingent consideration 14 3 14
Slide 6: Third Quarter 2025
THIRD QUARTER 2025 • Up 5 percent from third quarter 2024. Sales from acquired businesses contributed 6 Net Sales percentage points of growth. Currency translation increased net sales by 1 percentage point. • Margin rate comparable to third quarter 2024 Gross Margin > Realized pricing and favorable
Slide 7: September Year to Date 2025
SEPTEMBER YEAR TO DATE 2025 • Up 5 percent from the same period in 2024. Sales from acquired businesses contributed 6 Net Sales percentage points of growth. Currency translation had no meaningful impact. • Margin rate down 1.2 percentage points compared to the same period in 2024 Gross Margin > High
Slide 8: 2025 Environment
2025 ENVIRONMENT Constant currency basis and excluding acquisitions completed in the prior 12 months Americas EMEA Asia Pacific Total Net Sales Change Net Sales Change Net Sales Change Net Sales Change Current Q3 2025 (1%) Q3 2025 (5%) Q3 2025 (3%) Q3 2025 (2%) Environment Year to Date (2%) Year to
Slide 9: Cash Flow and Liquidity
CASH FLOW AND LIQUIDITY Net Earnings, as Adjusted, and Cash from Operating Activities $178 $185 $183 $179 $160 $209 $137 $132 $139 $122 $110 $120 $125 $127 $123 $131 $113 $119 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Net Earnings, as Adjusted Cash from Operating Activites Other Signific
Slide 10: Other Discussion Items
OTHER DISCUSSION ITEMS Cap Ex • Capital expenditure expectations of approximately $50 - $60 million in 2025 Expenses • Unallocated corporate expenses in 2025 are expected to be approximately $35 - $38 million • Year-to-date, we repurchased 4.4 million shares of stock. We may make additional Shares o
Slide 11: Other Discussion Items - Backlog
OTHER DISCUSSION ITEMS - BACKLOG Change in Backlog from Previous Quarter/ Year End Third Quarter September Year to Date $M, excluding acquisitions 2025 2024 2025 2024 Contractor $ (1) $ (10) $ (7) $ (8) Industrial 12 (10) 13 (29) Expansion Markets (5) (4) (13) (11) $ 6 $ (24) $ (7) $ (48) Current ba
Slide 12: Contractor Segment Results
CONTRACTOR SEGMENT RESULTS $ in millions Third Quarter September Year to Date 2025 Contractor Segment Net Sales 2025 2024 Change 2025 2024 Change Net Sales as % of Graco Americas $ 186 $ 182 2% $ 563 $ 553 2% EMEA 52 40 31 168 131 28 49% Asia Pacific 24 20 20 75 58 29 Total $ 262 $ 242 8% $ 806 $ 74
Slide 13: Contractor Segment Results Operating Margins
CONTRACTOR SEGMENT RESULTS Change in % of net sales Third Quarter September Year to Date 2024 Operating Earnings 29 % 30 % Product cost/tariffs (1) (3) Effect of acquired businesses (2) (2) 2025 Operating Earnings 26 % 25 % Contractor Segment Net Sales and Operating Margins Contractor Segment Operat
Slide 14: Industrial Segment Results
INDUSTRIAL SEGMENT RESULTS $ in millions Third Quarter September Year to Date 2025 Industrial Segment Net Sales 2025 2024 Change 2025 2024 Change Net Sales as % of Graco Americas $ 130 $ 125 3% $ 378 $ 375 1% EMEA 59 58 1 179 174 3 Asia Pacific 50 53 (3) 156 154 1 Total $ 239 $ 236 1% $ 713 $ 703 1%
Slide 15: Industrial Segment Financial Results Operating Margins
INDUSTRIAL SEGMENT FINANCIAL RESULTS Change in % of net sales Third Quarter September Year to Date 2024 Operating Earnings 33 % 33 % Product/channel mix, cost 2 1 Higher expenses (1) 0 2025 Operating Earnings 34 % 34 % Industrial Segment Net Sales and Operating Margins Industrial Segment Operating E
Slide 16: Expansion Markets Segment Financial Results
EXPANSION MARKETS SEGMENT FINANCIAL RESULTS $ in millions Third Quarter September Year to Date 2025 Expansion Markets Segment Net Sales 2025 2024 Change 2025 2024 Change Net Sales as % of Graco Americas $ 25 $ 27 (6)% $ 75 $ 78 (4)% EMEA 7 7 (3) 21 20 6 8% Asia Pacific 10 7 41 28 22 27 Total $ 42 $
Slide 17: Expansion Markets Segment Operating Margins
EXPANSION MARKETS SEGMENT FINANCIAL RESULTS Change in % of net sales Third Quarter September Year to Date 2024 Operating Earnings 18 % 19 % Product and channel mix 6 3 Lower expenses 1 2 2025 Operating Earnings 25 % 24 % Expansion Markets Segment Net Sales and Operating Margins Expansion Markets Seg
Slide 18: Adjusted Financial Results
ADJUSTED FINANCIAL RESULTS Non-GAAP Reconciliation Third Quarter September Year to Date Financial results have been $ in millions except per share amounts 2025 2024 Change 2025 2024 Change adjusted for comparability. Operating earnings, as reported $ 164.7 $ 145.7 13 % $ 466.2 $ 440.1 6% Contingent
Slide 19: OVING MATERIALS THAT MATTER”
OVING MATERIALS THAT MATTER”