Slide 1: Fourth Quarter Earnings Call
FOURTH QUARTER EARNINGS CALL 2026.01.27
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 Fourth Quarter Full Year $ in millions except per share amounts 2025 2024 Change 2025 2024 Change Net Sales $ 593.2 $ 548.7 8% $ 2,236.6 $ 2,113.3 6% Gross Profit 306.7 279.3 10 % 1,173.2 1,122.5 5% % of Net Sales 51.7% 50.9% 0.8 pts 52.5% 53.1% (0.6) pts Oper
Slide 4: Net Sales
NET SALES Components of Net Sales Change 2025 Fourth Quarter Segment Region 2025 Expansion Net Sales by Currency Contractor Industrial Americas EMEA Asia Pacific Consolidated Markets Volume and Price 1% 5% (7)% 2% 8% (4)% 2% Acquisitions 5% 4% 0% 2% 7% 5% 4% Euro Currency 2% 2% 1% 0% 8% 1% 2% 21% To
Slide 5: Operating Earnings
OPERATING EARNINGS Fourth Quarter Full Year 2024 Operating Earnings, as reported ($M and % of sales) $ 130 24 % $ 570 27 % Currency translation 3 1 3 0 Volume, price and cost 13 1 0 0 Effect of acquired businesses 2 (1) 8 (1) Prior year business reorganization cost 8 1 8 0 Prior year litigation cost
Slide 6: Fourth Quarter 2025
FOURTH QUARTER 2025 • Up 8 percent from fourth quarter 2024. Sales from acquired businesses contributed 4 Net Sales percentage points of growth. Currency translation increased net sales by 2 percentage points. • Margin rate up 0.8 percentage points compared to fourth quarter 2024 Gross Margin > Pric
Slide 7: Full Year 2025
FULL YEAR 2025 • Up 6 percent from 2024. Sales from acquired businesses contributed 5 percentage points of growth. Net Sales Currency translation increased net sales by 1 percentage point. • Margin rate down 0.6 percentage points compared to 2024 Price realization from pricing actions was unable to
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 Q4 2025 2% Q4 2025 8% Q4 2025 (4%) Q4 2025 2% Environment Full Year (1%) Full Year 2% Full
Slide 9: Cash Flow and Liquidity
CASH FLOW AND LIQUIDITY Net Earnings, as Adjusted, and Cash from Operating Activities $185 $197 $178 $183 $179 $160 $137 $132 $139 $120 $125 $127 $129 $113 $119 $122 $110 $123 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Net Earnings, as Adjusted Cash from Operating Activites Other Signific
Slide 10: Other Discussion Items
OTHER DISCUSSION ITEMS • Capital expenditure expectations of approximately $90 - $100 million in 2026 including Cap Ex approximately $50 million in facility expansion projects. Expenses • Unallocated corporate expenses in 2026 are expected to be approximately $40 - $43 million. • We repurchased 5.1
Slide 11: Contractor Segment Results
CONTRACTOR SEGMENT RESULTS $ in millions Fourth Quarter Full Year 2025 Contractor Segment Net Sales as % of Graco Net Sales 2025 2024 Change 2025 2024 Change Americas $ 177 $ 169 5% $ 740 $ 722 3% EMEA 61 52 15 229 184 24 48% Asia Pacific 28 26 11 103 83 24 Total $ 266 $ 247 8% $ 1,072 $ 989 8% Oper
Slide 12: Contractor Segment Results Operating Margins
CONTRACTOR SEGMENT RESULTS Change in % of net sales Fourth Quarter Full Year 2024 Operating Earnings 20 % 27 % Pricing, volume and product cost/tariffs 0 (2) Effect of acquired businesses (1) (2) Prior year business reorganization cost 1 0 Prior year litigation cost 3 2 Volume and earnings based cos
Slide 13: Industrial Segment Results
INDUSTRIAL SEGMENT RESULTS $ in millions Fourth Quarter Full Year 2025 Industrial Segment Net Sales as % of Graco Net Sales 2025 2024 Change 2025 2024 Change Americas $ 134 $ 126 7% $ 512 $ 501 2% EMEA 92 70 32 271 243 11 Asia Pacific 58 60 (3) 214 214 0 45% Total $ 284 $ 256 11% $ 997 $ 958 4% Oper
Slide 14: Industrial Segment Financial Results Operating Margins
INDUSTRIAL SEGMENT FINANCIAL RESULTS Change in % of net sales Fourth Quarter Full Year 2024 Operating Earnings 31 % 33 % Currency translation 0 (1) Volume, pricing, product/channel mix and cost 1 1 Effect of acquired business (1) 0 Prior year business reorganization cost 2 1 Volume and earnings base
Slide 15: Expansion Markets Segment Financial Results
EXPANSION MARKETS SEGMENT FINANCIAL RESULTS $ in millions Fourth Quarter Full Year 2025 Expansion Markets Segment Net Sales as % of Graco Net Sales 2025 2024 Change 2025 2024 Change Americas $ 26 $ 29 (11)% $ 101 $ 107 (6)% 7% EMEA 6 7 (2) 28 27 4 Asia Pacific 11 10 4 39 32 20 Total $ 43 $ 46 (6)% $
Slide 16: Expansion Markets Segment Operating Margins
EXPANSION MARKETS SEGMENT FINANCIAL RESULTS Change in % of net sales Fourth Quarter Full Year 2024 Operating Earnings 20 % 19 % Upfront licensing 9 3 Product and channel mix and cost 6 3 Prior year business reorganization cost 1 0 Volume and earnings based cost (2) 0 Expense leverage (6) 0 2025 Oper
Slide 17: Adjusted Financial Results
ADJUSTED FINANCIAL RESULTS Non-GAAP Reconciliation Fourth Quarter Full Year 2025 2024 2025 2024 $ in millions except per share amounts Change Change Financial results have been Operating earnings, adjusted $ 158.6 $ 130.0 22 % $ 624.8 $ 570.1 10 % Contingent consideration - - (14.1) - adjusted for c
Slide 18: OVING MATERIALS THAT MATTER”
OVING MATERIALS THAT MATTER”