Slide 1: First Quarter Earnings Call
FIRST QUARTER EARNINGS CALL 2025.04.24
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 First Quarter $ in millions except per share amounts 2025 2024 Change Net Sales $ 528.3 $ 492.2 7% 1) Net earnings and diluted net earnings per share have been Gross Profit 277.7 266.2 4% adjusted to provide a more % of Net Sales 52.6% 54.1% (1.5) pts consiste
Slide 4: Net Sales
NET SALES Components of Net Sales Change 2025 First Quarter Segment Region Expansion Contractor Industrial Americas EMEA Asia Pacific Consolidated Markets Volume and Price (1)% 5% 12 % 3% (1)% 6% 3% Acquisitions 13 % 0% 0% 3% 13 % 10 % 6% Currency (1)% (2)% 0% (1)% (3)% (3)% (2)% Total 11 % 3% 12 %
Slide 5: Operating Earnings
OPERATING EARNINGS First Quarter 2024 Operating Earnings, as reported ($M and % of sales) $ 133 27 % Currency translation (4) (1) Volume 6 0 Effect of acquired businesses 1 (1) Volume effect on expense leverage 8 2 2025 Operating Earnings, as reported ($M and % of sales) $ 144 27 % Operating Earning
Slide 6: First Quarter 2025
FIRST QUARTER 2025 • Up 7 percent from first quarter 2024. Sales from acquired businesses contributed 6 Net Sales percentage points of growth. Currency translation reduced net sales by 2 percentage points. • Margin rate down 2 percentage points compared to first quarter 2024 Gross Margin > Unfavorab
Slide 7: 2025 Environment
2025 ENVIRONMENT Constant currency basis and excluding acquisitions completed in the prior 12 months Americas EMEA Asia Pacific Worldwide Current Net Sales Change Q1 2025 3% Q1 2025 (1%) Q1 2025 6% Environment Q1 2025 3% Contractor Net Sales Change Segment Q1 2025 (1%) Q1 2025 1% Q1 2025 (9%) Q1 202
Slide 8: Cash Flow and Liquidity
CASH FLOW AND LIQUIDITY Net Earnings, as Adjusted, and Cash from Operating Activities $209 $191 $185 $178 $160 $129 $131 $137 $132 $139 $122 $120 $125 $127 $113 $119 $110 $91 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Net Earnings, as Adjusted Cash from Operating Activites Other Significa
Slide 9: 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 $39 - $42 million • During the first quarter, we repurchased 2.8 million shares. Subsequent to the end of the
Slide 10: 2025 Change in Financial Reporting Segments
2025 CHANGE IN FINANCIAL REPORTING SEGMENTS As previously announced, effective January 1, 2025, the Company has classified its business into three reportable segments: Contractor, Industrial and Expansion Markets. • The Industrial segment consists of the newly formed Industrial Division and the Powd
Slide 11: Contractor Segment Results
CONTRACTOR SEGMENT RESULTS $ in millions First Quarter Net Sales 2025 2024 Change Americas $ 176 $ 166 6% EMEA 54 46 17 Asia Pacific 25 18 35 Total $ 255 $ 230 11 % Operating Earnings $ 62 $ 66 (6)% % of sales 24 % 29 % Components of Net Sales Change Q1 2025 Q1 2025 Americas Asia Pacific Volume & Pr
Slide 12: Contractor Segment Results Operating Margins
CONTRACTOR SEGMENT RESULTS Change in % of net sales First Quarter 2024 Operating Earnings 29 % Currency translation (1) Product cost (2) Effect of acquired businesses (3) Volume effect on expense leverage 1 2025 Operating Earnings 24 % Contractor Segment Net Sales and Operating Margins Contractor Se
Slide 13: Industrial Segment Results
INDUSTRIAL SEGMENT RESULTS $ in millions First Quarter Net Sales 2025 2024 Change Americas $ 121 $ 117 3% EMEA 60 58 3 Asia Pacific 51 50 2 Total $ 232 $ 225 3% Operating Earnings $ 80 $ 73 9% % of sales 34 % 33 % Components of Net Sales Change Q1 2025 Q1 2025 Americas Asia Pacific Volume & Price 5%
Slide 14: Industrial Segment Financial Results
INDUSTRIAL SEGMENT FINANCIAL RESULTS Change in % of net sales First Quarter 2024 Operating Earnings 33 % Currency translation (1) Product and channel mix, cost 1 Lower expenses 1 2025 Operating Earnings 34 % Industrial Segment Net Sales and Operating Margins Industrial Segment Operating Earnings QTD
Slide 15: Expansion Markets Segment Financial Results
EXPANSION MARKETS SEGMENT FINANCIAL RESULTS $ in millions First Quarter Net Sales 2025 2024 Change Americas $ 26 $ 24 9% EMEA 7 7 4 Asia Pacific 8 6 29 Total $ 41 $ 37 12% Operating Earnings $ 10 $ 7 49 % % of sales 24 % 18 % Components of Net Sales Change Q1 2025 Q1 2025 Americas Asia Pacific Volum
Slide 16: Expansion Markets Segment Financial Results
EXPANSION MARKETS SEGMENT FINANCIAL RESULTS Change in % of net sales First Quarter 2024 Operating Earnings 18 % Volume 1 Lower expenses 5 2025 Operating Earnings 24 % Expansion Markets Segment Net Sales and Operating Margins Expansion Markets Segment Operating Earnings QTD $100 M 35% 30% $75 M Opera
Slide 17: Adjusted Financial Results
ADJUSTED FINANCIAL RESULTS Non-GAAP Reconciliation First Quarter Financial results have been $ in millions except per share amounts 2025 2024 Change adjusted for comparability. Income taxes, as reported $ 27.4 $ 18.1 51 % Certain items have caused Excess tax benefit from option exercises 3.6 9.6 Inc
Slide 18: Graco - Moving Materials That Matter
(; GRACO MOVING MATERIALS THAT MATTER™