Slide 1: Second Quarter Earnings Call
SECOND QUARTER EARNINGS CALL 2025.07.24
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 Second Quarter June Year to Date $ in millions except per share amounts 2025 2024 Change 2025 2024 Change Net Sales $ 571.8 $ 553.2 3% $ 1,100.1 $ 1,045.4 5% Gross Profit 299.5 300.9 (0)% 577.3 567.1 2% % of Net Sales 52.4% 54.4% (2.0) pts 52.5% 54.2% (1.7) pt
Slide 4: Net Sales
NET SALES Components of Net Sales Change 2025 Second Quarter Segment Region Year to Date June 2025 Expansion Net Sales by Currency Contractor Industrial Americas EMEA Asia Pacific Consolidated Markets Volume and Price (5)% (1)% (3)% (6)% 2% 5% (3)% Acquisitions 12 % 0% 0% 3% 12 % 8% 6% Euro Currency
Slide 5: Operating Earnings
OPERATING EARNINGS Second Quarter June Year to Date 2024 Operating Earnings, as reported ($M and % of sales) $ 161 29 % $ 294 28 % Currency translation 1 0 (3) 0 Product cost, volume (17) (1) (11) (1) Effect of acquired businesses 4 (1) 5 (1) Volume effect on expense leverage 8 1 16 1 2025 Operating
Slide 6: Second Quarter 2025
SECOND QUARTER 2025 • Up 3 percent from second quarter 2024. Sales from acquired businesses contributed 6 Net Sales percentage points of growth. Currency translation had no meaningful impact. • Margin rate down 2 percentage points compared to second quarter 2024 Gross Margin > Higher product cost, i
Slide 7: June Year to Date 2025
JUNE 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 reduced net sales by 1 percentage point. • Margin rate down 1.7 percentage points compared to the same period in 2024 Gross Mar
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 Q2 2025 (6%) Q2 2025 2% Q2 2025 5% Q2 2025 (3%) Environment Year to Date (2%) Year to Date
Slide 9: Cash Flow and Liquidity
CASH FLOW AND LIQUIDITY Net Earnings, as Adjusted, and Cash from Operating Activities $209 $178 $185 $183 $160 $191 $131 $137 $119 $132 $139 $122 $129 $110 $120 $125 $127 $113 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 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 $60 - $70 million in 2025 Expenses • Unallocated corporate expenses in 2025 are expected to be approximately $37 - $40 million • Year-to-date, we repurchased 4.4 million shares of stock. We may make additional Shares o
Slide 11: Contractor Segment Results
CONTRACTOR SEGMENT RESULTS $ in millions Second Quarter June Year to Date 2025 Contractor Segment Net Sales as % of Graco Net Sales 2025 2024 Change 2025 2024 Change Americas $ 201 $ 205 (2)% $ 377 $ 370 2% EMEA 61 44 37 116 91 27 49% Asia Pacific 27 20 32 51 38 34 Total $ 289 $ 269 7% $ 544 $ 499 9
Slide 12: Contractor Segment Results
CONTRACTOR SEGMENT RESULTS Change in % of net sales Second Quarter June Year to Date 2024 Operating Earnings 31 % 30 % Cost and product/channel mix (3) (3) Effect of acquired business operations (2) (2) 2025 Operating Earnings 26 % 25 % Contractor Segment Net Sales and Operating Margins Contractor S
Slide 13: Industrial Segment Results
INDUSTRIAL SEGMENT RESULTS $ in millions Second Quarter June Year to Date 2025 Industrial Segment Net Sales as % of Graco Net Sales 2025 2024 Change 2025 2024 Change Americas $ 127 $ 132 (4)% $ 248 $ 249 (1)% EMEA 61 58 6 121 116 4 Asia Pacific 54 52 4 105 102 3 Total $ 242 $ 242 0% $ 474 $ 467 2% 4
Slide 14: Industrial Segment Financial Results
INDUSTRIAL SEGMENT FINANCIAL RESULTS Change in % of net sales Second Quarter June Year to Date 2024 Operating Earnings 34 % 33 % Currency translation 0 (1) Product/channel mix, cost 0 1 Lower expenses 0 1 2025 Operating Earnings 34 % 34 % Industrial Segment Net Sales and Operating Margins Industrial
Slide 15: Expansion Markets Segment Financial Results
EXPANSION MARKETS SEGMENT FINANCIAL RESULTS $ in millions Second Quarter June Year to Date 2025 Expansion Markets Segment Net Sales as % of Graco Net Sales 2025 2024 Change 2025 2024 Change Americas $ 24 $ 27 (12)% $ 50 $ 51 (2)% 8% EMEA 8 7 16 14 13 10 Asia Pacific 9 8 15 18 15 21 Total $ 41 $ 42 (
Slide 16: Expansion Markets Segment Financial Results
EXPANSION MARKETS SEGMENT FINANCIAL RESULTS Change in % of net sales Second Quarter June Year to Date 2024 Operating Earnings 20 % 19 % Volume 1 1 Lower expenses 1 3 2025 Operating Earnings 22 % 23 % Expansion Markets Segment Operating Earnings QTD Expansion Markets Segment Net Sales and Operating M
Slide 17: Adjusted Financial Results
ADJUSTED FINANCIAL RESULTS Non-GAAP Reconciliation Second Quarter June Year to Date Financial results have been $ in millions except per share amounts 2025 2024 Change 2025 2024 Change adjusted for comparability. Income taxes, as reported $ 30.6 $ 32.2 (5)% $ 58.0 $ 50.3 15 % Excess tax benefit from
Slide 18: Moving Materials That Matter
OVING MATERIALS THAT MATTER”