Slide 1: Third Quarter Earnings Call
THIRD QUARTER EARNINGS CALL October 24, 2024
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 2024 2023 Change 2024 2023 Change (1) Net earnings and diluted net earnings per Net Sales $ 519.2 $ 539.7 (4)% $1,564.6 $1,629.0 (4)% share for 2024 and operating earnings, net earning
Slide 4: Net Sales
NET SALES Components of Net Sales Change Third Quarter 2024 Segment Region Contractor Industrial Process Americas EMEA Asia Pacific Consolidated Volume and Price (1)% 0% (12)% 1% (3)% (21)% (4)% Currency 0% (1)% 0% 0% 1% 0% 0% Total (1)% (1)% (12)% 1% (2)% (21)% (4)% September Year to Date 2024 Segm
Slide 5: Operating Earnings
OPERATING EARNINGS Third Quarter Sept. Year to Date 2023 Operating Earnings, as reported ($M and % of sales) $ 163 30 % $ 477 29 % Currency translation 0 0 (3) 0 Volume, cost and price (8) 1 (15) 1 Volume effect on expense leverage (9) (3) (19) (2) 2024 Operating Earnings, as reported ($M and % of s
Slide 6: Third Quarter 2024
THIRD QUARTER 2024 • Down 4 percent from third quarter 2023. Currency translation rates had Net Sales no significant impact • Margin rate up 0.5 percentage points compared to third quarter 2023 Gross Margin > Realized pricing more than offset higher product cost • Down $17 million compared to third
Slide 7: September Year to Date 2024
SEPTEMBER YEAR TO DATE 2024 • Down 4 percent from September 2023 year to date. Currency translation Net Sales rates had no significant impact • Margin rate up 1 percentage point compared to the same period in 2023 Gross Margin > Favorable pricing and cost more than enough to offset unfavorable volum
Slide 8: 2024 Outlook
2024 OUTLOOK Constant currency basis and excluding acquisitions completed in the prior 12 months Americas EMEA Asia Pacific Total Current Sales Growth Q3 2024 1% Sales Decline Q3 2024 (3%) Sales Decline Q3 2024 (21%) Sales Decline Q3 2024 (4%) Environment Sept. 2024 YTD 0% Sept. 2024 YTD (3%) Sept.
Slide 9: Cash Flow and Liquidity
CASH FLOW AND LIQUIDITY Net Earnings, as Adjusted, and Cash from Operating Activities $ in millions $191 $209 $178 $160 $137 $131 $137 $132 $139 $124 $127 $129 $122 $115 $105 $113 $119 $91 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Net Earnings, as Adjusted Cash from Operating Activites •
Slide 10: Other Discussion Items
OTHER DISCUSSION ITEMS • Capital expenditure expectations of approximately $120 million in 2024, Cap Ex including approximately $70 million in facility expansion projects • Unallocated corporate expenses in 2024 are expected to be approximately Expenses $41- $44 million • Share repurchases of 175,00
Slide 11: Contractor Segment Results
CONTRACTOR SEGMENT RESULTS $ in millions Third Quarter September Year to Date Sept. YTD 2024 Contractor Segment 2024 2023 Change 2024 2023 Change Net Sales as % of Graco Net Sales Americas $ 182 $ 186 (2)% $ 553 $ 558 (1)% EMEA 40 41 (3) 131 132 0 Asia Pacific 20 18 7 58 57 2 47% Total $ 242 $ 245 (
Slide 12: Contractor Segment Results: Operating Margins
CONTRACTOR SEGMENT RESULTS Change in % of net sales Third Quarter Sept. Year to Date 2023 Operating Earnings 30 % 29 % Cost, price and volume 2 2 Volume effect on expense leverage (3) (1) 2024 Operating Earnings 29 % 30 % Contractor Segment Net Sales and Operating Margins Contractor Segment Operatin
Slide 13: Industrial Segment Results
INDUSTRIAL SEGMENT RESULTS $ in millions Third Quarter September Year to Date Sept. YTD 2024 Industrial Segment 2024 2023 Change 2024 2023 Change Net Sales as % of Graco Net Sales Americas $ 72 $ 62 17% $ 206 $ 191 8% EMEA 48 46 4 143 143 (1) Asia Pacific 36 49 (27) 105 137 (23) Total $ 156 $ 157 (1
Slide 14: Industrial Segment Results: Operating Margins
INDUSTRIAL SEGMENT RESULTS Change in % of net sales Third Quarter Sept. Year to Date 2023 Operating Earnings 35 % 35 % Volume effect on expense leverage (1) (2) 2024 Operating Earnings 34 % 33 % Industrial Segment Net Sales and Operating Margins Industrial Segment Operating Earnings QTD $250 M 40% 3
Slide 15: Process Segment Results
PROCESS SEGMENT RESULTS Sept. YTD 2024 Process Segment $ in millions Third Quarter September Year to Date Net Sales as % of Graco 2024 2023 Change 2024 2023 Change Net Sales Americas $ 81 $ 85 (6)% $ 247 $ 262 (6)% 24% EMEA 17 20 (14) 51 56 (10) Asia Pacific 23 32 (27) 71 93 (23) Total $ 121 $ 137 (
Slide 16: Process Segment Results: Operating Margins
PROCESS SEGMENT RESULTS Change in % of net sales Third Quarter Sept. Year to Date 2023 Operating Earnings 31 % 31 % Volume (2) (1) Volume effect on expense leverage (2) (2) 2024 Operating Earnings 27 % 28 % Process Segment Net Sales and Operating Margins Process Segment Operating Earnings QTD $200 M
Slide 17: Adjusted Financial Results
ADJUSTED FINANCIAL RESULTS Financial results have been adjusted for comparability and excludes impacts of excess tax benefits from stock option exercises, contingent consideration fair value adjustments and impairment charges. Excluding the impact of these items presents a more consistent basis for
Slide 18: Worldwide Leader in Fluid Handling
WORLDWIDE LEADER IN FLUID HANDLING MOVE • MEASURE • MIX • CONTROL • DISPENSE • SPRAY