Graco Inc. · NYSE:GGG
Graco — Q3 2026 Earnings Presentation
16 slides from Graco's earnings presentation, Oct 22, 2026
Slide 1: A Century of Ingenuity. A Future of Possibility.
A CENTURY OF INGENUITY. A FUTURE OF POSSIBILITY. THIRD QUARTER 2026 EARNINGS CALL OCTOBER 22, 2026
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: Key Highlights Third Quarter 2026
KEY HIGHLIGHTS THIRD QUARTER 2026 THIRD QUARTER PERFORMANCE REVENUE ADJ. DILUTED EARNINGS PER SHARE* ADJ. OPERATING MARGIN* $586M $0.81 27% Up 8% YoY Up 5% YoY Down 180 bps YoY REVENUE GROWTH CAPITAL ALLOCATION Revenue growth was driven by strength across all segments, including organic growth in Co
Slide 4: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK INVEST FOR GROWTH CAPITAL ALLOCATION IN ACTION Organic Investment Fund innovation and business growth BALANCED DISTRIBUTION YTD 2026 Strategic M&A Capital Strengthen the core and expand into premium niches Strategic M&A Dividends Share Buybacks RETURN CAPITAL TO SHAREHOL
Slide 5: M&A: A Core Lever for Long-Term Growth
M&A: A CORE LEVER FOR LONG-TERM GROWTH Seeking to generate approximately one-third of long-term revenue growth M&A has contributed approximately one-third of our current revenue base and, historically, has grown at a faster rate WHAT WE LOOK FOR STRENGHEN CORE, EXPAND PREMIUM NICHES FOCUS AREAS ✓ Pr
Slide 6: Graco – Third Quarter 2026
GRACO – THIRD QUARTER 2026 Sales Q3 2026 Sales Walk ($1M) • Reported sales of $586 million, an increase of 8% $24M $20M compared to third quarter 2025. – Organic sales increased 4% driven by finishing system $543M $586M sales and strong out the door revenue from the North America professional paint
Slide 7: Contractor Segment – Third Quarter 2026
CONTRACTOR SEGMENT – THIRD QUARTER 2026 Sales $ in millions Third Quarter • Sales of $276 million, a 5% increase compared to Net Sales 2026 2025 Change third quarter 2025. Americas $ 196 $ 186 5% – Organic sales increased by 2% with growth in the Americas driven primarily by sales in the professiona
Slide 8: Industrial Segment – Third Quarter 2026
INDUSTRIAL SEGMENT – THIRD QUARTER 2026 Sales $ in millions Third Quarter • Sales of $264 million, an 11% increase compared Net Sales 2026 2025 Change to third quarter 2025. Americas $ 140 $ 130 8% – 6% organic sales increase driven by finishing system sales and completion of other project-related a
Slide 9: Expansion Markets Segment – Third Quarter 2026
EXPANSION MARKETS SEGMENT – THIRD QUARTER 2026 Sales $ in millions Third Quarter • Sales of $46 million, an 8% increase compared to Net Sales 2026 2025 Change third quarter 2025. Americas $ 25 $ 25 (4)% – Increase driven primarily by strong semiconductor EMEA 6 7 (9) activity. Asia Pacific 15 10 50
Slide 10: Backlog and Bookings
BACKLOG AND BOOKINGS Through October 16, 2026 Increase in Q2 2026 Q3 2026 YTD Bookings Backlog From Bookings Bookings Excluding acquisitions Year End From Q2 2025 From Q3 2025 Year over Year $M Contractor Segment 4% 7% 2% $ 3 Industrial Segment (2)% (0)% 1% 16 Expansion Markets Segment 58 % 62 % 44
Slide 11: Cash Flow and Liquidity
CASH FLOW AND LIQUIDITY Net Earnings, and Cash from Operating Activities $ in millions $185 $197 $178 $183 $179 $178 $165 $138 $132 $145 $122 $124 $125 $128 $118 $120 $122 $109 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 Net Earnings Cash from Operating Activites Other Significant (Uses) S
Slide 12: Guidance
GUIDANCE • We expect fourth quarter total company revenue to be in the range of $610 million to $640 Revenue million. • Capital expenditure expectations of approximately $70 - $80 million in 2026 including Cap Ex approximately $40 million in facility projects. Expenses • Unallocated corporate expens
Slide 13: Appendix
APPENDIX
Slide 14: Change in Non-GAAP Methodology
CHANGE IN NON-GAAP METHODOLOGY • Beginning in the second quarter, the Company updated its non-GAAP adjusted measurements to exclude acquisition costs and amortization of acquired intangible assets. • While we have a history of acquisition activity, our acquisitions do not occur on a predictable cycl
Slide 15: Adjusted Financial Results
ADJUSTED FINANCIAL RESULTS Non-GAAP Reconciliation Third Quarter $ in millions except per share amounts 2026 2025 Change Financial results have been Operating earnings, as reported $ 148.1 $ 164.7 (10)% Acquisition costs 5.8 1.0 Amortization of acquired intangible assets 7.0 7.1 adjusted for compara
Slide 16: OVING MATERIALS THAT MATTER”
OVING MATERIALS THAT MATTER”