Slide 1: Investor Presentation Fourth Quarter and Full Year 2025
INVESTOR PRESENTATION FOURTH QUARTER AND FULL YEAR 2025
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: Distribution of Global Sales
DISTRIBUTION OF GLOBAL SALES WORLDWIDE 60% 48% $2,237M 45% 24% 16% 7% Full Year 2025 AMERICAS EMEA ASIA PACIFIC CONTRACTOR INDUSTRIAL EXPANSION MARKETS 69% 60% 51% Americas EMEA 27% Asia Pacific 21% 22% 23% 17% 10% CONTRACTOR INDUSTRIAL EXPANSION MARKETS INVESTOR PRESENTATION – Q4 2025 3
Slide 4: 2025 Net Sales by End Market
2025 NET SALES BY END MARKET 1% Wood 1% White Goods 2% Mining 2% Oil & Natural Gas 2% Public Works 3% Electronics 4% Vehicle Services 8% Other 52% Construction 9% Automotive 16% Industrial & Machinery INVESTOR PRESENTATION – Q4 2025 4
Slide 5: Trusted Solutions to Keep Jobs Moving & Fluids Pumping
TRUSTED SOLUTIONS TO KEEP JOBS MOVING & FLUIDS PUMPING INVESTOR PRESENTATION – Q4 2025 5
Slide 6: Diversified Fluid Handling Business
DIVERSIFIED FLUID HANDLING BUSINESS NICHE Difficult applications; corrosive, viscous, hard-to-move materials 6.7% Organic Revenue CAGR* *20-year average, constant currency ~40% Of revenue is parts and accessories INVESTOR PRESENTATION – Q4 2025 6
Slide 7: High Customer Value, Strong Product Differentiation
HIGH CUSTOMER VALUE, STRONG PRODUCT DIFFERENTIATION Best in class delivery Material supplier relationships Niche markets Strong channel partners CUSTOMER ROI Leading new Stringent product Best in class End user Lowest total product investment requirements quality interaction cost of ownership INVEST
Slide 8: Growth Plans and Earnings Drivers
GROWTH PLANS AND EARNINGS DRIVERS STRATEGIC INITIATIVES • New Product Development • New Markets 10% Targeted Revenue CAGR • Global Expansion • End-user Conversion • Acquisitions 12%+ Targeted Earnings CAGR Through a cycle. INVESTOR PRESENTATION – Q4 2025 8
Slide 9: Growth Plans and Earnings Drivers
GROWTH PLANS AND EARNINGS DRIVERS Through a cycle. 12%+ Acquisitions 3-4% 9-10% Strategic initiatives 1-2% 5-7% Price 1-2% 3% Industrial Production Targeted Targeted Targeted Average Growth Rate Organic CAGR Revenue CAGR Earnings CAGR INVESTOR PRESENTATION – Q4 2025 9
Slide 10: Low Volume, High Mix Delivers Customer ROI
LOW VOLUME, HIGH MIX DELIVERS CUSTOMER ROI AVERAGE NUMBER OF UNITS 2025 SALES SOLD PER DAY NUMBER OF SKUS ($ IN MILLIONS) HIGHLY-VALUED PRODUCTS AT 0–1 56,600 93% $ 1,081 48% LOW VOLUMES 2-5 6 - 10 2,700 800 4% 1% $ 327 $ 182 15% 8% 48% of our revenue comes from products 11 - 15 300 1% $ 77 3% that
Slide 11: Exceptional Returns
EXCEPTIONAL RETURNS 6.7% 23% 36% 16% ORGANIC REVENUE RETURN ON RETURN ON RETURN ON CAGR INVESTED CAPITAL EQUITY ASSETS Based on a 20-year average. Organic revenue at constant currency. INVESTOR PRESENTATION – Q4 2025 11
Slide 12: Business Model
BUSINESS MODEL • Brand Promise • Engineering Excellence • Manufacturing Excellence • Service Excellence • Extensive Reach • Culture & Talent INVESTOR PRESENTATION – Q4 2025 12
Slide 13: Brand Promise
BRAND PROMISE GRACO’S BRICK AND MORTAR VALUES . • Customer focus • Quality • Continuous improvement • Fact-based decision making • Results driven The result of these values is our promise to our customers: We are committed to delivering innovation, quality and service. INVESTOR PRESENTATION – Q4 202
Slide 14: Engineering Excellence
ENGINEERING EXCELLENCE TARGET DOUBLE-DIGIT RETURNS ON NEW PRODUCTS ANNUAL R&D INVESTMENT: • >1.5x* our peer group • 3.8% as a percent of sales vs. peers at 2.2%* *Peers: ITW, LECO, DOV, IEX, NDSN, based on a 5-year average, 2021 - 2025. INVESTOR PRESENTATION – Q4 2025 14
Slide 15: Manufacturing Excellence
MANUFACTURING EXCELLENCE • >75% product based in USA • Zero cost change goal on the same basket of goods (year over year) • <1% warranty costs INVESTOR PRESENTATION – Q4 2025 15
Slide 16: Service Excellence
SERVICE EXCELLENCE • Orders in by noon, ship the same day • 95% in-stock service level goal INVESTOR PRESENTATION – Q4 2025 16
Slide 17: Extensive Reach
EXTENSIVE REACH CUSTOMERS IN INSTALLED BASE FACILITIES IN +30K OUTLETS/DISTRIBUTORS 100+ COUNTRIES ~100 YEARS OLD 15+ COUNTRIES INV I NEVSETS O TRO R P PRREESS EE N N TT AA TTI IOONN – –Q 1Q 42 0 22 05 2 5 17
Slide 18: Culture & Talent
CULTURE & TALENT 4,400 1,900 22 11 AVERAGE AVERAGE TOTAL EMPLOYEES YEARS OF YEARS OF NUMBER OF OUTSIDE OF EXECUTIVE EMPLOYEE EMPLOYEES THE U.S. TENURE TENURE *Based on data as of 12/26/2025 INVESTOR PRESENTATION – Q1 2025 18 INVESTOR PRESENTATION – Q4 2025 18
Slide 19: Contractor
CONTRACTOR
Slide 20: Contractor $1,072M
KEY END MARKETS • Residential and non-residential construction • Residential and non-residential remodeling • Transportation Infrastructure CONTRACTOR GROWTH DRIVERS & TRENDS 2025 December, • End user conversion from brush and roll twelve-month performance • Product innovation and channel expansion
Slide 21: Industrial
INDUSTRIAL
Slide 22: Industrial $997M
KEY END MARKETS • General Industrial • Automotive • Vehicle Service INDUSTRIAL • Pharmaceutical, food and beverage 2025 December, GROWTH DRIVERS & TRENDS twelve-month performance • Factory movement and upgrades $997M • Automation • Technology upgrades SEGMENT REVENUE • Energy-efficiency upgrades • M
Slide 23: Expansion Markets
EXPANSION MARKETS
Slide 24: Expansion Markets $168M
KEY END MARKETS EXPANSION • Semiconductor • Oil and natural gas MARKETS • Environmental 2025 December, GROWTH DRIVERS & TRENDS twelve-month performance • Factory movement and upgrades • Technology and energy-efficiency upgrades $168M • Asset life maintenance • Environmental regulations SEGMENT REVEN
Slide 25: Capital Allocation
CAPITAL ALLOCATION
Slide 26: Long-Term Cash Deployment Priorities
LONG-TERM CASH DEPLOYMENT PRIORITIES ORGANIC GROWTH ACQUISITIONS SHAREHOLDER RETURN • International footprint • Supplement to organic growth • Solid dividend history • Product development • Leverage core competencies into adjacencies • Approximately 23 million shares remaining on repurchase authoriz
Slide 27: Key Investment Attributes
KEY INVESTMENT ATTRIBUTES • Drive long-term, above-market growth • Premium products that deliver strong ROI for end users • Leading industry positions • Serve niche markets where customers are willing to purchase quality, technology-based products • Products perform mission-critical functions • Recu
Slide 28: Key Acquisitions
KEY ACQUISITIONS
Slide 29: Key Acquisitions
KEY ACQUISITIONS 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 INVESTOR PRESENTATION – Q4 2025 29
Slide 30: Financial Results
FINANCIAL RESULTS
Slide 31: December 2025 Full Year Financial Performance
DECEMBER 2025 FULL YEAR FINANCIAL PERFORMANCE +6% 52.5% +7% +9% REVENUE GROSS NET INCOME EPS GROWTH MARGIN INCREASE GROWTH (As Reported) INVESTOR PRESENTATION – Q4 2025 31
Slide 32: 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 33: Financial Results Adjusted for Comparability
FINANCIAL RESULTS ADJUSTED FOR COMPARABILITY Non-GAAP Reconciliation Fourth Quarter Full Year $ in millions except per share amounts 2025 2024 Change 2025 2024 Change Financial results have been adjusted Operating earnings, adjusted $ 158.6 $ 130.0 22 % $ 624.8 $ 570.1 10 % for comparability. Certai
Slide 34: 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 35: 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 36: 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 37: 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 38: 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 39: 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 40: 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 41: Financial Summary
FINANCIAL SUMMARY 2025 Appendix
Slide 42: Financial Performance
FINANCIAL PERFORMANCE Net Sales Operating Margin $2,500 30% 25% $2,000 20% Sales ($ millions) Operating Margin $1,500 15% $1,000 10% $500 5% $0 0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 AS REPORTED Diluted EPS $0.77 $0.81 $1.12 $1.22 $1.95 $0.24 $1.45 $1.97 $2.00
Slide 43: Stock Dividend Growth
STOCK DIVIDEND GROWTH $1.40 $1.18 Dividends adjusted for stock splits $1.20 $0.94 $1.00 $0.70 $0.80 $0.60 $0.48 $0.40 $0.20 $- 2017 2020 2023 2026 INVESTOR PRESENTATION – Q4 2025 43
Slide 44: Strong Cash Generation
STRONG CASH GENERATION ($ Millions) 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Operating Cash Flows $ 684 $ 622 $ 651 $ 377 $ 457 $ 394 $ 419 $ 368 $ 338 $ 269 % of Net Income 131% 128% 129% 82% 104% 119% 122% 108% 134% 661% Capital Expenditures 46 107 185 201 134 71 128 54 40 42 Free Cash Fl
Slide 45: OVING MATERIALS THAT MATTER”
OVING MATERIALS THAT MATTER”