Slide 1: Fourth Quarter Earnings Call
FOURTH QUARTER EARNINGS CALL January 28, 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: Financial Results
FINANCIAL RESULTS Statement of Earnings Fourth Quarter Full Year $ in millions except per share amounts 2024 2023 Change 2024 2023 Change (1) Operating earnings, net earnings and diluted Net Sales $ 548.7 $ 566.6 (3)% $2,113.3 $2,195.6 (4)% net earnings per share have been adjusted to Gross Profit 2
Slide 4: Net Sales
NET SALES Components of Net Sales Change 2024 Fourth Quarter Segment Region Contractor Industrial Process Americas EMEA Asia Pacific Consolidated Volume and Price (3)% (13)% 0% (2)% (7)% (14)% (6)% Acquisitions 7% 0% 0% 1% 5% 5% 3% Currency (1)% (1)% 0% 0% 0% (1)% 0% Total 3% (14)% 0% (1)% (2)% (10)
Slide 5: Operating Earnings
OPERATING EARNINGS Fourth Quarter Full Year 2023 Operating Earnings, as reported ($M and % of sales) $ 170 30 % $ 647 29 % Currency translation (1) 0 (3) 0 Volume, product and channel mix, cost and price (24) (1) (39) 0 Business reorganization cost (8) (1) (8) 0 Incremental litigation cost (7) (2) (
Slide 6: Fourth Quarter 2024
FOURTH QUARTER 2024 • Down 3 percent from fourth quarter 2023. Sales from acquired businesses Net Sales partially offset the decline and contributed 3 percentage points of growth. Currency translation rates had no significant impact. • Margin rate down 2 percentage points compared to fourth quarter
Slide 7: Full Year 2024
FULL YEAR 2024 • Down 4 percent from 2023. Sales from acquired businesses contributed 1 Net Sales percentage point of growth offsetting the impact of currency translation rates. • Margin rate up 0.2 percentage points compared to 2023 Gross Margin > Favorable effects of realized pricing offset unfavo
Slide 8: 2025 Outlook
2025 OUTLOOK Constant currency basis and excluding acquisitions completed in the prior 12 months Americas EMEA Asia Pacific Total Current Net Sales Change Q4 2024 (2%) Net Sales Change Q4 2024 (7%) Net Sales Change Q4 2024 (14%) Net Sales Change Q4 2024 (6%) Environment Full Year 2024 (1%) Full Year
Slide 9: Cash Flow and Liquidity
CASH FLOW AND LIQUIDITY Net Earnings, as Adjusted, and Cash from Operating Activities $ in millions $209 $191 $185 $178 $160 $124 $127 $129 $131 $137 $132 $139 $122 $105 $113 $119 $110 $91 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Net Earnings, as Adjusted Cash from Operating Activites O
Slide 10: Other Discussion Items
OTHER DISCUSSION ITEMS Cap Ex • Capital expenditure expectations of approximately $50-60 million in 2025 • Unallocated corporate expenses in 2025 are expected to be approximately Expenses $39 - $42 million • We may make opportunistic share repurchases in 2025 via open market Shares transactions • At
Slide 11: 2025 Change in Financial Reporting Segments
2025 CHANGE IN FINANCIAL REPORTING SEGMENTS 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 Powder Division. The Company’
Slide 12: Contractor Segment Results
CONTRACTOR SEGMENT RESULTS $ in millions Fourth Quarter Full Year 2024 Contractor Segment 2024 2023 Change 2024 2023 Change Net Sales as % of Graco Net Sales Americas $ 169 $ 172 (2)% $ 722 $ 730 (1)% EMEA 52 48 10 184 180 2 Asia Pacific 26 19 34 83 76 10 47% Total $ 247 $ 239 3% $ 989 $ 986 0% Oper
Slide 13: Contractor Segment Operating Margins
CONTRACTOR SEGMENT RESULTS Change in % of net sales Fourth Quarter Full Year 2023 Operating Earnings 29 % 29 % Cost and product and channel mix (2) 1 Incremental litigation cost (3) (1) Effect of acquired business operations (3) (1) Business reorganization cost (1) 0 Volume effect on expense leverag
Slide 14: Industrial Segment Results
INDUSTRIAL SEGMENT RESULTS $ in millions Fourth Quarter Full Year 2024 Industrial Segment 2024 2023 Change 2024 2023 Change Net Sales as % of Graco Net Sales Americas $ 67 $ 73 (9)% $ 272 $ 264 4% EMEA 58 64 (10) 200 207 (4) Asia Pacific 41 55 (25) 147 192 (24) Total $ 166 $ 192 (14)% $ 619 $ 663 (7
Slide 15: Industrial Segment Operating Margins
INDUSTRIAL SEGMENT RESULTS Change in % of net sales Fourth Quarter Full Year 2023 Operating Earnings 37 % 35 % Product and channel mix, cost (1) 0 Business reorganization cost (2) 0 Volume effect on expense leverage (3) (2) 2024 Operating Earnings 31 % 33 % Industrial Segment Net Sales and Operating
Slide 16: Process Segment Results
PROCESS SEGMENT RESULTS $ in millions Fourth Quarter Full Year 2024 Process Segment 2024 2023 Change 2024 2023 Change Net Sales as % of Graco Net Sales Americas $ 88 $ 83 7% $ 335 $ 344 (3)% EMEA 19 20 (6) 70 77 (9) 24% Asia Pacific 29 33 (12) 100 126 (21) Total $ 136 $ 136 0% $ 505 $ 547 (8)% Opera
Slide 17: Process Segment Operating Margins
PROCESS SEGMENT RESULTS Change in % of net sales Fourth Quarter Full Year 2023 Operating Earnings 28 % 30 % Currency Translation (1) 0 Business reorganization cost (2) (1) Volume effect on expense leverage 2 (1) 2024 Operating Earnings 27 % 28 % Process Segment Net Sales and Operating Margins Proces
Slide 18: Adjusted Financial Results
ADJUSTED FINANCIAL RESULTS Non-GAAP Reconciliation Fourth Quarter Full Year $ in millions except per share amounts 2024 2023 Change 2024 2023 Change Financial results have been Operating earnings, as reported Contingent consideration $ 130.0 - $ 169.9 - (23)% $ 570.1 - $ 646.8 (8.6) (12)% adjusted f
Slide 19: Worldwide Leader in Fluid Handling
WORLDWIDE LEADER IN FLUID HANDLING MOVE • MEASURE • MIX • CONTROL • DISPENSE • SPRAY