Graco

Graco designs, makes and sells systems and equipment that move, measure, control, dispense and spray fluids and coatings. Its products include paint sprayers for contractors and home centers, finishing systems for factories, sealant and adhesive dispensers, and equipment for semiconductor and environmental uses. It has three reportable segments: Contractor, Industrial and Expansion Markets.

Graco bought Valco Melton, a maker of adhesive application and quality assurance systems, on August 31, 2026. Net sales were $2.24 billion in 2025. Its fiscal year ends in late December, and its headquarters is in Minneapolis, Minnesota.

The market prices Graco for slow organic growth and lower margins. Organic sales fell 6% in Q1 2026 and grew 4% in Q3 2026, so most of the 4% sales growth in the first nine months came from acquisitions. In Q3 2026, the gross margin fell about 3 percentage points because of higher product costs, the lower margins of acquired businesses and an unfavorable mix. The operating margin of the Industrial segment fell to 28% from 34%.

Residential construction stayed soft, and Valco Melton had an operating loss in its first month. For the gap to close, three things must be true. Organic orders, which rose 7% in Q3 2026, must turn into organic sales growth in 2027. The gross margin must recover as price increases catch up with product costs.

Valco Melton and other recent acquisitions must earn margins closer to the rest of Graco. The Q4 2026 report, expected in late January 2027, is the next test, with fourth quarter sales guidance of $610 million to $640 million. If these checks pass, the gap can close over the next four to six quarters. The main reason it may not close is a longer slowdown in construction and factory spending.

1. Jan 25, 2027 · est.Pending

   Q4 2026 results: organic growth and marginsQ4 sales within $610 million to $640 million, organic growth near the 7% rise in Q3 orders and a gross margin that stops falling pass; lower sales or another margin decline fail.
2. 2027 · est.Pending

   Valco Melton marginsValco Melton earns an operating profit in 2027 and Industrial margins recover toward the 34% of Q3 2025 pass; continued losses or a goodwill impairment fail.

Every passed and failed checkpoint across all picks

• November 10, 2026Graco signed a $600 million accelerated share repurchase agreement with Bank of America. It pays with cash on hand and borrowings under its revolving credit facility. It expected an initial delivery of about 80% of the shares on November 11, 2026, and final settlement is planned for March 2027.
• October 21, 2026Graco reported Q3 2026 results. Net sales rose 8% to $586.4 million, with 4% organic growth and 4% from acquisitions. Operating earnings fell 10% because a gain of $14 million in Q3 2025 did not repeat, and adjusted diluted EPS rose 5% to $0.81. The gross margin fell about 3 percentage points. Organic incoming orders rose 7%. Graco expects Q4 2026 sales of $610 million to $640 million, including Valco Melton. It also licensed its motor technology to ABB for data center cooling equipment.
• August 31, 2026Graco completed the acquisition of Valco Melton for total cash of about $462 million, subject to adjustments. Graco borrowed $219 million under its $750 million revolving credit facility in Q3 2026 to fund acquisitions.

Last earnings

January 26, 2026 (8-K on sec.gov)

Next earnings

Expected about January 25, 2027. The company has not confirmed the date.

• 8-KInvestor disclosure and Other company newsFiled November 10, 2026 · Read it on sec.gov
• 10-QQuarterly report for the period ended Sep 25, 2026Filed October 21, 2026 · ggg-20260925
• 8-KChange of directors or officersFiled September 14, 2026 · Read it on sec.gov
• 8-KInvestor disclosureFiled September 1, 2026 · Read it on sec.gov
• 10-QQuarterly report for the period ended Jun 26, 2026Filed July 22, 2026 · ggg-20260626
• 8-KChange of directors or officersFiled June 15, 2026 · ggg-20260612
• 8-KInvestor disclosureFiled May 21, 2026 · ggg-20260521
• 8-KInvestor disclosureFiled May 5, 2026 · Read it on sec.gov
• 8-KShareholder vote resultsFiled April 27, 2026 · ggg-20260424
• 8-KEarnings releaseFiled January 26, 2026 · Press release and exhibits

Every filing on SEC EDGAR (CIK 42888)

• Sales depend on construction and factory spending. Residential construction stayed soft in 2026, and organic sales fell 6% in Q1 2026. A longer slowdown can keep organic growth low.
• Recent acquisitions have lower margins than the rest of Graco. Valco Melton had sales of $12 million and an operating loss of $5 million from August 31 to September 25, 2026. If margins of acquired businesses do not improve, the group margin stays lower.
• Higher product costs and tariffs lowered the gross margin in 2026. Graco must raise prices to offset them, and price increases can lower demand.
• Graco borrowed under its revolving credit facility in 2026 to pay for acquisitions and buybacks. Debt is still small, but more debt-funded deals can raise risk.

Graco has almost no net debt. At September 25, 2026, cash was $139.8 million, and debt was $134.5 million: notes payable to banks of $30.0 million, current debt of $0.7 million and long-term debt of $103.8 million. Read more

Yield at the current rate

1.6% (current annual rate, at today’s price)

Dividend yield

1.6% (last 12 months, at today’s price of $72.98)

Paid per share

$1.18 in the last 12 months (4 payments)

Current annual rate

$1.18 ($0.295 × 4 a year)

Payout ratio

36% of the last fiscal year’s earnings (the year that ended December 26, 2025)

Latest ex-dividend date

October 19, 2026, $0.295 per share

Dividends per share by year

From 2020 to 2025, the dividend grew by about 9.5% a year. From 2015 to 2025, the dividend grew by about 10.6% a year.

Source: company filings and market data, read on November 13, 2026. The ex-dividend date is the first day a buyer no longer gets the next payment.