GGG
Graco Inc (GGG) Q1 2026 Earnings Call Highlights: Navigating Growth Amidst Challenges
Article Summary
HOLD- Graco Inc. (NYSE: GGG) reported a 2% increase in first-quarter sales driven by acquisitions and favorable currency translation, with the Industrial segment posting a 4% increase, while the Contractor segment declined 4% due to softer construction demand in the Americas.
- Gross margin declined 60 basis points due to higher product costs from lower factory volume and tariffs, while operating expenses increased 7% and cash flow declined 4%.
- Graco maintained its 2026 revenue guidance of low-to-mid-single-digit organic growth on constant currency basis and mid-digit growth including acquisitions, with share repurchases of 189,000 shares totaling $16 million.
- The semiconductor business showed solid demand with bookings up at least 20% in each region, while industrial bookings were up mid-single digits driven by multiple product categories.
- The Middle East continued to pose no significant risk, though construction demand remained soft.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 4.6% | 25% | 20.0 ptsMinimal (4.6%) - Very weak |
| EPS Growth Next 5Y ? | 8.3% | 25% | 20.0 ptsWeak (8.3%) - Low expectations |
| Target Price Upside ? | 15.4% | 20% | 60.0 ptsModerate Upside (15.4%) - Target: $94.86 vs Current: $82.18 |
| Gross Margin % ? | 52.3% | 15% | 80.0 ptsVery Healthy (52.3%) - High-quality margins |
| Drawdown from 52-Wk High ? | -14.1% | 15% | 40.0 ptsMild Pullback (-14.1%) - Light entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About GGG
- Graco Inc. designs, manufactures, and markets systems and equipment used to move, measure, mix, control, dispense, and spray fluid and powder materials in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.
- It operates through three segments: Contractor, Industrial and Expansion Markets.
- The Contractor segment provides sprayers to apply paint to walls and other structures; two-component proportioning systems to spray polyurethane foam and polyurea coatings; viscous coatings to roofs, markings on roads, parking lots, athletic fields, and floors; and high-performance volumetric and gravimetric dispense, mixing, and shaking equipment.
- The Industrial segment designs and manufactures liquid finishing and advanced fluid dispensing equipment; pumps to move chemicals, petroleum, food, and other fluids; and systems, components, and accessories for the automatic lubrication of bearings, gears, and generators; supplies equipment for equipment maintenance and vehicle servicing applications, as well as make powder finishing products and complete powder finishing systems.
- The Expansion Markets segment manufactures pumps for use in the semiconductor industry; high pressure and ultra-high-pressure valves used in the oil and natural gas industry; and environmental monitoring and remediation equipment that is used to conduct ground water sampling, ground water remediation, and for landfill liquid and gas management.
- Graco Inc. was incorporated in 1926 and is headquartered in Minneapolis, Minnesota.