Graco Inc

Graco Inc. designs, manufactures, and markets equipment that moves, measures, mixes, controls, dispenses, and sprays fluids and powder materials. Its products are used across industrial, commercial, and contractor applications, with a focus on difficult-to-handle materials such as high-viscosity, abrasive, corrosive, and multi-component substances.

32,7 %

52,5 %

23,3 %

+5,8 %

3.15

2.29

— Graco Inc
%
Contractor equipment45% Equipment used in residential, commercial, industrial, and institutional construction, remodeling, and maintenance.
Industrial fluid handling35% Systems and components used in manufacturing and processing to move, mix, meter, and control fluids and coatings.
Expansion markets8% Specialty applications and newer end markets served through targeted products, channels, and acquisitions.
Spray and dispense solutions12% Equipment for applying coatings, sealants, adhesives, and other materials with precision.

Graco sells primarily through third-party distributors and selected retailers, with some direct sales to end users...

  • Contractors and construction channel partnersprimary

    Buy spray, dispense, and application equipment for residential, commercial, and institutional construction and remodeling.

  • Industrial manufacturersprimary

    Buy systems for moving, measuring, mixing, and controlling fluids and coatings in manufacturing and processing.

  • Third-party distributorsprimary

    Purchase and resell Graco equipment across geographies, providing market access and local application support.

  • Selected retailerssecondary

    Carry certain products for contractor and maintenance end users, broadening reach in specific markets.

  • Specialty end marketssecondary

    Buy niche solutions for difficult materials, precision dispensing, and powder applications.

Graco is a multinational company with manufacturing and distribution footprints across North America, Europe, and...

  • •About 48% of 2025 sales came from customers outside the U.S.
  • •Major manufacturing is in the U.S., with plants in Europe and Asia
  • •Distribution centers span the U.S., Europe, Japan, India, Australia, and Brazil
  • •International sales expose results to FX, tariffs, and trade disruptions
  • •Regional demand tracks construction, industrial production, and capital spending

Graco’s strategy is to develop new products, extend existing technologies into adjacent end markets, expand...

01
New product development and refreshesshort-term

Innovation is central to serving niche applications and defending pricing power.

02
Geographic expansionmedium-term

Broader distribution reduces dependence on mature markets and captures growth in emerging regions.

03
Acquisition-led channel and technology expansionmedium-term

Acquisitions can add products, customers, and routes to market faster than organic development alone.

Graco is exposed to cyclical demand in construction and industrial markets, so slower end-market activity can reduce...

high

Cyclical end-market demand

Sales depend on commercial and industrial activity, which weakens in downturns.

Scope
Construction, manufacturing, and maintenance spending
Materiality
high
high

Customer concentration in Contractor

A few large channel partners account for a significant portion of segment sales.

Scope
Contractor segment
Materiality
high
high

Foreign exchange and trade policy

Nearly half of sales are outside the U.S. and the company sources globally.

Scope
International sales and imported components
Materiality
high
high

Cybersecurity and information systems

A breach could disrupt manufacturing, order fulfillment, and customer trust.

Scope
Operations, reputation, and compliance
Materiality
medium
medium

Tariffs and higher product costs

Management noted higher product costs from increased tariffs, especially in Contractor.

Scope
Gross margin and operating margin
Materiality
high
medium

Intellectual property infringement and counterfeits

Competitors may copy products or infringe patents and trademarks.

Scope
Brand value and pricing power
Materiality
medium
Goodwill impairment testing
A weaker outlook or higher discount rate could trigger impairment charges
Intangible asset valuation and amortization
Amortization reduces earnings; impairment could create one-time charges
Retirement benefit assumptions
Changes in discount rates, inflation, or mortality can move expense and liabilities
Acquisition accounting
Purchase price allocation and amortization affect segment profitability

W.W. GRAINGER, INC.

GWW · Wholesale-Durable Goods

Veralto Corp

VLTO · Instruments For Meas & Testing of Electricity & Elec Signals

NORDSON CORP

NDSN · General Industrial Machinery & Equipment, NEC

GORMAN RUPP CO

GRC · Pumps & Pumping Equipment

Crane Co

CR · Miscellaneous Fabricated Metal Products

LUXFER HOLDINGS PLC

LXFR · Industrial Inorganic Chemicals

: 28/04/2026