Cyclical end-market demand
Sales depend on commercial and industrial activity, which weakens in downturns.
- Scope
- Construction, manufacturing, and maintenance spending
- Materiality
- high
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
| % | |
|---|---|
| Contractor equipment | 45% Equipment used in residential, commercial, industrial, and institutional construction, remodeling, and maintenance. |
| Industrial fluid handling | 35% Systems and components used in manufacturing and processing to move, mix, meter, and control fluids and coatings. |
| Expansion markets | 8% Specialty applications and newer end markets served through targeted products, channels, and acquisitions. |
| Spray and dispense solutions | 12% 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...
Customer concentration in Contractor
A few large channel partners account for a significant portion of segment sales.
- Scope
- Contractor segment
- Materiality
- 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
Cybersecurity and information systems
A breach could disrupt manufacturing, order fulfillment, and customer trust.
- Scope
- Operations, reputation, and compliance
- Materiality
- 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
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
: 28.4.2026