Graco Q2 2025 Earnings and Revenue Miss Forecasts

Graco Inc., a leading industrial fluid-handling equipment manufacturer, reported adjusted earnings of $0.75 per share for the second quarter of 2025, missing analyst forecasts and reflecting a 3% year-over-year decline. Net sales rose 3% to $571.8 million, with gains driven by acquisitions and strong performance in EMEA and Asia Pacific, while sales in the Americas declined. The company’s operating margin dropped to 27.5% from 29.2% a year earlier, as higher component costs due to tariffs and lower organic sales in key segments impacted results. Graco plans targeted price increases starting in September to offset rising costs and is maintaining its guidance for low single-digit organic revenue growth in 2025. Over the past five years, annualized revenue growth was 6.9%, but recent years have seen flat demand and limited organic growth. Shares have underperformed the broader market in 2025, and the near-term outlook depends on Graco's ability to manage cost pressures and revive organic growth.