Graco Q3 Revenue Up; Organic Sales Fall

Graco reported Q3 2025 revenue of $543.4 million, a 4–5% year‑over‑year increase driven largely by acquisitions (about +6 percentage points) while organic sales declined roughly 2%, and adjusted EPS was $0.73, slightly missing estimates. The quarter included a $14 million non‑cash gain; management said tariff‑related cost increases were largely offset by pricing and mix, with gross margin near 53.2% and operating margin improving to 30.3%. By region, the Americas rose about 2%, EMEA about 12% and Asia Pacific about 7%; by segment, Contractor sales were $262.4M (up 8%, organic -3%), Industrial $238.6M (up 1%, organic -2%) and Expansion Markets $42.4M (up 3%, organic +3%). Management reiterated full‑year guidance for low single‑digit organic sales growth and said order rates were stable. The balance sheet remains strong (over $580M net cash, current ratio ~3.55x), the company has repurchased shares year‑to‑date, and the mixed results prompted about a 2% drop in the stock after hours while DA Davidson kept a Neutral $85 target.