Here are 1-2 brief analogies for Graco (GGG):

1. Hilti for professional fluid handling and spraying equipment.
2. The industrial equipment equivalent of Stanley Black & Decker, but focused entirely on systems for moving, spraying, and dispensing liquids and powders.

• Paint Sprayers: Graco manufactures a comprehensive range of airless, HVLP, and texture sprayers used for applying paints and coatings in residential, commercial, and industrial settings.
• Fluid Handling Pumps: The company produces various pumps, including air-operated double diaphragm and piston pumps, designed for transferring and dispensing a wide array of fluids across diverse industries.
• Protective Coatings and Foam Proportioners: Graco offers specialized equipment for accurately mixing and applying plural-component protective coatings, sealants, adhesives, and spray foam insulation.
• Lubrication Equipment: Graco provides automatic lubrication systems and manual dispensing equipment to efficiently apply grease and oil in manufacturing, heavy equipment, and vehicle maintenance applications.
• Process Equipment: This category includes components and integrated systems used for precise movement, measurement, mixing, and dispensing of materials in manufacturing and processing industries.

Graco Inc. (symbol: GGG) primarily sells its products to other companies (B2B) through a global, multi-channel distribution network. The company explicitly states in its financial filings that no single customer accounts for a material portion of its consolidated net sales. Therefore, Graco does not have individually "major" customer companies in the sense of one or a few entities representing a significant percentage of its revenue.

However, Graco's direct customers are largely composed of a wide array of distributors and large retailers who, in turn, sell Graco's fluid handling equipment to a diverse base of end-user businesses and professionals. Key examples of public companies that serve as significant distribution channels for Graco's products include:

• The Home Depot, Inc. (NYSE: HD): A major home improvement retailer that stocks and sells Graco's contractor and prosumer paint sprayers, pressure washers, and related equipment.
• Lowe's Companies, Inc. (NYSE: LOW): Another leading home improvement retailer that distributes a range of Graco's equipment, particularly for painting and surface preparation.
• W.W. Grainger, Inc. (NYSE: GWW): A broad-line distributor of maintenance, repair, and operating (MRO) products and services, including various Graco industrial and contractor-grade equipment.

Beyond these large retailers and distributors, Graco's extensive network includes thousands of independent industrial distributors, specialty distributors, and original equipment manufacturers (OEMs) who integrate Graco components into their own systems. These distributors and OEMs collectively serve a vast array of end-user industries such as automotive, manufacturing, construction, aerospace, and food & beverage.

null

Mark W. Sheahan, President and Chief Executive Officer

Mark W. Sheahan became President and Chief Executive Officer of Graco Inc. in June 2021. He has been with the company for nearly 30 years, serving in various leadership capacities, including Chief Financial Officer and Treasurer from 2018 to 2021. Prior to that, he was Vice President and General Manager of the Applied Fluid Technologies Division from 2008 to 2018, and also held the role of Chief Administrative Officer from 2005 to 2008. Before joining Graco in 1995, Mr. Sheahan worked as a Senior Tax Manager at KPMG. He holds degrees in Business and Law. Mr. Sheahan also serves as a director of Tennant Company and on the board of managers of Fernweh Group, LLC.

David M. Lowe, Chief Financial Officer and Treasurer

David M. Lowe was appointed Chief Financial Officer and Treasurer of Graco Inc. effective June 10, 2021. He has held various senior roles at Graco since 1995, demonstrating extensive financial expertise and operational knowledge within the company.

Angela F. Wordell, Executive Vice President and Chief Operations and Supply Chain Officer

Angela F. Wordell serves as the Executive Vice President and Chief Operations and Supply Chain Officer at Graco Inc.

Joseph J. Humke, Executive Vice President

Joseph J. Humke is an Executive Vice President at Graco Inc.

Kathryn L. Schoenrock, Executive Vice President and Chief Technology Officer

Kathryn L. Schoenrock became Graco's Executive Vice President and Chief Technology Officer, effective May 1, 2023. Having been with Graco for over ten years, her previous roles include Executive Vice President, Corporate Controller and Information Systems, Executive Vice President, Corporate Controller, Director of Corporate Finance, and Director of Financial Reporting. Before joining Graco, Ms. Schoenrock worked at Deloitte & Touche LLP for ten years and Arthur Andersen LLP for two years. She holds a Master of Professional Accountancy and a Bachelor of Science in Accounting.

The key risks to Graco's business include its reliance on cyclical industries, the challenges associated with its international operations, and intense competition.

1. Reliance on Cyclical Industries and Economic Fluctuations: Graco's business is significantly vulnerable to economic downturns due to its reliance on cyclical industries such as construction, automotive, and semiconductor markets. Evidence from 2024 indicates sales declines across all geographic regions and business segments, with specific weakness in global semiconductor markets, reduced project activity in automotive and electronics, and softness in residential and non-residential construction. This demonstrates a direct link between macroeconomic conditions and Graco's financial performance.

2. International Operations Risks: Graco's extensive international operations expose it to various risks, including currency fluctuations, geopolitical instability, and trade policy headwinds like tariffs. For instance, in Q1 2025, sales were depressed by 2% due to unfavorable currency translation. Tariffs have also contributed to increased costs, with approximately $4 million in incremental costs in Q2 2025 impacting EPS. Economic weakness, particularly in the Asia-Pacific region and China, has been identified as a significant risk, accounting for over 90% of a revenue decline in Q3.

3. Intense Competition and Pricing Pressure: Graco faces increasing competition from both traditional players and new entrants, including low-cost manufacturers, particularly from Asia. This competitive landscape can exert pressure on Graco's margins and necessitates continuous investment in research and development to maintain market share and drive revenue growth.

Graco Inc. (GGG) designs, manufactures, and markets systems and equipment used to pump, meter, mix, dispense, and spray a wide variety of fluids and coatings. The company operates through three primary segments: Industrial, Process, and Contractor. Its main products and services include industrial pumps, lubrication equipment, paint sprayers, and sealant and adhesive dispensing equipment.

• Industrial Pumps: The global industrial pumps market was estimated at USD 46.4 billion in 2024 and is projected to reach USD 77.1 billion by 2034. Other estimates place the global market size at approximately USD 67.56 billion in 2024, expecting it to reach about USD 99.05 billion by 2034. The U.S. industrial pumps market alone was estimated at USD 11 billion in 2024. Another source valued the global industrial pumps market at USD 78.58 billion in 2024, projected to reach USD 120.87 billion by 2033. Asia-Pacific dominated the industrial pump market in 2024, accounting for 39.5 million units deployed.
• Lubrication Equipment: The global lubrication equipment market was valued at over USD 30.79 billion in 2024 and is projected to exceed USD 61 billion by the end of 2037. Another estimate states the global market size was USD 6.63 billion in 2024 and is expected to reach USD 10 billion by 2035. North America holds the majority share of the global lubrication equipment market, valued at USD 2.2 billion in 2024 and projected to rise to USD 3.2 billion in 2035. The automotive sector within the lubrication equipment market was valued at USD 2.76 billion in 2024 and is expected to reach USD 4.1 billion by 2035.
• Paint Sprayers (Paint Spraying Equipment and Paint Spray Guns): The global paint spraying equipment market was valued at USD 3.8 billion in 2023 and is projected to reach USD 6.2 billion by 2030. Another report valued the global spray painting machine market at approximately USD 4.3 billion in 2023, predicted to grow to around USD 6.8 billion by 2032. The global paint spray guns market was valued at USD 1.5 billion in 2021 and is projected to reach USD 2.3 billion by 2032. North America held the largest share of the paint spraying equipment market in 2023, accounting for 35% of global revenue. Asia-Pacific registered the highest revenue in the paint spray guns market in 2021.
• Sealant and Adhesive Dispensing Equipment: The global sealant and adhesive dispensing equipment market is estimated at USD 8 billion in 2025 and is projected to reach approximately USD 12 billion by 2033. The broader global adhesives and sealants market size was estimated at USD 72.76 billion in 2024 and is projected to reach USD 123.20 billion by 2033. Asia-Pacific dominated the adhesives and sealants market with a 36.2% revenue share in 2024.
• Fluid Handling Systems (Overall Market): The global fluid handling systems market was valued at USD 71.35 billion in 2024 and is projected to reach USD 113.59 billion by 2034. Another estimate places the global market size at USD 76.86 billion in 2024, expecting it to reach nearly USD 114.53 billion by 2032. Asia Pacific dominated the fluid handling systems market with the largest share in 2024.
• Process Equipment: The global process equipment market was valued at USD 91.64 billion in 2024 and is anticipated to reach USD 131.79 billion by 2033. Another source estimates the market size at USD 99.75 billion in 2025, expected to reach USD 124.78 billion by 2030. The North American region has dominated the global process equipment market.

• New Product Development and Launches: Graco is focused on driving growth through new product innovations. The company's Q3 2024 earnings call highlighted spending on new product development and inventory purchases related to upcoming launches. The ongoing rollout of products like the QUANTM electric diaphragm pumps is considered a key short-term catalyst for capturing new market share in its Contractor and Industrial segments. Analysts also point to aggressive new product launches as a significant factor for bullish outlooks on Graco's future revenue.
• Strategic Acquisitions and Expansion into New/Adjacent Markets: Acquisitions have been a notable contributor to Graco's revenue growth, contributing 6% growth in Q3 2025. Graco has actively pursued acquisitions, such as PCT Systems and Corob, to strengthen its presence in high-purity chemical delivery and paint and coating machinery manufacturing. Effective January 1, 2025, Graco implemented a new "Expansion Markets Division" specifically tasked with driving inorganic growth in adjacent markets, including environmental, semiconductor, high-pressure valves, and electric motors businesses, as well as future ventures and acquisitions. This strategic focus on expanding its international footprint through such initiatives is expected to position the company for future organic growth.
• Price Increases: Graco has demonstrated an ability to implement price increases to offset cost pressures and contribute to revenue. In Q3 2024, "realized pricing" was sufficient to offset declines in sales volume across all segments. Furthermore, management noted "ongoing success in targeted pricing actions to help counter rising tariff costs" in Q3 2025, and planned price increases for January 2026 are anticipated due to rising tariffs and inflationary pressures.
• Global Expansion and End-User Conversion: A key strategic initiative involves broadening Graco's global reach and converting more end-users. The company's new global organizational structure, effective January 2025, aims to unlock global growth opportunities by integrating previously independent regional operations into its business divisions. This strategic focus on expanding its international footprint is expected to drive future organic growth.
• Operational Efficiency Gains from "One Graco" Initiative: While not a direct revenue driver, the "One Graco" initiative, launched in Q3 2024, is designed to enhance profitability and operational efficiencies through a new global, customer-centric structure. This restructuring, which became effective January 1, 2025, is expected to lead to operational efficiency gains, lower costs, increased productivity, and streamlined global operations, thereby supporting competitive pricing and allowing for reinvestment in growth initiatives.

Share Repurchases

• Graco repurchased shares worth $31 million in 2024.
• The company repurchased and retired 0.4 million shares in 2024.
• Graco plans to continue opportunistic share repurchases in 2025.

Share Issuance

• Graco's annual net common equity issued/repurchased was $39 million in 2024, indicating a net issuance or less repurchase activity than other equity transactions.
• Shares outstanding for Graco in 2024 were 0.172 billion, a 0.12% increase from 2023.
• Shareholders' equity increased by $360 million to $2,584 million in 2024, driven by current year earnings, partially offset by dividends and share repurchases.

Outbound Investments

• Graco used $242 million for business acquisitions in 2024.
• In November 2024, Graco acquired Corob S.p.A., integrating it into its Contractor segment to expand customer offerings and bolster its position in the paint and coating machinery manufacturing market.
• Graco completed the acquisition of PCT System in August 2024, aiming to enhance its White Knight business and broaden its presence in the semiconductor market.

Capital Expenditures

• Capital expenditures for Graco totaled $107 million in 2024.
• The company projects capital expenditures to be approximately $50 million to $60 million in 2025.
• In 2021, Graco invested in new facilities, including acquiring land in Dayton, Minnesota, for a 500,000 square-foot facility targeted for completion in late 2022, signifying investment in infrastructure expansion.