Graco — Income Statement, Cash Flows & Balance Sheet
Is Graco profitable?
Graco grew revenue and earnings meaningfully in 2025, rebounding from a soft 2024.
| Metric | FY2023 | FY2024 | FY2025 | Change (2024→2025) |
|---|---|---|---|---|
| Net Sales ($000s) | $2,195,606 | $2,113,316 | $2,236,604 | +6% |
| Gross Profit Margin | 52.9% | 53.1% | 52.5% | -0.6 pts |
| Operating Earnings ($000s) | $646,843 | $570,098 | $624,797 | +10% |
| Net Earnings ($000s) | $506,511 | $486,084 | $521,839 | +7% |
| Diluted EPS | $2.94 | $2.82 | $3.08 | +9% |
Revenue returned to growth after a down year in 2024, and operating earnings recovered most of the ground lost then, though they remain modestly below the 2023 peak. Gross margins held reasonably steady in the low 50s — a sign Graco maintains solid pricing power on its fluid-handling equipment.
A $14 million one-time gain inflated 2025 operating earnings slightly.
| Item | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Contingent consideration gain ($000s) | $8,600 | $— | $14,061 |
Graco recorded a gain when the estimated future payout owed to a prior acquisition's sellers was revised downward. Stripping this out, underlying operating performance was still solid — just slightly less than the headline number suggests.
Where does Graco's revenue come from?
All three segments grew in 2025, with Contractor leading the recovery.
| Segment | FY2024 Net Sales | FY2025 Net Sales | Change | FY2025 Operating Earnings |
|---|---|---|---|---|
| Contractor | $988,865 | $1,071,878 | +8% | $270,308 |
| Industrial | $958,023 | $996,814 | +4% | $334,586 |
| Expansion Markets | $166,428 | $167,912 | +1% | $41,496 |
Contractor — which sells paint sprayers and coating equipment — drove the strongest recovery, while Industrial (fluid dispensing, lubrication, powder finishing) remained Graco's largest profit contributor. Expansion Markets, the smallest segment serving semiconductor and environmental niches, grew only modestly but improved profitability noticeably.
Does Graco generate cash?
Graco converts earnings into cash at an impressive rate, with free cash flow well above net income.
| Metric ($000s) | FY2024 | FY2025 | Change |
|---|---|---|---|
| Operating Cash Flow | $621,700 | $683,591 | +10% |
| Capital Expenditures | $(106,737) | $(45,669) | -57% |
| Free Cash Flow (GAAP operating less capex) | $514,963 | $637,922 | +24% |
Capital spending dropped sharply as Graco moved past a heavy investment phase, leaving substantially more free cash flow (cash left after maintaining and investing in the business). The company deployed that cash aggressively — spending $423 million buying back its own shares and $135 million on acquisitions, while continuing to raise its dividend.
How strong is Graco's balance sheet?
Graco carries almost no debt, giving it exceptional financial flexibility.
| Metric ($000s) | FY2024 | FY2025 | Change |
|---|---|---|---|
| Total Debt | $28,537 | $24,696 | -13% |
| Cash & Equivalents | $675,336 | $624,083 | -8% |
| Net Cash (Cash minus Debt) | $646,799 | $599,387 | -7% |
| Unused Committed Credit Lines | — | $777,000 | — |
Graco is effectively debt-free, holding far more cash than it owes. The modest decline in cash reflects the large share buyback program rather than any operational strain, and the company has $777 million of untapped credit available if needed for future acquisitions.
Acquisitions added goodwill and intangibles to the asset base, worth watching.
| Asset ($000s) | FY2024 | FY2025 | Change |
|---|---|---|---|
| Goodwill | $487,468 | $585,304 | +20% |
| Other Intangible Assets, net | $233,306 | $303,851 | +30% |
The Corob, Color Service, and Radia acquisitions completed in 2024–2025 added meaningful goodwill and intangibles to the balance sheet. These are not hard assets — they represent the premium paid for acquired businesses — so their value depends on those businesses performing as expected going forward.