Graco demonstrates resilient pricing power, maintaining gross margins near 52% despite revenue growth volatility that saw a 7.1% contraction in 2024Q1 followed by an 8.1% expansion in 2025Q4.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 2.25B | 2.24B | 2.11B | 2.2B | 2.14B | 1.99B | 1.65B | 1.65B | 1.65B | 1.47B | 1.33B | 1.29B | 1.22B | 1.1B | 1.01B | 895.28M | 744.07M | 579.21M | 817.27M | 841.34M | 816.47M | 731.7M | 605.03M | 535.1M | 487.05M | 472.82M | 494.37M | 442.5M | 432.2M | 413.9M | 391.8M |
| Revenue Growth % | 4.61% | 5.83% | -3.75% | 2.43% | 7.84% | 20.45% | 0.25% | -0.44% | 12.11% | 10.94% | 3.33% | 5.35% | 10.61% | 9.04% | 13.09% | 20.32% | 28.46% | -29.13% | -2.86% | 3.05% | 11.58% | 20.94% | 13.07% | 9.87% | 3.01% | -4.36% | 11.72% | 2.38% | 4.42% | 5.64% | 1.42% |
| Cost of Goods Sold | 1.07B | 1.06B | 990.86M | 1.03B | 1.09B | 953.66M | 795.18M | 786.29M | 770.75M | 681.7M | 621.05M | 601.78M | 554.39M | 496.57M | 461.93M | 395.08M | 340.62M | 286.4M | 385.09M | 393.91M | 382.51M | 352.35M | 276.62M | 252.3M | 236.89M | 238.06M | 228.07M | 196.6M | 199M | 197.4M | 183.1M |
| COGS % of Revenue | - | 47.55% | 46.89% | 47.12% | 50.67% | 47.98% | 48.19% | 47.77% | 46.62% | 46.22% | 46.72% | 46.78% | 45.4% | 44.98% | 45.62% | 44.13% | 45.78% | 49.45% | 47.12% | 46.82% | 46.85% | 48.16% | 45.72% | 47.15% | 48.64% | 50.35% | 46.13% | 44.43% | 46.04% | 47.69% | 46.73% |
| Gross Profit | 1.18B | 1.17B | 1.12B | 1.16B | 1.06B | 1.03B | 854.94M | 859.76M | 882.54M | 793.05M | 708.24M | 684.7M | 666.74M | 607.46M | 550.53M | 500.2M | 403.44M | 292.82M | 432.18M | 447.43M | 433.96M | 379.35M | 328.41M | 282.8M | 250.16M | 234.76M | 266.3M | 245.9M | 233.2M | 216.5M | 208.7M |
| Gross Margin % | 52.31% | 52.45% | 53.11% | 52.88% | 49.33% | 52.02% | 51.81% | 52.23% | 53.38% | 53.78% | 53.28% | 53.22% | 54.6% | 55.02% | 54.38% | 55.87% | 54.22% | 50.55% | 52.88% | 53.18% | 53.15% | 51.84% | 54.28% | 52.85% | 51.36% | 49.65% | 53.87% | 55.57% | 53.96% | 52.31% | 53.27% |
| Gross Profit Growth % | - | 4.52% | -3.32% | 9.8% | 2.27% | 20.94% | -0.56% | -2.58% | 11.28% | 11.97% | 3.44% | 2.69% | 9.76% | 10.34% | 10.06% | 23.98% | 37.78% | -32.25% | -3.41% | 3.1% | 14.39% | 15.51% | 16.13% | 13.05% | 6.56% | -11.84% | 8.3% | 5.45% | 7.71% | 3.74% | 3.99% |
| Operating Expenses | 571.59M | 562.45M | 552.36M | 514.18M | 484.74M | 502.63M | 463.22M | 435.3M | 446.11M | 432.6M | 402.34M | 382.57M | 357.81M | 327.69M | 325.85M | 280.69M | 250.3M | 218.35M | 244.81M | 214.95M | 207.96M | 188.28M | 166.88M | 153.97M | 137.31M | 134.58M | 155.06M | 152.6M | 156.2M | 151M | 155.6M |
| OpEx % of Revenue | - | 25.15% | 26.14% | 23.42% | 22.61% | 25.29% | 28.07% | 26.45% | 26.98% | 29.33% | 30.27% | 29.74% | 29.3% | 29.68% | 32.18% | 31.35% | 33.64% | 37.7% | 29.95% | 25.55% | 25.47% | 25.73% | 27.58% | 28.77% | 28.19% | 28.46% | 31.37% | 34.49% | 36.14% | 36.48% | 39.71% |
| Selling, General & Admin | 488.7M | 480.15M | 465.13M | 432.16M | 404.73M | 422.98M | 355.8M | 367.74M | 382.99M | 372.5M | 341.73M | 324.02M | 303.56M | 276.26M | 276.93M | 239.14M | 212.6M | 180.81M | 208.25M | 184.67M | 177.99M | 161.31M | 145.1M | 135.88M | 119.14M | 113.77M | 119.61M | 118.2M | 124.3M | 119.7M | 125M |
| SG&A % of Revenue | - | 21.47% | 22.01% | 19.68% | 18.88% | 21.28% | 21.56% | 22.34% | 23.17% | 25.26% | 25.71% | 25.19% | 24.86% | 25.02% | 27.35% | 26.71% | 28.57% | 31.22% | 25.48% | 21.95% | 21.8% | 22.05% | 23.98% | 25.39% | 24.46% | 24.06% | 24.19% | 26.71% | 28.76% | 28.92% | 31.9% |
| Research & Development | 82.9M | 82.3M | 87.23M | 82.82M | 80.01M | 79.65M | 72.19M | 67.56M | 63.12M | 60.11M | 60.61M | 58.56M | 54.25M | 51.43M | 48.92M | 41.55M | 37.7M | 37.54M | 36.56M | 30.28M | 29.97M | 26.97M | 21.78M | 18.09M | 18.17M | 20.81M | 20M | 19.7M | 18.2M | 17.8M | 17.9M |
| R&D % of Revenue | - | 3.68% | 4.13% | 3.77% | 3.73% | 4.01% | 4.38% | 4.1% | 3.82% | 4.08% | 4.56% | 4.55% | 4.44% | 4.66% | 4.83% | 4.64% | 5.07% | 6.48% | 4.47% | 3.6% | 3.67% | 3.69% | 3.6% | 3.38% | 3.73% | 4.4% | 4.05% | 4.45% | 4.21% | 4.3% | 4.57% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 35.23M | 0 | 0 | 2.85M | 366K | -1.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 15.45M | 14.7M | 13.7M | 13.5M | 12.7M |
| Operating Income | 604.5M | 610.74M | 570.1M | 646.84M | 572.7M | 531.32M | 391.72M | 424.46M | 436.43M | 360.45M | 113.88M | 302.13M | 308.93M | 279.77M | 224.68M | 219.51M | 153.14M | 74.47M | 187.37M | 232.48M | 226M | 191.07M | 161.53M | 128.83M | 112.85M | 100.18M | 111.24M | 93.3M | 77M | 65.5M | 53.1M |
| Operating Margin % | 26.88% | 27.31% | 26.98% | 29.46% | 26.72% | 26.73% | 23.74% | 25.79% | 26.4% | 24.44% | 8.57% | 23.48% | 25.3% | 25.34% | 22.19% | 24.52% | 20.58% | 12.86% | 22.93% | 27.63% | 27.68% | 26.11% | 26.7% | 24.08% | 23.17% | 21.19% | 22.5% | 21.08% | 17.82% | 15.83% | 13.55% |
| Operating Income Growth % | - | 7.13% | -11.86% | 12.95% | 7.79% | 35.64% | -7.71% | -2.74% | 21.08% | 216.52% | -62.31% | -2.2% | 10.42% | 24.52% | 2.35% | 43.34% | 105.65% | -60.26% | -19.41% | 2.87% | 18.28% | 18.29% | 25.38% | 14.17% | 12.64% | -9.94% | 19.23% | 21.17% | 17.56% | 23.35% | 17.22% |
| EBITDA | 690.37M | 718.17M | 656.85M | 721.16M | 638.7M | 590.65M | 446.22M | 472.16M | 484.18M | 406.03M | 162.17M | 346.73M | 344.44M | 317.08M | 263.44M | 252M | 187.11M | 109.61M | 222.86M | 261.14M | 252.04M | 214.57M | 179.34M | 147.58M | 130.93M | 118.68M | 126.69M | 108M | 90.7M | 79M | 65.8M |
| EBITDA Margin % | 30.7% | 32.11% | 31.08% | 32.85% | 29.8% | 29.72% | 27.04% | 28.68% | 29.29% | 27.53% | 12.2% | 26.95% | 28.21% | 28.72% | 26.02% | 28.15% | 25.15% | 18.92% | 27.27% | 31.04% | 30.87% | 29.32% | 29.64% | 27.58% | 26.88% | 25.1% | 25.63% | 24.41% | 20.99% | 19.09% | 16.79% |
| EBITDA Growth % | 6.48% | 9.34% | -8.92% | 12.91% | 8.13% | 32.37% | -5.49% | -2.48% | 19.25% | 150.37% | -53.23% | 0.67% | 8.63% | 20.36% | 4.54% | 34.68% | 70.71% | -50.82% | -14.66% | 3.61% | 17.47% | 19.64% | 21.52% | 12.72% | 10.32% | -6.33% | 17.31% | 19.07% | 14.81% | 20.06% | 16.67% |
| D&A (Non-Cash Add-back) | 82.72M | 107.43M | 86.75M | 74.32M | 66M | 59.33M | 54.5M | 47.7M | 47.75M | 45.58M | 48.29M | 44.61M | 35.52M | 37.32M | 38.76M | 32.48M | 33.97M | 35.14M | 35.49M | 28.66M | 26.05M | 23.5M | 17.81M | 18.75M | 18.08M | 18.49M | 15.45M | 14.7M | 13.7M | 13.5M | 12.7M |
| EBIT | 632.83M | 644.09M | 592.11M | 613.99M | 575.62M | 518.68M | 385.93M | 418.99M | 425.15M | 363.3M | 306.16M | 302.13M | 308.93M | 279.77M | 236.6M | 218.86M | 152.72M | 73.52M | 186.21M | 232.27M | 226M | 191.07M | 161.53M | 128.83M | 112.85M | 100.18M | 111.24M | 93.22M | 76.89M | 65.5M | 53.1M |
| Net Interest Income | -3.02M | -2.89M | -2.83M | -5.19M | -9.9M | -10.21M | -11.28M | -13.11M | -14.38M | -16.2M | -17.59M | -17.64M | -18.73M | -18.15M | -19.27M | -9.13M | -4.18M | -4.85M | -7.63M | -3.43M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 3.02M | 2.89M | 2.83M | 5.19M | 9.9M | 10.21M | 11.28M | 13.11M | 14.38M | 16.2M | 17.59M | 17.64M | 18.73M | 18.15M | 19.27M | 9.13M | 4.18M | 4.85M | 7.63M | 3.43M | 946K | 1.37M | 0 | 483K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 25.32M | 30.46M | 19.18M | -38.04M | -6.98M | -22.86M | -17.07M | -18.58M | -25.66M | -31.65M | -24.49M | 172.59M | 6.15M | 9.05M | -7.35M | -9.79M | -4.6M | -5.8M | -8.79M | -3.64M | -1.63M | -1.72M | -750K | -920K | -1.12M | -2.72M | -5.33M | -4.38M | -5.53M | -2M | -300K |
| Pretax Income | 629.81M | 641.2M | 589.28M | 608.8M | 565.72M | 508.46M | 374.65M | 405.88M | 410.77M | 347.09M | 96.66M | 474.71M | 315.07M | 288.82M | 217.33M | 209.73M | 148.54M | 68.67M | 178.58M | 228.84M | 224.37M | 189.35M | 160.78M | 127.91M | 111.72M | 97.47M | 105.91M | 88.8M | 71.4M | 63.5M | 52.8M |
| Pretax Margin % | 28.01% | 28.67% | 27.88% | 27.73% | 26.39% | 25.58% | 22.7% | 24.66% | 24.85% | 23.54% | 7.27% | 36.9% | 25.8% | 26.16% | 21.47% | 23.43% | 19.96% | 11.86% | 21.85% | 27.2% | 27.48% | 25.88% | 26.57% | 23.9% | 22.94% | 20.61% | 21.42% | 20.07% | 16.52% | 15.34% | 13.48% |
| Income Tax | 113.57M | 119.36M | 103.2M | 102.29M | 105.08M | 68.6M | 44.2M | 62.02M | 69.71M | 94.68M | 55.98M | 129M | 89.5M | 78M | 68.2M | 67.4M | 45.7M | 19.7M | 57.7M | 76M | 74.6M | 63.5M | 52.1M | 41.2M | 36.1M | 32.2M | 35.8M | 29.5M | 24.1M | 18.8M | 16.6M |
| Effective Tax Rate % | 18.03% | 18.62% | 17.51% | 16.8% | 18.57% | 13.49% | 11.8% | 15.28% | 16.97% | 27.28% | 57.92% | 27.17% | 28.41% | 27.01% | 31.38% | 32.14% | 30.77% | 28.69% | 32.31% | 33.21% | 33.25% | 33.54% | 32.4% | 32.21% | 32.31% | 33.04% | 33.8% | 33.22% | 33.75% | 29.61% | 31.44% |
| Net Income | 516.24M | 521.84M | 486.08M | 506.51M | 460.64M | 439.87M | 330.46M | 343.85M | 341.05M | 252.41M | 40.67M | 345.71M | 225.57M | 210.82M | 149.13M | 142.33M | 102.84M | 48.97M | 120.88M | 152.84M | 149.77M | 125.85M | 108.68M | 86.71M | 75.63M | 65.27M | 70.11M | 59.3M | 47.3M | 44.7M | 36.2M |
| Net Margin % | 22.96% | 23.33% | 23% | 23.07% | 21.49% | 22.13% | 20.03% | 20.89% | 20.63% | 17.12% | 3.06% | 26.87% | 18.47% | 19.1% | 14.73% | 15.9% | 13.82% | 8.45% | 14.79% | 18.17% | 18.34% | 17.2% | 17.96% | 16.21% | 15.53% | 13.8% | 14.18% | 13.4% | 10.94% | 10.8% | 9.24% |
| Net Income Growth % | 5.79% | 7.36% | -4.03% | 9.96% | 4.72% | 33.11% | -3.9% | 0.82% | 35.12% | 520.57% | -88.23% | 53.26% | 7% | 41.37% | 4.78% | 38.4% | 110.02% | -59.49% | -20.91% | 2.05% | 19% | 15.8% | 25.33% | 14.66% | 15.87% | -6.91% | 18.23% | 25.37% | 5.82% | 23.48% | 30.69% |
| Net Income (Continuing) | 516.24M | 521.84M | 486.08M | 506.51M | 460.64M | 439.87M | 330.46M | 343.85M | 341.05M | 252.41M | 40.67M | 345.71M | 225.57M | 210.82M | 149.13M | 142.33M | 102.84M | 48.97M | 120.88M | 152.84M | 149.77M | 125.85M | 108.68M | 86.71M | 75.63M | 65.27M | 70.11M | 59.34M | 47.26M | 44.7M | 36.2M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 3.07 | 3.08 | 2.82 | 2.94 | 2.66 | 2.52 | 1.92 | 2.00 | 1.97 | 1.45 | 0.24 | 1.95 | 1.22 | 1.12 | 0.81 | 0.77 | 0.56 | 0.27 | 0.66 | 0.77 | 0.72 | 0.60 | 0.52 | 0.41 | 0.35 | 0.31 | 0.34 | 0.28 | 0.20 | 0.17 | 0.14 |
| EPS Growth % | 8.48% | 9.22% | -4.08% | 10.53% | 5.56% | 31.25% | -4% | 1.52% | 35.86% | 504.17% | -87.69% | 59.84% | 8.93% | 38.27% | 5.19% | 37.5% | 107.41% | -59.09% | -14.29% | 6.94% | 20% | 15.38% | 26.83% | 17.14% | 12.9% | -8.82% | 21.43% | 40% | 17.65% | 21.43% | 40% |
| EPS (Basic) | - | 3.14 | 2.88 | 3.01 | 2.73 | 2.59 | 1.97 | 2.07 | 2.04 | 1.50 | 0.24 | 2.00 | 1.25 | 1.15 | 0.82 | 0.79 | 0.57 | 0.27 | 0.67 | 0.78 | 0.74 | 0.61 | 0.52 | 0.42 | 0.35 | 0.31 | 0.34 | 0.29 | 0.20 | 0.17 | 0.14 |
| Diluted Shares Outstanding | 168.11M | 169.22M | 172.41M | 172.2M | 172.89M | 174.53M | 172.01M | 171.62M | 173.21M | 174.32M | 170.88M | 177.02M | 185.24M | 188.37M | 185.13M | 184.11M | 182.41M | 180.69M | 182.5M | 197.95M | 207.05M | 209.76M | 210.35M | 211.5M | 216.76M | 212.82M | 208.93M | 210.82M | 237.84M | 264.67M | 267.66M |
| Basic Shares Outstanding | 165.44M | 166.38M | 168.88M | 168.44M | 168.95M | 169.63M | 167.46M | 166.51M | 167.36M | 167.93M | 166.85M | 172.83M | 180.44M | 183.61M | 181.35M | 180.86M | 180.63M | 179.59M | 180.79M | 195.13M | 203.3M | 206.32M | 207.67M | 208.11M | 214.03M | 208.79M | 204.86M | 205.41M | 232.63M | 258.62M | 265.6M |
| Dividend Payout Ratio | - | 35.14% | 35.4% | 31.26% | 30.85% | 28.9% | 35.4% | 30.96% | 26.05% | 31.88% | 180.54% | 20.08% | 29.42% | 29% | 36.41% | 35.58% | 46.82% | 92.81% | 36.98% | 28.26% | 26.33% | 28.45% | 119.53% | 17.59% | 18.36% | 18.91% | 16.2% | 15.01% | 22.62% | 21.48% | 22.93% |
Cyclical industrial demand volatility
According to quarterly financial disclosures, GGG's revenue growth has fluctuated significantly, ranging from a 7.1% contraction in 2024Q1 to an 8.1% expansion by 2025Q4, reflecting the inherent sensitivity of its industrial and contractor segments to broader macroeconomic cycles and distributor-level inventory adjustments across global markets.
The inconsistent top-line performance suggests that Graco remains susceptible to the timing of large-scale industrial capital projects and residential construction activity. Investors should monitor whether the recent growth volatility represents a structural shift in demand or merely the expected normalization of channel inventory following post-pandemic supply chain disruptions.
As reported in recent income statements, GGG maintains a robust gross margin profile that consistently hovers around 52%, a figure that underscores the company's ability to leverage its technical moat and proprietary replacement parts to maintain pricing power despite inflationary pressures on raw material input costs.
This structural margin stability indicates that the company's value-based pricing model effectively shields it from commodity price volatility. The ability to sustain these levels suggests that end-users prioritize equipment reliability and precision over initial purchase price, reinforcing the company's competitive positioning within its niche fluid-handling markets.
Based on the provided financial data, GGG's operating margins have demonstrated resilience, peaking at 30% in 2023Q4, though recent periods show a slight compression toward 25.5%, suggesting that SG&A expenses are not always scaling in perfect lockstep with the company's fluctuating gross profit generation.
While the company maintains high operational efficiency, the slight margin variance warrants further investigation into whether management is prioritizing long-term R&D investment or if fixed-cost absorption is being pressured by lower volume throughput. The current operating leverage appears adequate, yet investors should watch for sustained margin erosion.
Analysis of the income statement reveals that GGG's net income remains consistently strong, with net margins frequently exceeding 20%, supported by a disciplined approach to stock-based compensation which, at approximately $7.5M to $9.8M per quarter, represents a relatively modest dilution risk for long-term shareholders.
The quality of reported earnings appears high, as the company avoids significant non-operating distortions and maintains a clean path from gross profit to net income. This consistency suggests that the reported EPS figures are a reliable reflection of core operational performance rather than accounting-driven adjustments or tax anomalies.
Data from recent filings suggests that GGG's heavy reliance on independent distribution channels may mask underlying end-user demand, creating a risk where reported revenue growth could be artificially inflated or deflated by distributor destocking cycles that are not immediately apparent in the headline income statement figures.
Short-term revenue volatility may be more reflective of channel inventory management than actual market share shifts. Investors should remain cautious, as a prolonged period of distributor destocking could lead to further revenue deceleration that might be misinterpreted as a fundamental loss of competitive advantage in the industrial sector.
Quick answers to the most common questions about buying GGG stock.
For fiscal year 2025, Graco Inc. (GGG) reported total revenue of $2.24B. This represents a 470.9% increase compared to $391.8M in 1996.
Graco Inc. (GGG) is profitable, generating $521.8M in net income for the fiscal year ending 2025 with a net profit margin of 23.3%.
Graco Inc. (GGG) reported an operating income of $610.7M, resulting in an operating profit margin of 27.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Graco Inc. (GGG) generated $1.17B in gross profit for the year, representing a gross profit margin of 52.5%. This demonstrates the company's core pricing power and production efficiency.