Q2 2026 Graco Inc Earnings Call Transcript
Key Points
- Graco Inc (GGG) delivered record second-quarter sales of $591 million and record earnings, reflecting growth across all three segments.
- Organic orders increased by 5% during the quarter, with a six-week booking average up 14% compared to last year.
- The acquisition of Valco Melton is expected to add complementary technology and products, enhancing Graco's position in the packaging dispense market.
- The Contractor segment achieved record sales and earnings, with organic sales growth in both paint and home center markets in the Americas.
- Strong cash generation with $298 million of operating cash flow in the first six months, supporting strategic investments and shareholder returns.
- Organic sales were down 1% due to the timing of finishing systems revenue within the Industrial segment.
- Activity in Asia, particularly China, was slower due to prior year pull-forward activity and softer automotive demand.
- The Industrial segment faced headwinds with lower organic counter-finishing systems due to order timing.
- Currency translation added only a 1% favorable impact, indicating limited benefit from foreign exchange movements.
- Despite strong performance, Graco Inc (GGG) maintained its full-year outlook, suggesting cautious optimism about future growth.
Good morning, and welcome to the second-quarter conference call for Graco Inc. If you wish to access the replay for this call, you may do so by visiting the company website at www.graco.com. Graco has additional information available in a PowerPoint slide presentation, which is available as part of the webcast player.
At the request of the company, we will open the conference up for questions and answers after the opening remarks from management. I will now hand the conference over to John Bower, Director of Investor Relations. John, please go ahead.
Good morning. I'm here with Mark Sheahan, our President and Chief Executive Officer; Sanjiv Gupta , Chief Financial Officer and Treasurer; and Chris Knutson, Vice President, Chief Accounting Officer and Controller. We welcome you to our conference call to report Graco's fiscal 2026 second-quarter results.
Before we begin, I'd like to remind everyone that
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