Q1 2026 Graco Inc Earnings Call Transcript
Key Points
- Graco Inc (GGG) reported a 2% increase in first-quarter sales, driven by acquisitions and favorable currency translation.
- The Industrial segment saw a 4% sales increase, with acquisitions contributing 8% and currency translation adding 4%.
- Bookings were up 3% at actual currency rates, resulting in a $26 million increase in backlog, primarily in the Industrial segment.
- The semiconductor business showed solid demand with first-quarter bookings up at least 20% in each region.
- Graco Inc (GGG) maintained its 2026 revenue guidance of low single-digit organic growth on a constant currency basis and mid-single-digit growth including acquisitions.
- Organic sales declined by 6%, partially offsetting the growth from acquisitions and currency translation.
- Net earnings decreased by 5%, with adjusted non-GAAP net earnings down 6% per diluted share.
- Gross margin decreased by 60 basis points due to higher product costs from lower factory volume and incremental tariffs.
- Operating expenses increased by 7%, with $5 million in incremental expenses from acquired operations.
- The Contractor segment experienced a 4% decline in organic revenue, with construction demand remaining softer than expected, particularly in the Americas.
Good morning, and welcome to the first quarter conference call for Graco Inc. If you wish to access the replay for this call, you may do so by visiting the company's website at www.graco.com. Graco has additional information available in the PowerPoint slide presentation which is available as part of the webcast player. (Operator Instructions)
During this call, various remarks may be made by management about their expectations, plans, and prospects for the future. These remarks constitute for looking statements for the purposes of the Safe Harbor provisions of the Private Securities Litigation Reform Act.
Actual results may differ materially from those indicated as a result of various risk factors, including those identified in Item 1A of the company's 2025 annual report on Form 10-K and in Item 1A of the company's most recent quarterly report on Form 10-Q. These reports are available on the company's website at www.graco.com and the SEC's website at
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