Graco Q2 adjusted profit miss analyst expectations, plans price increase

Graco

23/07/2025 21:23

Overview

Graco Q2 sales rise 3% but miss analyst expectations, per LSEG data

Adjusted EPS for Q2 misses consensus due to higher product costs

Co plans price increase to offset tariff-related costs

Outlook

Graco maintains 2025 revenue outlook of low single-digit organic sales growth

Company plans targeted price increase in September to offset tariff costs

Graco confident in guidance due to steady order rates and new product launches

Result Drivers

ACQUISITIONS - Incremental sales from acquired operations contributed 6 percentage points to sales growth

CONTRACTOR SEGMENT DECLINE - Organic sales in the Contractor segment fell due to weak North American construction markets

HIGHER COSTS - Gross margin declined 2 percentage points due to increased product costs, including tariffs

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
$571.80 mln
$590.30 mln (10 Analysts)
Q2 Adjusted EPS
Miss
$0.75
$0.79 (10 Analysts)
Q2 EPS
$0.76
Q2 Adjusted net earnings
Miss
$126.90 mln
$135.50 mln (9 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the industrial machinery & equipment peer group is "buy."

Wall Street's median 12-month price target for Graco Inc is $90.00, about 3.1% above its July 22 closing price of $87.20

The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 27 three months ago

Press Release: ID:nBw8Rf2NNa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)