Graco(NYSE) GGG

Graco makes machines that pump, mix, and spray paints and other fluids. These tools help builders and factory workers move thick or sticky materials with high precision. Its equipment is used in everything from painting houses to building cars and planes.

What Graco Makes

• Contractor Segment: Sprayers for professional painters and homeowners to apply paint, texture, and road markings; represented 48% of net sales in 2025.
• Industrial Segment: Equipment for applying liquid and powder coatings in factories like vehicle assembly and furniture making; represented 45% of net sales in 2025.
• Expansion Markets: Specialized pumps for making semiconductors and valves for the oil and gas industry; represented 7% of net sales in 2025.
• Powder Division: Systems that apply dry powder coatings to metal items like window frames and automotive parts.

Strategic Moves and Growth

• Completed two acquisitions in 2025 within the Contractor and Industrial segments to add automated material handling and dosing systems.
• Integrated Gema, SAT, and ColorService brands to strengthen its position in the global powder finishing market.
• Invested $82 million in product development during 2025 to create tools with better automation and data analytics.
• Finished major facility expansions in the U.S., Switzerland, and Romania in 2024 to modernize its manufacturing base.

What Makes the Company Stand Out

Graco handles difficult materials that are thick, abrasive, or corrosive, which requires specialized engineering. The company manufactures most products in-house to maintain strict quality control and speed up technical improvements.

The Recent Numbers

• Net sales reached $2.24 billion in 2025, up 6% year-over-year.
• Net income rose to $521.8 million in 2025, up 21.9% from the previous year.
• Free cash flow grew to $184.3 million in Q4 2025, a 7.6% increase over Q4 2024.
• Operating income hit $158.6 million in Q4 2025, up 22% compared to the same period in 2024.
• International sales accounted for 40% of total revenue in 2025, with operations in regions including EMEA and Asia Pacific.

Bottom Line

Graco has transitioned from a traditional machinery maker into a specialist in high-tech fluid management and automation. Its focus on niche industrial applications and global distribution allows it to serve diverse markets from construction to electronics.