Graco Q2 sales rise less than expected

Overview

• U.S. fluid handling equipment maker's Q2 sales rose 3% yr/yr but missed analyst expectations

• Adjusted EPS for Q2 beat analyst expectations, rising 17% yr/yr

• Company repurchased $315 mln of shares in Q2

Outlook

• Graco sees Q3 total company sales of $580 mln to $600 mln, excluding Valco Melton acquisition

• Company maintains guidance for low single-digit organic sales growth on a constant-currency basis for 2026

• Company expects mid-single-digit sales growth including acquisitions for the second half of 2026

Result Drivers

• ACQUISITIONS - Q2 sales increase was primarily driven by acquired operations

• GROSS MARGIN IMPROVEMENT - Operating earnings rose due to a higher gross margin rate, benefiting from tariff refunds and lower operating expenses

• ORDER GROWTH - Organic incoming orders increased at a mid-single-digit rate, reflecting improving demand trends

Company press release: ID:nBw35P5Na

Key Details

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(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.)