On this page of StockholderLetter.com we present the latest annual shareholder letter from GRACO INC — ticker symbol GGG. Reading current and past GGG letters to shareholders can bring important insights into the investment thesis.

 •  3/11/2026 Letter Continued (Full PDF)
 •  3/15/2023 GGG Stockholder Letter
 •  3/13/2024 GGG Stockholder Letter
 •  3/12/2025 GGG Stockholder Letter
 •  More "Industrial Machinery & Equipment" Category Stockholder Letters
 •  GGG Benford's Law Stock Score = 82

GGG Shareholder/Stockholder Letter Transcript:

GRACO INC. 2025 OVERVIEW AND
ANNUAL REPORT ON FORM 10-K
M O V I N G
M A T E R I A L S
T H A T
M A T T E R   

TO OUR SHA REHOLDERS
In reviewing the past year, Graco demonstrated resilience and disciplined execution amid uneven global demand and ongoing
macroeconomic uncertainty. While several key end markets remained soft, our diversified portfolio, strong balance sheet and
attention to operational excellence supported solid financial performance and progress on our strategic priorities.
At the start of 2025, we launched our One Graco operating model, and I am extremely proud of how quickly the organization
has embraced this new structure to strengthen collaboration and improve how we serve our customers. We also made
meaningful progress integrating the 2024 acquisition of Corob, our largest in more than a decade, advancing our inorganic
growth strategy through the additions of Color Service and Radia to our portfolio. These acquisitions expand our leadership in
paint, coatings and powder, broaden our automation and precision dispensing capabilities, and enhance our ability to deliver
more comprehensive solutions to customers around the world.
We invested strategically in our global footprint to support long-term growth and strengthen supply chain flexibility. The
establishment of our new manufacturing facility in Vietnam enables our Gema powder paint business to produce in the
Asia Pacific region for the first time. We also expanded our presence in India, where favorable long-term demand trends
support both local market growth and greater regional opportunities. While still early, these initiatives mark a significant
milestone and reflect our commitment to developing a more diversified operating model.
Financial discipline remains a cornerstone of our culture and a key driver of long-term shareholder value. Strong operating
cash flow in 2025 enabled us to make ongoing investments in innovation, advance the integration of recent acquisitions and
enhance our manufacturing capabilities. At the same time, we returned nearly 90% of operating cash flow to shareholders
through dividends and record share repurchases. We ended the year with a solid net cash position, underscoring the strength of
our balance sheet and our ability to pursue multiple strategic opportunities.
Looking ahead, we are preparing to commemorate Graco   s centennial anniversary in 2026. For 100 years, our success has been
grounded in a deep understanding of customer needs and the application of ingenuity to deliver reliable, high-performance
solutions. With this deeply rooted foundation, we remain confident in our strategy and are well positioned to create long-term
shareholder value.
Thank you for your continued trust and investment in Graco.
MARK W. SHEAHAN
President and CEO

A BOUT GRA CO
Two brothers, a garage and a relentless pursuit of an exceptional
solution. That spirit has guided Graco for nearly 100 years. From those
early beginnings, Graco has grown into a global leader in the design and
manufacturing of equipment and systems that move, measure, control,
dispense and spray a wide range of materials.
Selmer Eull is using a Hydra-Clean to
pressure wash Russell Gray   s Cadillac.
Today, Graco serves customers across industrial, commercial and
residential applications around the world. Our solutions support the
materials that shape everyday life, from coatings that protect buildings
and infrastructure, to adhesives that assemble products, to fluids used
in the production of food, vehicles and consumer goods. In demanding
environments and critical applications, customers rely on Graco for
performance, durability and precision.
At the heart of Graco is a clear focus: moving materials that matter. It
reflects both the essential work our customers do and our role in helping
them do it safely, e   ciently and reliably. Our purpose is to provide
customers with a legacy of expertise, reliable services and solutions that
promote the highest standards of quality and safety, to help move the
The Paintmaster was introduced in 1948 and was
Graco   s first venture into painting equipment.
world forward.
As Graco approaches its centennial in 2026, we celebrate a legacy
shaped by generations of employees, customers and partners. For nearly
a century, our success has been built on problem-solving, craftsmanship
and a deep understanding of customer needs. That foundation continues
to guide how we innovate, operate and grow, honoring our history while
building for the future.
The Chicago sales o   ce was opened in 1946.

2025 BY THE NUMBERS
A GLOBAL
FOOTPRINT WITH
LOCAL IMPACT
SERVED CUSTOMERS
IN MORE THAN
100
DELIVERING
STRONG FINANCIAL
RESULTS
EMPLOYEES AT
THE HEART OF
EVERYTHING WE DO
~4,400
NET SALES OF
$2.2
TOTAL EMPLOYEES
BILLION
COUNTRIES
SUPPORTED BY
30,000+
ADJUSTED EARNINGS PER
SHARE OF
OUTLETS AND DISTRIBUTORS
$2.95
OVER
SHARE REPURCHASES OF
75%
$423
OF PRODUCTION
BASED IN THE U.S.
MILLION
~1,900
EMPLOYEES OUTSIDE
THE U.S.
11
YEARS AVERAGE TENURE
FOR EMPLOYEES
DIVIDENDS PAID PER SHARE
INCREASED BY
8%
BY THE NUMBERS

2025 NEW P RODUCTS
Graco   s portfolio supports customers across a wide range of applications, from light duty use to complex, high-volume operations where
performance, consistency and reliability are critical. Spanning fluid handling and transfer, spraying and coating, dispensing and mixing and
finishing technologies, our solutions are designed to work together and integrate seamlessly into customer operations, including expansion
markets that extend Graco   s capabilities in adjacent markets. In 2025, we expanded this customer driven portfolio with new products
developed to meet specific application needs and help customers work more efficiently, reliably and safely.
Reactor   3 Hydraulic
Ultra   390-450
ACCU-BEAD   
The Reactor 3 Hydraulic is a
high-output spray foam and
polyurea proportioner built for
large projects, delivering sustained
pressure and flow with smart
drum-to-gun connectivity that
ensures ratio consistency and
optimized spray performance.
T Ultra 390   450 are
The
lightweight, professional
eelectric sprayers that deliver
high pressure performance,
extended pump life and rapid,
tool-free serviceability to
maximize uptime on residential
and light commercial jobs.
ACCU BEAD flow sensors provide
precise, real time measurement of
reflective bead flow at each gun,
helping operators achieve target
application rates while reducing
waste and ensuring specification
compliance.
King   E-Max XT   
EFP-350 XT   
King   PC
The King E-Max XT is a high-power
electric airless sprayer that delivers
pneumatic-level performance
without compressors or fuel,
supporting large-scale protective
coatings and roofing applications
with quiet, emission-free operation.
The EFP-350 XT is a fully electric
transfer pump for high viscosity
protective coatings that delivers
consistent material flow on 120V
or 230V power without the need
for compressed air.
The King PC is a next generation
air powered airless sprayer
engineered for high pressure
protective coatings, combining
proven durability with a lighter
frame, and quick pump swaps to
minimize downtime.
Stellair    ACE Gravity Gun
E-Flo DCi    Advanced
PSM Gen II
The Stellair ACE Gravity Gun is a
lightweight, gravity-fed spray gun
designed for small-batch coating,
touch-up work and material testing
that delivers high-quality finishes
with minimal material use.
The E-Flo DCi Advanced is a
compact, electric-driven paint
supply and circulation pump that
provides flexible flow and pressure
control, PLC connectivity and data
access while reducing energy use
and maintenance.
The PSM Gen II precision shot
meter is designed for automated
dispensing of single-component
materials, delivering accurate,
repeatable dosing through a robust
construction and optimized fluid path.
ProMix   V
G3   High Flow
The ProMix V is a plural-component
paint mixing system that delivers
on-demand mixing, rapid color
changeovers and real-time process
data with accuracy within 1% to
reduce waste and improve
productivity.
The G3 High Flow pump is a
next-generation automatic
lubrication solution built for
off-road and construction
equipment, delivering higher
flow rates with rugged durability,
enhanced safety and simplified
connectivity.
GEM   PRO
Vertical Module ZA17
OptiFilter OFM02
The ZA17 vertical module is a
modular platform designed for
precise spray gun positioning in
compact spaces, enabling highly
automated coating of complex
geometries when combined with
stationary and gun axes.
The OptiFilter OFM02 is a multi
color overspray recovery system
that ensures optimal coating
conditions in the booth through
robust jet pulse cleaning
technology and a maintenance
friendly filter cartridge design.
Weighing System for OptiCenter  
All in One and OptiCenter   Series
The GEM PRO is the first in QED   s
new PRO series and a modular
landfill gas analyzer that allows
operators to configure and
maintain sensors in the field,
enabling fast, flexible and
downtime-free gas analysis
without factory servicing.
This optional weighing system
measures real time powder
consumption in OptiCenter  
powder management centers,
enabling batch level tracking and
monitoring through the
MagicControl 4.0 system control
and GemaConnect   Dashboard.

3/11/2026 Letter Continued (Full PDF)

 

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