Wed, Apr 23, 8:15 PM (19 days ago)
### Summary of Graco Inc. (GGG) Q1 2025 Financial Performance **Overview:** Graco Inc. (GGG) reported a strong Q1 2025, demonstrating robust financial health and operational efficiency. The company's strategic initiatives and market positioning have contributed to its positive performance metrics. **Revenue and Profit Margins:** - **Net Sales:** $528,284,000, up 7% from $492,189,000 in Q1 2024. - **Gross Profit:** $277,733,000, reflecting a gross margin of 52.6%. - **Operating Earnings:** $144,013,000, an 8% increase from the previous year. - **Net Earnings:** $124,101,000, a 2% increase from $122,199,000 in Q1 2024. - **Earnings per Share (EPS):** Basic $0.74, Diluted $0.72, showing a slight increase from Q1 2024. **Cash Flow:** - **Net Cash Provided by Operating Activities:** $125,416,000, up from $118,923,000 in Q1 2024. - **Capital Expenditures:** $10,597,000, significantly lower than $37,192,000 in Q1 2024. - **Share Repurchases:** $238,089,000, partially offset by $31,574,000 from shares issued. - **Dividends Paid:** $46,586,000, consistent with the company's dividend policy. **Segment Performance:** - **Contractor Segment:** Sales increased by 11%, with operating earnings at 24% of net sales. - **Industrial Segment:** Sales grew by 3%, with an operating margin of 34%. - **Expansion Markets Segment:** Sales surged by 12%, with an operating margin of 24%. **Geographic Performance:** - **Americas:** Sales increased by 5%, driven by volume and price. - **EMEA:** Sales grew by 9%, despite currency headwinds. - **Asia Pacific:** Sales rose by 13%, with strong performance in China. **Liquidity and Capital Resources:** - **Cash and Cash Equivalents:** $536,138,000, down from $675,336,000 at the end of 2024. - **Available Liquidity:** $1,322,000,000, including $786,000,000 in available credit. - **Capital Expenditures for 2025:** Expected to be $50-60,000,000. **Future Outlook:** Graco maintains its full-year revenue guidance of low-single-digit growth on an organic constant currency basis. The company is actively mitigating the impact of tariff policies, particularly those affecting China. Despite near-term challenges, Graco remains positioned for long-term success. **Uncertainties and Risks:** - **Global Trade Uncertainty:** Evolving trade policies and tariffs pose risks to supply chain and financial performance. - **Geopolitical Tensions:** Potential impacts on customer demand and pricing strategies. - **Currency Fluctuations:** Adverse effects on sales growth and profitability. **Conclusion:** Graco Inc. demonstrated strong financial performance in Q1 2025, driven by strategic acquisitions, operational efficiency, and market expansion. The company's focus on innovation, cost management, and strategic investments positions it well for future growth, despite global uncertainties.