Graco reports record Q2 sales, operating earnings

1 min read Updated on 23 Jul 2026, 07:49 AM

Reviewed by

Riya DScanX News Team

AI Summary

Graco Inc. reported record second quarter sales of $590.6 million and operating earnings of $175.1 million for the period ended June 26, 2026. Adjusted diluted EPS rose 17% to $0.91, supported by higher gross margins and lower operating expenses. The company provided Q3 sales guidance of $580 million to $600 million.

*this image is generated using AI for illustrative purposes only.

Graco Inc. reported record quarterly sales and operating earnings for the second quarter ended June 26, 2026, driven by momentum across all three segments. Net sales increased 3% to $590.6 million, primarily due to acquired operations, while operating earnings rose 11% to $175.1 million, benefiting from higher gross margins and lower operating expenses. Adjusted diluted net earnings per share increased 17% to $0.91 from $0.78 in the prior year.

The company repurchased $315 million of shares in the second quarter and $331 million year to date. President and Chief Executive Officer Mark Sheahan noted that the Contractor segment achieved organic sales growth in the Americas for the first time in two years. Graco initiated third-quarter total company sales guidance of $580 million to $600 million, excluding the announced acquisition of Valco Melton.

Financial Performance Summary

The following table outlines Graco's Q2 performance compared to the prior year:

Metric	Q2 2026	Q2 2025	% Change
Net Sales	$590.6M	$571.8M	3%
Operating Earnings	$175.1M	$157.5M	11%
Net Earnings	$144.9M	$127.6M	14%
Diluted EPS (As Reported)	$0.87	$0.76	14%
Adjusted Diluted EPS	$0.91	$0.78	17%

Segment Performance

Net sales increased across all reporting segments. The Contractor segment reported sales of $299.4 million, up from $288.9 million. Industrial sales rose to $249.2 million from $242.3 million, and Expansion Markets sales increased to $41.9 million from $40.6 million. Operating earnings for the Contractor segment grew to $91.2 million from $75.5 million.

How will the Valco Melton acquisition impact Graco's revenue growth and market share once integrated?

Can Graco sustain the organic sales growth momentum in the Contractor segment beyond the Americas?

What is the company's strategy for capital allocation following the significant share repurchases in the first half of the year?

Sales Guidance Details

The company provided the sales outlook to set market expectations for the upcoming period. The specified range reflects the company's internal projections for operational performance independent of the pending transaction.

Acquisition Status

The acquisition of Valco Melton remains a key upcoming event for Graco Inc. Although the deal is expected to close in the third quarter, the sales guidance deliberately omits any financial contribution from this entity to provide a clear view of standalone performance.