Graco Inc. Reports 4% Decline in Net Sales for Fiscal Year Ending December 27, 2024

Graco Inc. reported a decline in financial performance for the fiscal year ending December 27, 2024, with net sales of $2.113 billion, down from $2.196 billion in 2023, marking a decrease of approximately 4%. Operating earnings also fell to $570.1 million from $646.8 million, while net earnings decreased to $486.1 million compared to $506.5 million in the previous year. The diluted net earnings per share were $2.82, down from $2.94 in 2023. The decline in sales was attributed to reduced demand in key markets, particularly in the semiconductor and automotive sectors, as well as softening construction markets in North America.

In terms of operational changes, Graco completed significant acquisitions in 2024, including the purchase of Corob S.p.A. for €230 million, which is expected to enhance its product offerings in the Contractor segment. The company also expanded its manufacturing and distribution capabilities, with notable investments in facilities in Minnesota and Switzerland. Graco's strategic focus remains on product innovation and geographic expansion, with a commitment to investing in new technologies and enhancing customer service.

Geographically, Graco's sales distribution showed that the Americas accounted for approximately 63% of total sales, while EMEA and Asia Pacific represented 21% and 16%, respectively. The company reported a decrease in sales across all regions, with the most significant decline of 16% in the Asia Pacific market. The Contractor segment remained the largest contributor to sales, generating $988.9 million, while the Industrial and Process segments reported $619.6 million and $504.8 million, respectively.

Graco's workforce as of December 27, 2024, consisted of approximately 4,300 employees, with a significant portion based outside the U.S. The company emphasized its commitment to employee health and safety, alongside a focus on talent development and retention. The company’s liquidity position remained strong, with available liquidity of $1.453 billion, including cash and credit facilities, which is expected to support ongoing operational needs and strategic initiatives in 2025.

Looking ahead, Graco anticipates low single-digit revenue growth on an organic, constant currency basis for 2025, driven by the stabilization of demand in China and semiconductor markets. The company plans to continue its focus on product development, geographic expansion, and strategic acquisitions to drive future growth, despite the uncertain macroeconomic environment.