Graco (GGG) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 sales of $591 million, with growth across all segments, strong industrial and semiconductor demand, and improved demand trends.

• Organic orders increased 5% in the quarter, with a six-week booking average up 14% year-over-year and backlog up 28% since the start of the year.

• Announced acquisition of Valco Melton, a strategic fit in the packaging dispense market, expected to close in Q3 2026 and projected to be cash EPS accretive in 2026.

• Repurchased 4.2 million shares for $331 million year-to-date through June 2026.

Financial highlights

• Q2 2026 net sales were $591 million, up 3% year-over-year; adjusted operating earnings rose 11% to $183 million; adjusted net earnings were $151 million, up 15%.

• Adjusted diluted EPS was $0.91, up 17% year-over-year; gross margin increased by 130 basis points to 53.7%, aided by price realization, improved manufacturing, and $9 million in tariff refunds.

• Operating margin reached 31%, up from 27.5% last year; operating earnings increased 11%.

• Net cash from operations for the first six months was $298 million.

Outlook and guidance

• Maintaining full-year 2026 outlook for low single-digit organic sales growth and mid-single-digit growth including acquisitions; Q3 revenue guidance of $580–$600 million, excluding Valco Melton.

• Effective tax rate for Q3 and full year 2026 expected between 20–21%; capital expenditures for 2026 expected at $90–$100 million.

• Positive order trends and backlog growth support confidence in a stronger second half.