GGG GRACO INC

Overview and Growth

Fiscal 2025 results for GRACO INC combined $2.24B of revenue with net income of $521.84M and an operating cash inflow of $683.59M. The $2.24B revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. Compared with $2.11B in fiscal 2024, revenue recorded a 5.8% year-over-year increase. Diluted earnings per share were $3.08, translating the period’s attributable earnings into the amount reported for each diluted share. The per-share result recorded a 9.2% increase from fiscal 2024 diluted EPS of $2.82. The revenue-to-assets relationship was 0.68x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

After reported cost of revenue, the company retained $1.17B as gross profit before recognizing operating expenses and other items. Gross margin was 52.5%, so that share of each revenue unit remained after the cost of revenue reported for the period. Operating income was $624.80M, the earnings remaining from reported operations after the company’s recognized operating cost structure. Operating margin measured 27.9%, showing the portion of revenue preserved after the full set of operating costs. The bottom-line result was net income of $521.84M, after the operating, financing, tax, and other items recognized for the period. Measured against reported revenue, net income produced a 23.3% margin after operating costs and the remaining recognized items. Pretax income was $641.20M, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. Pretax income represented 28.7% of revenue, placing earnings before tax in the context of the company’s operating scale. Income tax expense totaled $119.36M, providing the reported tax component that separates pretax and after-tax earnings. The income-tax provision equaled 18.6% of pretax income, showing the tax burden absorbed by the year’s earnings. The relationship between net income and period-end equity was 19.7%, indicating the profitability achieved on book capital. Net income represented 15.9% of period-end assets, placing the company’s bottom-line result against the total resource base employed.

Liquidity and Capital Structure

Total assets were $3.27B, supported by $620.34M of liabilities and $2.65B of shareholder equity. The near-term balance sheet paired $1.47B of current assets with $467.26M of current liabilities at the reporting date. Current assets covered current liabilities by 3.15x, leaving a positive buffer for near-term obligations. Reported cash and equivalents were $624.08M, separating immediately recognizable cash resources from the rest of the current-asset base. Cash and equivalents represented 133.6% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. Liabilities represented 18.9% of total assets, quantifying the liability-funded share of the company’s resource base. Cash and equivalents equaled 19.1% of total assets, showing the liquid cash component within the company’s broader resource base. Total assets were 4.3% higher than fiscal 2024 assets of $3.14B, measuring the company’s own balance-sheet change.

Cash Flow and Earnings Quality

The company reported $683.59M of operating cash flow, a cash inflow that shows the cash generated by operations. Operating cash flow equaled 1.31x of net income, showing how strongly accounting earnings converted into cash from operations. Capital spending was $45.67M, absorbing part of the cash generated from operations before free cash flow. Capital spending absorbed 6.7% of operating cash flow, quantifying the share of cash from operations directed to investment. Free cash flow came to $637.92M, leaving a positive amount after capital expenditures. Relative to revenue, free cash flow equaled 28.5%, showing how much sales converted into cash after investment. Measured against total assets, free cash flow represented 19.5%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Dec 26, 2025. Analysis generated Oct 21, 2026.