Graco Inc.

How Graco makes money

Graco supplies equipment and technology for handling fluids and coatings. Its products move, measure, control, dispense and spray liquid and powder materials for manufacturing, processing, construction and maintenance customers.

Quarterly financial record

Adjusted figures remove acquisition costs, amortization of acquired intangible assets, changes in estimated acquisition payments where applicable and selected tax effects, including excess tax benefits from stock-option exercises. Prior periods were recast for the methodology introduced in Q2 2026. Organic sales grew 4%, with acquisitions contributing another four percentage points. Management forecasts fourth-quarter sales of $610 million to $640 million.

Completed acquisition and cash allocation

Graco completed its Valco Melton acquisition on August 31, 2026. Total cash consideration was $461.985 million, funded with cash and revolving-credit borrowing. The acquired business brought $25.445 million of cash. Consolidated net acquisition cash spending was $436.313 million for the first nine months.

Over those nine months, operating cash flow was $463.439 million and capital spending was $47.649 million. Share repurchases used $462.902 million and dividends $145.346 million.

At September 25, cash was $139.818 million and debt at balance-sheet carrying value totaled $134.458 million. Available borrowing capacity under committed credit facilities was approximately $668 million, giving total reported liquidity of about $808 million.

The $600 million accelerated buyback

The November 10 agreement with Bank of America calls for a $600 million payment on November 11 using cash and borrowings under Graco's existing revolving credit facility. Initial delivery is expected to be about 6.9 million shares, with final settlement scheduled for March 2027. The final share count depends on average trading prices during the arrangement and the contractual discount and adjustments.

The transaction uses Graco's existing repurchase authorization. Approximately 17 million shares remained available under that authorization at November 10, before completing this transaction.

Our analysis of the buyback and borrowing plan puts it alongside earlier shareholder payments and acquisition spending.