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2025.10.23 THIRD QUARTER EARNINGS CALL
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SAFE HARBOR Today’s presentation includes forward-looking statements that reflect management’s current expectations about the Company’s future business and financial performance. These statements are subject to certain risks and uncertainties that could cause actual results to differ from anticipated results. Factors that could cause actual results to differ from anticipated results are identified in Item 1A of the Company’s Form 10-K, and Item 1A of the most recent Quarterly Report on Form 10-Q and also the Company’s Earnings Release dated October 22, 2025. 2
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1) Operating earnings, net earnings and diluted net earnings per share have been adjusted to provide a more consistent basis of comparison of on-going results. See page 17 for a reconciliation of the adjusted non-GAAP financial measures to GAAP. FINANCIAL RESULTS 3 Statement of Earnings Third Quarter September Year to Date $ in millions except per share amounts 2025 2024 Change 2025 2024 Change Net Sales 543.4$ 519.2$ 5 % 1,643.4$ 1,564.6$ 5 % Gross Profit 289.2 276.1 5 % 866.5 843.2 3 % % of Net Sales 53.2% 53.2% 0.0 pts 52.7% 53.9% (1.2) pts Operating Earnings 164.7 145.7 13 % 466.2 440.1 6 % % of Net Sales 30.3% 28.1% 2.2 pts 28.4% 28.1% 0.3 pts Net Earnings 137.6$ 122.2$ 13 % 389.4$ 377.4$ 3 % % of Net Sales 25.3% 23.5% 1.8 pts 23.7% 24.1% (0.4) pts Diluted Net Earnings Per Share 0.82$ 0.71$ 15 % 2.30$ 2.19$ 5 % Diluted Shares in Millions 168.6 172.1 (2)% 169.6 172.3 (2)% Operating Earnings, Adjusted (1) 150.6$ 145.7$ 3 % 452.1$ 440.1$ 3 % Net Earnings, Adjusted (1) 122.8$ 122.2$ 0 % 370.2$ 367.1$ 1 % Diluted Net Earnings Per Share, Adjusted (1) 0.73$ 0.71$ 3 % 2.18$ 2.13$ 2 %
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NET SALES 4 Asian currencies include: AUD, CNY, JPY, KRW, INR. European, non-euro currencies include: CHF, GBP, RON. Americas, non-USD currencies include: BRL, CAD, MXN. USD 62% Euro 20% European, non- Euro 3% Asian 10% Americas, non-USD 5% Year to Date September 2025 Net Sales by Currency $341M (+2%) $118M (+12%) $84M (+7%) Americas EMEA Asia Pacific Third Quarter 2025 Net Sales by Region $1,016M (+1%) $368M (+13%) $259M (+10%) Americas EMEA Asia Pacific September 2025 YTD Components of Net Sales Change Third Quarter 2025 Segment Region Contractor Industrial Expansion Markets Americas EMEA Asia Pacific Consolidated Volume and Price (3)% (2)% 3 % (1)% (5)% (3)% (2)% Acquisitions 11 % 1 % 0 % 3 % 11 % 10 % 6 % Currency 0 % 2 % 0 % 0 % 6 % 0 % 1 % Total 8 % 1 % 3 % 2 % 12 % 7 % 5 % September Year to Date 2025 Segment Region Contractor Industrial Expansion Markets Americas EMEA Asia Pacific Consolidated Volume and Price (3)% 1 % 4 % (2)% (1)% 3 % (1)% Acquisitions 12 % 0 % 0 % 3 % 12 % 9 % 6 % Currency 0 % 0 % 0 % 0 % 2 % (2)% 0 % Total 9 % 1 % 4 % 1 % 13 % 10 % 5 %
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OPERATING EARNINGS 5 ($4M) $146M $2M $2M $3M $16M $165M Q3 2024 Currency Translation Contractor Segment Industrial Segment Expansion Markets Segment Unallocated Corporate Expense Q3 2025 Quarter Over Quarter Operating Earnings Walk $133M $144M $161M $157M $146M $165M $440M $466M 27 % 27 % 29 % 28 % 28 % 30 % 28 % 28 % 2024 2025 2024 2025 2024 2025 2024 2025 Q1 Q2 Q3 YTD $M % of Net Sales Operating Earnings Third Quarter Sept. Year to Date 2024 Operating Earnings, as reported ($M and % of sales) 146 $ 28 % 440 $ 28 % Currency translation 2 0 0 0 Product cost, volume (2) 1 (13) 0 Effect of acquired businesses 1 (2) 6 (2) Gain on reduction of fair value contingent consideration 14 3 14 1 Volume effect on expense leverage 4 0 19 1 2025 Operating Earnings, as reported ($M and % of sales) 165 $ 30 % 466 $ 28 %
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THIRD QUARTER 2025 Net Sales • Up 5 percent from third quarter 2024. Sales from acquired businesses contributed 6 percentage points of growth. Currency translation increased net sales by 1 percentage point. Gross Margin • Margin rate comparable to third quarter 2024 > Realized pricing and favorable mix offset the impact of higher product cost, including $5 million in increased tariff costs, and the unfavorable effects of lower margin rates from acquired operations. Operating Earnings • Up $19 million compared to third quarter 2024 > Operating expense included a $14 million non-cash gain from the reduction in fair value of acquisition- related contingent consideration. > Acquired businesses contributed $1 million of operating earnings. Other (Income) • Down $2 million compared to third quarter 2024 due to lower interest income Interest Expense • Comparable to third quarter 2024 Taxes • Adjusted effective tax rate for the quarter increased 1 percentage point compared to third quarter 2024 due to foreign earnings taxed at different rates than the U.S. 6
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Net Sales • Up 5 percent from the same period in 2024. Sales from acquired businesses contributed 6 percentage points of growth. Currency translation had no meaningful impact. Gross Margin • Margin rate down 1.2 percentage points compared to the same period in 2024 > Higher product cost, including unfavorable impact of $9 million in increased tariff costs, and unfavorable effects of lower margin rates of acquired operations. Operating Earnings • Up $26 million compared to the same period in 2024 > Operating expense included a $14 million non-cash gain from the reduction in fair value in acquisition- related contingent consideration. > Acquired businesses contributed $6 million of operating earnings. Other (Income) • Down $5 million compared to the same period in 2024 > Primarily due to $8 million of higher exchange losses on net liabilities of foreign operations and lower interest income, partially offset by gains on market value fluctuations on investments held to fund certain retirement benefit liabilities > Year to date 2025 included a $5 million gain from the sale of a manufacturing and distribution facility in Switzerland. Interest Expense • Comparable to the same period in 2024 Taxes • Adjusted effective tax rate for the year to date was comparable to the same period in 2024 SEPTEMBER YEAR TO DATE 2025
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Americas EMEA Asia Pacific Total Current Environment Net Sales Change Q3 2025 (1%) Year to Date (2%) Net Sales Change Q3 2025 (5%) Year to Date (1%) Net Sales Change Q3 2025 (3%) Year to Date 3% Net Sales Change Q3 2025 (2%) Year to Date (1%) Contractor Segment Net Sales Change Q3 2025 (3%) Year to Date (4%) Net Sales Change Q3 2025 (1%) Year to Date (3%) Net Sales Change Q3 2025 (12%) Year to Date (3%) Net Sales Change Q3 2025 (3%) Year to Date (3%) Industrial Segment Net Sales Change Q3 2025 3% Year to Date 1% Net Sales Change Q3 2025 (7%) Year to Date 0% Net Sales Change Q3 2025 (6%) Year to Date 1% Net Sales Change Q3 2025 (2%) Year to Date 1% Expansion Markets Segment Net Sales Change Q3 2025 (6%) Year to Date (4%) Net Sales Change Q3 2025 (4%) Year to Date 5% Net Sales Change Q3 2025 40% Year to Date 27% Net Sales Change Q3 2025 3% Year to Date 4% 2025 Outlook Low Single-Digit Growth 2025 ENVIRONMENT 8 Constant currency basis and excluding acquisitions completed in the prior 12 months
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CASH FLOW AND LIQUIDITY • Net cash from operations was $487 million vs. $436 million in the comparable period in 2024. • Through third quarter, we repurchased 4.4 million shares of stock for $361 million • Capital expenditures of $34 million • Acquired Color Service in third quarter 2025 for $60 million. Additional purchase price payment for 2024 acquisition of Corob during first quarter 2025 of $10 million. • Proceeds from the sale of a manufacturing and distribution facility in Switzerland of $11 million 9 $131 $137 $113 $132 $122 $110 $120 $127 $123 $209 $160 $119 $139 $178 $185 $125 $183 $179 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Net Earnings, as Adjusted Cash from Operating Activites Net Earnings, as Adjusted, and Cash from Operating Activities 2025 2024 Net Share Issuances (Repurchases) (329)$ 14$ Dividends (138) (129) Capital Expenditures (34) (93) Acquisitions (70) (8) Sale of Building 11 - Other Significant (Uses) Sources of Cash ($M)
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Cap Ex • Capital expenditure expectations of approximately $50 - $60 million in 2025 Expenses • Unallocated corporate expenses in 2025 are expected to be approximately $35 - $38 million Shares • Year-to-date, we repurchased 4.4 million shares of stock. We may make additional opportunistic share repurchases in 2025 via open market transactions Currency • At current exchange rates, assuming the same volumes, mix of products and mix of business by currency as in 2024, the movement in foreign currencies would have a favorable impact of 1 percentage point on net sales and net earnings for the full year 2025 Taxes • We anticipate the effective tax rate in for the fourth quarter and the full year 2025 to be between 19.5% - 20.5%, excluding any impact from excess tax benefits related to stock option exercises and other one-time items. Actual results and mix of earnings may materially impact the expected tax rate OTHER DISCUSSION ITEMS 10
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OTHER DISCUSSION ITEMS - BACKLOG 11 Current backlog is now considered at normal levels. Change in Backlog from Previous Quarter/ Year End Third Quarter September Year to Date $M, excluding acquisitions 2025 2024 2025 2024 Contractor (1)$ (10)$ (7)$ (8)$ Industrial 12 (10) 13 (29) Expansion Markets (5) (4) (13) (11) 6$ (24)$ (7)$ (48)$
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CONTRACTOR SEGMENT RESULTS 12 2025 Components of Net Sales Change Third Quarter September Year to Date Third Quarter September Year to Date Americas Asia Pacific Volume & Price (3)% (4)% Volume & Price (12)% (3)% Acquisitions 5 % 6 % Acquisitions 33 % 34 % Currency 0 % 0 % Currency (1)% (2)% Total 2 % 2 % Total 20 % 29 % EMEA Segment Total Volume & Price (1)% (3)% Volume & Price (3)% (3)% Acquisitions 26 % 28 % Acquisitions 11 % 12 % Currency 6 % 3 % Currency 0 % 0 % Total 31 % 28 % Total 8 % 9 % 49% 2025 Contractor Segment Net Sales as % of Graco $ in millions Third Quarter September Year to Date Net Sales 2025 2024 Change 2025 2024 Change Americas 186$ 182$ 2% 563$ 553$ 2% EMEA 52 40 31 168 131 28 Asia Pacific 24 20 20 75 58 29 Total 262$ 242$ 8 % 806$ 742$ 9% Change in Backlog* (1)$ (10)$ (7)$ (8)$ Operating Earnings 68$ 71$ (4)% 205$ 222$ (7)% % of sales 26 % 29 % 25 % 30 % * Change from prior quarter/year end, excluding acquisitions
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CONTRACTOR SEGMENT RESULTS 13 0% 5% 10% 15% 20% 25% 30% 35% $- $50 M $100 M $150 M $200 M $250 M $300 M $350 M $400 M Q323 Q423 Q124 Q224 Q324 Q424 Q125 Q225 Q325 Operating Margins Sales Net Sales Operating Margins Contractor Segment Net Sales and Operating Margins Change in % of net sales Third Quarter September Year to Date 2024 Operating Earnings 29 % 30 % Product cost/tariffs (1) (3) Effect of acquired businesses (2) (2) 2025 Operating Earnings 26 % 25 % ($7M) $71M $1M $1M $2M $68M Q3 2024 Currency Translation Product Cost/Tariffs Acquired Operations Lower Expenses Q3 2025 Contractor Segment Operating Earnings QTD
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INDUSTRIAL SEGMENT RESULTS 14 2025 Components of Net Sales Change Third Quarter September Year to Date Third Quarter September Year to Date Americas Asia Pacific Volume & Price 3 % 1 % Volume & Price (6)% 1 % Acquisitions 0 % 0 % Acquisitions 3 % 1 % Currency 0 % 0 % Currency 0 % (1)% Total 3 % 1 % Total (3)% 1 % EMEA Segment Total Volume & Price (7)% 0 % Volume & Price (2)% 1 % Acquisitions 2 % 1 % Acquisitions 1 % 0 % Currency 6 % 2 % Currency 2 % 0 % Total 1 % 3 % Total 1 % 1 % 43% 2025 Industrial Segment Net Sales as % of Graco * Change from prior quarter/year end, excluding acquisitions $ in millions Third Quarter September Year to Date Net Sales 2025 2024 Change 2025 2024 Change Americas 130$ 125$ 3% 378$ 375$ 1% EMEA 59 58 1 179 174 3 Asia Pacific 50 53 (3) 156 154 1 Total 239$ 236$ 1% 713$ 703$ 1% Change in Backlog* 12$ (10)$ 13$ (29)$ Operating Earnings 81$ 78$ 4% 243$ 232$ 5 % % of sales 34 % 33 % 34 % 33 %
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INDUSTRIAL SEGMENT FINANCIAL RESULTS 15 0% 5% 10% 15% 20% 25% 30% 35% 40% $- $50 M $100 M $150 M $200 M $250 M $300 M $350 M $400 M Q323 Q423 Q124 Q224 Q324 Q424 Q125 Q225 Q325 Operating Margins Sales Net Sales Operating Margins Industrial Segment Net Sales and Operating Margins Change in % of net sales Third Quarter September Year to Date 2024 Operating Earnings 33 % 33 % Product/channel mix, cost 2 1 Higher expenses (1) 0 2025 Operating Earnings 34 % 34 % ($1M) $78M $1M $3M $81M Q3 2024 Currency Translation Volume, Price, Cost Higher Expenses Q3 2025 Industrial Segment Operating Earnings QTD
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EXPANSION MARKETS SEGMENT FINANCIAL RESULTS 16 2025 Components of Net Sales Change Third Quarter September Year to Date Third Quarter September Year to Date Americas Asia Pacific Volume & Price (6)% (4)% Volume & Price 40 % 27 % Acquisitions 0 % 0 % Acquisitions 0 % 0 % Currency 0 % 0 % Currency 1 % 0 % Total (6)% (4)% Total 41 % 27 % EMEA Segment Total Volume & Price (4)% 5 % Volume & Price 3 % 4 % Acquisitions 0 % 0 % Acquisitions 0 % 0 % Currency 1 % 1 % Currency 0 % 0 % Total (3)% 6 % Total 3 % 4 % 8% 2025 Expansion Markets Segment Net Sales as % of Graco * Change from prior quarter/year end $ in millions Third Quarter September Year to Date Net Sales 2025 2024 Change 2025 2024 Change Americas 25$ 27$ (6)% 75$ 78$ (4)% EMEA 7 7 (3) 21 20 6 Asia Pacific 10 7 41 28 22 27 Total 42$ 41$ 3% 124$ 120$ 4% Change in Backlog* (5)$ (4)$ (13)$ (11)$ Operating Earnings 10$ 7$ 43 % 29$ 22$ 30 % % of sales 25 % 18 % 24 % 19 %
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EXPANSION MARKETS SEGMENT FINANCIAL RESULTS 17 0% 5% 10% 15% 20% 25% 30% 35% $- $25 M $50 M $75 M $100 M Q323 Q423 Q124 Q224 Q324 Q424 Q125 Q225 Q325 Operating Margins Sales Net Sales Operating Margins Expansion Markets Segment Net Sales and Operating Margins Change in % of net sales Third Quarter September Year to Date 2024 Operating Earnings 18 % 19 % Product and channel mix 6 3 Lower expenses 1 2 2025 Operating Earnings 25 % 24 % $7M $3M $10M Q3 2024 Volume, Price, Cost Q3 2025 Expansion Markets Segment OperatingEarnings QTD
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ADJUSTED FINANCIAL RESULTS Financial results have been adjusted for comparability. Certain items have caused fluctuation in the Company’s financial results. Excluding the impact of these items presents a more consistent basis for comparison of financial results. 18 Non-GAAP Reconciliation Third Quarter September Year to Date $ in millions except per share amounts 2025 2024 Change 2025 2024 Change Operating earnings, as reported 164.7$ 145.7$ 13 % 466.2$ 440.1$ 6 % Contingent consideration (14.1) - (14.1) - Operating earnings, adjusted 150.6$ 145.7$ 3 % 452.1$ 440.1$ 3 % Income taxes, as reported 30.8$ 29.1$ 6 % 88.8$ 79.4$ 12 % Excess tax benefit from option exercises 0.7 - 5.1 10.3 Income taxes, adjusted 31.5$ 29.1$ 8 % 93.9$ 89.7$ 5 % Effective income tax rate As reported 18.3% 19.2% 18.6% 17.4% Adjusted 20.4% 19.2% 20.2% 19.6% Net earnings, as reported 137.6$ 122.2$ 13 % 389.4$ 377.4$ 3 % Contingent consideration (14.1) - (14.1) - Excess tax benefit from option exercises (0.7) - (5.1) (10.3) Net earnings, adjusted 122.8$ 122.2$ 0 % 370.2$ 367.1$ 1 % Weighted average diluted shares 168.6 172.1 169.6 172.3 Diluted earnings per share As reported 0.82$ 0.71$ 15 % 2.30$ 2.19$ 5 % Adjusted 0.73$ 0.71$ 3 % 2.18$ 2.13$ 2 %