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2026.01.27 FOURTH QUARTER EARNINGS CALL
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SAFE HARBOR 2 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 January 26, 2026.
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FINANCIAL RESULTS 3 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. Statement of Earnings Fourth Quarter Full Year $ in millions except per share amounts 2025 2024 Change 2025 2024 Change Net Sales 593.2$ 548.7$ 8 % 2,236.6$ 2,113.3$ 6 % Gross Profit 306.7 279.3 10 % 1,173.2 1,122.5 5 % % of Net Sales 51.7% 50.9% 0.8 pts 52.5% 53.1% (0.6) pts Operating Earnings 158.6 130.0 22 % 624.8 570.1 10 % % of Net Sales 26.7% 23.7% 3.0 pts 27.9% 27.0% 0.9 pts Net Earnings 132.5$ 108.7$ 22 % 521.8$ 486.1$ 7 % % of Net Sales 22.3% 19.8% 2.5 pts 23.3% 23.0% 0.3 pts Diluted Net Earnings Per Share 0.79$ 0.63$ 25 % 3.08$ 2.82$ 9 % Diluted Shares in Millions 168.1 172.6 (3)% 169.2 172.4 (2)% Operating Earnings, Adjusted (1) 158.6$ 137.7$ 15 % 610.7$ 577.8$ 6 % Net Earnings, Adjusted (1) 128.7$ 110.1$ 17 % 498.8$ 477.1$ 5 % Diluted Net Earnings Per Share, Adjusted (1) 0.77$ 0.64$ 20 % 2.95$ 2.77$ 6 %
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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. $337M (+4%) $159M (+23%) $97M (+2%) Americas EMEA Asia Pacific Fourth Quarter 2025 Net Sales by Region $1,353M (+2%) $528M (+16%) $356M (+8%) Americas EMEA Asia Pacific Full Year 2025 Components of Net Sales Change 2025 Fourth Quarter Segment Region Contractor Industrial Expansion Markets Americas EMEA Asia Pacific Consolidated Volume and Price 1 % 5 % (7)% 2 % 8 % (4)% 2 % Acquisitions 5 % 4 % 0 % 2 % 7 % 5 % 4 % Currency 2 % 2 % 1 % 0 % 8 % 1 % 2 % Total 8 % 11 % (6)% 4 % 23 % 2 % 8 % 2025 Full Year Segment Region Contractor Industrial Expansion Markets Americas EMEA Asia Pacific Consolidated Volume and Price (2)% 2 % 1 % (1)% 2 % 1 % 0 % Acquisitions 10 % 1 % 0 % 3 % 10 % 8 % 5 % Currency 0 % 1 % 0 % 0 % 4 % (1)% 1 % Total 8 % 4 % 1 % 2 % 16 % 8 % 6 % USD 60% Euro 21% European, non- Euro 3% Asian 11% Americas, non-USD 5% 2025 Net Sales by Currency
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OPERATING EARNINGS 5 $133M $144M $161M $157M $146M $165M $130M $159M $570M $625M 27 % 27 % 29 % 28 % 28 % 30 % 24 % 27 % 27 % 28 % 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 Q1 Q2 Q3 Q4 FY $M % of Net Sales Operating Earnings ($2M) $130M $3M $14M $11M $3M $159M Q4 2024 Currency Translation Contractor Segment Industrial Segment Expansion Markets Segment Unallocated Corporate Expense Q4 2025 Quarter Over Quarter Operating Earnings Walk Fourth Quarter Full Year 2024 Operating Earnings, as reported ($M and % of sales) 130 $ 24 % 570 $ 27 % Currency translation 3 1 3 0 Volume, price and cost 13 1 0 0 Effect of acquired businesses 2 (1) 8 (1) Prior year business reorganization cost 8 1 8 0 Prior year litigation cost 7 1 13 1 Reduction of fair value contingent consideration 0 0 14 1 Volume and earnings based cost (6) (1) (7) (1) Expense leverage 2 1 16 1 2025 Operating Earnings, as reported ($M and % of sales) 159 $ 27 % 625 $ 28 %
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Net Sales • Up 8 percent from fourth quarter 2024. Sales from acquired businesses contributed 4 percentage points of growth. Currency translation increased net sales by 2 percentage points. Gross Margin • Margin rate up 0.8 percentage points compared to fourth quarter 2024 > Price realization from pricing actions more than offset higher product costs, including increased tariff costs of $4 million. Operating Earnings • Up $29 million compared to fourth quarter 2024 > Incremental expenses from acquired operations of $7 million and higher sales and earnings-based expenses of $5 million were more than offset by $14 million of litigation and business reorganization costs in the prior year quarter that did not repeat. > Acquired businesses contributed $1 million of operating earnings. Other (Income) • Up $2 million compared to fourth quarter 2024 due to gains on market value fluctuations on investments held to fund certain retirement benefit liabilities. Interest Expense • Comparable to fourth quarter 2024. Taxes • Adjusted effective tax rate for the quarter was comparable to fourth quarter 2024. FOURTH QUARTER 2025 6
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Net Sales • Up 6 percent from 2024. Sales from acquired businesses contributed 5 percentage points of growth. Currency translation increased net sales by 1 percentage point. Gross Margin • Margin rate down 0.6 percentage points compared to 2024 > Price realization from pricing actions was unable to offset higher product costs, including unfavorable impact of $14 million in increased tariff costs. Unfavorable effects of lower margin rates of acquired operations further decreased the gross profit margin. Operating Earnings • Up $55 million compared to 2024 > Higher gross profit and lower operating expenses: incremental expenses from acquired operations of $36 million were more than offset by a $14 million non-cash gain from the reduction in the fair value of acquisition-related contingent consideration recognized in the third quarter of the current year and $21 million of litigation and business reorganization costs from the prior year that did not repeat. > Acquired businesses contributed $8 million of operating earnings. Other (Income) • Down $3 million compared to 2024 > Primarily due to $8 million of higher exchange losses on net liabilities of foreign operations and $8 million of lower interest income, partially offset by gains on market value fluctuations on investments held to fund certain retirement benefit liabilities and a $5 million gain from the sale of a manufacturing and distribution facility in Switzerland. Interest Expense • Comparable to 2024. Taxes • Adjusted effective tax rate for the year was comparable to 2024. FULL YEAR 2025 7
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2025 ENVIRONMENT 8 Constant currency basis and excluding acquisitions completed in the prior 12 months Americas EMEA Asia Pacific Total Current Environment Net Sales Change Q4 2025 2% Full Year (1%) Net Sales Change Q4 2025 8% Full Year 2% Net Sales Change Q4 2025 (4%) Full Year 1% Net Sales Change Q4 2025 2% Full Year 0% Contractor Segment Net Sales Change Q4 2025 1% Full Year (2%) Net Sales Change Q4 2025 0% Full Year (2%) Net Sales Change Q4 2025 3% Full Year (1%) Net Sales Change Q4 2025 1% Full Year (2%) Industrial Segment Net Sales Change Q4 2025 6% Full Year 2% Net Sales Change Q4 2025 15% Full Year 4% Net Sales Change Q4 2025 (8%) Full Year (2%) Net Sales Change Q4 2025 5% Full Year 2% Expansion Markets Segment Net Sales Change Q4 2025 (11%) Full Year (6%) Net Sales Change Q4 2025 (3%) Full Year 3% Net Sales Change Q4 2025 4% Full Year 20% Net Sales Change Q4 2025 (7%) Full Year 1% 2026 Outlook Low Single-Digit Growth
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CASH FLOW AND LIQUIDITY 9 • Net cash from operations was $684 million vs. $622 million in 2024. • In 2025, we repurchased 5.1 million shares of stock for $423 million. • Capital expenditures of $46 million. • Acquisitions, net of cash acquired, $135 million. • Proceeds from the sale of a manufacturing and distribution facility in Switzerland of $11 million. $137 $113 $132 $122 $110 $120 $127 $123 $129 $160 $119 $139 $178 $185 $125 $183 $179 $197 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Net Earnings, as Adjusted Cash from Operating Activites Net Earnings, as Adjusted, and Cash from Operating Activities 2025 2024 Net Share Issuances (Repurchases) (386)$ 35$ Dividends (183) (172) Acquisitions (135) (242) Capital Expenditures (46) (107) (Net Payments) Borrowings on Debt (7) (1) Sale of Building 11 - Pension contribution - (20) Other Significant (Uses) Sources of Cash ($M)
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OTHER DISCUSSION ITEMS 10 Cap Ex • Capital expenditure expectations of approximately $90 - $100 million in 2026 including approximately $50 million in facility expansion projects. Expenses • Unallocated corporate expenses in 2026 are expected to be approximately $40 - $43 million. Shares • We repurchased 5.1 million shares of stock in 2025. We may make opportunistic share repurchases in 2026 via open market transactions. Currency • At current exchange rates, assuming the same volumes, mix of products and mix of business by currency as in 2025, the movement in foreign currencies would have a favorable impact of 1 percentage point on net sales and net earnings for the full year 2026. Taxes • We anticipate the effective tax rate in for the first quarter and the full year 2026 to be between 20 - 21%, 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. Fiscal Year 2027 • There will be 53 weeks in fiscal 2027, with 14 weeks in the fourth quarter.
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CONTRACTOR SEGMENT RESULTS 11 48% 2025 Contractor Segment Net Sales as % of Graco 2025 Components of Net Sales Change Fourth Quarter Full Year Fourth Quarter Full Year Americas Asia Pacific Volume & Price 1 % (2)% Volume & Price 3 % (1)% Acquisitions 4 % 5 % Acquisitions 7 % 26 % Currency 0 % 0 % Currency 1 % (1)% Total 5 % 3 % Total 11 % 24 % EMEA Segment Total Volume & Price 0 % (2)% Volume & Price 1 % (2)% Acquisitions 7 % 22 % Acquisitions 5 % 10 % Currency 8 % 4 % Currency 2 % 0 % Total 15 % 24 % Total 8 % 8 % $ in millions Fourth Quarter Full Year Net Sales 2025 2024 Change 2025 2024 Change Americas 177$ 169$ 5% 740$ 722$ 3% EMEA 61 52 15 229 184 24 Asia Pacific 28 26 11 103 83 24 Total 266$ 247$ 8 % 1,072$ 989$ 8% Operating Earnings 65$ 49$ 34% 270$ 270$ 0% % of sales 24 % 20 % 25 % 27 %
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CONTRACTOR SEGMENT RESULTS 12 ($2M) $49M $2M $2M $7M $2M $5M $65M Q4 2024 Currency Translation Pricing and Volume Prior Year Litigation Volume and Earnings Based Cost Prior Year Business Reorganziation Lower Expenses Q4 2025 Contractor Segment Operating Earnings QTD 0% 5% 10% 15% 20% 25% 30% 35% $- $50 M $100 M $150 M $200 M $250 M $300 M $350 M $400 M Q423 Q124 Q224 Q324 Q424 Q125 Q225 Q325 Q425 Operating Margins Sales Net Sales Operating Margins Contractor Segment Net Sales and Operating Margins Change in % of net sales Fourth Quarter Full Year 2024 Operating Earnings 20 % 27 % Pricing, volume and product cost/tariffs 0 (2) Effect of acquired businesses (1) (2) Prior year business reorganization cost 1 0 Prior year litigation cost 3 2 Volume and earnings based cost (1) 0 Expense leverage 2 0 2025 Operating Earnings 24 % 25 %
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INDUSTRIAL SEGMENT RESULTS 13 45% 2025 Industrial Segment Net Sales as % of Graco 2025 Components of Net Sales Change Fourth Quarter Full Year Fourth Quarter Full Year Americas Asia Pacific Volume & Price 6 % 2 % Volume & Price (8)% (2)% Acquisitions 0 % 0 % Acquisitions 6 % 2 % Currency 1 % 0 % Currency (1)% 0 % Total 7 % 2 % Total (3)% 0 % EMEA Segment Total Volume & Price 15 % 4 % Volume & Price 5 % 2 % Acquisitions 8 % 3 % Acquisitions 4 % 1 % Currency 9 % 4 % Currency 2 % 1 % Total 32 % 11 % Total 11 % 4 % $ in millions Fourth Quarter Full Year Net Sales 2025 2024 Change 2025 2024 Change Americas 134$ 126$ 7% 512$ 501$ 2% EMEA 92 70 32 271 243 11 Asia Pacific 58 60 (3) 214 214 0 Total 284$ 256$ 11% 997$ 958$ 4% Operating Earnings 92$ 80$ 16% 335$ 312$ 7 % % of sales 32 % 31 % 34 % 33 %
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INDUSTRIAL SEGMENT FINANCIAL RESULTS 14 Change in % of net sales Fourth Quarter Full Year 2024 Operating Earnings 31 % 33 % Currency translation 0 (1) Volume, pricing, product/channel mix and cost 1 1 Effect of acquired business (1) 0 Prior year business reorganization cost 2 1 Volume and earnings based cost (1) (1) Expense leverage 0 1 2025 Operating Earnings 32 % 34 % $2M $2M $80M $1M $9M $1M $5M $92M Q4 2024 Currency Translation Pricing and Volume Acquired Operations Volume and Earnings Based Cost Prior Year Business Reorganization Higher Expenses Q4 2025 Industrial Segment Operating Earnings QTD 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 Q423 Q124 Q224 Q324 Q424 Q125 Q225 Q325 Q425 Operating Margins Sales Net Sales Operating Margins Industrial Segment Net Sales and Operating Margins
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EXPANSION MARKETS SEGMENT FINANCIAL RESULTS 15 7% 2025 Expansion Markets Segment Net Sales as % of Graco 2025 Components of Net Sales Change Fourth Quarter Full Year Fourth Quarter Full Year Americas Asia Pacific Volume & Price (11)% (6)% Volume & Price 4 % 20 % Acquisitions 0 % 0 % Acquisitions 0 % 0 % Currency 0 % 0 % Currency 0 % 0 % Total (11)% (6)% Total 4 % 20 % EMEA Segment Total Volume & Price (3)% 3 % Volume & Price (7)% 1 % Acquisitions 0 % 0 % Acquisitions 0 % 0 % Currency 1 % 1 % Currency 1 % 0 % Total (2)% 4 % Total (6)% 1 % $ in millions Fourth Quarter Full Year Net Sales 2025 2024 Change 2025 2024 Change Americas 26$ 29$ (11)% 101$ 107$ (6)% EMEA 6 7 (2) 28 27 4 Asia Pacific 11 10 4 39 32 20 Total 43$ 46$ (6)% 168$ 166$ 1% Operating Earnings 12$ 9$ 35 % 41$ 32$ 32 % % of sales 28 % 20 % 25 % 19 %
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EXPANSION MARKETS SEGMENT FINANCIAL RESULTS 16 0% 5% 10% 15% 20% 25% 30% 35% $- $25 M $50 M $75 M $100 M Q423 Q124 Q224 Q324 Q424 Q125 Q225 Q325 Q425 Operating Margins Sales Net Sales Operating Margins Expansion Markets Segment Net Sales and Operating Margins Change in % of net sales Fourth Quarter Full Year 2024 Operating Earnings 20 % 19 % Upfront licensing 9 3 Product and channel mix and cost 6 3 Prior year business reorganization cost 1 0 Volume and earnings based cost (2) 0 Expense leverage (6) 0 2025 Operating Earnings 28 % 25 % ($1M) ($1M) $9M $5M $12M Q4 2024 Upfront Licensing Volume, Price, Cost Volume and Earnings Based Cost Q4 2025 Expansion Markets Segment OperatingEarnings QTD
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ADJUSTED FINANCIAL RESULTS 17 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. Non-GAAP Reconciliation Fourth Quarter Full Year $ in millions except per share amounts 2025 2024 Change 2025 2024 Change Operating earnings, adjusted 158.6$ 130.0$ 22 % 624.8$ 570.1$ 10 % Contingent consideration - - (14.1) - Business reorganization - 7.7 - 7.7 Operating earnings, adjusted 158.6$ 137.7$ 15 % 610.7$ 577.8$ 6 % Income taxes, as reported 30.6$ 23.8$ 29 % 119.4$ 103.2$ 16 % Other non-recurring tax benefit 2.9 - 2.9 - Excess tax benefit from option exercises 0.9 4.5 6.0 14.9 Business reorganization tax effect - 1.8 - 1.8 Income taxes, adjusted 34.4$ 30.1$ 14 % 128.3$ 119.9$ 7 % Effective income tax rate As reported 18.7% 17.9% 18.6% 17.5% Adjusted 21.1% 21.5% 20.5% 20.1% Net earnings, as reported 132.5$ 108.7$ 22 % 521.8$ 486.1$ 7 % Contingent consideration - - (14.1) - Other non-recurring tax benefit (2.9) - (2.9) - Excess tax benefit from option exercises (0.9) (4.5) (6.0) (14.9) Business reorganization - 5.9 - 5.9 Net earnings, adjusted 128.7$ 110.1$ 17 % 498.8$ 477.1$ 5 % Weighted average diluted shares 168.1 172.6 169.2 172.4 Diluted earnings per share As reported 0.79$ 0.63$ 25 % 3.08$ 2.82$ 9 % Adjusted 0.77$ 0.64$ 20 % 2.95$ 2.77$ 6 %