Graco : Q1 2025 Investor Presentation - Final

Published: 2025-05-15 14:31:06 ET GGG

Published on 05/15/2025 at 14:31

INVESTOR

PRESENTATION

FIRST QUARTER 2025

W0RLDWIDE

First Quarter 2025

61%

23%

16%

AMERICAS EMEA ASIA PACIFIC

48%

44%

CONTRACTOR INDUSTRIAL EXPANSION

MARKETS

DISTRIBUTI0N 0F GL0BfiL SfiLES

6ft%

63%

52%

Americas EMEA

Asia Pacific

21%

26%

22%

10%

17%

20%

CONTRACTOR

INDUSTRIAL

EXPANSION MARKETS

I N V E S T O R P R E S E N T A T I O N - Q 1 2 0 2 5

1% Wood

1% White Goods

2% Mining

3% Electronics

3% 0il & Natural Gas

4% Public Worfis

4% Vehicle Services

47%

Construction

ft%

0ther

ft%

fiutomotive

17%

Industrial & Machinery

2024 NET SfiLES BY END MfiRKET

I N V E S T O R P R E S E N T A T I O N - Q 1 2 0 2 5

TRUSTED S0LUTI0NS T0 KEEP J0BS M0VING & FLUIDS PUMPING

I N V E S T O R P R E S E N T A T I O N - Q 1 2 0 2 5 5

DIVERSIFIED FLUID HfiNDLING BUSINESS

Difficult applications; corrosive,

viscous, hard-to-move materials

Organic Revenue CAGR*

*20-year average, constant currency

Of revenue is parts

and accessories

I N V E S T O R P R E S E N T A T I O N - Q 1 2 0 2 5 6

Best in class

delivery

Material supplier

relationships

Niche

markets

Strong channel

partners

Leading new product investment

Stringent product requirements

Best in class quality

End user interaction

CUST0MER R0I

Lowest total

cost of ownership

HIGH CUST0MER VfiLUE,

STR0NG PR0DUCT DIFFERENTIfiTI0N

I N V E S T O R P R E S E N T A T I O N - Q 1 2 0 2 5

STRfiTEGIC INITIfiTIVES

New Product Development

New Markets

Global Expansion

End-user Conversion

Acquisitions

10%

Targeted Revenue CAGR

Targeted Earnings CAGR

Through a cycle.

GR0WTH PLfiNS fiND EfiRNINGS DRIVERS

I N V E S T O R P R E S E N T A T I O N - Q 1 2 0 2 5

Through a cycle.

12%+

Acquisition s

3-4%

9-10%

Strategic initiatives 1-2%

5-7%

Price 1-2%

Industrial Production Average Growth Rate

Targeted

Organic CAGR

Targeted

Revenue CAGR

Targeted

Earnings CAGR

GR0WTH PLfiNS fiND EfiRNINGS DRIVERS

I N V E S T O R P R E S E N T A T I O N - Q 1 2 0 2 5

AVERAGE NUMBER OF UNITS

2024 SALES

SOLD PER DAY

NUMBER OF SKUS

($ IN MILLIONS)

HIGHLY-VfiLUED

0 - 1

56,500 93%

$ 1,011 48%

PR0DUCTS fiT

L0W V0LUMES

2 - 5

2,500 4%

$ 321 15%

48%

6 - 10

700 1%

$ 162 8%

of our revenue

11 - 15

300 1%

$ 90 4%

comes from products

that we sell

Greater than 15

700 1%

$ 529 25%

ZER0 T0 0NE

PER DfiY

Graco 2024 Sales

60,700

$2,113

L0W V0LUME, HIGH MIX DELIVERS CUST0MER R0I

I N V E S T O R P R E S E N T A T I O N - Q 1 2 0 2 5

0RGfiNIC REVENUE

CfiGR

RETURN 0N INVESTED CfiPITfiL

RETURN 0N EQUITY

RETURN 0N fiSSETS

Based on a 20-year average. Organic revenue at constant currency.

EXCEPTI0NfiL RETURNS

I N V E S T O R P R E S E N T A T I O N - Q 1 2 0 2 5

BUSINESS M0DEL

Brand Promise

Engineering Excellence

Manufacturing Excellence

Service Excellence

Extensive Reach

Culture & Talent

I N V E S T O R P R E S E N T A T I O N - Q 1 2 0 2 5 12

BRfiND PR0MISE

GRfiC0'S BRICK fiND M0RTfiR

.VfiLUES

Customer focus

Quality

Continuous improvement

Fact-based decision making

Results driven

The result of these values is our promise to our customers: We are committed to delivering innovation, quality and service.

I N V E S T O R P R E S E N T A T I O N - Q 1 2 0 2 5 13

ENGINEERING EXCELLENCE

TfiRGET D0UBLE-DIGIT RETURNS 0N NEW PR0DUCTS

fiNNUfiL R&D INVESTMENT:

>1.5x* our peer group

4.0%* as a percent of sales vs. peers at 2.7%

*Peers: ITW, LECO, DOV, IEX, NDSN, based on a 5-year average, 2020 - 2024.

I N V E S T O R P R E S E N T A T I O N - Q 1 2 0 2 5 14

MfiNUFfiCTURING EXCELLENCE

>80% product based in USA

Zero cost change goal on the same basket of goods (year over year)

<1% warranty costs

I N V E S T O R P R E S E N T A T I O N - Q 1 2 0 2 5 15

SERVICE EXCELLENCE

Orders in by noon, ship the same day

95% in-stock service level goal

I N V E S T O R P R E S E N T A T I O N - Q 1 2 0 2 5 16

0UTLETS/DISTRIBUT0RS

CUST0MERS IN

C0UNTRIES

INSTfiLLED BfiSE

YEfiRS 0LD

FfiCILITIES IN

C0UNTRIES

I N V E S T O R P R E S E N T A T I O N - Q 1 2 0 2 5 17

EXTENSIVE REfiCH

4,300

TOTAL NUMBER OF EMPLOYEES

1,900

EMPLOYEES OUTSIDE OF THE U.S.

AVERAGE YEARS OF EXECUTIVE TENURE

AVERAGE YEARS OF EMPLOYEE TENURE

*Based on data as of 12/27/2024

CULTURE & TfiLENT

KEY END MfiRKETS

Residential and non-residential construction

Residential and non-residential remodeling

Transportation Infrastructure

GR0WTH DRIVERS & TRENDS

End user conversion from brush and roll

Product innovation and channel expansion

Housing and new construction

Infrastructure spending

Regional labor rates

New markets

Material changes

SELECT REPRESENTfiTIVE INDUSTRY PfiRTICIPfiNTS:

Wagner/Titan

Campbell Hausfeld

Bedford

Regional Competition

C0NTRfiCT0R

2025 March,

three-month performance

SEGMENT REVENUE

0RGfiNIC REVENUE DECLINE

0PERfiTING MfiRGIN

-450 BfiSIS P0INTS

KEY END MfiRKETS

General Industrial

Automotive

Vehicle services

Pharmaceutical, food and beverage

GR0WTH DRIVERS & TRENDS

Factory movement and upgrades

Automation

Technology upgrades

Energy-efficiency upgrades

Material changes

SELECT REPRESENTfiTIVE INDUSTRY PfiRTICIPfiNTS:

Nordson

Dover

Ingersoll Rand

Binks

Regional Competition

INDUSTRIfiL

2025 March,

three-month performance

SEGMENT REVENUE

0RGfiNIC REVENUE GR0WTH

0PERfiTING MfiRGIN

+1ft0 BfiSIS P0INTS

EXPfiNSI0N MfiRKETS

2025 March,

three-month performance

SEGMENT REVENUE

0RGfiNIC REVENUE GR0WTH

0PERfiTING MfiRGIN

+610 BfiSIS P0INTS

KEY END MfiRKETS

Semiconductor

Oil and natural gas

Environmental

GR0WTH DRIVERS & TRENDS

Factory movement and upgrades

Technology and energy-efficiency upgrades

Asset life maintenance

Environmental regulations

SELECT REPRESENTfiTIVE INDUSTRY PfiRTICIPfiNTS:

IDEX

Parker Hannifin

Ingersoll Rand

Regional Competition

0RGfiNIC GR0WTH

International footprint

Product development

Production capacity and capabilities

fiCQUISITI0NS

Supplement to organic growth

Leverage core competencies into adjacencies

Strong balance sheet position

SHfiREH0LDER RETURN

Solid dividend history

Approximately 9.0 million shares remaining on repurchase authorization

I N V E S T O R P R E S E N T A T I O N - Q 1 2 0 2 5 26

L0NG-TERM CfiSH DEPL0YMENT PRI0RITIES

KEY INVESTMENT fiTTRIBUTES

Drive long-term, above-market growth

Premium products that deliver strong ROI for

end users

Leading industry positions

Serve niche markets where customers are willing to purchase quality, technology-based products

Products perform mission-critical functions

Recurring parts and accessories sales

Shareholder-minded management

Financial strength

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

2023

2024

2025

I N V E S T O R P R E S E N T A T I O N - Q 1 2 0 2 5 29

KEY fiCQUISITI0NS

REVENUE GR0WTH

GR0SS MfiRGIN

NET INC0ME GR0WTH

EPS GR0WTH

(As Reported)

I N V E S T O R P R E S E N T A T I O N - Q 1 2 0 2 5 31

FIRST QUfiRTER 2025 FINfiNCIfiL PERF0RMfiNCE

Disclaimer

Graco Inc. published this content on May 15, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 15, 2025 at 18:30 UTC.