What changed in this filing

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Item 1. Business

2026-02-17 compared with 2025-02-18 · 32 added, 59 removed, 155 unchanged (37% of the section changed)

13 unchanged sentences

These acquisitions may be integrated into existing Graco operations or may be managed as stand-alone operations.

In 2024, we completed acquisitions in the Contractor and Process segments.

These acquisitions provide new product offerings, such as high-performance volumetric and gravimetric dispense, mixing, and shaking equipment, as well as additional channel partners and manufacturing capabilities.

Note L (Acquisitions) to the Consolidated Financial Statements of this Form 10-K has additional information on recent acquisitions.

In 2025, we completed two acquisitions within the Contractor and Industrial segments.

These acquisitions provide new product offerings, including mixing, shaking and automated material handling equipment for the Contractor segment and automated dosing systems for powder and liquid applications for the Industrial segment, while also expanding our manufacturing capabilities and strengthening our channel partner network.

Note 12 (Acquisitions) to the Consolidated Financial Statements of this Form 10-K has additional information on recent acquisitions.

We have particularly strong manufacturing, engineering and customer service capabilities that enhance our ability to provide premium customer experience, produce high-quality and reliable products and drive ongoing cost savings.

1 unchanged sentence

Values central to our identity - growth, product innovation, premium customer service, quality and continuous improvement - are leveraged to integrate and expand the capabilities of acquired businesses.

In 2024, we classified our business into three reportable segments, each with a worldwide focus:

Contractor, Industrial and Process.

Effective January 1, 2025, the Company began to classify its business into three reportable segments:

Contractor, Industrial and Expansion Markets.

The Industrial segment consists of the newly formed Industrial Division and the Powder Division.

The Company’s former Industrial and Lubrication Equipment Divisions, along with the Process Transfer Equipment business that was part of the Company’s former Process Division, were combined to form the new global Industrial Division.

The Powder Division remains unchanged.

The Expansion Markets segment consists of the Expansion Markets Division.

The Company’s environmental, semiconductor, high-pressure valves and electric motors businesses, together with select future ventures and acquisitions, reside within this division.

The Contractor segment, consisting of the Contractor Division, remains unchanged as a reportable segment relative to prior periods.

Each segment sells its products in North, Central and South America (the “Americas”), Europe, Middle East and Africa (“EMEA”), and Asia Pacific.

3 unchanged sentences

Our Company also provides application assistance to distributors and employs sales personnel in each of these geographic regions.

Financial information concerning our segments and geographic markets is set forth in Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations and Note B (Segment Information) to the Consolidated Financial Statements of this Form 10-K.

Financial information concerning our segments and geographic markets is set forth in Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations and Note 2 (Segment Information) to the Consolidated Financial Statements of this Form 10-K.

For information about our Company and our products, services and solutions, visit our website at www.graco.com.

4 unchanged sentences

Our manufacturing is aligned with our business segments and is co-located with product development to accelerate technology improvements and improve our cost structure.

We perform critical machining, assembly and testing in-house for most of our products to

control quality, improve response time and maximize cost-effectiveness.

We perform critical machining, assembly and testing in-house for most of our products to control quality, improve response time and maximize cost-effectiveness.

We make our products in focused factories and product cells.

3 unchanged sentences

Certain of our businesses sell their products directly to end-user customers and have direct relationships with customers.

Outside of the U.S., our subsidiaries located in Australia, Belgium, Spain, Japan, Italy, Korea, India, the P.R.C., the United Kingdom and Brazil distribute our Company’s products.

Operations in Maasmechelen, Belgium, Gossau, Switzerland, Modena, Italy, Gujarat, India and Shanghai, P.R.C.

reinforce our commitment to those regions.

Outside of the U.S., our operations located in Australia, Belgium, Spain, Japan, Italy, Korea, India, the P.R.C., the United Kingdom and Brazil distribute our Company’s products and reinforce our commitment to those regions.

Our manufacturing capacity is sufficient for current business demand levels.

In 2024, we completed significant expansion projects, including a worldwide distribution center in Dayton, Minnesota, a manufacturing and distribution facility for our Powder division in Gossau, Switzerland and the expansion of our Anoka, Minnesota facility.

In 2023, we completed an expansion of our Sioux Falls, South Dakota manufacturing facility and the construction of a new manufacturing facility in Sibiu, Romania.

In 2024 and 2023, we completed a number of significant expansion projects within the U.S., Switzerland and Romania.

The completion of these projects represents the culmination of a period of significant investment in expansion and modernization of our key manufacturing and distribution facilities.

28 unchanged sentences

This segment also manufactures two-component proportioning systems that are used to spray polyurethane foam ("spray foam") and polyurea coatings.

Spray foam is commonly used for insulating building walls, roofs, water heaters,

refrigerators, hot tubs and other items.

Spray foam is commonly used for insulating building walls, roofs, water heaters, refrigerators, hot tubs and other items.

Polyurea coatings are applied on storage tanks, pipes, roofs, truck beds, concrete and other items.

21 unchanged sentences

Original equipment manufacturers incorporate our Industrial segment products into systems and assemblies that they then supply to their customers.

The Industrial division makes liquid finishing and advanced fluid dispense equipment primarily for use in industrial applications.

This division’s products include liquid finishing equipment that applies liquids on metals, wood and plastics, with emphasis on solutions that provide easy integration to paint monitoring and control systems.

Products include paint circulating and paint supply pumps, paint circulating advanced control systems, plural component coating proportioners, various accessories to filter, transport, agitate and regulate fluid, and spare parts such as spray tips, seals and filter screens.

The Industrial division also offers a variety of applicators that use different methods of atomizing and spraying liquid materials, paint or other coatings depending on the viscosity of the fluid, the type of finish desired and the need to maximize transfer efficiency, minimize overspray and minimize the release of volatile organic compounds into the air.

Manufacturers in the automotive, automotive feeder, commercial and recreational vehicle, military and utility vehicle, aerospace, farm, construction, wood and general metals industries use our liquid finishing products.

The Industrial division also manufactures equipment for industrial customers that pumps, meters, mixes and dispenses sealant, adhesive and composite materials.

Advanced fluid dispense equipment includes gel-coat equipment, chop and wet-out systems, resin transfer molding systems and applicators and precision dispensing solutions.

This precision dispense equipment bonds, molds, seals, vacuum encapsulates and laminates parts and devices in a wide variety of industrial applications.

The Powder division makes powder finishing products and complete powder finishing systems that coat powder on metals.

These products are sold under the Gema® and SAT™ brands.

The Industrial division designs and manufactures liquid finishing and advanced fluid dispensing equipment;

pumps to move chemicals, petroleum, food, and other fluids;

and systems, components, and accessories for the automatic lubrication of bearings, gears, and generators.

These products are primarily used in industrial manufacturing applications, including automotive and commercial equipment, and are also utilized by manufacturers and processors in the food and beverage, dairy, pharmaceutical, cosmetic, electronics, mining, and ceramics industries.

The Industrial division also manufactures and supplies equipment for equipment maintenance and vehicle servicing applications, including supply pumps, hose reels, meters, valves, and accessories used by fast oil change facilities, service garages, fleet service centers, automobile dealerships, auto parts stores, truck builders, and heavy equipment service centers.

The Powder division makes powder finishing products, automated dosing systems and complete powder finishing systems that coat powder on metals.

These products are sold under the Gema®, SAT™ and ColorService® brands.

Gema powder systems coat window frames, metallic furniture, automotive components and sheet metal.

Primary end users of our powder finishing products include

manufacturers in the construction, home appliance, automotive component and custom project coater industries.

Primary end users of our powder finishing products include manufacturers in the construction, home appliance, automotive component and custom

project coater industries.

We strive to provide innovative solutions in powder coating for end users in emerging and developed markets.

Process Segment

The Process segment represented approximately 24 percent of our total sales in 2024.

It includes the Process and Lubrication divisions.

The Process segment markets pumps, valves, meters and accessories to move and dispense chemicals, oil and natural gas, water, wastewater, petroleum, food, lubricants and other fluids.

Markets served include food and beverage, dairy, oil and natural gas, pharmaceutical, cosmetics, semiconductor, electronics, wastewater, mining, fast oil change facilities, service garages, fleet service centers, automobile dealerships and industrial lubrication applications.

Most Process segment equipment is sold worldwide through third-party distributors and original equipment manufacturers.

Some products are sold directly to end users, particularly in the oil and natural gas and semiconductor industries.

The Process division makes pumps of various technologies that move chemicals, water, wastewater, petroleum, food and other fluids.

Manufacturers and processors in the food and beverage, dairy, pharmaceutical, cosmetic, oil and natural gas, semiconductor, electronics, wastewater, mining and ceramics industries use these pumps.

This division makes environmental monitoring and remediation equipment that is used to conduct ground water sampling and ground water remediation, and for landfill liquid and gas management.

The Lubrication division primarily designs and sells equipment for use in equipment maintenance and vehicle servicing.

We supply pumps, hose reels, meters, valves and accessories for use by fast oil change facilities, service garages, fleet service centers, automobile dealerships, auto parts stores, truck builders and heavy equipment service centers.

This division also offers systems, components and accessories for the automatic lubrication of bearings, gears and generators in industrial and commercial equipment, compressors, turbines and on- and off-road vehicles.

Automatic lubrication systems reduce maintenance costs, downtime and extend equipment life.

These systems are utilized across a variety of industries including construction, mining, industrial manufacturing, transportation, wind energy and oil and natural gas.

The Lubrication division also manufactures high pressure and ultra-high pressure valves used in the oil and natural gas industry, hydrogen refueling infrastructure, other industrial processes and research facilities.

The division also has a line of chemical injection pumping solutions for precise injection of chemicals into producing oil wells and pipelines.

2025 Change in Organizational Structure

As previously announced, effective January 1, 2025, the Company has classified its business into three reportable segments:

Contractor, Industrial and Expansion Markets.

• The Industrial segment consists of the newly formed Industrial Division and the Powder Division.

The Powder Division remains unchanged.

• The Expansion Markets segment consists of the Expansion Markets Division and will focus on driving inorganic growth in new and adjacent markets.

The Company’s environmental, semiconductor, high-pressure valves and electric motors businesses, together with select future ventures and acquisitions, reside within this division.

• The Contractor segment remains unchanged as a reporting segment relative to prior periods.

Segment operating results will be reported under the new organizational structure for the first quarter of 2025.

Segment information recast to conform to the new organizational structure is available as unaudited supplemental financial information on the Company’s website at www.graco.com.

Expansion Markets Segment

The Expansion Markets segment represented approximately 7 percent of our total sales in 2025 and includes pumps for use in the semiconductor industry;

high pressure and ultra-high pressure valves used in the oil and natural gas industry;

and environmental monitoring and remediation equipment that is used to conduct ground water sampling, ground water remediation, and for landfill liquid and gas management.

This segment also provides product design and licensing services for the development of high torque electric motors used in a variety of applications, including heating, ventilation, and air conditioning equipment, pumps, sprayers and other material handling equipment.

Raw Materials

8 unchanged sentences

To manage cost, we source significant amounts of materials and components from outside the U.S., primarily in the Asia Pacific region.

In 2024, the Company's global supply chain continued to stabilize, including improved lead times and lower inflationary effects.

Our efforts to identify alternative suppliers to source raw materials and components for our products as a result of the COVID-19 pandemic and other geopolitical tensions have improved our ability to mitigate isolated supply chain disruptions.

We endeavor to address fluctuations in the price and availability of various materials and components through close management of current suppliers, price negotiations and an intensive search for new suppliers.

17 unchanged sentences

As this type of unfair competition grows or evolves, we may have to increase our intellectual property and unfair competition enforcement activities.

Environmental Protection

Our compliance with federal, state and local laws and regulations did not have a material effect upon our capital expenditures, earnings or competitive position during the fiscal year ended December 27, 2024.

Compliance with Government Regulations

Our compliance with federal, state and local laws and regulations, including environmental regulations, did not have a material effect upon our capital expenditures, earnings or competitive position during the fiscal year ended December 26, 2025.

Human Capital Resources

36 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business