Company: GGG
Filing Date: 2025-07-23
Form Type: 10-Q
Source: 0000042888-25-000025
Chunk: 5

Company: GRACO INC
Filing Date: 2025-07-23
Form: 10-Q
Item: Item 1
Chunk 5
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 or omitted. Therefore, these statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 27, 2024 (the "2024 Annual Report").The results of operations for interim periods are not necessarily indicative of results that will be realized for the full fiscal year. Certain reclassifications have been made to the prior year's consolidated financial statements to conform to the current year presentation.

2. Segment Information

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 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. Prior year segment information has been recast to conform to the current organizational structure.Segment information follows (in thousands):  Three Months EndedSix Months Ended June 27,2025June 28,2024June 27,2025June 28,2024ContractorNet Sales$288,959 $269,638 $543,991 $499,680 Cost of products sold149,539 128,261 281,422 238,832 Gross Profit139,420 141,377 262,569 260,848 Operating expenses63,931 57,015 125,150 110,345 Contractor Operating Earnings$75,489 $84,362 $137,419 $150,503 IndustrialNet Sales$242,277 $241,878 $473,930 $466,738 Cost of products sold101,051 101,882 197,875 196,601 Gross Profit141,226 139,996 276,055 270,137 Operating expenses58,854 58,432 114,088 115,484 Industrial Operating Earnings$82,372 $81,564 $161,