Company: GGG
Filing Date: 2025-04-23
Form Type: 10-Q
Source: 0000042888-25-000014
Chunk: 44

Company: GRACO INC
Filing Date: 2025-04-23
Form: 10-Q
Item: Item 2
Chunk 44
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 regions for the first quarter compared to the same period last year. The operating margin rate increased 1 percentage point as improved sales volume and lower expenses offset the adverse impacts of currency translation.    

19

Expansion Markets Segment

The following table presents net sales and operating earnings as a percentage of sales for the Expansion Markets segment (dollars in millions):

 Three Months Ended March 28,2025March 29,2024Net SalesAmericas$26.0 $23.9 EMEA7.1 6.8 Asia Pacific8.5 6.6 Total$41.6 $37.3 Operating earnings as a percentage of net sales24 %18 %

The following table presents the components of net sales change by geographic region for the Expansion Markets segment:

Three MonthsVolume and PriceAcquisitions CurrencyTotalAmericas9%0%0%9%EMEA5%0%(1)%4%Asia Pacific29%0%0%29%Segment Total12%0%0%12%

The semiconductor product application drove double-digit sales growth in the Expansion Markets segment for the first quarter compared to last year. The operating margin rate for this segment increased 6 percentage points for the quarter from the comparable period last year due to increased sales volume and lower expenses. 

Liquidity and Capital Resources

Net cash provided by operating activities of $125 million in the first quarter of 2025 increased $6 million compared to the first three months of last year, driven by lower performance-based incentive payouts in 2025. Increases in accounts receivable, inventories and accounts payable reflect acquired operations and growth in business activity in the first quarter of 2025. Significant uses of cash in the first quarter of 2025 included share repurchases of $238 million (partially offset by $28 million of net proceeds from shares issued) and dividend payments of $47 million.

For the first three months of 2024, significant uses of cash included plant and equipment additions of $37 million and dividend payments of $43 million. Net proceeds from shares issued totaled $41 million. 

As of March 28, 2025, the Company had available liquidity of $1,322 million, including cash and cash equivalents of $536 million, of which $178 million was held outside of the U.S., and available credit under existing committed credit facilities of $786 million.

Cash balances and unused financing sources are expected to provide the Company with the flexibility to meet its liquidity needs for the