Company: GGG
Filing Date: 2025-10-22
Form Type: 10-Q
Source: 0000042888-25-000047
Chunk: 54

Company: GRACO INC
Filing Date: 2025-10-22
Form: 10-Q
Item: Item 2
Chunk 54
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 for the Contractor segment:

Three MonthsNine MonthsVolume and PriceAcquisitionsCurrencyTotalVolume and PriceAcquisitions CurrencyTotalAmericas(3)%5%0%2%(4)%6%0%2%EMEA(1)%26%6%31%(3)%28%3%28%Asia Pacific(12)%33%(1)%20%(3)%34%(2)%29%Segment Total(3)%11%0%8%(3)%12%0%9%

Incremental sales from acquired operations in the Contractor segment for the third quarter and year to date were partially offset by sales declines in ongoing operations primarily due to continued weakness in worldwide construction markets. The operating margin rate declined 3 percentage points for the quarter and 5 percentage points for the year to date mainly due to higher product costs from increased tariffs and the unfavorable effects of lower margin rates of acquired operations. The rate of decline in operating margin lessened as price realization improved as the third quarter progressed.

19

Industrial Segment

The following table presents net sales and operating earnings as a percentage of sales for the Industrial segment 

(dollars in millions):

 Three Months Ended  Nine Months Ended September 26,2025September 27,2024September 26,2025September 27,2024Net SalesAmericas$129.4 $125.3 $377.4 $374.5 EMEA58.6 58.2 179.1 173.6 Asia Pacific50.6 52.3 156.0 154.5 Total$238.6 $235.8 $712.5 $702.6 Operating earnings as a percentage of net sales34 %33 %34 %33 %

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

Three MonthsNine MonthsVolume and PriceAcquisitionsCurrencyTotalVolume and PriceAcquisitions CurrencyTotalAmericas3%0%0%3%1%0%0%1%EMEA(7)%2%6%1%0%1%2%3%Asia Pacific(6)%3%0%(3)%1%1%(1)%1%Segment Total(2)%1%2%1%1%0%0%1%

Industrial segment sales increased 1 percent for both the third quarter and year to date. For the quarter, sales growth in the vehicle service product application in the Americas more than offset finishing system sales