Company: GGG
Filing Date: 2025-10-22
Form Type: 10-Q
Source: 0000042888-25-000047
Chunk: 51

Company: GRACO INC
Filing Date: 2025-10-22
Form: 10-Q
Item: Item 2
Chunk 51
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$151.3 $464.0 $456.8 Income taxes, as reported$30.8 $29.1 $88.8 $79.4 Excess tax benefit from option exercises0.7 — 5.1 10.3 Income taxes, adjusted$31.5 $29.1 $93.9 $89.7 Effective income tax rate   As reported18.3 %19.2 %18.6 %17.4 %   Adjusted20.4 %19.2 %20.2 %19.7 %Net Earnings, as reported$137.6 $122.2 $389.4 $377.4 Contingent consideration(14.1)— (14.1)— Excess tax benefit from option exercises(0.7)— (5.1)(10.3)Net Earnings, adjusted$122.8 $122.2 $370.2 $367.1 Weighted Average Diluted Shares168.6 172.1 169.6 172.3 Diluted Earnings per Share   As reported$0.82 $0.71 $2.30 $2.19    Adjusted$0.73 $0.71 $2.18 $2.13 

17

The following table presents an overview of components of net earnings as a percentage of net sales:

Three Months Ended   Nine Months EndedSeptember 26,2025September 27,2024September 26,2025September 27,2024Net Sales100.0 %100.0 %100.0 %100.0 %Cost of products sold46.8 46.8 47.3 46.1 Gross Profit53.2 53.2 52.7 53.9 Product development3.7 4.1 3.7 4.2 Selling, marketing and distribution12.5 12.5 12.4 12.8 General and administrative9.3 8.5 9.2 8.8 Contingent consideration(2.6)— (0.9)— Operating Earnings30.3 28.1 28.4 28.1 Interest expense0.