Graco Inc. designs, manufactures, and markets systems and equipment for moving, measuring, mixing, controlling, dispensing, and spraying fluid and powder materials. It operates in the Americas, Europe, the Middle East, Africa, and the Asia Pacific through three segments: Contractor, Industrial, and Expansion Markets. The company was incorporated in 1926 and is headquartered in Minneapolis, Minnesota.
Graco Closes $447 Million Valco Melton Acquisition After Record Quarter
Graco Inc. closed its acquisition of Valco Melton for $447 million in cash on August 31, expanding into adhesive dispensing and quality assurance technology weeks after posting record second-quarter results. The industrial fluid handling company reported net sales up 3% to $590.6 million, operating earnings up 11% to $175.1 million, and diluted earnings per share up 14% to $0.87, with adjusted per-share profit up 17% to $0.91. Graco attributed the sales increase primarily to acquired operations rather than organic demand, and its full-year guidance still calls for only low single-digit organic sales growth on a constant currency basis, while management cited tariff refunds and lower operating expenses as the main drivers of the higher gross margin rate. Valco Melton, which builds adhesive application and quality-check systems mainly for packaging customers, brought in about $145 million in revenue in 2025 with roughly 650 employees serving customers in more than 80 countries, and folds into Graco's Industrial segment. The price works out to roughly 14 times the target's 2025 adjusted EBITDA, or about 10 times 2026 estimated earnings once synergies and a roughly $40 million tax benefit are factored in, and Graco changed its non-GAAP methodology this quarter to strip acquisition costs and intangible amortization out of adjusted earnings going forward. Hedge fund ownership fell from 37 funds to 35 in the most recent quarter, short interest sits at 5.08% of the float, and shares trade at a forward P/E of 21.74 as of September 21.
Ingersoll Rand reported second-quarter revenues of $2.05 billion, up 8.5% year on year and 4.6% above analysts' expectations, in what was a strong quarter for the company. The industrial equipment maker also beat analysts' EPS estimates, while its full-year EBITDA guidance met expectations, though the stock is down 14% since reporting and currently trades at $72.48. Across the 12 gas and liquid handling stocks tracked, group revenues beat consensus estimates by 2% while next quarter's revenue guidance came in 0.8% below, and share prices have fallen 7% on average since the latest earnings results. SPX Technologies posted the best quarter with revenues of $679 million, up 22.9% year on year and 5.8% above expectations, and achieved the highest full-year guidance raise of the group, while Graco delivered the weakest performance against analyst estimates with revenues of $590.6 million, up 3.3% year on year but 3% short of expectations. Flowserve reported revenues of $1.17 billion, down 1.6% year on year but 0.9% above expectations, and Parker-Hannifin reported revenues of $5.76 billion, up 9.8% year on year and 3.3% above expectations.
IR · Capital · Positive Ingersoll Rand beat Q2 revenue and EPS estimates with revenues up 8.5% to $2.05 billion, though the stock is down 14% since reporting.
FLS · Capital · Positive Flowserve reported Q2 revenues of $1.17 billion, 0.9% above analyst expectations, though down 1.6% year on year.
GGG · Capital · Negative Graco delivered the weakest performance against analyst estimates with revenues of $590.6 million, 3% short of expectations.
PH · Capital · Positive Parker-Hannifin reported revenues of $5.76 billion, up 9.8% year on year and 3.3% above expectations.
SPXC · Capital · Positive SPX Technologies posted the best quarter in the group with revenues up 22.9% year on year, 5.8% above expectations, and the highest full-year guidance raise.
Graco Appoints Donaldson CEO Richard B. Lewis to Board of Directors
Graco Inc. announced that Richard B. Lewis has been appointed to its Board of Directors, effective December 3, 2026. Lewis is President and Chief Executive Officer of Donaldson Company, Inc., a role he has held since March 2026, and he also serves on Donaldson's board. He previously served as Donaldson's Chief Operating Officer and held senior leadership roles including President of its Mobile Solutions and Life Sciences businesses. Graco Chairman of the Board J. Kevin Gilligan said Lewis's operational and commercial experience and track record at a public manufacturing company make him an excellent fit for the board. Lewis will serve on Graco's Audit Committee.
Graco Completes $447 Million Acquisition of Valco Melton
Graco Inc. has completed its cash purchase of Valco Melton for $447 million, a deal that strengthens its product offerings in precision adhesive dispensing and quality assurance. The net transaction is valued at about 14 times Valco Melton's adjusted EBITDA for 2025 and 10 times its projected 2026 EBITDA, including synergies, after accounting for roughly $40 million in anticipated tax benefits. Valco Melton, headquartered in Cincinnati, Ohio, reported revenues of $145 million in 2025, with more than half coming from aftermarket products, and serves industries such as packaging, folding carton, envelope, nonwovens, print finishing, textiles, and automotive. The acquired company will be added to Graco's Industrial segment, and the acquisition follows Graco's recent purchases of Red Devil Equipment Company in November 2025 and Color Service S.r.l. in July 2025. Graco currently holds a Zacks Rank of 3, and its shares have gained 4.7% over the past three months, compared with the industry's 2.6% growth.
SPX Technologies Leads Gas and Liquid Handling Stocks in Q2 Earnings
SPX Technologies reported second-quarter revenues of $679 million, up 22.9% year over year and beating analysts' expectations by 5.8%, making it the best performer among the 11 gas and liquid handling stocks tracked. The company also achieved the highest full-year guidance raise among its peers, and its stock has risen 12.2% since reporting to trade at $223.54. Parker-Hannifin posted revenues of $5.76 billion, up 9.8% year over year and exceeding estimates by 3.3%, with full-year EPS guidance also beating expectations. Graco was the slowest performer, with revenues of $590.6 million, up 3.3% year over year but missing estimates by 3%. Flowserve reported revenues of $1.17 billion, down 1.6% year over year but topping estimates by 0.9%, while IDEX posted revenues of $920.6 million, up 6.4% year over year and beating estimates by 1.7%.
Graco Stock Slid Despite Healthy Profitability and Improving Backlog Trends
Conestoga Capital Advisors reported that Graco Inc. shares underperformed in the second quarter of 2026 as investors focused on slowing organic demand across several end markets, particularly in contractor and industrial equipment, despite healthy profitability and improving backlog trends. The firm noted that while first quarter organic sales declined 3%, management observed that bookings strengthened throughout the quarter, supporting expectations for improving demand over the balance of the year. Graco manufactures fluid handling systems and equipment for industrial, construction, and process applications. The stock detracted from portfolio performance during the quarter, and on August 5, 2026, it closed at $82.50 per share with a market capitalization of $13.36 billion.
Graco Inc. reported second-quarter 2026 adjusted earnings of 91 cents per share, up 17% from 78 cents a year ago and beating the Zacks Consensus Estimate of 81 cents by 12.4%. Net sales rose 3% to $590.6 million but missed the $609 million consensus, while organic order backlog jumped 28% from the end of 2025. Acquired operations contributed 3% to sales growth and currency translation added 1%, offsetting a 1% organic decline tied to softer finishing system sales and project timing. The company reaffirmed its 2026 outlook for low-single-digit organic sales growth on a constant-currency basis and mid-single-digit growth including acquisitions, with third-quarter sales expected between $580 million and $600 million excluding the announced Valco Melton acquisition.
Champion Homes Touted as Top Industrials Pick While Graco and XPO Are Flagged
StockStory highlights Champion Homes as a standout industrials stock with exciting potential, while advising caution on Graco and XPO. Champion Homes achieved exceptional annual revenue growth of 14.7% over the last two years, driven by market share gains, and its earnings per share grew faster than revenue thanks to share buybacks, with a return on invested capital of 37.9%. In contrast, Graco posted only 2.1% annual revenue growth and flat earnings per share over the same period, with diminishing returns on capital. XPO saw 2.8% annual revenue growth, a below-peer gross margin of 19.8%, and a low free cash flow margin of 1.8% over five years.
Graco shares sink 10.1% in six months, analysts remain cautious
Graco's shares have fallen to $74.99 over the last six months, a 10.1% loss that contrasts with the S&P 500's 6.3% gain. Analysts point to three concerns: revenue grew at a tepid 5.4% compounded annual rate over five years, EPS increased just 6.2% annually over the same period, and return on invested capital has declined, signaling fewer profitable growth opportunities. The stock now trades at 23.4 times forward earnings, and the firm does not see a compelling opportunity at current levels, suggesting better investments exist elsewhere.
Robinhood Highlighted as Cash-Heavy Stock with Exciting Potential, Graco and Insteel Face Headwinds
StockStory identifies Robinhood as a cash-heavy stock with exciting potential, while Graco and Insteel face headwinds. Robinhood holds a net cash position of $2.50 billion, representing 3% of its market cap, and has seen 143% annual growth in average revenue per user alongside a 95.7% annual increase in earnings per share. In contrast, Graco has a net cash position of $667.4 million but has experienced flat earnings per share and shrinking returns on capital. Insteel holds $13.41 million in net cash but has seen its free cash flow margin drop by 5 percentage points over five years and eroding returns on capital.
HOOD · Capital · Positive Strong net cash position, 143% annual growth in average revenue per user, and 95.7% annual EPS growth highlight financial strength and growth.
GGG · Capital · Negative Flat earnings per share and shrinking returns on capital indicate deteriorating financial performance.
IIIN · Capital · Negative Free cash flow margin dropped 5 percentage points over five years and returns on capital are eroding.
ITT leads Q1 revenue growth among gas and liquid handling stocks
ITT reported first-quarter revenues of $1.21 billion, up 32.7% year on year and exceeding analyst estimates by 9.8%, making it the fastest-growing and biggest beat among the 12 gas and liquid handling stocks tracked. The group overall posted a satisfactory quarter, with revenues beating consensus by 1.3% and next-quarter guidance coming in 4.8% above expectations. Gorman-Rupp delivered the best performance with a 31% stock gain after reporting revenues of $176.6 million, while Graco was the weakest, missing estimates and seeing its shares fall 11.2%. Flowserve lagged with a 6.7% revenue decline, and Helios topped expectations with 16.8% growth and raised guidance.
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