Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 28, 2025

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission File Number: 001-09249


GRACO INC.
(Exact name of registrant as specified in its charter)


Minnesota						41-0285640
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification Number)


88 - 11th Avenue N.E.
Minneapolis,	Minnesota	55413
(Address of principal executive offices)		(Zip Code)


(612)			623-6000
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $1.00 per share	GGG	The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes

☒

☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes

☒

☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes

☐

☒

167,132,852 shares of the Registrant’s Common Stock, $1.00 par value, were outstanding as of April 9, 2025.

TABLE OF CONTENTS

Page

PART I - FINANCIAL INFORMATION

Item 1.

Financial Statements

Consolidated Statements of Earnings

Consolidated Statements of Comprehensive Income

Consolidated Balance Sheets

Consolidated Statements of Cash Flows

Consolidated Statements of Shareholders' Equity

Notes to Consolidated Financial Statements

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Item 4.

Controls and Procedures

PART II - OTHER INFORMATION

Item 1A.

Risk Factors

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

Item 5.

Item 6.

PART I Item 1.

GRACO INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited) (In thousands except per share amounts)


	Three Months Ended
	March 28, 2025		March 29, 2024
Net Sales	$	528,284	$	492,189
Cost of products sold	250,551		225,992
Gross Profit	277,733		266,197
Product development	19,375		21,872
Selling, marketing and distribution	67,211		66,631
General and administrative	47,134		44,698


Operating Earnings	144,013		132,996

Interest expense	713		744
Other (income) expense, net	(8,174)		(8,078)
Earnings Before Income Taxes	151,474		140,330
Income taxes	27,373		18,131
Net Earnings	$	124,101	$	122,199
Net Earnings per Common Share
Basic	$	0.74	$	0.73
Diluted	$	0.72	$	0.71

See notes to consolidated financial statements.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited) (In thousands)


	Three Months Ended
	March 28, 2025		March 29, 2024
Net Earnings	$	124,101	$	122,199
Components of other comprehensive income (loss)
Cumulative translation adjustment	19,903		(18,706)
Pension and postretirement medical liability adjustment	84		918
Income taxes - pension and postretirement medical liability adjustment	(21)		(237)
Other comprehensive income (loss)	19,966		(18,025)
Comprehensive Income	$	144,067	$	104,174

See notes to consolidated financial statements.

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GRACO INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited) (In thousands)


	March 28, 2025		December 27, 2024
ASSETS
Current Assets
Cash and cash equivalents	$	536,138	$	675,336
Accounts receivable, less allowances of $6,200 and $6,000	372,730		362,533
Inventories	409,950		404,676
Other current assets	50,182		54,896
Total current assets	1,369,000		1,497,441



Property, Plant and Equipment, net	765,297		771,656
Goodwill	495,632		487,468
Other Intangible Assets, net	231,886		233,306
Operating Lease Assets	22,456		19,678
Deferred Income Taxes	41,245		46,910
Other Assets	82,798		82,753
Total Assets	$	3,008,314	$	3,139,212
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Notes payable to banks	$	27,591	$	28,537

Trade accounts payable	77,761		60,816
Salaries and incentives	51,912		58,169
Dividends payable	46,365		46,558
Other current liabilities	176,015		211,728
Total current liabilities	379,644		405,808

Retirement Benefits and Deferred Compensation	80,134		80,381
Operating Lease Liabilities	14,856		12,278
Deferred Income Taxes	36,558		37,822
Other Non-current Liabilities	19,402		18,788

Shareholders’ Equity
Common stock	167,218		169,394
Additional paid-in-capital	972,655		955,051
Retained earnings	1,367,455		1,509,264
Accumulated other comprehensive loss	(29,608)		(49,574)
Total shareholders’ equity	2,477,720		2,584,135
Total Liabilities and Shareholders’ Equity	$	3,008,314	$	3,139,212

See notes to consolidated financial statements.

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GRACO INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited) (In thousands)


	Three Months Ended
	March 28, 2025		March 29, 2024
Cash Flows From Operating Activities
Net Earnings	$	124,101	$	122,199
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation and amortization	24,708		19,516
Deferred income taxes	3,200		6,041
Share-based compensation	7,353		10,549
Gain on sale of building	(4,737)		(1,216)


Change in
Accounts receivable	(6,258)		28,828
Inventories	(2,789)		(23,242)
Trade accounts payable	17,673		8,038
Salaries and incentives	(7,997)		(23,186)
Retirement benefits and deferred compensation	(648)		1,813
Other accrued liabilities	(23,243)		(24,103)
Other	(5,947)		(6,314)
Net cash provided by operating activities	125,416		118,923
Cash Flows From Investing Activities
Property, plant and equipment additions	(10,597)		(37,192)
Proceeds from sale of building	10,749		5,630
Acquisition of businesses, net of cash acquired	(10,454)		—
Other	(184)		(58)
Net cash used in investing activities	(10,486)		(31,620)
Cash Flows From Financing Activities
Borrowings (payments) on short-term lines of credit, net	(1,075)		233



Common stock issued	31,574		45,368
Common stock repurchased	(238,089)		—
Taxes paid related to net share settlement of equity awards	(3,907)		(4,611)
Cash dividends paid	(46,586)		(42,854)
Net cash used in financing activities	(258,083)		(1,864)
Effect of exchange rate changes on cash	3,955		(662)
Net (decrease) increase in cash and cash equivalents	(139,198)		84,777
Cash and Cash Equivalents
Beginning of year	675,336		537,951
End of period	$	536,138	$	622,728

See notes to consolidated financial statements.

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GRACO INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Unaudited) (In thousands)

Common
Stock

Additional
Paid-In
Capital

Retained
Earnings

Accumulated
Other
Comprehensive
Income (Loss)

Total



Three Months Ended March 28, 2025
Balance, December 27, 2024	$	169,394	$	955,051	$	1,509,264	$	(49,574)	$	2,584,135

Shares issued	622		27,045						27,667
Shares repurchased	(2,798)		(15,774)		(219,517)				(238,089)
Stock compensation cost			6,333						6,333


Net earnings					124,101				124,101
Dividends declared ($0.275 per share)					(46,393)				(46,393)

Other comprehensive income (loss)							19,966		19,966
Balance, March 28, 2025	$	167,218	$	972,655	$	1,367,455	$	(29,608)	$	2,477,720



Three Months Ended March 29, 2024
Balance, December 29, 2023	$	167,946	$	863,336	$	1,227,938	$	(34,995)	$	2,224,225

Shares issued	1,179		39,578		—		—		40,757

Stock compensation cost	—		9,500		—		—		9,500


Net earnings	—		—		122,199		—		122,199
Dividends declared ($0.255 per share)	—		—		(43,007)		—		(43,007)

Other comprehensive income (loss)	—		—		—		(18,025)		(18,025)
Balance, March 29, 2024	$	169,125	$	912,414	$	1,307,130	$	(53,020)	$	2,335,649

See notes to consolidated financial statements.

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GRACO INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1.Basis of Presentation

The consolidated balance sheet of Graco Inc. and subsidiaries (the “Company”) as of March 28, 2025 and the related statements of earnings, comprehensive income and shareholders' equity for the three months ended March 28, 2025 and March 29, 2024, and cash flows for the three months ended March 28, 2025 and March 29, 2024 have been prepared by the Company and have not been audited.

In the opinion of management, these consolidated financial statements reflect all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the financial position of the Company as of March 28, 2025, and the results of operations and cash flows for all periods presented.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed 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 reporting 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 Ended
	March 28, 2025		March 29, 2024
Contractor
Net Sales	$	255,032	$	230,042
Cost of products sold	131,883		110,571
Gross Profit	123,149		119,471
Operating expenses	61,219		53,330
Contractor Operating Earnings	$	61,930	$	66,141

Industrial
Net Sales	$	231,653	$	224,860
Cost of products sold	96,824		94,719
Gross Profit	134,829		130,141
Operating expenses	55,234		57,052
Industrial Operating Earnings	$	79,595	$	73,089

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Expansion Markets
Net Sales	$	41,599	$	37,287
Cost of products sold	20,163		18,491
Gross Profit	21,436		18,796
Operating expenses	11,371		12,044
Expansion Markets Operating Earnings	$	10,065	$	6,752

Reportable Segment Operating Earnings Total	$	151,590	$	145,982
Unallocated corporate expense	7,577		12,986


Operating Earnings	144,013		132,996
Interest expense	713		744
Other (income) expense, net	(8,174)		(8,078)
Earnings Before Income Taxes	$	151,474	$	140,330

Geographic information follows (in thousands):


	Three Months Ended
	March 28, 2025		March 29, 2024
Net Sales (based on customer location)
United States	$	282,557	$	267,832
Other countries	245,727		224,357
Total	$	528,284	$	492,189


	March 28, 2025		December 27, 2024
Long-lived Assets
United States	$	627,799	$	635,698
Other countries	137,498		135,958
Total	$	765,297	$	771,656

3.Earnings per Share

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts):


	Three Months Ended
	March 28, 2025		March 29, 2024
Net earnings available to common shareholders	$	124,101	$	122,199
Weighted average shares outstanding for basic earnings per share	168,560		168,490
Dilutive effect of stock options computed using the treasury stock method and the average market price	3,021		3,956
Weighted average shares outstanding for diluted earnings per share	171,581		172,446
Basic earnings per share	$	0.74	$	0.73
Diluted earnings per share	$	0.72	$	0.71

Anti-dilutive shares not included in diluted earnings per share computation	1,860		940

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4.Share-Based Awards

Options on common shares granted and outstanding, as well as the weighted average exercise price, are shown below (in thousands, except exercise prices):


	Option Shares	Weighted Average Exercise Price		Options Exercisable	Weighted Average Exercise Price
Outstanding, December 27, 2024	9,139	$	55.60	6,582	$	47.16
Granted	959	85.93
Exercised	(357)	27.87
Canceled	(10)	56.06
Outstanding, March 28, 2025	9,731	$	59.60	6,907	$	51.06

The Company recognized year-to-date share-based compensation of $7 million in 2025 and $11 million in 2024. As of March 28, 2025, there was $37 million of unrecognized compensation cost related to unvested options, expected to be recognized over a weighted average period of 3.0 years.

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions and results:


	Three Months Ended
	March 28, 2025			March 29, 2024
Expected life in years	6.6			6.6
Interest rate	4.4		%	4.2		%
Volatility	26.2		%	26.3		%
Dividend yield	1.3		%	1.1		%
Weighted average fair value per share	$	26.80		$	28.05

Under the Company’s Employee Stock Purchase Plan, the Company issued 246,000 shares in 2025 and 330,000 shares in 2024. The fair value of the employees’ purchase rights under this plan was estimated on the date of grant. The benefit of the 15 percent discount from the lesser of the fair market value per common share on the first day and the last day of the plan year was added to the fair value of the employees’ purchase rights determined using the Black-Scholes option pricing model with the following assumptions and results:


	Three Months Ended
	March 28, 2025			March 29, 2024
Expected life in years	1.0			1.0
Interest rate	4.1		%	4.9		%
Volatility	19.6		%	24.2		%
Dividend yield	1.3		%	1.1		%
Weighted average fair value per share	$	19.65		$	23.16

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5.Retirement Benefits

The components of net periodic benefit cost for retirement benefit plans were as follows (in thousands):


	Three Months Ended
	March 28, 2025		March 29, 2024
Pension Benefits
Service cost	$	1,253	$	1,467
Interest cost	2,143		2,430
Expected return on assets	(2,903)		(2,444)
Amortization and other	164		936
Net periodic benefit cost	$	657	$	2,389
Postretirement Medical
Service cost	$	75	$	100
Interest cost	200		300
Amortization	—		(25)
Net periodic benefit cost	$	275	$	375

6.Shareholders’ Equity

Changes in components of accumulated other comprehensive income (loss), net of tax were as follows (in thousands):


	Pension and Post-retirement Medical		Cumulative Translation Adjustment		Total
Three Months Ended March 28, 2025
Balance, December 27, 2024	$	(13,145)	$	(36,429)	$	(49,574)
Other comprehensive income (loss) before reclassifications	—		19,903		19,903
Reclassified to pension cost and deferred tax	63		—		63

Balance, March 28, 2025	$	(13,082)	$	(16,526)	$	(29,608)



Three Months Ended March 29, 2024
Balance, December 29, 2023	$	(31,012)	$	(3,983)	$	(34,995)
Other comprehensive income (loss) before reclassifications	—		(18,706)		(18,706)
Reclassified to pension cost and deferred tax	681		—		681

Balance, March 29, 2024	$	(30,331)	$	(22,689)	$	(53,020)

Amounts related to pension and post-retirement medical adjustments are reclassified to non-service components of pension cost that are included within other non-operating expenses.

7.Receivables and Credit Losses

Accounts receivable include trade receivables of $359 million and other receivables of $14 million as of March 28, 2025 and $348 million and $15 million of trade receivables and other receivables, respectively, as of December 27, 2024.

Allowance for Credit Losses

Following is a summary of activity for credit losses (in thousands):

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	Three Months Ended
	March 28, 2025		March 29, 2024
Balance, beginning	$	4,973	$	4,655
Additions charged to costs and expenses	231		50
Deductions from reserves (1)	(2)		(32)
Other additions (deductions) (2)	158		(80)
Balance, ending	$	5,360	$	4,593

(1) Represents amounts determined to be uncollectible and charged against reserves, net of collections on accounts previously charged against reserves.

(2) Includes effects of foreign currency translation.

8.Inventories

Major components of inventories were as follows (in thousands):


	March 28, 2025		December 27, 2024
Finished products and components	$	204,307	$	197,242
Products and components in various stages of completion	114,225		114,647
Raw materials and purchased components	213,325		214,902
Subtotal	531,857		526,791
Reduction to LIFO cost	(121,907)		(122,115)
Total	$	409,950	$	404,676

9.Intangible Assets

Components of other intangible assets were as follows (dollars in thousands):


	Finite Life						Indefinite Life
	Customer Relationships		Patents and Proprietary Technology		Trademarks, Trade Names and Other		Trade Names		Total
As of March 28, 2025
Cost	$	270,586	$	30,990	$	3,756	$	95,091	$	400,423
Accumulated amortization	(148,689)		(7,606)		(2,580)		—		(158,875)
Foreign currency translation	(9,043)		(464)		(32)		(123)		(9,662)
Book value	$	112,854	$	22,920	$	1,144	$	94,968	$	231,886
Weighted average life in years	13		10		3		N/A


As of December 27, 2024
Cost	$	270,910	$	34,731	$	3,756	$	95,091	$	404,488
Accumulated amortization	(143,689)		(10,534)		(1,478)		—		(155,701)
Foreign currency translation	(12,102)		(1,182)		(79)		(2,118)		(15,481)
Book value	$	115,119	$	23,015	$	2,199	$	92,973	$	233,306
Weighted average life in years	14		9		3		N/A

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Amortization of intangibles for the year to date was $7 million in 2025 and $4 million in 2024. Estimated annual amortization expense based on the current carrying amount of other intangible assets is as follows (in thousands):


	2025 (Remainder)		2026		2027		2028		2029		Thereafter
Estimated Amortization Expense	$	18,157	$	16,662	$	13,902	$	11,734	$	11,151	$	58,525

Changes in the carrying amount of goodwill for each reportable segment were as follows (in thousands):


	Contractor		Industrial		Expansion Markets		Total
Balance, December 27, 2024	$	198,038	$	217,698	$	71,732	$	487,468
Adjustments from business acquisitions	1,091		—		—		1,091

Foreign currency translation	4,819		2,254		—		7,073
Balance, March 28, 2025	$	203,948	$	219,952	$	71,732	$	495,632

10.Other Current Liabilities

Components of other current liabilities were as follows (in thousands):


	March 28, 2025		December 27, 2024
Accrued self-insurance retentions	$	8,266	$	8,240
Accrued warranty and service liabilities	18,892		18,712
Accrued trade promotions	8,096		11,086
Payable for employee stock purchases	2,804		16,767
Customer advances and deferred revenue	46,759		52,522
Income taxes payable	19,180		8,102
Tax payable, other	15,617		14,557
Right of return refund liability	15,690		15,557
Operating lease liabilities, current	7,877		7,838
Acquisition-related consideration payable	—		10,339

Other	32,834		48,008
Total	$	176,015	$	211,728

A liability is established for estimated future warranty and service claims that relate to current and prior period sales. The Company estimates warranty costs based on historical claim experience and other factors, including evaluating specific product warranty issues. Following is a summary of activity in accrued warranty and service liabilities (in thousands):


Balance, December 27, 2024	$	18,712

Charged to expense	2,624
Margin on parts sales reversed	1,178
Reductions for claims settled	(3,622)
Balance, March 28, 2025	$	18,892

Customer Advances and Deferred Revenue

Revenue is deferred when cash payments are received or due in advance of performance, including amounts which are refundable. This is also the case for services associated with certain product sales. During the three months ended March 28, 2025, we recognized $30 million that was included in deferred revenue at December 27, 2024. During the three months ended March 29, 2024, we recognized $29 million that was included in deferred revenue at December 29, 2023.

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11.Fair Value

Assets and liabilities measured at fair value on a recurring basis and fair value measurement level were as follows (in thousands):


	Level	March 28, 2025		December 27, 2024
Assets
Cash surrender value of life insurance	2	$	24,313	$	24,411
Forward exchange contracts	2	23		116
Total assets at fair value		$	24,336	$	24,527
Liabilities
Contingent consideration	3	$	15,048	$	14,647
Deferred compensation	2	7,489		8,196

Total liabilities at fair value		$	22,537	$	22,843

Contracts insuring the lives of certain employees who are eligible to participate in certain non-qualified pension and deferred compensation plans are held in trust. Cash surrender value of the contracts is based on performance measurement funds that shadow the deferral investment allocations made by participants in certain deferred compensation plans. The deferred compensation liability balances are valued based on amounts allocated by participants to the underlying performance measurement funds.

Contingent consideration liabilities represent the estimated value (using a probability-weighted expected return approach) of future payments to be made to previous owners of certain acquired businesses based on future revenues.

The fair value of variable rate borrowings approximates carrying value. The Company uses significant other observable inputs to estimate fair value (level 2 of the fair value hierarchy) based on the present value of future cash flows and rates that would be available for issuance of debt with similar terms and remaining maturities.

12. Acquisitions

On November 4, 2024, the Company acquired Corob S.p.A. ("Corob") for €230 million in cash, subject to normal post-closing purchase price adjustments, with up to €30 million in additional contingent consideration. As of March 28, 2025, the purchase price allocation remains preliminary as the Company completes its assessment, principally related to income taxes. Amounts within the tables below are revised related to the finalization of post-close price adjustments as reported from December 27, 2024.

The total purchase consideration consisted of the following (in thousands):


Cash paid	$	276,203
Contingent consideration	14,498
Total purchase consideration	$	290,701

Preliminary purchase consideration was allocated to assets acquired and liabilities assumed based on estimated fair values as follows (in thousands):

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Cash and cash equivalents	$	30,899
Accounts receivable	28,120
Inventories	26,119
Other current assets	18,515
Property, plant and equipment	16,619
Other non-current assets	5,854
Identifiable intangible assets	131,240
Goodwill	127,267
Current liabilities	(52,968)
Deferred income taxes, net	(33,474)
Other non-current liabilities	(7,490)
Total net assets acquired	$	290,701

Goodwill recognized from the Corob acquisition primarily reflects an intangible asset that does not qualify for separate recognition. None of the goodwill acquired with Corob is deductible for tax purposes.

Identifiable intangible assets and estimated useful life are as follows (in thousands):


			Estimated Life (years)
Trade name	$	32,458	Indefinite
Customer relationship	76,169		15
Developed technology	20,557		10
Backlog	2,056		0.5
Total identifiable intangibles assets	$	131,240

The following unaudited pro forma information provides the results of operations for the periods ended March 28, 2025 and March 29, 2024, as if the acquisition had been completed at the beginning of fiscal year 2023 (in thousands, except per share amounts):


	Three Months Ended
	2025		2024
Net sales	$	528,284	$	525,019
Net earnings	125,125		123,057
Earnings per share
Basic	$	0.74	$	0.73
Diluted	$	0.73	$	0.71

Unaudited pro forma information has been provided for comparative purposes only and the information does not necessarily reflect what the combined company's results of operations would have been had the acquisition occurred at the beginning of 2023. It also may not be useful in predicting the future results of operations of the combined company.

The Company completed another acquisition in 2024 that was not material to the consolidated financial statements.

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Item 2. GRACO INC. AND SUBSIDIARIES

MANAGEMENT'S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

The Company supplies technology and expertise for the management of fluids and coatings in both industrial and commercial applications. It designs, manufactures and markets systems and equipment to move, measure, control, dispense and spray fluid and coating materials. Management classifies the Company’s business into three reportable segments: Contractor, Industrial and Expansion Markets. Key strategies include developing and marketing new products, leveraging products and technologies into additional, growing end-user markets, expanding distribution globally and completing strategic acquisitions that provide additional channels and technologies.

The following Management’s Discussion and Analysis reviews significant factors affecting the Company’s results of operations and financial condition. This discussion should be read in conjunction with the financial statements and the accompanying notes to the financial statements.

Global Trade Uncertainty

Our operations, supply chain and financial performance are directly impacted by evolving global trade policies and tariffs as well as associated geopolitical tensions. Our global operating footprint and worldwide sales reach expose us to risks associated with trade conflicts between the U.S. and its trading partners. In 2024, approximately 46 percent of our sales were generated by customers located outside the U.S., with 6 percent of our sales generated by customers in China. Additionally, our materials sourced from China and used in our U.S. manufacturing operations approximated 6 percent of our costs of products sold in 2024. Escalating global trade conflicts could result in inflationary costs to manufacture, assemble and export our products. We may be required to increase prices to our customers, which may reduce demand, or if we do not or are unable to increase prices without reducing demand, we will experience reduced profitability. Continued geopolitical issues may cause customers outside of the U.S. seeking to source products from local suppliers. We continue to analyze the impact of these global tariffs on our business and we are working to mitigate the impact of tariffs through pricing and sourcing strategies. We cannot be sure these strategies will effectively mitigate the impact of these costs and if we are unable to do so or if demand for our products otherwise decreases, we expect these new tariffs will have a material impact on our results of operations in fiscal year 2025.

Consolidated Results

A summary of financial results follows (in millions except per share amounts):


	Three Months Ended
	Mar 28, 2025		Mar 29, 2024		% Change
Net Sales	$	528.3	$	492.2	7	%
Operating Earnings	144.0		133.0		8	%

Net Earnings	124.1		122.2		2	%
Net Earnings, adjusted (1)	120.5		112.6		7	%
Diluted Net Earnings per Common Share	$	0.72	$	0.71	1	%
Diluted Net Earnings per Common Share, adjusted (1)	$	0.70	$	0.65	8	%

(1) See below for a reconciliation of adjusted non-GAAP financial measures to GAAP.

Net sales for the first quarter increased 7 percent from the comparable period last year. The effect of changes in currency translation rates reduced sales growth for the quarter by 2 percentage points. Sales from acquired operations contributed 6 percentage points of growth.

Operating expense leverage offset a lower gross margin rate resulting in an 8 percent increase in operating earnings for the first quarter from the comparable period last year.

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Net earnings for the first quarter increased 2 percent compared to last year, as increased operating earnings and other income more than offset lower excess tax benefits from stock option exercises.

Excluding the impacts of excess tax benefits from stock option exercises presents a more consistent basis for comparison of financial results. A calculation of the non-GAAP adjusted measurements of income taxes, effective income tax rate, net earnings and diluted earnings per share follows (in millions except per share amounts):


	Three Months Ended
	March 28, 2025			March 29, 2024





Earnings before income taxes	$	151.5		$	140.3




Income taxes, as reported	$	27.4		$	18.1


Excess tax benefit from option exercises	3.6			9.6
Income taxes, adjusted	$	31.0		$	27.7

Effective income tax rate
As reported	18.1		%	12.9		%
Adjusted	20.5		%	19.8		%

Net Earnings, as reported	$	124.1		$	122.2


Excess tax benefit from option exercises	(3.6)			(9.6)
Net Earnings, adjusted	$	120.5		$	112.6

Weighted Average Diluted Shares	171.6			172.4
Diluted Earnings per Share
As reported	$	0.72		$	0.71
Adjusted	$	0.70		$	0.65

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


	Three Months Ended
	March 28, 2025		March 29, 2024
Net Sales	100.0	%	100.0	%
Cost of products sold	47.4		45.9
Gross Profit	52.6		54.1
Product development	3.7		4.4
Selling, marketing and distribution	12.7		13.5
General and administrative	8.9		9.1


Operating Earnings	27.3		27.1
Interest expense	0.1		0.2

Other (income) expense, net	(1.5)		(1.6)
Earnings Before Income Taxes	28.7		28.5
Income taxes	5.2		3.7
Net Earnings	23.5	%	24.8	%

Net Sales

The following table presents net sales by geographic region (in millions):


	Three Months Ended
	March 28, 2025		March 29, 2024
Americas(1)	$	323.2	$	306.5
EMEA(2)	121.0		111.1
Asia Pacific	84.1		74.6
Consolidated	$	528.3	$	492.2

(1) North, South and Central America, including the United States

(2) Europe, Middle East and Africa

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


	Three Months
	Volume and Price	Acquisitions	Currency	Total
Americas	3%	3%	(1)%	5%
EMEA	(1)%	13%	(3)%	9%
Asia Pacific	6%	10%	(3)%	13%
Consolidated	3%	6%	(2)%	7%

Gross Profit

The gross profit margin rate declined approximately 2 percentage points for the first quarter from the comparable period last year due to the unfavorable effects of lower margin rates from acquired operations and higher product costs.

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Operating Expenses

Total operating expenses for the quarter were flat compared to last year, including approximately $10 million (7 percentage points) of incremental expenses from acquired operations, which were offset by lower product development spending and unallocated corporate expense (primarily driven by lower share-based compensation).

Other (Income) Expense

Other income for the first quarter included a $5 million gain from the sale of a former manufacturing and distribution facility in Switzerland. Excluding the facility sale, other income decreased $5 million for the quarter from the comparable period last year mostly due to $3 million of incremental exchange losses on net assets of foreign operations and lower interest income of $1 million.

Income Taxes

The effective income tax rate was 18 percent for the first quarter, up approximately 5 percentage points from the comparable period last year. The increase was due primarily to a decrease in excess tax benefits related to stock option exercises.

Segment Results

Certain measurements of segment operations compared to last year are summarized below:

Contractor Segment

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

(dollars in millions):


	Three Months Ended
	March 28, 2025			March 29, 2024
Net Sales
Americas	$	175.9		$	165.5
EMEA	54.5			46.4
Asia Pacific	24.6			18.1
Total	$	255.0		$	230.0
Operating earnings as a percentage of net sales	24		%	29		%

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


	Three Months
	Volume and Price	Acquisitions	Currency	Total
Americas	1%	6%	(1)%	6%
EMEA	(9)%	30%	(4)%	17%
Asia Pacific	1%	40%	(6)%	35%
Segment Total	(1)%	13%	(1)%	11%

Contractor segment sales growth for the first quarter included $30 million from acquired operations. The operating margin rate for this segment decreased 5 percentage points compared to the same period last year, including 3 percentage points from the unfavorable effects of lower margin rates of acquired operations, 1 percentage point from adverse impacts of currency translation and 1 percentage point related to price-cost dynamics.

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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
	March 28, 2025			March 29, 2024
Net Sales
Americas	$	121.2		$	117.2
EMEA	59.4			57.8
Asia Pacific	51.1			49.9
Total	$	231.7		$	224.9
Operating earnings as a percentage of net sales	34		%	33		%

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


	Three Months
	Volume and Price	Acquisitions	Currency	Total
Americas	5%	0%	(2)%	3%
EMEA	5%	0%	(2)%	3%
Asia Pacific	5%	0%	(3)%	2%
Segment Total	5%	0%	(2)%	3%

Industrial segment sales increased in all 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.

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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, 2025			March 29, 2024
Net Sales
Americas	$	26.0		$	23.9
EMEA	7.1			6.8
Asia Pacific	8.5			6.6
Total	$	41.6		$	37.3
Operating earnings as a percentage of net sales	24		%	18		%

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


	Three Months
	Volume and Price	Acquisitions	Currency	Total
Americas	9%	0%	0%	9%
EMEA	5%	0%	(1)%	4%
Asia Pacific	29%	0%	0%	29%
Segment Total	12%	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 next 12 months and beyond, including its capital expenditure plan, planned dividends, share repurchases, acquisitions and operating requirements. Capital expenditures for 2025 are expected to be approximately $50 to $60 million. The Company may make opportunistic share repurchases going forward.

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Outlook

We are actively working to mitigate the impact of changes in tariff policies, particularly those affecting our business in China. We are maintaining our full year revenue guidance of low-single digit growth on an organic constant currency basis. Evolving trade policies and tariffs with China have created economic uncertainty that could negatively impact our full-year revenue guidance by approximately 1% to 2%. We are closely monitoring developments and will adjust our strategy if necessary. Despite these near-term challenges, the Company remains strongly positioned for long-term success as we continue to execute our proven growth strategies and invest in our business.

Cautionary Statement Regarding Forward-Looking Statements

The Company desires to take advantage of the “safe harbor” provisions regarding forward-looking statements of the Private Securities Litigation Reform Act of 1995 and is filing this Cautionary Statement in order to do so. From time to time various forms filed by our Company with the Securities and Exchange Commission, including our Form 10-K, Form 10-Qs and Form 8-Ks, and other disclosures, including our 2024 Overview report, press releases, earnings releases, analyst briefings, conference calls and other written documents or oral statements released by our Company, may contain forward-looking statements. Forward-looking statements generally use words such as “expect,” “foresee,” “anticipate,” “believe,” “project,” “should,” “estimate,” “will,” and similar expressions, and reflect our Company’s expectations concerning the future. All forecasts and projections are forward-looking statements. Forward-looking statements are based upon currently available information, but various risks and uncertainties may cause our Company’s actual results to differ materially from those expressed in these statements. The Company undertakes no obligation to update these statements in light of new information or future events.

Future results could differ materially from those expressed, due to the impact of changes in various factors. These risk factors include, but are not limited to, risks relating to the demand for our products and the level of commercial and industrial activity worldwide; changes in currency translation rates; international and domestic instability; interest rate fluctuations and changes in credit markets; global sourcing of materials; interruptions of or intrusions into our information systems; intellectual property rights; the use of generative artificial intelligence; conducting business internationally; catastrophic events; our ability to attract, develop and retain qualified personnel; public health crises; our growth strategies and acquisitions; potential goodwill impairment; our ability to compete effectively; our dependence on a few large customers; our dependence on cyclical industries; changes in laws and regulations; climate-related laws, regulations and accords; environmental, social and governance-related expectations and requirements; compliance with anti-corruption and trade laws; changes in tax or tariff rates or the adoption of new tax or tariff legislation; and costs associated with legal proceedings. Please refer to Item 1A of our 2024 Annual Report on Form 10-K and Item 1A of this Form 10-Q for a more comprehensive discussion of these and other risk factors. These reports are available on the Company’s website at www.graco.com and the Securities and Exchange Commission’s website at www.sec.gov. Shareholders, potential investors and other readers are urged to consider these factors in evaluating forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements.

Investors should realize that factors other than those identified above and in Item 1A might prove important to the Company’s future results. It is not possible for management to identify each and every factor that may have an impact on the Company’s operations in the future as new factors can develop from time to time.

Item 3.Quantitative and Qualitative Disclosures About Market Risk

There have been no material changes related to market risk from the disclosures made in the 2024 Annual Report on Form 10-K.

Item 4.Controls and Procedures

Evaluation of disclosure controls and procedures

As of the end of the fiscal quarter covered by this report, the Company carried out an evaluation of the effectiveness of the design and operation of its disclosure controls and procedures. This evaluation was done under the supervision and with the participation of the Company’s President and Chief Executive Officer and the Chief Financial Officer and Treasurer. Based upon that evaluation, the Company's President and Chief Executive Officer and the Chief Financial Officer and Treasurer concluded that the Company’s disclosure controls and procedures are effective.

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Changes in internal controls

During the quarter, there was no change in the Company’s internal control over financial reporting that has materially affected or is reasonably likely to materially affect the Company’s internal control over financial reporting.

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PART IIOTHER INFORMATION

Item 1A.Risk Factors

There have been no material changes to the Company’s risk factors from those disclosed in the Company’s 2024 Annual Report on Form 10-K.

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Item 2.Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities

On December 7, 2018, the Board of Directors authorized the purchase of up to 18 million shares of common stock, primarily through open market transactions. The authorization is for an indefinite period of time or until terminated by the Board.

In addition to shares purchased under the Board authorization, the Company purchases shares of common stock held by employees who wish to tender owned shares to satisfy the exercise price or tax due upon exercise of options or vesting of restricted stock.

Information on issuer purchases of equity securities follows:


Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (at end of period)
December 28, 2024 - January 24, 2025	—	$	—	—	13,151,009
January 25, 2025 - February 21, 2025	1,470,567	$	85.17	—	11,679,442
February 22, 2025 - March 28, 2025	1,327,169	$	85.02	—	10,353,273

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Item 5.Other Information

During the three months ended March 28, 2025, none of the Company’s directors or officers (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934) adopted, terminated or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K of the Securities Act of 1933).

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Item 6.Exhibits


3.1						Restated Articles of Incorporation as amended December 8, 2017. (Incorporated by reference to Exhibit 3.1 to the Company's Report on Form 8-K filed December 8, 2017.)

3.2						Restated Bylaws as amended February 17, 2023. (Incorporated by reference to Exhibit 3.2 to the Company’s 202 4 Annual Report on Form 10-K.)

31.1						Certification of President and Chief Executive Officer pursuant to Rule 13a-14(a).

31.2						Certification of Chief Financial Officer and Treasurer pursuant to Rule 13a-14(a).

32						Certification of President and Chief Executive Officer and Chief Financial Officer and Treasurer pursuant to Section 1350 of Title 18, U.S.C.

99.1						Press Release Reporting First Quarter Earnings dated April 23, 2025.

101						Interactive data files pursuant to Rule 405 of Regulation S-T formatted in iXBRL (Inline eXtensible Business Reporting Language).

104						Cover Page Interactive Data File (formatted as iXBRL and contained in Exhibit 101).

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

GRACO INC.

Date:

April 23, 2025

By:

/s/ Mark W. Sheahan

Mark W. Sheahan

President and Chief Executive Officer

(Principal Executive Officer)

Date:

April 23, 2025

By:

/s/ David M. Lowe

David M. Lowe

Chief Financial Officer and Treasurer

(Principal Financial Officer)

Date:

April 23, 2025

By:

/s/ Christopher D. Knutson

Christopher D. Knutson

Vice President, Controller and Chief Accounting Officer

(Principal Accounting Officer)

Exhibit 31.1

CERTIFICATION

I, Mark W. Sheahan, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Graco Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:

April 23, 2025

/s/ Mark W. Sheahan

Mark W. Sheahan

President and Chief Executive Officer

Exhibit 31.2

CERTIFICATION

I, David M. Lowe, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Graco Inc.;

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:

April 23, 2025

/s/ David M. Lowe

David M. Lowe

Chief Financial Officer and Treasurer

Exhibit 32

CERTIFICATION UNDER SECTION 1350

Pursuant to Section 1350 of Title 18 of the United States Code, each of the undersigned certifies that this periodic report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in this periodic report fairly presents, in all material respects, the financial condition and results of operations of Graco Inc.

Date:

April 23, 2025

/s/ Mark W. Sheahan

Mark W. Sheahan

President and Chief Executive Officer

Date:

April 23, 2025

/s/ David M. Lowe

David M. Lowe

Chief Financial Officer and Treasurer

Exhibit 99.1

GRACO INC.

P.O. Box 1441

Minneapolis, MN

55440-1441

NYSE: GGG


FOR IMMEDIATE RELEASE:			FOR FURTHER INFORMATION:
Wednesday, April 23, 2025			Financial Contact: David M. Lowe, 612-623-6456 Media Contact: Meredith A. Sobieck, 612-623-6427 Meredith_A_Sobieck@graco.com

Graco Reports First Quarter Results

Sales Growth in All Segments and Regions

MINNEAPOLIS (April 23, 2025) – Graco Inc. (NYSE: GGG) today announced results for the first quarter ended March 28, 2025.

Summary

$ in millions except per share amounts


	Three Months Ended
	Mar 28, 2025		Mar 29, 2024		% Change
Net Sales	$	528.3	$	492.2	7	%
Operating Earnings	144.0		133.0		8	%
Net Earnings	124.1		122.2		2	%
Diluted Net Earnings per Common Share	$	0.72	$	0.71	1	%

Adjusted (non-GAAP): (1)

Net Earnings, adjusted	$	120.5	$	112.6	7	%
Diluted Net Earnings per Common Share, adjusted	$	0.70	$	0.65	8	%

(1) Excludes the impact of excess tax benefits from stock option exercises. See Financial Results Adjusted for Comparability below for a reconciliation of adjusted non-GAAP financial measures to GAAP.

•Net sales for the first quarter increased 7 percent. The effect of changes in currency translation rates reduced sales growth for the quarter by 2 percentage points. Sales from acquired operations contributed 6 percentage points of growth.

•The gross profit margin rate declined approximately 2 percentage points for the first quarter due to the unfavorable effects of lower margin rates from acquired operations and higher product costs.

•Total operating expenses for the first quarter were flat compared to last year, but decreased as a percentage of sales by 2 percentage points.

•Operating expense leverage offset a lower gross margin rate resulting in an 8 percent increase in operating earnings for the first quarter.

"Sales were up 7 percent in the first quarter with growth in all segments and regions," said Mark Sheahan, Graco's President and CEO. "Organic growth was strong in both the Industrial and Expansion Markets segments as activity in industrial and semiconductor end markets improved during the quarter. In the Contractor segment, Corob contributed 6% growth and is performing in line with our expectations."

Page 2 GRACO

Consolidated Results

Net sales for the first quarter increased 7 percent from the comparable period last year, with increases of 5 percent in the Americas (6 percent at consistent translation rates), 9 percent in EMEA (12 percent at consistent translation rates) and 13 percent in Asia Pacific (16 percent at consistent translation rates). Changes in currency translation rates decreased net sales by approximately $7 million for the quarter. Acquired operations contributed approximately 6 percentage points of sales growth.

The gross profit margin rate declined approximately 2 percentage points for the first quarter due to the unfavorable effects of lower margin rates from acquired operations and higher product costs.

Total operating expenses for the first quarter were flat compared to last year. Incremental expenses from acquired operations of $10 million (7 percent) offset decreases in product development spending and share-based compensation.

Other income for the first quarter included a $5 million gain from the sale of a former manufacturing and distribution facility in Switzerland. Excluding the facility sale, other income decreased $5 million for the quarter mostly due to $3 million of incremental exchange losses on net assets of foreign operations and lower interest income of $1 million.

The effective income tax rate was 18 percent for the quarter, up approximately 5 percentage points from last year. The increase was due primarily to a decrease in excess tax benefits related to stock option exercises.

2025 Change in Organizational Structure

As previously announced, 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 reporting segment relative to prior periods.

Prior year segment information has been recast to conform to the current organizational structure.

Page 3 GRACO

Segment Results

Management assesses performance of segments by reference to operating earnings excluding unallocated corporate expenses. For a reconciliation of segment operating earnings to consolidated operating earnings, refer to the segment information table included in the financial statement section of this release. Certain measurements of segment operations are summarized below:


	Three Months
	Contractor			Industrial			Expansion Markets
Net Sales (in millions)	$	255.0		$	231.7		$	41.6
Percentage change from last year
Sales	11		%	3		%	12		%
Operating earnings	(6)		%	9		%	49		%
Operating earnings as a percentage of sales
2025	24		%	34		%	24		%
2024	29		%	33		%	18		%

Components of net sales change by geographic region for the Contractor segment were as follows:


	Three Months
	Volume and Price	Acquisitions	Currency	Total
Americas	1%	6%	(1)%	6%
EMEA	(9)%	30%	(4)%	17%
Asia Pacific	1%	40%	(6)%	35%
Consolidated	(1)%	13%	(1)%	11%

Components of net sales change by geographic region for the Industrial segment were as follows:


	Three Months
	Volume and Price	Acquisitions	Currency	Total
Americas	5%	0%	(2)%	3%
EMEA	5%	0%	(2)%	3%
Asia Pacific	5%	0%	(3)%	2%
Consolidated	5%	0%	(2)%	3%

Page 4 GRACO

Components of net sales change by geographic region for the Expansion Markets segment were as follows:


	Three Months
	Volume and Price	Acquisitions	Currency	Total
Americas	9%	0%	0%	9%
EMEA	5%	0%	(1)%	4%
Asia Pacific	29%	0%	0%	29%
Consolidated	12%	0%	0%	12%

Outlook

"We are actively working to mitigate the impact of changes in tariff policies, particularly those affecting our business in China, which represents approximately 6% of our global sales," said Sheahan. "In addition, materials sourced from China for use in our U.S. manufacturing operations represent about 6% of our global production cost. We are maintaining our full year revenue guidance of low-single digit growth on an organic constant currency basis. Evolving trade policies and tariffs with China have created economic uncertainty that could negatively impact our full-year revenue guidance by approximately 1% to 2%. We are closely monitoring developments and will adjust our strategy if necessary. Despite these near-term challenges, Graco remains strongly positioned for long-term success as we continue to execute our proven growth strategies and invest in our business."

Page 5 GRACO

Financial Results Adjusted for Comparability

Excluding the impact of excess tax benefits from stock option exercises presents a more consistent basis for comparison of financial results. A calculation of the non-GAAP adjusted measurements of income taxes, effective income tax rate, net earnings and diluted earnings per share follows (in millions except per share amounts):


	Three Months Ended
	Mar 28, 2025			Mar 29, 2024






Earnings before income taxes	$	151.5		$	140.3






Income taxes, as reported	$	27.4		$	18.1


Excess tax benefit from option exercises	3.6			9.6


Income taxes, adjusted	$	31.0		$	27.7

Effective income tax rate
As reported	18.1		%	12.9		%
Adjusted	20.5		%	19.8		%

Net Earnings, as reported	$	124.1		$	122.2




Excess tax benefit from option exercises	(3.6)			(9.6)

Net Earnings, adjusted	$	120.5		$	112.6

Weighted Average Diluted Shares	171.6			172.4
Diluted Earnings per Share
As reported	$	0.72		$	0.71
Adjusted	$	0.70		$	0.65

Cautionary Statement Regarding Forward-Looking Statements

Page 6 GRACO

our ability to compete effectively; our dependence on a few large customers; our dependence on cyclical industries; changes in laws and regulations; climate-related laws, regulations and accords; environmental, social and governance-related expectations and requirements; compliance with anti-corruption and trade laws; changes in tax or tariff rates or the adoption of new tax or tariff legislation; and costs associated with legal proceedings. Please refer to Item 1A of our Annual Report on Form 10-K for fiscal year 2024 (and the most recent Form 10-Q) for a more comprehensive discussion of these and other risk factors. These reports are available on the Company’s website at www.graco.com and the Securities and Exchange Commission’s website at www.sec.gov. Shareholders, potential investors and other readers are urged to consider these factors in evaluating forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements.

Investors should realize that factors other than those identified above and in Item 1A of our Annual Report on Form 10-K for fiscal year 2024 might prove important to the Company’s future results. It is not possible for management to identify each and every factor that may have an impact on the Company’s operations in the future as new factors can develop from time to time.

Conference Call

Graco management will hold a conference call, including slides via webcast, with analysts and institutional investors on Thursday, April 24, 2025, at 11 a.m. ET, 10 a.m. CT, to discuss Graco’s first quarter results.

A real-time listen-only webcast of the conference call will be broadcast by Nasdaq. Individuals can access the call and view the slides on the Company’s website at www.graco.com. Listeners should go to the website at least 15 minutes prior to the live conference call to install any necessary audio software.

About Graco

Graco Inc. supplies technology and expertise for the management of fluids and coatings in both industrial and commercial applications. It designs, manufactures and markets systems and equipment to move, measure, control, dispense and spray fluid and powder materials. A recognized leader in its specialties, Minneapolis-based Graco serves customers around the world in the manufacturing, processing, construction and maintenance industries. For additional information about Graco Inc., please visit us at www.graco.com.

Page 7 GRACO

GRACO INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)

(In thousands except per share amounts)


	Three Months Ended
	Mar 28, 2025		Mar 29, 2024
Net Sales	$	528,284	$	492,189
Cost of products sold	250,551		225,992
Gross Profit	277,733		266,197
Product development	19,375		21,872
Selling, marketing and distribution	67,211		66,631
General and administrative	47,134		44,698


Operating Earnings	144,013		132,996
Interest expense	713		744
Other (income) expense, net	(8,174)		(8,078)
Earnings Before Income Taxes	151,474		140,330
Income taxes	27,373		18,131
Net Earnings	$	124,101	$	122,199
Net Earnings per Common Share
Basic	$	0.74	$	0.73
Diluted	$	0.72	$	0.71
Weighted Average Number of Shares
Basic	168,560		168,490
Diluted	171,581		172,446

SEGMENT INFORMATION (Unaudited)

(In thousands)


	Three Months Ended
	Mar 28, 2025		Mar 29, 2024
Net Sales
Contractor	$	255,032	$	230,042
Industrial	231,653		224,860
Expansion Markets	41,599		37,287
Total	$	528,284	$	492,189
Operating Earnings
Contractor	$	61,930	$	66,141
Industrial	79,595		73,089
Expansion Markets	10,065		6,752
Unallocated corporate (expense)	(7,577)		(12,986)


Total	$	144,013	$	132,996

Cover - shares	3 Months Ended
Cover - shares	Mar. 28, 2025	Apr. 09, 2025
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 28, 2025
Document Transition Report	false
Entity File Number	001-09249
Entity Registrant Name	GRACO INC.
Entity Incorporation, State	MN
Entity Tax Identification Number	41-0285640
Entity Address, Address Description	88 - 11th Avenue N.E.
Entity Address, City or Town	Minneapolis,
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55413
City Area Code	(612)
Local Phone Number	623-6000
Title of 12(b) Security	Common Stock, par value $1.00 per share
Trading Symbol	GGG
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		167,132,852
Amendment Flag	false
Entity Central Index Key	0000042888
Current Fiscal Year End Date	--12-27
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	Q1

Consolidated Statements of Earnings (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2025	Mar. 29, 2024
Income Statement [Abstract]
Net Sales	$ 528,284	$ 492,189
Cost of products sold	250,551	225,992
Gross Profit	277,733	266,197
Product development	19,375	21,872
Selling, marketing and distribution	67,211	66,631
General and administrative	47,134	44,698
Operating Earnings	144,013	132,996
Interest expense	713	744
Other (income) expense, net	(8,174)	(8,078)
Earnings Before Income Taxes	151,474	140,330
Income taxes	27,373	18,131
Net Earnings	$ 124,101	$ 122,199
Net Earnings per Common Share
Basic (in dollars per share)	$ 0.74	$ 0.73
Diluted (in dollars per share)	$ 0.72	$ 0.71

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2025	Mar. 29, 2024
Statement of Comprehensive Income [Abstract]
Net Earnings	$ 124,101	$ 122,199
Components of other comprehensive income (loss)
Cumulative translation adjustment	19,903	(18,706)
Pension and postretirement medical liability adjustment	84	918
Income taxes - pension and postretirement medical liability adjustment	(21)	(237)
Other comprehensive income (loss)	19,966	(18,025)
Comprehensive Income	$ 144,067	$ 104,174

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 28, 2025	Dec. 27, 2024
Current Assets
Cash and cash equivalents	$ 536,138	$ 675,336
Accounts receivable, less allowances of $6,200 and $6,000	372,730	362,533
Inventories	409,950	404,676
Other current assets	50,182	54,896
Total current assets	1,369,000	1,497,441
Property, Plant and Equipment, net	765,297	771,656
Goodwill	495,632	487,468
Other Intangible Assets, net	231,886	233,306
Operating Lease Assets	22,456	19,678
Deferred Income Taxes	41,245	46,910
Other Assets	82,798	82,753
Total Assets	3,008,314	3,139,212
Current Liabilities
Notes payable to banks	27,591	28,537
Trade accounts payable	77,761	60,816
Salaries and incentives	51,912	58,169
Dividends payable	46,365	46,558
Other current liabilities	176,015	211,728
Total current liabilities	379,644	405,808
Retirement Benefits and Deferred Compensation	80,134	80,381
Operating Lease Liabilities	14,856	12,278
Deferred Income Taxes	36,558	37,822
Other Non-current Liabilities	19,402	18,788
Shareholders’ Equity
Common stock	167,218	169,394
Additional paid-in-capital	972,655	955,051
Retained earnings	1,367,455	1,509,264
Accumulated other comprehensive loss	(29,608)	(49,574)
Total shareholders’ equity	2,477,720	2,584,135
Total Liabilities and Shareholders’ Equity	$ 3,008,314	$ 3,139,212

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions	Mar. 28, 2025	Dec. 27, 2024
Statement of Financial Position [Abstract]
Allowance for Credits	$ 6.2	$ 6.0

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2025	Mar. 29, 2024
Cash Flows From Operating Activities
Net Earnings	$ 124,101	$ 122,199
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation and amortization	24,708	19,516
Deferred income taxes	3,200	6,041
Share-based compensation	7,353	10,549
Gain on sale of building	(4,737)	(1,216)
Change in
Accounts receivable	(6,258)	28,828
Inventories	(2,789)	(23,242)
Trade accounts payable	17,673	8,038
Salaries and incentives	(7,997)	(23,186)
Retirement benefits and deferred compensation	(648)	1,813
Other accrued liabilities	(23,243)	(24,103)
Other	(5,947)	(6,314)
Net cash provided by operating activities	125,416	118,923
Cash Flows From Investing Activities
Property, plant and equipment additions	(10,597)	(37,192)
Proceeds from sale of building	10,749	5,630
Acquisition of businesses, net of cash acquired	(10,454)	0
Other	(184)	(58)
Net cash used in investing activities	(10,486)	(31,620)
Cash Flows From Financing Activities
Borrowings (payments) on short-term lines of credit, net	(1,075)	233
Common stock issued	31,574	45,368
Common stock repurchased	(238,089)	0
Taxes paid related to net share settlement of equity awards	(3,907)	(4,611)
Cash dividends paid	(46,586)	(42,854)
Net cash used in financing activities	(258,083)	(1,864)
Effect of exchange rate changes on cash	3,955	(662)
Net (decrease) increase in cash and cash equivalents	(139,198)	84,777
Cash and Cash Equivalents
Beginning of year	675,336	537,951
End of period	$ 536,138	$ 622,728

Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Beginning balance at Dec. 29, 2023	$ 2,224,225	$ 167,946	$ 863,336	$ 1,227,938	$ (34,995)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued	40,757	1,179	39,578
Stock compensation cost	9,500		9,500
Net earnings	122,199			122,199
Dividends declared	(43,007)			(43,007)
Other comprehensive income (loss)	(18,025)				(18,025)
Ending balance at Mar. 29, 2024	2,335,649	169,125	912,414	1,307,130	(53,020)
Beginning balance at Dec. 27, 2024	2,584,135	169,394	955,051	1,509,264	(49,574)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued	27,667	622	27,045
Shares repurchased	(238,089)	(2,798)	(15,774)	(219,517)
Stock compensation cost	6,333		6,333
Net earnings	124,101			124,101
Dividends declared	(46,393)			(46,393)
Other comprehensive income (loss)	19,966				19,966
Ending balance at Mar. 28, 2025	$ 2,477,720	$ 167,218	$ 972,655	$ 1,367,455	$ (29,608)

Consolidated Statements of Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 28, 2025	Mar. 29, 2024
Statement of Stockholders' Equity [Abstract]
Common stock dividends declared per share (in dollars per share)	$ 0.275	$ 0.255

Basis of Presentation	3 Months Ended
Basis of Presentation	Mar. 28, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The consolidated balance sheet of Graco Inc. and subsidiaries (the “Company”) as of March 28, 2025 and the related statements of earnings, comprehensive income and shareholders' equity for the three months ended March 28, 2025 and March 29, 2024, and cash flows for the three months ended March 28, 2025 and March 29, 2024 have been prepared by the Company and have not been audited. In the opinion of management, these consolidated financial statements reflect all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the financial position of the Company as of March 28, 2025, and the results of operations and cash flows for all periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed 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.

Segment Information

3 Months Ended

Mar. 28, 2025

Segment Reporting [Abstract]

Segment Information

Segment information follows (in thousands):


	Three Months Ended
	March 28, 2025		March 29, 2024
Contractor
Net Sales	$	255,032	$	230,042
Cost of products sold	131,883		110,571
Gross Profit	123,149		119,471
Operating expenses	61,219		53,330
Contractor Operating Earnings	$	61,930	$	66,141

Industrial
Net Sales	$	231,653	$	224,860
Cost of products sold	96,824		94,719
Gross Profit	134,829		130,141
Operating expenses	55,234		57,052
Industrial Operating Earnings	$	79,595	$	73,089


Expansion Markets
Net Sales	$	41,599	$	37,287
Cost of products sold	20,163		18,491
Gross Profit	21,436		18,796
Operating expenses	11,371		12,044
Expansion Markets Operating Earnings	$	10,065	$	6,752

Reportable Segment Operating Earnings Total	$	151,590	$	145,982
Unallocated corporate expense	7,577		12,986


Operating Earnings	144,013		132,996
Interest expense	713		744
Other (income) expense, net	(8,174)		(8,078)
Earnings Before Income Taxes	$	151,474	$	140,330

Geographic information follows (in thousands):


	Three Months Ended
	March 28, 2025		March 29, 2024
Net Sales (based on customer location)
United States	$	282,557	$	267,832
Other countries	245,727		224,357
Total	$	528,284	$	492,189


	March 28, 2025		December 27, 2024
Long-lived Assets
United States	$	627,799	$	635,698
Other countries	137,498		135,958
Total	$	765,297	$	771,656

Earnings per Share

3 Months Ended

Mar. 28, 2025

Earnings Per Share [Abstract]

Earnings per Share

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts):


	Three Months Ended
	March 28, 2025		March 29, 2024
Net earnings available to common shareholders	$	124,101	$	122,199
Weighted average shares outstanding for basic earnings per share	168,560		168,490
Dilutive effect of stock options computed using the treasury stock method and the average market price	3,021		3,956
Weighted average shares outstanding for diluted earnings per share	171,581		172,446
Basic earnings per share	$	0.74	$	0.73
Diluted earnings per share	$	0.72	$	0.71

Anti-dilutive shares not included in diluted earnings per share computation	1,860		940

Share-Based Awards

3 Months Ended

Mar. 28, 2025

Share-Based Payment Arrangement, Additional Disclosure [Abstract]

Share-Based Awards

Options on common shares granted and outstanding, as well as the weighted average exercise price, are shown below (in thousands, except exercise prices):


	Option Shares	Weighted Average Exercise Price		Options Exercisable	Weighted Average Exercise Price
Outstanding, December 27, 2024	9,139	$	55.60	6,582	$	47.16
Granted	959	85.93
Exercised	(357)	27.87
Canceled	(10)	56.06
Outstanding, March 28, 2025	9,731	$	59.60	6,907	$	51.06

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions and results:


	Three Months Ended
	March 28, 2025			March 29, 2024
Expected life in years	6.6			6.6
Interest rate	4.4		%	4.2		%
Volatility	26.2		%	26.3		%
Dividend yield	1.3		%	1.1		%
Weighted average fair value per share	$	26.80		$	28.05


	Three Months Ended
	March 28, 2025			March 29, 2024
Expected life in years	1.0			1.0
Interest rate	4.1		%	4.9		%
Volatility	19.6		%	24.2		%
Dividend yield	1.3		%	1.1		%
Weighted average fair value per share	$	19.65		$	23.16

Retirement Benefits

3 Months Ended

Mar. 28, 2025

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

Retirement Benefits

The components of net periodic benefit cost for retirement benefit plans were as follows (in thousands):


	Three Months Ended
	March 28, 2025		March 29, 2024
Pension Benefits
Service cost	$	1,253	$	1,467
Interest cost	2,143		2,430
Expected return on assets	(2,903)		(2,444)
Amortization and other	164		936
Net periodic benefit cost	$	657	$	2,389
Postretirement Medical
Service cost	$	75	$	100
Interest cost	200		300
Amortization	—		(25)
Net periodic benefit cost	$	275	$	375

Shareholders' Equity

3 Months Ended

Mar. 28, 2025

Stockholders' Equity Note [Abstract]

Shareholders' Equity

Shareholders’ Equity

Changes in components of accumulated other comprehensive income (loss), net of tax were as follows (in thousands):


	Pension and Post-retirement Medical		Cumulative Translation Adjustment		Total
Three Months Ended March 28, 2025
Balance, December 27, 2024	$	(13,145)	$	(36,429)	$	(49,574)
Other comprehensive income (loss) before reclassifications	—		19,903		19,903
Reclassified to pension cost and deferred tax	63		—		63

Balance, March 28, 2025	$	(13,082)	$	(16,526)	$	(29,608)



Three Months Ended March 29, 2024
Balance, December 29, 2023	$	(31,012)	$	(3,983)	$	(34,995)
Other comprehensive income (loss) before reclassifications	—		(18,706)		(18,706)
Reclassified to pension cost and deferred tax	681		—		681

Balance, March 29, 2024	$	(30,331)	$	(22,689)	$	(53,020)

Amounts related to pension and post-retirement medical adjustments are reclassified to non-service components of pension cost that are included within other non-operating expenses.

Receivables and Credit Losses

3 Months Ended

Mar. 28, 2025

Credit Loss [Abstract]

Receivables and Credit Losses

Allowance for Credit Losses

Following is a summary of activity for credit losses (in thousands):


	Three Months Ended
	March 28, 2025		March 29, 2024
Balance, beginning	$	4,973	$	4,655
Additions charged to costs and expenses	231		50
Deductions from reserves (1)	(2)		(32)
Other additions (deductions) (2)	158		(80)
Balance, ending	$	5,360	$	4,593

(1) Represents amounts determined to be uncollectible and charged against reserves, net of collections on accounts previously charged against reserves.

(2) Includes effects of foreign currency translation.

Inventories

3 Months Ended

Mar. 28, 2025

Inventory, Net [Abstract]

Inventories

Major components of inventories were as follows (in thousands):


	March 28, 2025		December 27, 2024
Finished products and components	$	204,307	$	197,242
Products and components in various stages of completion	114,225		114,647
Raw materials and purchased components	213,325		214,902
Subtotal	531,857		526,791
Reduction to LIFO cost	(121,907)		(122,115)
Total	$	409,950	$	404,676

Intangible Assets

3 Months Ended

Mar. 28, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Components of other intangible assets were as follows (dollars in thousands):


	Finite Life						Indefinite Life
	Customer Relationships		Patents and Proprietary Technology		Trademarks, Trade Names and Other		Trade Names		Total
As of March 28, 2025
Cost	$	270,586	$	30,990	$	3,756	$	95,091	$	400,423
Accumulated amortization	(148,689)		(7,606)		(2,580)		—		(158,875)
Foreign currency translation	(9,043)		(464)		(32)		(123)		(9,662)
Book value	$	112,854	$	22,920	$	1,144	$	94,968	$	231,886
Weighted average life in years	13		10		3		N/A


As of December 27, 2024
Cost	$	270,910	$	34,731	$	3,756	$	95,091	$	404,488
Accumulated amortization	(143,689)		(10,534)		(1,478)		—		(155,701)
Foreign currency translation	(12,102)		(1,182)		(79)		(2,118)		(15,481)
Book value	$	115,119	$	23,015	$	2,199	$	92,973	$	233,306
Weighted average life in years	14		9		3		N/A


	2025 (Remainder)		2026		2027		2028		2029		Thereafter
Estimated Amortization Expense	$	18,157	$	16,662	$	13,902	$	11,734	$	11,151	$	58,525

Changes in the carrying amount of goodwill for each reportable segment were as follows (in thousands):


	Contractor		Industrial		Expansion Markets		Total
Balance, December 27, 2024	$	198,038	$	217,698	$	71,732	$	487,468
Adjustments from business acquisitions	1,091		—		—		1,091

Foreign currency translation	4,819		2,254		—		7,073
Balance, March 28, 2025	$	203,948	$	219,952	$	71,732	$	495,632

Other Current Liabilities

3 Months Ended

Mar. 28, 2025

Accrued Liabilities, Current [Abstract]

Other Current Liabilities

Components of other current liabilities were as follows (in thousands):


	March 28, 2025		December 27, 2024
Accrued self-insurance retentions	$	8,266	$	8,240
Accrued warranty and service liabilities	18,892		18,712
Accrued trade promotions	8,096		11,086
Payable for employee stock purchases	2,804		16,767
Customer advances and deferred revenue	46,759		52,522
Income taxes payable	19,180		8,102
Tax payable, other	15,617		14,557
Right of return refund liability	15,690		15,557
Operating lease liabilities, current	7,877		7,838
Acquisition-related consideration payable	—		10,339

Other	32,834		48,008
Total	$	176,015	$	211,728


Balance, December 27, 2024	$	18,712

Charged to expense	2,624
Margin on parts sales reversed	1,178
Reductions for claims settled	(3,622)
Balance, March 28, 2025	$	18,892

Customer Advances and Deferred Revenue

Fair Value

3 Months Ended

Mar. 28, 2025

Fair Value Disclosures [Abstract]

Fair Value

Assets and liabilities measured at fair value on a recurring basis and fair value measurement level were as follows (in thousands):


	Level	March 28, 2025		December 27, 2024
Assets
Cash surrender value of life insurance	2	$	24,313	$	24,411
Forward exchange contracts	2	23		116
Total assets at fair value		$	24,336	$	24,527
Liabilities
Contingent consideration	3	$	15,048	$	14,647
Deferred compensation	2	7,489		8,196

Total liabilities at fair value		$	22,537	$	22,843

Acquisitions

3 Months Ended

Mar. 28, 2025

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Acquisitions

The total purchase consideration consisted of the following (in thousands):


Cash paid	$	276,203
Contingent consideration	14,498
Total purchase consideration	$	290,701

Preliminary purchase consideration was allocated to assets acquired and liabilities assumed based on estimated fair values as follows (in thousands):


Cash and cash equivalents	$	30,899
Accounts receivable	28,120
Inventories	26,119
Other current assets	18,515
Property, plant and equipment	16,619
Other non-current assets	5,854
Identifiable intangible assets	131,240
Goodwill	127,267
Current liabilities	(52,968)
Deferred income taxes, net	(33,474)
Other non-current liabilities	(7,490)
Total net assets acquired	$	290,701

Identifiable intangible assets and estimated useful life are as follows (in thousands):


			Estimated Life (years)
Trade name	$	32,458	Indefinite
Customer relationship	76,169		15
Developed technology	20,557		10
Backlog	2,056		0.5
Total identifiable intangibles assets	$	131,240


	Three Months Ended
	2025		2024
Net sales	$	528,284	$	525,019
Net earnings	125,125		123,057
Earnings per share
Basic	$	0.74	$	0.73
Diluted	$	0.73	$	0.71

The Company completed another acquisition in 2024 that was not material to the consolidated financial statements.

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Mar. 28, 2025	Mar. 29, 2024
Pay vs Performance Disclosure
Net Earnings	$ 124,101	$ 122,199

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 28, 2025
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Segment Information (Tables)

3 Months Ended

Mar. 28, 2025

Segment Reporting [Abstract]

Segment Reporting - Operations and Assets

Segment information follows (in thousands):


	Three Months Ended
	March 28, 2025		March 29, 2024
Contractor
Net Sales	$	255,032	$	230,042
Cost of products sold	131,883		110,571
Gross Profit	123,149		119,471
Operating expenses	61,219		53,330
Contractor Operating Earnings	$	61,930	$	66,141

Industrial
Net Sales	$	231,653	$	224,860
Cost of products sold	96,824		94,719
Gross Profit	134,829		130,141
Operating expenses	55,234		57,052
Industrial Operating Earnings	$	79,595	$	73,089


Expansion Markets
Net Sales	$	41,599	$	37,287
Cost of products sold	20,163		18,491
Gross Profit	21,436		18,796
Operating expenses	11,371		12,044
Expansion Markets Operating Earnings	$	10,065	$	6,752

Reportable Segment Operating Earnings Total	$	151,590	$	145,982
Unallocated corporate expense	7,577		12,986


Operating Earnings	144,013		132,996
Interest expense	713		744
Other (income) expense, net	(8,174)		(8,078)
Earnings Before Income Taxes	$	151,474	$	140,330

Segment Reporting - Geographic

Geographic information follows (in thousands):


	Three Months Ended
	March 28, 2025		March 29, 2024
Net Sales (based on customer location)
United States	$	282,557	$	267,832
Other countries	245,727		224,357
Total	$	528,284	$	492,189


	March 28, 2025		December 27, 2024
Long-lived Assets
United States	$	627,799	$	635,698
Other countries	137,498		135,958
Total	$	765,297	$	771,656

Earnings per Share (Tables)

3 Months Ended

Mar. 28, 2025

Earnings Per Share [Abstract]

Computation of Basic and Diluted EPS

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts):


	Three Months Ended
	March 28, 2025		March 29, 2024
Net earnings available to common shareholders	$	124,101	$	122,199
Weighted average shares outstanding for basic earnings per share	168,560		168,490
Dilutive effect of stock options computed using the treasury stock method and the average market price	3,021		3,956
Weighted average shares outstanding for diluted earnings per share	171,581		172,446
Basic earnings per share	$	0.74	$	0.73
Diluted earnings per share	$	0.72	$	0.71

Anti-dilutive shares not included in diluted earnings per share computation	1,860		940

Share-Based Awards (Tables)

3 Months Ended

Mar. 28, 2025

Share-Based Payment Arrangement, Additional Disclosure [Abstract]

Options Activity and Outstanding

Options on common shares granted and outstanding, as well as the weighted average exercise price, are shown below (in thousands, except exercise prices):


	Option Shares	Weighted Average Exercise Price		Options Exercisable	Weighted Average Exercise Price
Outstanding, December 27, 2024	9,139	$	55.60	6,582	$	47.16
Granted	959	85.93
Exercised	(357)	27.87
Canceled	(10)	56.06
Outstanding, March 28, 2025	9,731	$	59.60	6,907	$	51.06

Options Fair Value Inputs

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions and results:


	Three Months Ended
	March 28, 2025			March 29, 2024
Expected life in years	6.6			6.6
Interest rate	4.4		%	4.2		%
Volatility	26.2		%	26.3		%
Dividend yield	1.3		%	1.1		%
Weighted average fair value per share	$	26.80		$	28.05

ESPP Fair Value Inputs

The benefit of the 15 percent discount from the lesser of the fair market value per common share on the first day and the last day of the plan year was added to the fair value of the employees’ purchase rights determined using the Black-Scholes option pricing model with the following assumptions and results:


	Three Months Ended
	March 28, 2025			March 29, 2024
Expected life in years	1.0			1.0
Interest rate	4.1		%	4.9		%
Volatility	19.6		%	24.2		%
Dividend yield	1.3		%	1.1		%
Weighted average fair value per share	$	19.65		$	23.16

Retirement Benefits (Tables)

3 Months Ended

Mar. 28, 2025

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

Components of Net Periodic Benefit Cost

The components of net periodic benefit cost for retirement benefit plans were as follows (in thousands):


	Three Months Ended
	March 28, 2025		March 29, 2024
Pension Benefits
Service cost	$	1,253	$	1,467
Interest cost	2,143		2,430
Expected return on assets	(2,903)		(2,444)
Amortization and other	164		936
Net periodic benefit cost	$	657	$	2,389
Postretirement Medical
Service cost	$	75	$	100
Interest cost	200		300
Amortization	—		(25)
Net periodic benefit cost	$	275	$	375

Shareholders' Equity (Tables)

3 Months Ended

Mar. 28, 2025

Stockholders' Equity Note [Abstract]

Changes in AOCI

Changes in components of accumulated other comprehensive income (loss), net of tax were as follows (in thousands):


	Pension and Post-retirement Medical		Cumulative Translation Adjustment		Total
Three Months Ended March 28, 2025
Balance, December 27, 2024	$	(13,145)	$	(36,429)	$	(49,574)
Other comprehensive income (loss) before reclassifications	—		19,903		19,903
Reclassified to pension cost and deferred tax	63		—		63

Balance, March 28, 2025	$	(13,082)	$	(16,526)	$	(29,608)



Three Months Ended March 29, 2024
Balance, December 29, 2023	$	(31,012)	$	(3,983)	$	(34,995)
Other comprehensive income (loss) before reclassifications	—		(18,706)		(18,706)
Reclassified to pension cost and deferred tax	681		—		681

Balance, March 29, 2024	$	(30,331)	$	(22,689)	$	(53,020)

Receivables and Credit Losses (Tables)

3 Months Ended

Mar. 28, 2025

Credit Loss [Abstract]

Accounts Receivable, Allowance for Credit Loss

Following is a summary of activity for credit losses (in thousands):


	Three Months Ended
	March 28, 2025		March 29, 2024
Balance, beginning	$	4,973	$	4,655
Additions charged to costs and expenses	231		50
Deductions from reserves (1)	(2)		(32)
Other additions (deductions) (2)	158		(80)
Balance, ending	$	5,360	$	4,593

(1) Represents amounts determined to be uncollectible and charged against reserves, net of collections on accounts previously charged against reserves.

(2) Includes effects of foreign currency translation.

Inventories (Tables)

3 Months Ended

Mar. 28, 2025

Inventory, Net [Abstract]

Components of Inventories

Major components of inventories were as follows (in thousands):


	March 28, 2025		December 27, 2024
Finished products and components	$	204,307	$	197,242
Products and components in various stages of completion	114,225		114,647
Raw materials and purchased components	213,325		214,902
Subtotal	531,857		526,791
Reduction to LIFO cost	(121,907)		(122,115)
Total	$	409,950	$	404,676

Intangible Assets (Tables)

3 Months Ended

Mar. 28, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

Other Intangible Assets

Components of other intangible assets were as follows (dollars in thousands):


	Finite Life						Indefinite Life
	Customer Relationships		Patents and Proprietary Technology		Trademarks, Trade Names and Other		Trade Names		Total
As of March 28, 2025
Cost	$	270,586	$	30,990	$	3,756	$	95,091	$	400,423
Accumulated amortization	(148,689)		(7,606)		(2,580)		—		(158,875)
Foreign currency translation	(9,043)		(464)		(32)		(123)		(9,662)
Book value	$	112,854	$	22,920	$	1,144	$	94,968	$	231,886
Weighted average life in years	13		10		3		N/A


As of December 27, 2024
Cost	$	270,910	$	34,731	$	3,756	$	95,091	$	404,488
Accumulated amortization	(143,689)		(10,534)		(1,478)		—		(155,701)
Foreign currency translation	(12,102)		(1,182)		(79)		(2,118)		(15,481)
Book value	$	115,119	$	23,015	$	2,199	$	92,973	$	233,306
Weighted average life in years	14		9		3		N/A

Future Amortization Expense

Estimated annual amortization expense based on the current carrying amount of other intangible assets is as follows (in thousands):


	2025 (Remainder)		2026		2027		2028		2029		Thereafter
Estimated Amortization Expense	$	18,157	$	16,662	$	13,902	$	11,734	$	11,151	$	58,525

Goodwill Rollforward

Changes in the carrying amount of goodwill for each reportable segment were as follows (in thousands):


	Contractor		Industrial		Expansion Markets		Total
Balance, December 27, 2024	$	198,038	$	217,698	$	71,732	$	487,468
Adjustments from business acquisitions	1,091		—		—		1,091

Foreign currency translation	4,819		2,254		—		7,073
Balance, March 28, 2025	$	203,948	$	219,952	$	71,732	$	495,632

Other Current Liabilities (Tables)

3 Months Ended

Mar. 28, 2025

Accrued Liabilities, Current [Abstract]

Components of Other Current Liabilities

Components of other current liabilities were as follows (in thousands):


	March 28, 2025		December 27, 2024
Accrued self-insurance retentions	$	8,266	$	8,240
Accrued warranty and service liabilities	18,892		18,712
Accrued trade promotions	8,096		11,086
Payable for employee stock purchases	2,804		16,767
Customer advances and deferred revenue	46,759		52,522
Income taxes payable	19,180		8,102
Tax payable, other	15,617		14,557
Right of return refund liability	15,690		15,557
Operating lease liabilities, current	7,877		7,838
Acquisition-related consideration payable	—		10,339

Other	32,834		48,008
Total	$	176,015	$	211,728

Accrued Warranty Activity

Following is a summary of activity in accrued warranty and service liabilities (in thousands):


Balance, December 27, 2024	$	18,712

Charged to expense	2,624
Margin on parts sales reversed	1,178
Reductions for claims settled	(3,622)
Balance, March 28, 2025	$	18,892

Fair Value (Tables)

3 Months Ended

Mar. 28, 2025

Fair Value Disclosures [Abstract]

Fair Value Schedule

Assets and liabilities measured at fair value on a recurring basis and fair value measurement level were as follows (in thousands):


	Level	March 28, 2025		December 27, 2024
Assets
Cash surrender value of life insurance	2	$	24,313	$	24,411
Forward exchange contracts	2	23		116
Total assets at fair value		$	24,336	$	24,527
Liabilities
Contingent consideration	3	$	15,048	$	14,647
Deferred compensation	2	7,489		8,196

Total liabilities at fair value		$	22,537	$	22,843

Acquisitions (Tables)

3 Months Ended

Mar. 28, 2025

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Schedule of Business Acquisitions, by Acquisition

The total purchase consideration consisted of the following (in thousands):


Cash paid	$	276,203
Contingent consideration	14,498
Total purchase consideration	$	290,701

Preliminary purchase consideration was allocated to assets acquired and liabilities assumed based on estimated fair values as follows (in thousands):


Cash and cash equivalents	$	30,899
Accounts receivable	28,120
Inventories	26,119
Other current assets	18,515
Property, plant and equipment	16,619
Other non-current assets	5,854
Identifiable intangible assets	131,240
Goodwill	127,267
Current liabilities	(52,968)
Deferred income taxes, net	(33,474)
Other non-current liabilities	(7,490)
Total net assets acquired	$	290,701

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The total purchase consideration consisted of the following (in thousands):


Cash paid	$	276,203
Contingent consideration	14,498
Total purchase consideration	$	290,701

Preliminary purchase consideration was allocated to assets acquired and liabilities assumed based on estimated fair values as follows (in thousands):


Cash and cash equivalents	$	30,899
Accounts receivable	28,120
Inventories	26,119
Other current assets	18,515
Property, plant and equipment	16,619
Other non-current assets	5,854
Identifiable intangible assets	131,240
Goodwill	127,267
Current liabilities	(52,968)
Deferred income taxes, net	(33,474)
Other non-current liabilities	(7,490)
Total net assets acquired	$	290,701

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination

Identifiable intangible assets and estimated useful life are as follows (in thousands):


			Estimated Life (years)
Trade name	$	32,458	Indefinite
Customer relationship	76,169		15
Developed technology	20,557		10
Backlog	2,056		0.5
Total identifiable intangibles assets	$	131,240

Schedule of Indefinite-Lived Intangible Assets Acquired as Part of Business Combination

Identifiable intangible assets and estimated useful life are as follows (in thousands):


			Estimated Life (years)
Trade name	$	32,458	Indefinite
Customer relationship	76,169		15
Developed technology	20,557		10
Backlog	2,056		0.5
Total identifiable intangibles assets	$	131,240

Business Acquisition, Pro Forma Information


	Three Months Ended
	2025		2024
Net sales	$	528,284	$	525,019
Net earnings	125,125		123,057
Earnings per share
Basic	$	0.74	$	0.73
Diluted	$	0.73	$	0.71

Segment Information - Narrative (Details)	3 Months Ended
Segment Information - Narrative (Details)	Mar. 28, 2025 segment
Segment Reporting [Abstract]
Number of reportable segments	3

Segment Reporting Information - Operations and Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2025	Mar. 29, 2024
Segment Reporting Information [Line Items]
Net Sales	$ 528,284	$ 492,189
Operating Earnings	144,013	132,996
Interest expense	713	744
Cost of products sold	250,551	225,992
Gross Profit	277,733	266,197
Other (income) expense, net	(8,174)	(8,078)
Earnings Before Income Taxes	151,474	140,330
Operating Segments
Segment Reporting Information [Line Items]
Operating Earnings	151,590	145,982
Operating Segments \| Contractor
Segment Reporting Information [Line Items]
Net Sales	255,032	230,042
Operating Earnings	61,930	66,141
Cost of products sold	131,883	110,571
Gross Profit	123,149	119,471
Operating expenses	61,219	53,330
Operating Segments \| Industrial
Segment Reporting Information [Line Items]
Net Sales	231,653	224,860
Operating Earnings	79,595	73,089
Cost of products sold	96,824	94,719
Gross Profit	134,829	130,141
Operating expenses	55,234	57,052
Operating Segments \| Expansion Markets
Segment Reporting Information [Line Items]
Net Sales	41,599	37,287
Operating Earnings	10,065	6,752
Cost of products sold	20,163	18,491
Gross Profit	21,436	18,796
Operating expenses	11,371	12,044
Unallocated corporate expense
Segment Reporting Information [Line Items]
Operating expenses	$ 7,577	$ 12,986

Segment Reporting Information - Geographic (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2025	Mar. 29, 2024	Dec. 27, 2024
Geographic Information [Line Items]
Net Sales	$ 528,284	$ 492,189
Long-lived Assets	765,297		$ 771,656
United States
Geographic Information [Line Items]
Net Sales	282,557	267,832
Long-lived Assets	627,799		635,698
Other countries
Geographic Information [Line Items]
Net Sales	245,727	$ 224,357
Long-lived Assets	$ 137,498		$ 135,958

Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 28, 2025	Mar. 29, 2024
Earnings Per Share [Abstract]
Net earnings available to common shareholders	$ 124,101	$ 122,199
Weighted average shares outstanding for basic earnings per share (in shares)	168,560	168,490
Dilutive effect of stock options computed using the treasury stock method and the average market price (in shares)	3,021	3,956
Weighted average shares outstanding for diluted earnings per share (in shares)	171,581	172,446
Basic earnings per share (in dollars per share)	$ 0.74	$ 0.73
Diluted earnings per share (in dollars per share)	$ 0.72	$ 0.71
Anti-dilutive shares not included in diluted earnings per share computation (in shares)	1,860	940

Share-Based Awards - Options Activity and Outstanding (Details) - $ / shares shares in Thousands	3 Months Ended
	Mar. 28, 2025	Dec. 27, 2024
Option Shares
Beginning (in shares)	9,139
Options granted (in shares)	959
Options exercised (in shares)	(357)
Options canceled (in shares)	(10)
Ending (in shares)	9,731
Weighted Average Exercise Price
Beginning (dollars per share)	$ 55.60
Granted (dollars per share)	85.93
Exercised (dollars per share)	27.87
Canceled (dollars per share)	56.06
Ending (dollars per share)	$ 59.60
Options exercisable (in shares)	6,907	6,582
Weighted average exercise price of exercisable options (dollars per share)	$ 51.06	$ 47.16

Share-Based Awards - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 28, 2025	Mar. 29, 2024
Share-Based Payment Arrangement [Abstract]
Share-based compensation expense	$ 7.0	$ 11.0
Unrecognized compensation cost	$ 37.0
Weighted average recognition period	3 years
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee stock purchase plan shares issued	246,000	330,000
Stock purchase plan discount from market value	15.00%

Share-Based Awards - Options Fair Value Inputs (Details) - Stock Option - $ / shares	3 Months Ended
	Mar. 28, 2025	Mar. 29, 2024
Fair Value Assumptions and Methodology [Abstract]
Expected life in years	6 years 7 months 6 days	6 years 7 months 6 days
Interest rate	4.40%	4.20%
Volatility	26.20%	26.30%
Dividend yield	1.30%	1.10%
Weighted average fair value per share (in dollars per share)	$ 26.80	$ 28.05

Share-Based Awards - ESPP Fair Value Inputs (Details) - Employee Stock Purchase Plan - $ / shares	3 Months Ended
	Mar. 28, 2025	Mar. 29, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life in years	1 year	1 year
Interest rate	4.10%	4.90%
Volatility	19.60%	24.20%
Dividend yield	1.30%	1.10%
Weighted average fair value per share (in dollars per share)	$ 19.65	$ 23.16

Retirement Benefits (Details) - USD ($) $ in Thousands	3 Months Ended
Retirement Benefits (Details) - USD ($) $ in Thousands	Mar. 28, 2025	Mar. 29, 2024
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 1,253	$ 1,467
Interest cost	2,143	2,430
Expected return on assets	(2,903)	(2,444)
Amortization and other	164	936
Net periodic benefit cost	657	2,389
Postretirement Medical
Defined Benefit Plan Disclosure [Line Items]
Service cost	75	100
Interest cost	200	300
Amortization	0	(25)
Net periodic benefit cost	$ 275	$ 375

Shareholders' Equity (Details) - USD ($) $ in Thousands	3 Months Ended
Shareholders' Equity (Details) - USD ($) $ in Thousands	Mar. 28, 2025	Mar. 29, 2024
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 2,584,135	$ 2,224,225
Ending balance	2,477,720	2,335,649
Pension and Post-retirement Medical
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(13,145)	(31,012)
Other comprehensive income (loss) before reclassifications	0	0
Reclassified to pension cost and deferred tax	63	681
Ending balance	(13,082)	(30,331)
Cumulative Translation Adjustment
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(36,429)	(3,983)
Other comprehensive income (loss) before reclassifications	19,903	(18,706)
Reclassified to pension cost and deferred tax	0	0
Ending balance	(16,526)	(22,689)
Total
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(49,574)	(34,995)
Other comprehensive income (loss) before reclassifications	19,903	(18,706)
Reclassified to pension cost and deferred tax	63	681
Ending balance	$ (29,608)	$ (53,020)

Receivables and Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2025	Mar. 29, 2024	Dec. 27, 2024
Credit Loss [Abstract]
Accounts Receivable, before Allowance for Credit Loss	$ 359,000		$ 348,000
Other Receivables	14,000		$ 15,000
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning	4,973	$ 4,655
Additions (reversals) charged to costs and expenses	(231)	(50)
Deductions from reserves	(2)	(32)
Other (deductions) additions	158	(80)
Balance, ending	$ 5,360	$ 4,593

Inventories (Details) - USD ($) $ in Thousands	Mar. 28, 2025	Dec. 27, 2024
Inventory, Net [Abstract]
Finished products and components	$ 204,307	$ 197,242
Products and components in various stages of completion	114,225	114,647
Raw materials and purchased components	213,325	214,902
Subtotal	531,857	526,791
Reduction to LIFO cost	(121,907)	(122,115)
Total	$ 409,950	$ 404,676

Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 28, 2025	Dec. 27, 2024
Finite Life
Accumulated amortization	$ (158,875)	$ (155,701)
Indefinite Life
Total Cost	400,423	404,488
Total Foreign Currency Translation	(9,662)	(15,481)
Total Book Value	231,886	233,306
Trade Names
Indefinite Life
Cost	95,091	95,091
Indefinite-lived Intangible Assets, Foreign Currency Translation Gain (Loss)	(123)	(2,118)
Book value	94,968	92,973
Customer Relationships
Finite Life
Cost	270,586	270,910
Accumulated amortization	(148,689)	(143,689)
Foreign currency translation	(9,043)	(12,102)
Book value	$ 112,854	$ 115,119
Weighted average life in years	13 years	14 years
Patents and Proprietary Technology
Finite Life
Cost	$ 30,990	$ 34,731
Accumulated amortization	(7,606)	(10,534)
Foreign currency translation	(464)	(1,182)
Book value	$ 22,920	$ 23,015
Weighted average life in years	10 years	9 years
Trademarks, Trade Names and Other
Finite Life
Cost	$ 3,756	$ 3,756
Accumulated amortization	(2,580)	(1,478)
Foreign currency translation	(32)	(79)
Book value	$ 1,144	$ 2,199
Weighted average life in years	3 years	3 years

Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 28, 2025	Mar. 29, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 7.0	$ 4.0

Intangible Assets - Future Amortization Expense (Details) $ in Thousands	Mar. 28, 2025 USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2025 (Remainder)	$ 18,157
2026	16,662
2027	13,902
2028	11,734
2029	11,151
Thereafter	$ 58,525

Intangible Assets - Goodwill Rollforward (Details) $ in Thousands	3 Months Ended
	Mar. 28, 2025 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 487,468
Adjustments from business acquisitions	1,091
Foreign currency translation	7,073
Ending balance	495,632
Contractor
Goodwill [Roll Forward]
Beginning balance	198,038
Adjustments from business acquisitions	1,091
Foreign currency translation	4,819
Ending balance	203,948
Industrial
Goodwill [Roll Forward]
Beginning balance	217,698
Adjustments from business acquisitions	0
Foreign currency translation	2,254
Ending balance	219,952
Expansion Markets
Goodwill [Roll Forward]
Beginning balance	71,732
Adjustments from business acquisitions	0
Foreign currency translation	0
Ending balance	$ 71,732

Other Current Liabilities - Components of Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 28, 2025	Dec. 27, 2024
Other Current Liabilities Details [Abstract]
Accrued self-insurance retentions	$ 8,266	$ 8,240
Accrued warranty and service liabilities	18,892	18,712
Accrued trade promotions	8,096	11,086
Payable for employee stock purchases	2,804	16,767
Customer advances and deferred revenue	46,759	52,522
Income taxes payable	19,180	8,102
Tax payable, other	15,617	14,557
Right of return refund liability	15,690	15,557
Operating lease liabilities, current	7,877	7,838
Acquisition-related consideration payable	0	10,339
Other	32,834	48,008
Total	$ 176,015	$ 211,728

Other Current Liabilities - Accrued Warranty Activity (Details) $ in Thousands	3 Months Ended
	Mar. 28, 2025 USD ($)
Activity In Accrued Warranty And Service Liabilities Abstract
Balance, beginning of year	$ 18,712
Charged to expense	2,624
Margin on parts sales reversed	1,178
Reductions for claims settled	(3,622)
Balance, end of period	$ 18,892

Other Current Liabilities - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 28, 2025	Mar. 29, 2024
Accrued Liabilities, Current [Abstract]
Deferred revenue	$ 30.0	$ 29.0

Fair Value (Details) - USD ($) $ in Thousands	Mar. 28, 2025	Dec. 27, 2024
Assets
Total assets at fair value	$ 24,336	$ 24,527
Liabilities
Total liabilities at fair value	22,537	22,843
Level 2
Assets
Cash surrender value of life insurance	24,313	24,411
Forward exchange contracts	23	116
Liabilities
Deferred compensation	7,489	8,196
Level 3
Liabilities
Contingent consideration	$ 15,048	$ 14,647

Acquisitions - Narrative (Details) - Nov. 04, 2024 - Corob S.p.A. $ in Thousands, € in Millions	USD ($)	EUR (€)
Business Acquisition, Contingent Consideration [Line Items]
Cash paid	$ 276,203	€ 230
Contingent consideration		€ 30

Acquisitions - Schedule of Business Acquisitions, by Acquisition (Details) $ in Thousands, € in Millions	Nov. 04, 2024 USD ($)	Nov. 04, 2024 EUR (€)	Mar. 28, 2025 USD ($)	Dec. 27, 2024 USD ($)
Business Acquisition, Contingent Consideration [Line Items]
Goodwill			$ 495,632	$ 487,468
Corob S.p.A.
Business Acquisition, Contingent Consideration [Line Items]
Cash paid	$ 276,203	€ 230
Contingent consideration	14,498
Total purchase consideration	290,701
Cash and cash equivalents	30,899
Accounts receivable	28,120
Inventories	26,119
Other current assets	18,515
Property, plant and equipment	16,619
Other non-current assets	5,854
Identifiable intangible assets	131,240
Goodwill	127,267
Current liabilities	(52,968)
Deferred income taxes, net	(33,474)
Other non-current liabilities	(7,490)
Total net assets acquired	$ 290,701

Acquisitions - Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination (Details) - Corob S.p.A. $ in Thousands	Nov. 04, 2024 USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Identifiable intangible assets	$ 131,240
Trade Names
Acquired Finite-Lived Intangible Assets [Line Items]
Identifiable intangible assets	32,458
Customer Relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Identifiable intangible assets	$ 76,169
Estimated Life (years)	15 years
Developed technology
Acquired Finite-Lived Intangible Assets [Line Items]
Identifiable intangible assets	$ 20,557
Estimated Life (years)	10 years
Backlog
Acquired Finite-Lived Intangible Assets [Line Items]
Identifiable intangible assets	$ 2,056
Estimated Life (years)	6 months

Acquisitions - Pro Forma Information (Details) - Corob S.p.A. - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 28, 2025	Mar. 29, 2024
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net sales	$ 528,284	$ 525,019
Net earnings	$ 125,125	$ 123,057
Earnings per share
Basic (in USD per share)	$ 0.74	$ 0.73
Diluted (in USD per share)	$ 0.73	$ 0.71