Graco Inc. Purchases Radia Products, a Top Producer of Paint Mixing Equipment
Acquisition Announcement: Graco Inc. has acquired Red Devil Equipment Company (Radia) for $69 million, enhancing its position in the color solutions market within the paint and coatings industry.
Radia's Role: Radia, which generates over $30 million in annual revenue, specializes in automated mixing and material handling equipment, serving paint retailers across North America.
Strategic Enhancement: The acquisition complements Graco's previous purchase of Corob, expanding its capabilities in precision tinting and dispensing, and providing a more comprehensive solution for customers.
Company Overview: Graco Inc. is a leader in fluid and powder management technology, serving various industries globally, and is headquartered in Minneapolis, Minnesota.
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- Quarterly Dividend Declaration: Graco Inc. has declared a quarterly dividend of $0.295 per share, consistent with previous distributions, indicating the company's ongoing commitment to stable cash flow and shareholder returns.
- Dividend Payment Timeline: The dividend is payable on May 6, with a record date of April 13 and an ex-dividend date also on April 13, ensuring shareholders receive timely returns and bolstering investor confidence.
- Future Growth Outlook: Graco anticipates low single-digit organic growth for 2026, primarily leveraging acquisitions and the 'One Graco' efficiency strategy, highlighting the company's proactive positioning in a competitive market.
- Earnings Beat Expectations: In its latest earnings report, Graco's Q4 revenue and earnings exceeded expectations, driven by strong demand from industrial and contractor sectors, reflecting the company's robust performance amid economic recovery.
- Quarterly Dividend Announcement: Graco Inc.'s Board of Directors has declared a quarterly dividend of $0.295 per common share, payable on May 6, 2026, reflecting the company's commitment to returning value to shareholders.
- Record Date for Shareholders: The dividend will be paid to shareholders of record as of April 13, 2026, ensuring that eligible investors receive this payout, which is likely to bolster investor confidence in the company.
- Total Shares Outstanding: Graco has approximately 165.6 million shares outstanding, and the dividend payment will directly impact the company's cash flow and shareholder return strategy, indicating its robust financial health.
- Company Overview: Graco Inc. specializes in fluid and coating management technology, serving global customers in manufacturing, processing, construction, and maintenance industries, continuously driving innovation and maintaining market leadership.
- Significant Sales Growth: Graco achieved $593 million in sales for Q4 2025, an 8% increase year-over-year, with acquisitions contributing 4%, showcasing strong performance in both industrial and contractor segments, thereby enhancing market competitiveness.
- Improved Profitability: Net earnings rose 22% to $133 million, translating to $0.79 per diluted share, while gross margin increased by 80 basis points, indicating effective pricing strategies that offset rising product costs and bolstered financial health.
- Robust Cash Flow: Operating cash flow for 2025 reached $684 million, up 10%, with a net cash position of $600 million, enabling significant investments and shareholder returns, reflecting strong financial flexibility.
- Cautiously Optimistic Outlook: Management anticipates low single-digit organic growth for 2026, despite macroeconomic uncertainties, expressing confidence in the growth potential from acquisitions and emphasizing ongoing market opportunities.
- Earnings Beat: Graco's adjusted diluted earnings for Q4 reached $0.77 per share, surpassing the analyst consensus of $0.76, indicating strong performance in sales and margins.
- Revenue Growth: The company reported Q4 revenue of $593.2 million, exceeding estimates of $590.5 million, reflecting robust demand in the contractor and industrial segments.
- Net Income Increase: Net income rose 22% year-over-year to $132.5 million, showcasing the company's success in cost control and sales efficiency, which further bolsters market confidence.
- Future Outlook: Graco anticipates low single-digit organic sales growth for 2026, with mid-single-digit growth including acquisitions, marking a sustained growth trajectory as it celebrates its 100th anniversary.
- Earnings Beat: Graco's Q4 non-GAAP EPS of $0.77 exceeded expectations by $0.01, demonstrating the company's stable profitability and growth potential.
- Significant Revenue Growth: The fourth-quarter revenue reached $593.2 million, up 8.1% year-over-year, surpassing market expectations by $2.66 million, reflecting strong performance in the Contractor and Industrial segments.
- Annual Sales Increase: Net sales for the year grew by 6%, with growth across all segments and regions, indicating the company's robust competitive position in a diversified market.
- Dividend and Buyback Plan: Graco raised its dividend by 7.3% to $0.295 per share and authorized the repurchase of up to 15 million shares of common stock, showcasing confidence in future cash flows and commitment to shareholder returns.

- Earnings Announcement: Graco Inc. is set to release its Q4 2023 earnings on January 26 after market close, with consensus EPS expected at $0.76, reflecting an 18.8% year-over-year increase, indicating the company's resilience and profitability in the current economic climate.
- Revenue Expectations: The anticipated revenue for Q4 is $590.72 million, representing a 7.7% year-over-year growth, primarily driven by the company's ongoing efforts in market demand recovery and product innovation, showcasing its competitive position in the industry.
- Performance Forecast Revisions: Over the past three months, Graco's EPS estimates have seen five upward revisions and four downward adjustments, while revenue estimates experienced nine upward and two downward revisions, indicating mixed analyst sentiment that could impact investor confidence.
- Dividend and Buyback Plan: Graco announced a 7.3% increase in its dividend to $0.295 per share and authorized the repurchase of up to 15 million shares of common stock, a move that not only enhances shareholder returns but also reflects the company's confidence in its future cash flow.




