Graco Inc. Shines Bright with Record Sales, Strategic Partnerships, and Acquisition Excellence
Graco Inc., a leading global supplier of fluid handling systems and related technologies, has delivered another strong quarter, reiterating its position as a leader in the industry. The company's fiscal 2026 third-quarter results are nothing short of impressive, with record sales totaling $586 million, an 8% increase from the same period last year.
This growth is attributed to broad-based expansion across all three segments and reportable regions, with organic incoming orders increasing by 7% in the quarter. The company's backlog, excluding acquisitions, has grown by $51 million or 18% since the beginning of the year, providing improved visibility as Graco enters the fourth quarter.
One of the key highlights from the quarter is the technology agreement announced between Graco's ETM business and ABB. This strategic partnership enables the use of ETM's patented transverse flux motor technology in data center cooling towers, heat rejection systems, and related thermal management applications. The deal has created an opportunity for Graco to participate in one of the fastest-growing infrastructure markets worldwide.
Mark Sheahan, President and Chief Executive Officer of Graco, emphasized that the agreement builds on their existing collaboration with ABB in industrial applications. He stated, "We believe ETM's direct drive motor technology is well-positioned to address those needs by reducing mechanical complexity and improving overall system performance." This partnership not only validates Graco's technology but also demonstrates its long-term potential.
In addition to the strategic partnership, Graco has successfully completed the acquisition of Valco Melton, expanding its precision adhesive dispensing and quality assurance capabilities. The company is targeting expansion of Valco Melton's EBITDA margin from the high teens to the mid-20 range within three years of closing. This acquisition is expected to bring meaningful revenue and operating synergies across the combined businesses.
The contractor segment delivered sales growth of 5%, including acquisitions and organic growth of 2%. Results were led by professional paint in the Americas, where customer adoption of new products like QuickShot II and ProReach contributed to healthy sell-through in key channels. The industrial segment delivered 11% sales growth in the third quarter, reflecting contributions from the core business and acquisitions.
Graco's performance is a testament to its ability to innovate, adapt, and execute on its strategic priorities. As demand for fluid handling systems continues to grow, Graco is well-positioned to capitalize on this trend, driven by its commitment to excellence, innovation, and customer satisfaction.
