Graco Inc., a global leader in fluid handling equipment, has released unaudited supplemental information to align its historic segment financial data with its newly structured organization. The information is available to investors on the “For Investors” page of Graco’s. This move comes as part of the company’s strategic reorganization, effective January 1, 2025, under which Graco will operate under three distinct reportable business segments: Contractor, Industrial, and Expansion Markets.
Graco Releases Unaudited Financial Data for New 2025 Reporting Segments information reflects how the company will report its financial performance beginning in 2025, offering a clearer Financial Data picture of how Graco’s various business units align with its new operational focus. This restructuring is designed to better position the company for future growth by emphasizing its core strengths in fluid handling while expanding into new and adjacent markets. Below, we delve deeper into each of the new segments and their composition.
New Segment Structure
Graco Releases Unaudited Financial Data for New 2025 Reporting Segments
Industrial Segment
The Industrial segment will include two primary divisions: the newly Financial Data formed Industrial Division and the existing Powder Division. As part of the organizational changes, Graco is combining several of its existing business units to form a more streamlined global Industrial Division. This new division will incorporate the company’s current Industrial Division, the Lubrication Equipment Division, and the Process Transfer Equipment business, which was previously part of the Process Division.
The newly consolidated Industrial Division will be focused on delivering solutions for industries requiring fluid handling systems in manufacturing, processing, and industrial maintenance. The Powder Division, which remains unchanged, continues to focus on systems for powder coating and powder handling, a growing sector in industrial applications.
The creation of this global Industrial Division aims to enhance operational efficiencies, improve customer service, and strengthen Graco’s competitive position in the industrial sector. By combining Financial Data these businesses under one segment, the company hopes to streamline operations and create more value for its stakeholders.
Expansion Markets Segment
The second major change is the establishment of the Expansion Markets segment, which will be led by the newly formed Expansion Markets Division. This segment is dedicated to driving inorganic growth, focusing on entering new or adjacent markets that present opportunities for expansion. Within Financial Data this segment, Graco will place its existing businesses that are focused on high-growth areas, such as the environmental, semiconductor, high-pressure valves, and electric motors markets.
Additionally, this segment will be responsible for future ventures, acquisitions, and strategic partnerships aimed at diversifying Graco’s portfolio and entering new sectors. The goal of the Expansion Markets segment is to create new revenue streams by leveraging the company’s expertise in fluid handling Financial Data and coating technologies and applying them to emerging markets or industries with high growth potential.
Graco’s commitment to innovation in these adjacent markets will help the company stay ahead of industry trends and continue to meet the evolving needs of customers across various sectors.
Contractor Segment
The Contractor segment, which has been a core part of Graco’s operations, will remain largely unchanged. This segment will continue to include the Contractor Division, which focuses on delivering equipment and solutions to professionals in the construction, maintenance, and contracting industries.
As part of the restructuring, the Contractor segment remains a reporting unit consistent with how it was classified in prior periods. This means that investors and analysts can still compare Graco’s historical performance in the Contractor segment with its future results, ensuring continuity and transparency in financial reporting.
The Contractor segment will continue to be a key revenue Financial Data driver for Graco, as it serves a wide range of customers who rely on Graco’s products for painting, spraying, and other fluid handling needs in construction and maintenance work.
Financial Implications of the Restructuring
The restructuring is designed to better reflect Graco’s business focus and enable the company to optimize its operations within each segment. By creating clearer reporting categories, Graco expects to provide more detailed insights into the performance of its various business units, making it easier for investors and analysts to track the company’s progress in its core markets, as well as its efforts to expand into new sectors.
This realignment also aims to provide more granular data that will help Graco better measure the success of its strategic initiatives, particularly in terms of inorganic growth in new markets. The company anticipates that the new structure will allow for more effective resource allocation, operational synergies, and stronger growth prospects across all segments.
Investors and analysts will likely closely monitor the transition into this new segment structure, especially as Graco begins to report its financial performance in 2025. The unaudited financial information released by Graco gives stakeholders an early look at how the company’s historical financial data will be presented going forward, ensuring that the transition is as smooth as possible.
About Graco Inc.
Graco Inc. is a leading manufacturer of fluid handling equipment, known for its expertise in designing, manufacturing, and marketing systems and equipment that manage the flow of fluids and coatings. Graco’s products are widely used in industrial, commercial, and residential applications, and the company serves a diverse range of industries including manufacturing, processing, construction, and maintenance.
The company’s core capabilities lie in providing fluid and powder handling systems for moving, measuring, controlling, dispensing, and spraying a wide variety of materials. Graco is recognized globally for its high-quality products and solutions, and it serves customers around the world with a commitment to innovation, reliability, and customer satisfaction.
Headquartered in Minneapolis, Minnesota, Graco is dedicated to advancing its technological capabilities and expanding its global reach. The company’s diverse portfolio includes products for sectors as varied as construction, automotive, aerospace, chemical processing, and consumer goods.
