Graco Inc. (NYSE: GGG) announced a new share‑repurchase program that authorizes up to 15 million shares, adding to the approximately 8 million shares still available under the 2018 buyback plan. The move is intended to return capital to shareholders while the company maintains a strong cash position and a debt‑to‑equity ratio of just 0.02.
The board also raised the quarterly dividend by 7.3 %, increasing the payment to $0.295 per share from $0.275. The dividend hike reflects confidence in operating cash flow and a commitment to delivering shareholder value, and it follows a 20‑year streak of consecutive dividend increases and a 55‑year history of uninterrupted payments.
Graco’s Q3 2025 earnings, released earlier in the year, showed net sales of $543 million, up 5 % from the prior quarter, and net earnings of $138 million, or $0.82 per diluted share. Adjusted earnings of $0.73 per share missed analyst expectations of $0.75, a shortfall attributed to a 2 % decline in organic revenue amid softness in global construction markets and a $5 million tariff cost increase. The contractor segment grew 8 % while the industrial and expansion markets segments rose 1 % and 3 % respectively, indicating that acquisitions are driving growth but organic demand remains weak.
Management explained that pricing actions are beginning to offset tariff impacts and that strategic acquisitions continue to contribute 6 % of sales growth. The company’s high current ratio of 3.18 and low leverage give it the flexibility to fund both the buyback and the dividend increase without compromising working capital or capital‑expenditure plans.
The dividend payment is scheduled for February 4, 2026, with a record date of January 19, 2026. The buyback program will be executed at market price, with the company’s strong cash flow and low debt profile supporting the initiative. The combined actions signal management’s belief that the share price is attractive and that the firm has sufficient liquidity to support both initiatives, potentially supporting the stock’s valuation in the near term.
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