What Graco Inc. told the SEC could break it.

One customer (spanning Graco's Contractor and Industrial segments) individually represented over 10% of consolidated sales in 2025, 2024 and 2023, concentrating revenue with a single counterparty.

“Worldwide sales to one customer in the Contractor and Industrial segments individually represented over 10 percent of the Company's consolidated sales in 2025, 2024 and 2023.”

Tariffs raised Graco's product costs by $14 million in 2025, contributing to a ~1-point decline in gross-profit margin as price realization could not fully offset the higher costs.

“The gross profit margin rate for 2025 decreased approximately 1 percentage point compared to 2024 as price realization was unable to offset higher product costs, including $14 million of increased tariff costs, and the unfavorable effect of lower margin rates of acquired operations.”

Some of Graco's raw materials, parts and components come from single suppliers (limiting availability when they can't meet demand and no alternative can be sourced in time), and it sources some materials/parts/components from suppliers in China, exposing it to political/geopolitical supply disruption.

“While many of our raw materials, parts and components are generally commercially available from a number of sources, some of them are sourced from single suppliers, which has limited, and could continue to limit, their availability when those suppliers are unable or unwilling to meet our production requirements and we are unable to timely source such items from an alternative supplier. In addition, we source some of our materials, parts and components from suppliers located in China.”