Account Manager

Graco reported record third-quarter sales of $586 million on its October 22, 2026 earnings call. The manufacturing equipment maker said it is defending operating margins of 27% despite an industrial slowdown. It partnered with ABB to supply direct-drive electric motor technology for data center cooling. The licensing deal lets Graco enter the high-density artificial intelligence infrastructure market without heavy capital spending. Graco also acquired adhesive equipment maker Valco Melton. It aims to lift the unit's EBITDA margin from the high teens to the mid-20% range within three years of closing. Backlog, excluding acquisitions, rose $51 million, or 18%, from the start of the year as clients delayed large equipment purchases.

What Graco (GGG) said on its Q3 earnings call. Graco (NYSE:GGG) reported record third-quarter fiscal 2026 sales of $586 million, up 8% from a year earlier and including 4% organic growth, as all three operating segments and reportable regions contributed to growth. Management said incoming organic orders rose 7% during the quarter and 4% year to date, while backlog excluding acquisitions increased $51 million, or 18%, from the beginning of the year through Oct. 16. Adjusted operating earnings totaled $161 million, while adjusted earnings per share increased 5% to $0.81. Adjusted operating margin was 27% of sales, down nearly 180 basis points from the prior-year quarter, largely due to product and channel mix, including a higher mix of powder finishing systems. CEO Mark Sheahan said the company's fourth-quarter revenue outlook is $610 million to $640 million, based on current order trends and backlog. He cautioned that demand conditions vary by market and that timing of larger projects can shift revenue between periods. Order activity and segment performance. Graco said third-quarter organic revenue, excluding the recently acquired Valco Melton business, finished slightly below the company's prior guidance range of $580 million to $600 million. CFO Sanjiv Gupta attributed the shortfall primarily to the Industrial segment, where larger capital projects faced longer decision cycles and some projects were delayed or pushed out. Gupta said the company was not seeing broad-based demand deterioration, citing order activity. He added that Graco's fourth-quarter outlook does not assume an acceleration in demand. * Contractor: Sales rose 5%, including acquisitions, and organic sales increased 2%. Growth occurred across regions and was led by professional paint sales in the Americas. Sheahan said adoption of products including QuickShot II and ProReach supported sell-through in key channels. Segment bookings increased 7% in the quarter and 2% year to date. * Industrial: Sales increased 11%, supported by the core business and acquisitions. Growth was led by project activity in powder finishing systems, while maintenance and repair spending remained strong. Graco also cited greater adoption of QUANTM electric pumps and continued automatic lubrication growth. Year-to-date bookings rose 1%. * Expansion Markets: Sales rose 8%. Semiconductor posted its strongest quarterly revenue in several years as customers invested in advanced manufacturing capacity and more complex production processes. Environmental sales also grew by double digits. Segment bookings increased 62% in the quarter and 44% year to date. Sheahan said Contractor's underlying activity remained positive despite the residential housing backdrop, with commercial activity, infrastructure-related work, protective coatings and foam applications contributing to momentum. The home-center channel was down slightly during the quarter, he said, but management did not identify a fundamental change in that channel. Within Industrial, management said broader conditions remained somewhat sluggish, particularly for larger capital projects. However, Sheahan said bookings improved during the latter part of the third quarter and that the improvement had continued into the fourth quarter. Gupta said Industrial growth in the third quarter was spread across geographies, though it was more subdued in the U.S. Valco Melton integration and margins. During the quarter, Graco completed its acquisition of Valco Melton, adding precision adhesive dispensing and quality-assurance capabilities. Management said its integration priorities include cross-selling through complementary customer relationships and channels, leveraging procurement and manufacturing capabilities, and maintaining customer service and business momentum. Graco is targeting expansion of Valco Melton's EBITDA margin from the high teens to the mid-20% range within three years of the acquisition's closing. Sheahan said Valco Melton sells directly to customers and has an established direct sales organization, but he did not see structural factors that would prevent its long-term margin profile from approaching that of Graco's general industrial businesses. Contractor operating earnings rose 5% to $71 million, with margins stable year over year. Excluding Valco Melton and related costs, Industrial operating earnings were flat at $74 million, while the segment's margin declined by nearly one percentage point due primarily to product and channel mix. Expansion Markets operating earnings increased 5% to $11 million, aided by semiconductor strength but facing a comparison that included a prior-year upfront license fee related to an electric motor application. Management said realized pricing offset higher net input costs during the quarter. Price-cost was flat, and Sheahan said he expected that relationship to remain broadly similar in the fourth quarter. ABB technology agreement and capital allocation. Sheahan also highlighted a newly announced technology agreement between Graco's ETM business and ABB. Under the agreement, ABB will license ETM's patented transverse flux motor technology for data-center cooling towers, heat-rejection systems and related thermal-management applications. The companies are targeting their first data-center installations by the end of 2029. Sheahan said ABB is expected to begin launching Graco motor technology into other applications, including conveyor systems and factories, next year under a separate licensing agreement announced previously. Year-to-date operating cash flow was $463 million, equal to 116% of adjusted net earnings. Graco repurchased $467 million of shares, paid $145 million in dividends, invested $436 million in acquisitions net of cash acquired, and spent $48 million on capital expenditures. Gupta said the company maintained a slightly positive net cash position despite those investments. Management said it intends to maintain a balanced capital-allocation approach, combining share repurchases with acquisitions. Sheahan said the acquisition pipeline includes more businesses in faster-growing end markets than it did several years ago, citing semiconductor and water and wastewater management as areas of focus. About Graco (NYSE:GGG). Graco Inc is a global manufacturer of equipment used to move, measure, control, dispense and apply fluids and other materials. Its products are used in industrial, commercial and residential applications involving paints, coatings, sealants, adhesives, lubricants, chemicals and other fluids. The company's product portfolio includes pumps, valves, meters, regulators, fluid-management systems, lubrication equipment, spray-applied coating and finishing systems, sealant and adhesive equipment, and contractor-oriented painting and texture application tools.

Bringing next-gen direct-drive motor tech to data centre cooling. 22 October 2026 ABB HAS extended its relationship with Electric Torque Machines (ETM), a subsidiary of Graco, to develop and commercialise motors based on ETM's patented Transverse Flux Motor (TFM) technology for data centre cooling applications. TFM motors generate high torque at low speeds, ideal for large cooling fans, pumps and heat rejection towers that keep today's high-density data centres running. The TFM motor will be commercialised under the ABB brand. "As AI reshapes data center design, operators are looking for cooling solutions that deliver more with less: less energy, less complexity and less downtime," said Justin McMahon, EVP, global business line, NEMA Motors Division, ABB. "Our expanded partnership with ETM brings a differentiated motor technology that addresses exactly these needs." "Our partnership with ABB is the right path to bringing Transverse Flux Motor to the data center market at scale," said Mark Sheahan, CEO of Graco. "ABB's global reach and deep expertise in electrification make it an ideal partner to commercialize this technology in applications where reliability and efficiency matter most." Global data centre electricity demand grew 17% in 2025, with AI-focused facilities growing at 50%[1], driving unprecedented demand for computing capacity and advanced infrastructure. As these facilities scale, cooling has become mission critical, operators need solutions that are more efficient, easier to maintain, quieter and built for continuous operation. TFM's direct-drive architecture offers a compelling option for large-scale cooling applications, reducing mechanical complexity and conversion losses, minimizing sound generated, lowering maintenance requirements and lifetime cost of ownership. Combined with ABB's variable speed drives and broad motor portfolio, data center operators now have access to a wider range of high-performance cooling solutions tailored to their specific infrastructure requirements. The ETM partnership complements ABB's established portfolio of high-efficiency motors, ultra-low harmonic variable speed drives and liquid cooling expertise. As data center heat loads intensify, ABB is scaling cooling solutions that meet mission critical performance demands. 1/12 (1 to 10 of 115) Send Enquiry | / | Digital remote services for VSDs 15 January 2018 | | Three distinctly different cloud-based remote services from ABB for drives offer instant alerts, rapid assistance and support before failure occurs. Remote assistance, condition monitoring and predictive maintenance are three remote services for variable speed drives being added to the ABB Ability digital platform...[Read More] | | / | WEG motors & drives power high-efficiency air blowers 22 November 2012 | | Atlas Copco has chosen W22 high-efficiency electric motors and variable speed drives from WEG to power its latest range of energy-efficient screw blowers...[Read More] | | / | Hygienic linear motors 23 December 2014 | | Nutritious snacks provider, Graze, customises each customer's boxes based on their ratings and preferences and optimises the freshness of each ingredient used, necessitating the use of cutting-edge technology. ...[Read More] | | / | Manufacturer of the Year 23 April 2018 | | ABB has won Manufacturer of the Year at the Motion Control Industry (MCI) awards for the second year running...[Read More] | | / | Kollmorgen adds to Essentials portfolio 18 June 2026 | | SPECIALIST IN motion control and automation systems, Kollmorgen has expanded its Essentials portfolio with the addition of the PCMM2G Essentials controller and new high-voltage drive capability up to 4kW. Together, these additions extend the Essentials advantage to support a broader range of industrial applications and motion requirements...[Read More] | | / | FEATURED SUPPLIERS TWITTER FEED CDA MAGAZINE VIDEO OF THE MONTH 1/2 (1 to 10 of 20)