An American maker of fluid-handling equipment, from paint sprayers and texture sprayers for professional painters and DIYers to pumps, lubrication systems, and powder-coating gear for factories. It was founded in Minneapolis in 1926, when parking-lot attendant Russell Gray grew frustrated that manual grease guns froze in cold winters, so he invented an air-powered one. Its name is a shortening of its original "Gray Company," and it now serves dozens of countries through distributors.
Q2 FY2026 revenue rose 2.2% to $571.8M but organic sales declined as acquisitions lifted reported growth
fell again even as reported rose. Revenue was $571.8M, up 2.2% and down 8.9% from Q1, with at 52.4% and of $0.76, as acquisitions and currency masked a 1% organic decline and tariff costs weighed on margins. The underlying business is still contracting beneath acquisition-driven top-line growth.
Key takeaways
Reported rose 2.2% to $571.8M from Q2 2025 but fell 8.9% from Q1 2026, with acquisitions contributing 3 points and currency 1 point while declined about 1%.
was 52.4%, down 0.6 points , with $4M in tariff costs and lower-margin acquired operations offsetting price realization.
was $0.76, down 2.8% and 10.6% from Q1, as the margin decline outweighed the sales gain; fell 4.5% to $118.5M.
Section summaries
Management's Discussion and Analysis
Q2 2026 sales rose 3% to $590.6M, with adjusted EPS up 17% to $0.91, driven by tariff refunds and lower expenses.
⌄
Consolidated increased 3% to $590.6M, with 3pp from acquisitions and 1pp from currency, partially offset by a 1pp organic decline in Industrial project timing.
Adjusted operating earnings rose 11% to $183.2M, primarily due to a higher rate from lower operating expenses and $9M in net IEEPA tariff refunds.
was $182.7M in Q2, up 31.4% sequentially but down 4.1% , and was $163.1M, down 5.8% year over year.
The company reaffirmed 2026 low single-digit organic sales growth and guided Q3 sales to $580M–$600M excluding the pending Valco Melton acquisition.
What changed
Q2 2026 posted a roughly 1% decline after Q1 FY2026 showed a 6% organic drop, so the underlying contraction narrowed but did not reverse against the low single-digit full-year target.
was 52.4%, down from 52.6% in Q1 2026 and 54.4% in Q2 2024, with tariff costs and acquired lower margins still pressuring the rate flagged in prior quarters.
Contractor held at 24% in Q1 2026 with $4M tariffs and was not broken out in this quarter's table narrative beyond the annual 25% level, after acquisition-led gains masked construction weakness throughout 2025.
Full-year 2025 were flat with acquisitions supplying all 5.8% growth; Q2 2026 shows the same pattern persisting with acquisitions and currency lifting reported over a declining organic base.
Asia Pacific was last reported down 16% in FY2024 and not detailed in this filing; the company did not report a regional update this quarter.
What to watch
Q3 FY2026 trajectory to see if the ~1% Q2 decline widens or reverses toward the low single-digit growth target.
Q3 FY2026 to see if 52.4% recovers as tariff costs and acquired lower margins meet price realization.
Contractor next quarter after holding at 24% in Q1 with tariff costs.
Closing of the Valco Melton acquisition and its impact on reported and margins from Q3 onward.
Contractor expanded 4pp to 30% on lower expenses and $5M net tariff refunds, with Americas broad-based across protective coatings, spray foam, and professional paint channels.
Industrial sales grew 3% on acquisitions, but organic sales declined 3% due to timing of finishing system sales; was flat at 34% as tariff refunds offset lower acquired margins.
Liquidity remained strong at $1,279M, with $508M in cash; significant cash uses included $331M in share repurchases and $98M in dividends.
2026 outlook reaffirmed for low single-digit organic constant-currency sales growth; Q3 sales guided to $580M–$600M, excluding the pending Valco Melton acquisition.