Michael Moran

Michael Moran asked about the expected magnitude of contractor segment price increases for early 2026 and if recent pricing actions would influence future increases in other segments. He also inquired about any evidence of market share shift towards Graco in DIY and Pro Paint channels against foreign competition, considering tariffs.

Answer

CEO Mark Sheahan declined to comment on specific price levels for Home Centers and Pro Channel due to ongoing negotiations but expected reasonable, fact-based increases by January. He indicated a preference not to push as hard on future price increases due to market competitiveness. Regarding market share, Mark Sheahan stated it's difficult to quantify, noting significant declines in the Home Center channel's business. CFO David Lowe added that short-term switching costs create sticky relationships, but long-term pricing is market-driven.

Michael Moran asked about the expected magnitude of price increases for early 2026 in the Contractor segment and whether recent pricing actions change the view on further price increases in other segments in the coming months. He also inquired about any evidence of share shift towards Graco in DIY and Pro Paint channels due to competition and tariffs.

Answer

CEO Mark Sheahan declined to comment on the specific magnitude of Contractor price increases for early 2026 due to ongoing negotiations but stated they would be reasonable and fact-based. He noted that while targeted price increases might occur in other business units, his preference would be not to push as hard given the recent pricing activity. Regarding share shift, he stated it's difficult to quantify, but the Home Center channel's business is significantly down, reflecting broader market conditions rather than clear share gains. CFO David Lowe added that manufacturing footprints and pricing strategies vary among competitors, but short-term switching costs make relationships sticky.