GRACO INC

“As a global manufacturer of systems and equipment designed to move, measure, mix, control, dispense and spray fluid and powder materials, our business is subject to various risks and uncertainties. Below are risk factors that could materially and adversely affect our business, financial condition and results of operations.”

“Economic Environment – Demand for our products depends on the level of commercial and industrial activity worldwide.”

“Currency – Changes in currency translation rates could adversely impact our revenue, earnings and the valuation of assets denominated in foreign currencies.”

“Domestic political instability, including government shutdowns, may limit our ability to grow our business. International political instability (including tensions or conflicts between the U.S. and the countries in which we conduct business, rumors or threats of war, terrorism and other hostilities, and geopolitical activity or trade disruptions, such as those caused by the Russia-Ukraine and Israel-Hamas conflicts, or any conflict or threatened conflict between China and Taiwan) may cause economic conditions in the U.S. or abroad to deteriorate.”

“Geopolitical instability (including in Europe, Asia, the Middle East, and South America), protective tariffs, unpredictable changes in duty rates, and changes in trade policies, agreements, relations and regulations have made and may continue to make certain foreign-sourced parts of limited availability or no longer competitively priced. Long supply chains may be disrupted by environmental events, public health crises, political or other factors. Raw materials may become limited in availability from certain regions. Port labor issues may delay shipments. We source a large volume and a variety …”