Graco Inc. (NYSE: GGG) shares plummeted around 7% in after-hours trading on Monday, following the company's fourth-quarter results that missed analysts' expectations. The fluid handling equipment maker also provided a muted outlook for 2025, citing sluggish demand across various end markets.

For the quarter ended December 27, 2024, Graco reported adjusted earnings per share of $0.64, significantly lower than the consensus estimate of $0.77. Net sales of $548.7 million also fell short of analysts' expectations of $556.9 million, decreasing by 3% year-over-year.

The company attributed the weaker-than-expected performance to slower demand across many end markets, including softness in industrial products in China, lower sales of semiconductor equipment, and timing of projects in the powder coatings equipment business.

Looking ahead, Graco expects low single-digit sales growth on an organic, constant currency basis for fiscal 2025. Although demand in China and for semiconductor products appears to have stabilized, the company anticipates a challenging environment in the coming year.