Core Insights - Grainger reported earnings per share (EPS) of $9.44 for Q4 2025, slightly above the estimated $9.43, with revenue of approximately $4.43 billion, exceeding the estimated $4.40 billion [1][2] Group 1: Financial Performance - In Q4 2025, Grainger achieved sales of $4.43 billion, a 4.5% increase compared to Q4 2024, but the operating margin decreased by 70 basis points to 14.3% [2] - For the full year 2025, Grainger's sales grew to $17.9 billion, a 4.5% increase from the previous year, with an operating margin reported at 13.9%, down 150 basis points [3] - The diluted EPS for 2025 was $35.40, reflecting an 8.6% decline, but on an adjusted basis, EPS increased by 1.3% to $39.48 [3] Group 2: Cash Flow and Shareholder Returns - Grainger produced $2 billion in operating cash flow in 2025 and returned $1.5 billion to shareholders through dividends and share repurchases [4] - The company's price-to-earnings (P/E) ratio is approximately 31.47, and its price-to-sales ratio stands at about 3.04, indicating investor confidence [4] Group 3: Future Outlook - For 2026, Grainger projects a daily, organic constant currency sales growth of 6.5% to 9.0%, driven by strategic initiatives and commitment to customer service [5] - The company maintains a solid financial position with a debt-to-equity ratio of approximately 0.76 and a current ratio of about 2.72 [5]

Key Takeaways Grainger posted Q4 EPS of $9.44, narrowly beating estimates, as quarterly sales increased 4.5% y/y to $4.43B.GWW's Endless Assortment daily sales jumped 14.3%, driven by strong results at MonotaRO and Zoro.Grainger saw the operating margin slip to 14.3% as higher costs and SG&A growth weighed on profits.W.W. Grainger, Inc. (GWW) has reported adjusted earnings per share (EPS) of $9.44 in fourth-quarter 2025, beating the Zacks Consensus Estimate of $9.43. It reported earnings of $$9.71 per share ...

W W Grainger (NYSE:GWW) Q4 2025 Earnings call February 03, 2026 11:00 AM ET Company ParticipantsD.G. Macpherson - Chairman and CEODee Merriwether - CFOKyle Bland - VP of Investor RelationsConference Call ParticipantsChris Dankert - AnalystChristopher Glynn - AnalystChristopher Snyder - AnalystConnor Lynagh - AnalystDavid Manthey - AnalystGuy Hardwick - AnalystJacob Levinson - AnalystRyan Merkel - AnalystStephen Volkmann - AnalystTommy Moll - AnalystOperator...Greetings, and welcome to the W.W. Grainger Four ...

Financial Data and Key Metrics Changes - Total company sales growth for 2025 was 4.5% on a reported basis and 4.9% on a daily organic constant currency basis, finishing the year at $17.9 billion [17][19] - Operating margin for the year was 15%, with adjusted EPS growth of 1.3% to $39.48 per share [18] - ROIC finished at 39.1%, and operating cash flow was $2 billion, allowing for $1.5 billion returned to shareholders through dividends and share repurchases [18] Business Line Data and Key Metrics Changes - High-Touch Solutions segment delivered sales growth of 2.2% on a reported basis, with nearly 3 points of price inflation contributing to this growth [21] - Endless Assortment segment saw significant improvement, with daily organic constant currency sales up 15.6%, driven by strong performance from Zoro and MonotaRO [17][31] - Zoro achieved 16% growth, while MonotaRO experienced 18.4% growth in local constant currency [31] Market Data and Key Metrics Changes - The MRO market showed sequential momentum but remained muted overall, with Grainger's performance particularly strong in contractor and manufacturing sectors [21] - The company expects market volumes to be down 1.5% to flat in 2026, reflecting cautious outlook due to tariff-related price increases [33] Company Strategy and Development Direction - Grainger is focused on leveraging technology and data capabilities to enhance customer experience and drive growth, with significant investments in AI and machine learning [5][10] - The company streamlined its portfolio by exiting the UK market and is investing in new supply chain capacity to maintain service leadership [4][15] - Grainger aims to achieve 400-500 basis points of average annual outgrowth over time, with a focus on improving seller effectiveness and expanding seller coverage [30][36] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic challenges in 2025 but expressed confidence in the company's ability to deliver strong results and growth in 2026 [4][18] - The tone of conversations with large customers remains cautious, with no significant tailwinds expected for market growth [56] - The company anticipates continued demand pressure in the High-Touch Solutions segment due to tariff-related price increases [33] Other Important Information - Grainger was recognized as a great place to work and one of the world's most ethical companies, reflecting its commitment to a positive workplace culture [16] - The company plans to invest $550 million to $650 million in capital expenditures for supply chain initiatives and technology investments in 2026 [38] Q&A Session Summary Question: What drives the cautious outlook for the year overall? - Management plans conservatively and acknowledges a strong start in January but notes a tailwind from a competitive outage in Japan [46][48] Question: Update on digital channels and order origination? - EDI ePro has grown to about 40% of order origination, with KeepStock also increasing its share [49][50] Question: Tone of conversations with large customers? - The tone remains cautious, with no panic but also no significant optimism for volume growth [56][57] Question: Update on mid-sized customer growth? - There has been some acceleration, driven by marketing and merchandising efforts, but it is not a significant inflection point [60] Question: Gross margins in Q4 and expectations for Q1? - Q4 gross margins were better than expected due to LIFO costs being less negative, but Q1 is expected to see some LIFO costs shift, impacting margins [63][70] Question: Factors affecting margin guidance for 2026? - The exit from the UK market will provide a tailwind, while the faster growth of Endless Assortment will be a headwind for margins [78]

Financial Data and Key Metrics Changes - In 2025, total company sales grew by 4.5% on a reported basis, or 4.9% on a daily organic constant currency basis, finishing the year at $17.9 billion [17][19] - Operating margin for the year was 15%, with adjusted EPS growth of 1.3%, equating to $39.48 per share [18] - ROIC finished at 39.1%, and operating cash flow was $2 billion, allowing for $1.5 billion returned to shareholders through dividends and share repurchases [18] Business Line Data and Key Metrics Changes - High-Touch Solutions segment delivered sales growth of 2.2% on a reported basis, with nearly 3 points of price inflation contributing to this growth [22] - Endless Assortment segment saw significant improvement, with daily organic constant currency sales up 15.6%, driven by strong performance from Zoro and MonotaRO [17] - Zoro achieved a sales increase of 16%, while MonotaRO experienced 18.4% growth in local constant currency [32] Market Data and Key Metrics Changes - The MRO market showed signs of sequential momentum but remained muted overall, with Grainger's indicators suggesting a mixed outlook across different sectors [22][26] - The multifactor model used to assess market volume indicated Grainger finished 2025 with roughly 250 basis points of outgrowth on a volume basis, despite the overall market being down between 1.5% and 0.5% [31] Company Strategy and Development Direction - The company streamlined its portfolio by exiting the UK market and invested in new supply chain capacity to enhance service leadership [4][17] - Grainger is focused on leveraging technology and data capabilities to drive growth, with significant investments in AI and machine learning to optimize marketing and seller effectiveness [5][12] - The company aims to achieve 400-500 basis points of average annual outgrowth over time, with a focus on improving seller coverage and effectiveness [31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in 2025, including tariff dynamics and soft MRO market demand, but expressed confidence in the company's ability to deliver growth and shareholder returns [18][34] - For 2026, the company expects revenue between $18.7 billion and $19.1 billion, with daily organic constant currency sales growth projected between 6.5% and 9% [34][41] - Management remains cautious about market growth, anticipating continued demand pressure due to tariff-related price increases [34] Other Important Information - Grainger was recognized as a great place to work and one of the world's most ethical companies, reflecting its commitment to a positive workplace culture [16] - The company plans to invest approximately $550 million to $650 million in capital expenditures to support supply chain initiatives and technology investments [40] Q&A Session Summary Question: Growth outlook and cautiousness for the year - Management indicated that planning conservatively is essential, and while January showed strong growth, external factors like competitive outages influenced results [48][49] Question: Update on digital channels - EDI ePro has grown to approximately 40% of order origination, indicating a shift towards direct connections with customers [50][52] Question: Customer tone and market expectations - Conversations with large customers reflect a mixed sentiment, with no panic but also no significant tailwinds expected for volume growth [58][59] Question: Gross margins and first-quarter expectations - Gross margins in Q4 were better than expected, with LIFO costs impacting first-quarter margins negatively [64][66] Question: Continued outgrowth for High-Touch Solutions - Management noted that external factors and execution challenges have influenced outgrowth, but improvements in seller effectiveness and marketing are expected to drive future growth [81][82]

NYSE: GWW Q4 2025 Earnings Call February 3, 2026 © 2026 W.W. Grainger, Inc. Safe Harbor Statement and Non-GAAP Financial Measures All statements in this communication, other than those relating to historical facts, are "forward-looking statements" under the federal securities laws. Forward-looking statements can generally be identified by their use of terms such as "anticipate," "estimate," "believe," "expect," "could," "forecast," "may," "intend," "plan," "predict," "project," "will," or "would," and simil ...

W.W. Grainger (GWW) came out with quarterly earnings of $9.44 per share, beating the Zacks Consensus Estimate of $9.43 per share. This compares to earnings of $9.71 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +0.07%. A quarter ago, it was expected that this seller of maintenance and other supplies would post earnings of $9.93 per share when it actually produced earnings of $10.21, delivering a surprise of +2.82%.Over the l ...

Financial Performance - Fourth quarter 2025 sales reached $4.4 billion, an increase of 4.5%, or 4.6% on a daily, organic constant currency basis compared to Q4 2024[2] - Full year 2025 sales totaled $17.9 billion, also up 4.5%, or 4.9% on a daily, organic constant currency basis compared to the previous year[2] - Net sales for Q4 2025 reached $4,425 million, a 4.5% increase from $4,233 million in Q4 2024[28] - Reported sales growth for FY 2025 was 4.5%, with daily organic constant currency sales growth of 4.9%[43] Earnings and Margins - Operating margin for Q4 2025 was 14.3%, a decrease of 70 basis points year-over-year, primarily due to increased expenses and slower sales growth[12] - Diluted EPS for Q4 2025 was $9.44, down 2.8% compared to the prior year quarter, influenced by an unfavorable tax rate[13] - Full year 2025 reported operating earnings were $2.5 billion, down 5.4% year-over-year, with an operating margin of 13.9%, a decrease of 150 basis points[14] - Basic earnings per share for Q4 2025 was $9.45, compared to $9.74 in Q4 2024, indicating a decrease of 3.0%[28] - Diluted earnings per share for FY 2025 were $39.48, with an adjusted increase of 1.3% year-over-year[46] - Adjusted operating margin for FY 2025 was 15.0%, compared to a reported margin of 13.9%[46] Cash Flow and Expenditures - The company generated $2.0 billion in operating cash flow for the full year 2025, with free cash flow of $1.3 billion after $684 million in capital expenditures[20] - Free cash flow (FCF) for Q4 2025 was $269 million, and for FY 2025 it was $1,331 million[44] - Net cash provided by operating activities for the twelve months ended December 31, 2025, was $2,015 million, compared to $2,111 million in 2024, reflecting a decrease of 4.5%[32] - Capital expenditures for the twelve months ended December 31, 2025, totaled $684 million, an increase from $541 million in 2024[32] - The company reported a net cash used in financing activities of $1,825 million for the twelve months ended December 31, 2025, compared to $1,180 million in 2024, indicating a significant increase in cash outflows[32] Market and Segment Performance - The Endless Assortment segment saw a sales increase of 14.3%, or 15.7% on a daily, organic constant currency basis, driven by strong performance at MonotaRO and Zoro[7] - High-Touch Solutions in North America reported sales growth of 2.0% for FY 2025, while Endless Assortment saw a growth of 15.7%[43] Tax and Market Changes - The effective tax rate for the full year 2025 was reported at 25.6%, an increase from 23.0% in 2024, primarily due to the exit from the U.K. market[18] - The exit from the U.K. market, including the sale of the Cromwell business, was completed in Q4 2025[46] Assets and Liabilities - Total assets as of December 31, 2025, increased to $8,962 million from $8,829 million as of December 31, 2024[30] - Current liabilities decreased to $1,940 million as of December 31, 2025, from $2,305 million in 2024, showing a reduction of 15.9%[30]

(Unfav.))ReportedAdjustedReportedAdjustedReportedAdjusted(1)ReportedAdjusted(1,2,3)Net Sales$4,425$4,4254.5 %4.5 %$17,942$17,9424.5 %4.5 %Gross Profit$1,746$1,7464.2 %4.2 %$7,009$7,0093.7 %3.7 %Operating Earnings$634$6340.2 %0.2 %$2,495$2,691(5.4) %1.4 %Net Earnings Attributable to W.W. Grainger, Inc.$451$451(5.1 %)(5.1 %)$1,706$1,902(10.6) %(1.0) %Diluted Earnings Per Share$9.44$9.44(2.8 %)(2.8 %)$35.40$39.48(8.6) %1.3 %Gross Profit Margin39.5 %39.5 %(10) bps(10) bps39.1 %39.1 %(30) bps(30) bpsOperating Ma ...

Key Takeaways GWW will report Q4 earnings on Feb. 3, with sales expected to rise 3.9% y/y to $4.40 billion.Grainger's core product demand, and digital, e-commerce and supply-chain investments support sales growth.GWW faces margin pressure from higher material and other costs tied to technology investments.W.W. Grainger, Inc. (GWW) is scheduled to report fourth-quarter 2025 results on Feb.3, before the opening bell.The Zacks Consensus Estimate for GWW’s sales is pegged at $4.40 billion, indicating 3.9% growt ...