Financial Data and Key Metrics Changes - Total company reported sales for Q1 2025 were $4.3 billion, up 1.7% or 4.4% on a daily constant currency basis [11][8] - Operating margins for the company remained healthy at 15.6%, down 20 basis points compared to 2024 [11][12] - Diluted EPS for the quarter was $9.86, up $0.24 or 2.5% compared to the prior year period [11][12] - Operating cash flow was $646 million, allowing for shareholder returns through dividends and share repurchases [8][10] Business Line Data and Key Metrics Changes - High Touch Solutions segment sales were down 0.2% on a reported basis but up 1.9% on a daily constant currency basis, with gross profit margin at 42.4%, up 60 basis points year-over-year [12][13] - Endless Assortment segment sales increased 10.3% or 15.3% on a daily constant currency basis, with operating margins increasing by 80 basis points to 8.7% [19][21] Market Data and Key Metrics Changes - The implied growth for the U.S. MRO market volume was 1% to 1.5% in Q1, with the High Touch Solutions U.S. business driving 1.3% volume growth [15][16] - Internal models suggest that the MRO market volume actually declined in the low single digits during Q1, indicating several hundred basis points of outgrowth [17][18] Company Strategy and Development Direction - The company remains focused on navigating the unpredictable external environment while ensuring transparency with customers and adhering to core pricing tenets [7][28] - The company plans to pivot to annual disclosure of outgrowth metrics to reduce quarterly noise and focus on growth drivers [18][19] - The company is committed to achieving price-cost neutrality over time while managing the impacts of tariffs [25][28] Management's Comments on Operating Environment and Future Outlook - Management noted that while the demand environment remains muted, the company delivered solid growth and profitability in line with expectations [5][8] - Preliminary April sales were up approximately 5.5% on a daily constant currency basis, indicating a positive outlook for Q2 [29][30] - Management expects second quarter operating margin to be at or near 15%, with various moving pieces impacting profitability [31][30] Other Important Information - The company announced a 10% increase in its quarterly dividend, marking the 54th consecutive year of expected dividend increases [10] - The company received several recognitions, including World's Most Admired Companies and Glassdoor's Best Places to Work [32] Q&A Session Summary Question: About Zoro's performance and SG&A leverage - Management indicated that the improvement in Zoro's performance is based on sustainable revenue growth and improved repeat rates [36] Question: On achieving consolidated contribution margin - Management confirmed that if demand does not degrade significantly with increased prices, a lower rate of growth could still achieve a 20% consolidated contribution margin [38] Question: Flexibility in sourcing due to tariff headwinds - Management stated that they have worked to understand alternative sources and have moved some sourcing to ensure a resilient supply chain [42] Question: Macro outlook and customer feedback - Management noted that they have not seen any slowdown in business and customers are focused on running operations safely [50] Question: Price increase requests from suppliers - Management mentioned that price increase requests have varied widely, and it will take time for these to flow through to the P&L [126]

Core Viewpoint - W.W. Grainger reported quarterly earnings of $9.86 per share, exceeding the Zacks Consensus Estimate of $9.46 per share, marking an earnings surprise of 4.23% [1][2] Financial Performance - The company posted revenues of $4.31 billion for the quarter ended March 2025, which was a 0.29% miss compared to the Zacks Consensus Estimate, and a slight increase from $4.24 billion year-over-year [2] - Over the last four quarters, W.W. Grainger has surpassed consensus EPS estimates two times but has not beaten consensus revenue estimates [2] Stock Performance - W.W. Grainger shares have declined approximately 2.8% since the beginning of the year, while the S&P 500 has seen a decline of 5.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $10.22 on revenues of $4.49 billion, and for the current fiscal year, it is $40.22 on revenues of $17.96 billion [7] - The outlook for the industry, particularly the Industrial Services sector, is favorable, ranking in the top 35% of over 250 Zacks industries, suggesting potential for outperformance [8]

Financial Performance - Sales for Q1 2025 were $4.3 billion, an increase of 1.7% year-over-year, or 4.4% on a daily, constant currency basis[3] - Operating earnings reached $672 million, up 0.4% compared to Q1 2024, with an operating margin of 15.6%, a decrease of 20 basis points[11] - Diluted earnings per share (EPS) for Q1 2025 were $9.86, reflecting a 2.5% increase from Q1 2024[12] - Gross profit margin improved to 39.7%, up 30 basis points from the prior year[9] - Net earnings for Q1 2025 were $500 million, a slight increase from $497 million in Q1 2024, reflecting a growth of 0.6%[28] - Reported sales growth for the total company in Q1 2025 was 1.7%, with daily sales growth at 3.3% compared to the prior year period[38] Segment Performance - The High-Touch Solutions - N.A. segment saw a sales decline of 0.2%, but a 1.9% increase on a daily, constant currency basis, while the Endless Assortment segment grew by 10.3%[8] - The Endless Assortment segment's gross profit margin increased by 30 basis points due to margin improvements at Zoro[10] Cash Flow and Shareholder Returns - Generated $646 million in operating cash flow, with free cash flow of $521 million after $125 million in capital expenditures[14] - The company returned $380 million to shareholders through dividends and share repurchases, with a quarterly dividend increase of 10%[5] - Free cash flow for Q1 2025 was $521 million, calculated as net cash provided by operating activities of $646 million minus capital expenditures of $125 million[39] Guidance and Projections - Full year 2025 guidance reaffirms net sales between $17.6 billion and $18.1 billion, with sales growth projected at 2.7% to 5.2%[16] Tax and Liabilities - The effective tax rate for Q1 2025 was 23.9%, down from 24.2% in Q1 2024[13] - Current liabilities decreased from $2,305 million in December 2024 to $2,017 million in March 2025, a reduction of approximately 12.5%[26] Assets and Debt - Total assets decreased from $8,829 million as of December 31, 2024, to $8,658 million as of March 31, 2025, representing a decline of approximately 1.9%[26] - Cash and cash equivalents at the end of Q1 2025 were $666 million, down from $1,036 million at the beginning of the period, marking a decrease of 35.6%[28] - Trade accounts payable increased from $952 million in December 2024 to $1,114 million in March 2025, an increase of approximately 17%[26] - The company’s long-term debt remained stable at $2,278 million as of March 31, 2025, compared to $2,279 million at the end of 2024[26] Credit Losses - The company reported a provision for credit losses of $7 million in Q1 2025, compared to $6 million in Q1 2024, reflecting a 16.7% increase[28]

NYSE: GWW Q1 2025 Earnings Call May 1, 2025 © 2025 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." 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 similar terms and phrases, including referen ...

CHICAGO, April 30, 2025 /PRNewswire/ -- W.W. Grainger, Inc. (NYSE: GWW) held its annual meeting of shareholders virtually today. Chairman and CEO D.G. Macpherson provided a company update, which included 2024 financial and operational highlights.Shareholders elected the following 12 directors: Rodney C. Adkins Neil S. Novich George S. Davis Beatriz R. Perez Katherine D. Jaspon E. Scott Santi Christopher J. Klein Susan Slavik Williams D.G. Macpherson Lucas E. Watson Cindy J. Miller S ...

CHICAGO, April 30, 2025 /PRNewswire/ -- W.W. Grainger, Inc. (NYSE: GWW) announced today that its board of directors approved a quarterly cash dividend of $2.26 per share, an increase of 10% from the most recent company dividend. The dividend is payable on June 1, 2025, to shareholders of record on May 12, 2025."2025 is on track to be our 54th consecutive year of increased dividends, upholding Grainger's long-standing commitment to our shareholders. This increase reinforces our ability to continue investing ...

W.W. Grainger, Inc. (GWW) is scheduled to report first-quarter 2025 results on May 1, before the opening bell.The Zacks Consensus Estimate for GWW’s sales is pegged at $4.33 billion, indicating 2.4% growth from the year-ago reported figure.The consensus estimate for earnings is pegged at $9.46 per share. The consensus estimate for GWW’s earnings has moved down 0.2% in the past 60 days. The estimate indicates a year-over-year dip of 1.7%.  Image Source: Zacks Investment Research GWW’s Earnings Surprise Histo ...

W.W. Grainger, Inc. (NYSE: GWW ) has good long-term revenue growth prospects, supported by company- specific initiatives across both its High-Touch Solutions (HTS) and Endless Assortment (EA) segments. In its High-Touch Solutions segment, the company is targeting to outperform the U.S. MRO market growth by 400 bps Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any v ...

Group 1 - W.W. Grainger, Inc. (NYSE: GWW) is being monitored as a potential investment for dividend growth, indicating interest in conservative, income-generating strategies [1] - The target investor profile is characterized as a Generation X individual, who is over-educated and under-funded, seeking ways to increase income in a challenging economic environment [1] Group 2 - The article does not provide any specific financial data or performance metrics related to W.W. Grainger, Inc. or the broader industry [2][3]

Core Insights - Grainger has been recognized as one of the 2025 World's Most Ethical Companies® by Ethisphere, marking its first time receiving this honor and placing it among only four companies in its industry [1][2] - The recognition highlights Grainger's commitment to business integrity, ethics, and compliance, which are seen as essential for long-term success [2] - The 2025 honorees collectively outperformed a comparable index of global companies by 7.8 percentage points from January 2020 to January 2025, indicating a positive correlation between ethical practices and financial performance [3] Company Overview - Grainger is a leading broad line distributor of maintenance, repair, and operating (MRO) products, serving over 4.5 million customers globally [6] - In 2024, Grainger reported revenue of $17.2 billion, with operations primarily in North America, Japan, and the United Kingdom [6] - The company offers approximately 2 million MRO products and services in its High-Touch Solutions segment and provides access to over 14 million products through Zoro.com and over 24 million products through MonotaRO.com [6] Recognition Process - The assessment for the World's Most Ethical Companies® is based on Ethisphere's proprietary Ethics Quotient®, which requires companies to provide over 240 proof points on various ethical practices [4] - A panel of experts conducts qualitative analysis on the submitted data, ensuring a rigorous evaluation process for the honorees [4]