Grainger(GWW) - 2024 Q4 - Annual Results

Sales Performance - Fourth quarter 2024 sales reached $4.2 billion, an increase of 5.9$17.2 billion, up 4.2%, or 4.7% on a daily, organic constant currency basis compared to the previous year[2] - Net sales for Q4 2024 reached $4,233 million, a 5.9$3,997 million in Q4 2023[27] - Daily, organic constant currency sales increased by 4.7% for FY 2024, with a 13.2% increase in Endless Assortment[42] - The company experienced a daily sales decline of 1.7% in Q4 2024 due to foreign currency exchange impacts[42] Profitability Metrics - Operating margin for Q4 2024 was 15.0%, a 110 basis point increase from the prior year, while the full year operating margin was 15.4%, down 20 basis points[3][14] - Gross profit margin for Q4 2024 was 39.6%, an increase of 50 basis points compared to Q4 2023, while the full year gross profit margin remained flat at 39.4%[10][11] - Diluted EPS for Q4 2024 was $9.71, up 23.1$38.71 for the full year, up 6.8%[13][15] - Basic earnings per share for Q4 2024 were $9.74, up 22.8$7.93 in Q4 2023[27] - Net earnings attributable to W.W. Grainger, Inc. for Q4 2024 were $475 million, representing a 20.3$395 million in Q4 2023[27] - Net earnings attributable to W.W. Grainger, Inc. for FY 2024 were $1,909 million, with a diluted earnings per share of$38.71[45] Cash Flow and Capital Expenditures - The company generated $2.1 billion in operating cash flow for the full year 2024, an increase of 3.9$170 million, and for FY 2024 it was $1,570 million[43] - The company reported net cash provided by operating activities of$2,111 million for the twelve months ended December 31, 2024, compared to $2,031 million for the same period in 2023[31] - Capital expenditures for the twelve months ended December 31, 2024, were$541 million, up from $445 million in 2023[31] Shareholder Returns - The company returned$1.6 billion to shareholders through dividends and share repurchases in 2024[19] Tax and Expenses - The effective tax rate for the full year 2024 was 23.0%, down from 23.9% in 2023[16] - The effective tax rate for the fourth quarter of 2024 was 20.1%[45] - SG&A expenses for FY 2024 were $4,121 million, representing 24.0$1,036 million, an increase from $660 million at the end of Q4 2023[31] - Total assets as of December 31, 2024, were$8,829 million, compared to $8,147 million as of December 31, 2023[29] - Total current liabilities increased to$2,305 million as of December 31, 2024, from $1,831 million as of December 31, 2023[29] Future Projections - For 2025, the company projects net sales between$17.6 billion and $18.1 billion, with daily, constant currency sales growth expected to be between 4.0% and 6.5%[20] - There were 256 U.S. selling days in FY 2024, compared to 254 in FY 2023[42]