Grainger(US:GWW) Prnewswireยท2025-08-01 12:00Core Insights - Grainger reported second quarter 2025 sales of $4.6 billion, reflecting a 5.6% increase year-over-year, or 5.1% on a daily, constant currency basis [2][5] - The company updated its full year 2025 guidance, adjusting the diluted EPS range to $38.50 to $40.25, down from the previous range of $39.00 to $41.50 [10][15] Financial Performance - Net sales for Q2 2025 were $4,554 million, up 5.6% from $4,312 million in Q2 2024 [4] - Gross profit was $1,755 million, a 3.6% increase from $1,694 million in the prior year [4] - Operating earnings reached $678 million, up 4.5% from $649 million in Q2 2024, with an operating margin of 14.9% [9][10] - Diluted earnings per share were $9.97, representing a 4.8% increase from $9.51 in Q2 2024 [11] Segment Performance - In the High-Touch Solutions - N.A. segment, sales increased by 2.5%, while the Endless Assortment segment saw a significant growth of 19.7% [6][31] - The gross profit margin for the High-Touch Solutions - N.A. segment was 41.0%, down 70 basis points year-over-year, while the Endless Assortment segment's margin improved by 30 basis points [7][8] Cash Flow and Shareholder Returns - The company generated $377 million in operating cash flow and returned $336 million to shareholders through dividends and share repurchases [10][13] - Free cash flow for Q2 2025 was $202 million, calculated as operating cash flow minus capital expenditures of $175 million [26][31] Guidance Update - The updated guidance for 2025 includes net sales projected between $17.9 billion and $18.2 billion, with sales growth revised to 4.4% to 5.9% [15] - The effective tax rate is expected to remain around 23.8% [15]