Russell Ford: Thank you, Rama, and thank you to everyone for joining our call today. I will start on Slide 3 of our earnings presentation with a review of several highlights from 2025, our 114th year of the company, and our first full year as a publicly traded company. 2025 was another record year for StandardAero, Inc. and one in which we made significant progress on our strategic objectives, enabled by relentless focus and dedication to quality and performance by our 8,000 employees worldwide. We saw exce ...

StandardAero (NYSE:SARO) Q4 2025 Earnings call February 25, 2026 05:00 PM ET Company ParticipantsAlex Trapp - Chief Strategy OfficerDan Satterfield - CFOKristine Liwag - Executive Director and Head of Aerospace & Defense Equity ResearchRama Bondada - Senior Vice President of Investor RelationsRussell Ford - Chairman and CEOSheila Kahyaoglu - Managing Director in Equity ResearchConference Call ParticipantsDoug Harned - Managing Director and Senior AnalystGavin Parsons - Equity AnalystKrista Friesen - Equity ...

StandardAero (NYSE:SARO) Q4 2025 Earnings call February 25, 2026 05:00 PM ET Speaker7Good afternoon, ladies and gentlemen. Thank you for your patience. We will get started soon.Speaker8Good afternoon. Welcome to StandardAero's fourth quarter and full year 2025 earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your t ...

W.W. Grainger, Inc. (GWW), headquartered in Lake Forest, Illinois, distributes maintenance, repair, and operating products and services. Valued at $53.6 billion by market cap, the company's products include motors, HVAC equipment, lighting, hand and power tools, pumps, packaging, material handling, adhesives, safety, janitorial, electrical, and metalworking equipment. Shares of this MRO giant have underperformed the broader market over the past year. GWW has gained 10% over this time frame, while the bro ...

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 ...

Core Insights - W.W. Grainger, Inc. is a leading distributor in the maintenance, repair, and operating (MRO) products sector, competing with companies like Fastenal and MSC Industrial Direct [1] Financial Performance - Grainger reported earnings of $10.21 per share in the previous quarter, exceeding the consensus estimate of $9.95, with revenue of $4.66 billion, slightly above the expected $4.64 billion, marking a 6.1% increase year-over-year [3] - The company has a strong financial health indicated by a return on equity of 49.40% and a net margin of 9.75% [4][6] - For fiscal year 2025, Grainger's guidance suggests earnings per share between $39.00 and $39.75, reflecting confidence in ongoing performance [5] Stock Performance - Oppenheimer upgraded Grainger's stock rating from "Perform" to "Outperform" with a current stock price of $1,049.97 ahead of the fourth-quarter 2025 earnings announcement [2][6] - The stock has fluctuated over the past year, reaching a high of $1,139.15 and a low of $893.99, with a trading volume of 137,703 shares on the NYSE [5]

Group 1: SGA U.S. Large Cap Growth Strategy Performance - The portfolio returned -1.3% (Gross) and -1.4% (Net) in Q3 2025, underperforming the Russell 1000 Growth Index which returned 10.5% and the S&P 500 Index which returned 8.1% [1] - The investment objective is to focus on high-quality growth businesses expected to achieve consistent mid-teens earnings growth, stable revenue, and cash flow [1] - Market leadership in Q3 was unfavorable for SGA's investment style as lower-quality stocks and cyclical industries outperformed [1] Group 2: W.W. Grainger, Inc. Overview - W.W. Grainger, Inc. is a leading distributor of maintenance, repair, and operating (MRO) products, primarily operating in North America, Japan, and the UK [3] - The company serves over 4.5 million customers and operates approximately 250 branches across the U.S., Canada, South America, and the UK [3] - Grainger offers more than 2 million MRO products in its High-Touch Solutions segment and over 30 million products through online channels [3] Group 3: Grainger's Business Model and Market Position - Grainger's high-touch business model provides strong pricing power by embedding services like inventory management and consulting into customer operations, with over 60% of revenue from customers with at least one embedded solution [3] - The company generates resilient, repeatable revenue through mission-critical product offerings and seamless digital procurement platforms, ensuring consistent demand and cash flow [3] - Grainger is well-positioned to gain market share in the B2B supply market, benefiting from trends such as manufacturing reshoring, industry consolidation, and accelerated digital adoption [3]

Core Viewpoint - W.W. Grainger, Inc. is set to announce its fiscal fourth-quarter earnings for 2025, with analysts projecting a slight decline in profit per share compared to the previous year [1][2]. Financial Performance - Analysts expect GWW to report a profit of $9.45 per share on a diluted basis for Q4 2025, down 2.7% from $9.71 per share in the same quarter last year [2]. - For the full fiscal year 2025, GWW is projected to report an EPS of $39.48, reflecting a 1.3% increase from $38.96 in fiscal 2024 [3]. - EPS is anticipated to rise 10.7% year over year to $43.71 in fiscal 2026 [3]. - GWW's adjusted EPS for Q3 was reported at $10.21, exceeding Wall Street expectations of $9.93, with revenue reaching $4.7 billion, surpassing forecasts of $4.6 billion [6]. Stock Performance - GWW stock has underperformed the S&P 500 Index, which gained 16.4% over the past 52 weeks, with GWW shares down 4.7% during the same period [4]. - The stock also lagged behind the Industrial Select Sector SPDR Fund, which saw a 17.6% increase [4]. Market Position and Strategy - GWW is facing challenges from inflation and tariffs, which have impacted margins despite steady demand [5]. - The company is implementing productivity initiatives and price hikes to mitigate costs [5]. - GWW is streamlining its portfolio by exiting the UK business and investing in digital transformation to enhance growth and profitability [5]. Analyst Sentiment - The consensus opinion on GWW stock is cautious, with a "Hold" rating overall; out of 19 analysts, three recommend a "Strong Buy," 13 suggest a "Hold," one advises a "Moderate Sell," and two advocate a "Strong Sell" [7]. - The average analyst price target for GWW is $1,034.15, indicating a potential upside of 2.5% from current levels [7].