W W Grainger
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W W Grainger (GWW) investor relations material

W W Grainger Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary3 Feb, 2026

Executive summary

  • Achieved 4.5% reported sales growth for 2025, reaching $17.9 billion, with 4.9% daily organic constant currency growth, outpacing the U.S. MRO market by 250 bps in High-Touch Solutions and delivering 15.6% growth in Endless Assortment.

  • Navigated macroeconomic headwinds, including tariffs and a government shutdown, and exited the UK market, divesting Cromwell and closing Zoro UK.

  • Advanced digital, AI, and data initiatives, expanded product assortment, and invested in new distribution centers in the U.S. and Japan.

  • Recognized as a top employer and for ethical business practices, supporting a strong workplace culture.

Financial highlights

  • FY 2025 sales reached $17.9B, up 4.5% year-over-year; operating margin was 15.0% adjusted (down 50 bps); diluted EPS was $39.48 adjusted (up 1.3%).

  • Q4 2025 sales were $4.43B, up 4.5%; operating margin was 14.3%, down 70 bps; diluted EPS was $9.44, down 2.8%.

  • Gross margin for FY 2025 was 39.1%, down 30 bps due to tariff headwinds; Q4 gross margin was 39.5%, down 10 bps.

  • ROIC for FY 2025 was 39.1%; operating cash flow was $2.0B; $1.5B returned to shareholders via dividends and buybacks.

Outlook and guidance

  • 2026 net sales expected at $18.7–$19.1B, with daily organic constant currency sales growth of 6.5%–9.0%.

  • High-Touch Solutions segment projected to grow 5%–7.5%; Endless Assortment to grow 12.5%–15%.

  • 2026 operating margin guidance: 15.4%–15.9%, with EPS expected at $42.25–$44.75, up over 10% at midpoint.

  • CapEx planned at $550M–$650M; $1B in share repurchases; anticipated high single-digit to low double-digit dividend increases.

  • Operating cash flow projected at $2.125–$2.325B.

Q4 2025 operating margin decline drivers?
FY25 gross margin decline: specific causes?
UK market exit impact on FY25 reported earnings?
Multifactor MRO model: implications for market?
Seller adds and KeepStock: 2026 outgrowth impact?
Q1 gross margin: reasons for sequential decline?
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Frequently asked questions

Maintenance, Repair, and Operating Products

W.W. Grainger, Inc., most commonly referred to simply as Grainger, is an American company specializing in maintenance, repair, and operating (MRO) products. The company primarily operates in North America, offering products that include electrical and lighting equipment, material handling tools, and safety gear. The company supports its distribution through a combination of online platforms and a network of physical branches, facilitating timely delivery and accessibility of products. It is headquartered in Lake Forest, Illinois, and its shares are listed on the NYSE.

William Wallace Grainger

W.W. Grainger was founded in 1927 by William Wallace Grainger in Chicago. The company started as a wholesale electric motor sales and distribution business, eventually expanding its product line to include other electric and industrial supplies, driven by the demand of the time. The company continued to grow in the decades following its establishment and went public in 1967. Following the IPO the company increased its product offerings substantially, with its distribution network growing in tandem. This focus on increasing its portfolio offerings and getting products to customers quickly has been an important piece of the company’s growth story and continues to be an important aspect of the company’s strategy.

Extensive Product Portfolio

Grainger offers a vast array of products, including but not limited to safety and security items, electrical and lighting equipment, power and hand tools, HVAC (heating, ventilation, and air conditioning) components, and much, much more. Grainger serves a wide customer base, ranging from individual contractors to large institutions and government entities. While it can be difficult to pinpoint exactly how vast the portfolio is, the entire product catalog contains well over one and a half million components.

Some other companies operating in the same sector are Fastenal, WESCO, and MSC Industrial.

The Distribution Network

The company operates an extensive distribution network, including large distribution centers and a network of branches. As previously mentioned, the company has a focus on being able to deliver its products directly to its customers in an efficient and timely manner, which in turn has led to the construction of a sophisticated logistics network. This network includes numerous distribution centers strategically located to optimize the delivery process. In addition to this, Grainger also has a significant online presence.

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