Grainger Reports First Quarter 2025 Results

W.W. Grainger, Inc., a leading broad line distributor with operations primarily in North America, Japan, and the United Kingdom, has released its financial results for the first quarter of 2025. The company reported a modest increase in sales and earnings per share, reaffirming its full-year guidance despite a challenging demand environment.

Financial Highlights

For the first quarter of 2025, Grainger reported:

• Sales of $4.3 billion, up 1.7% from the first quarter of 2024, or 4.4% on a daily, constant currency basis.
• Operating margin of 15.6%, a slight decrease of 20 basis points from the previous year.
• Diluted earnings per share (EPS) of $9.86, an increase of 2.5% compared to the first quarter of 2024.
• Operating cash flow of $646 million, with $380 million returned to shareholders through dividends and share repurchases.
• A 10% increase in the quarterly dividend.

Business and Operational Highlights

Grainger's performance was driven by mixed results across its segments:

• High-Touch Solutions - N.A. segment saw a slight decline in sales by 0.2%, but a 1.9% increase on a daily, constant currency basis.
• Endless Assortment segment experienced robust growth with a 10.3% increase in sales, or 15.3% on a daily, constant currency basis, driven by strong performance at MonotaRO and Zoro.

Gross profit margin improved to 39.7%, up 30 basis points from the previous year, with notable margin improvements in both segments.

Strategic Initiatives and Corporate Developments

During the quarter, Grainger continued to focus on shareholder returns and operational efficiency:

• Invested $125 million in capital expenditures.
• Returned $380 million to shareholders through dividends and share repurchases.
• Announced a 10% increase in the quarterly dividend.

Management's Perspective

D.G. Macpherson, Chairman and CEO, commented on the results: "Across both segments, our team kicked off 2025 by excelling at what we do best: delivering exceptional service, advancing our capabilities, and being a trusted partner for our customers. This focus on what truly matters has led to solid performance despite the continued muted demand environment."

Future Outlook

Grainger reaffirmed its full-year 2025 guidance, projecting:

• Net sales between $17.6 billion and $18.1 billion.
• Sales growth of 2.7% to 5.2%.
• Gross profit margin between 39.1% and 39.4%.
• Operating margin between 15.1% and 15.5%.
• Diluted EPS between $39.00 and $41.50.
• Operating cash flow between $2.05 billion and $2.25 billion.

SEC Filing: W.W. GRAINGER, INC. [ GWW ] - 8-K - May. 01, 2025